RAND MINING LIMITED — Interim / Quarterly Report 2016

Jul 26, 2016

Quarterly Report for June 2016

Highlights

ASX ANNOUNCEMENT

27 July 2016

Australian Securities Exchange Code: RND

• During the quarter, 256,233 tonnes of EKJV ore were processed at the Kanowna Plant.

• 28,398.340 oz of gold and 6,054.796 oz of silver were credited to Rand and Tribune Bullion Accounts.

(Rand’s share is 25%)

Board of Directors:

Mr Otakar Demis Chairman and Joint Company Secretary

Mr Anton Billis Managing Director

Mr Gordon Sklenka Non-Executive Director

Mr Roland Berzins Joint Company Secretary

• At the end of the quarter;

	EKJV STOCKPILES
ROM pad	Ore Source	Ore	Grade	Rand’s Entitlement
		t	g/t Au	%
Raleigh	Raleigh	9,200	9.62	12.50
Rubicon	Rubicon&Hornet	23,822	4.97	12.25
Pegasus	Pegasus	‐	‐	12.25
Kanowna Belle	Raleigh	1,355	9.62	12.50
Kanowna Belle	Rubicon & Hornet	39,064	6.52	12.25
KanownaBelle	Pegasus	38,560	10.06	12.25

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Suite G1, 49 Melville Parade
South Perth WA 6151
T: +61 8 9474 2113
F: +61 8 9367 9386
E: info@randmining.com.au
W: www.randmining.com.au
ABN: 41 004 669 658
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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 5864, 5847, 5761, 5705, 5654, 5631 and 5614 levels at Raleigh continued during the quarter.

Contained gold in stope development and stope ore mined during the quarter, estimated by grade control face chip sampling, is tabulated below:

RALEIGH UNDERGROUND		GRADE CONTROL ESTIMATES
**Month **	Tonnes	Grade	Ounces
	t	g/t	**troy oz **
April	13,325	7.16	3,067
May	16,099	6.99	3,617
June	13,257	9.32	3,971
June 16 Q	**42,681 **	7.8	10,655
March 16 Q	41,556	10.9	14,622

Rand’s Entitlements (12.5%)

June16 Q	5,335	7.8	**1,332 **
March 16 Q	5,195	10.9	1,828

Raleigh Underground Mine Development

At the end of the quarter, the bottom of the Raleigh Decline is at 5618 m RL, 727 m from the surface.

Development of the Skinners structure progressed on the 5949, 5932, 5915, 5898 and 5830 levels. Development associated with the extraction of the Crown Pillar continues on the 6212 level.

	RALEIGH UNDERGROUND DEVELOPMENT
**Month **	**Capital **			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
April	0.0	0.0	8.8	155.4	21.0
May	0.0	0.0	11.6	218.5	12.0
June	0.0	0.0	40.7	181.7	13.0
June 16 Q	0.0	0.0	61.1	555.6	46.0
March 16 Q	0.0	0.0	99.6	377.3	84.6

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The diagrams below show the status of the mine at the end of each month of the quarter.

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April 16 Green indicates new development at Raleigh
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May 16 Green indicates new development at Raleigh
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June 16 Green indicates new development at Raleigh

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Mine operating costs, incurred by the EKJV during the June 2016 Quarter were $97 per tonne mined or $388 per ounce mined compared with the March 2016 Quarter costs of $122 and $348 respectively.

Rubicon Underground Mine Production

Development progressed on the 5995, 5975, 5955 and 5935 levels at Rubicon, on the 5845, 5825, 5805 and 5785 levels at Hornet and the 6210, 6190, 6050, 6030, 6010, 5990 and 5970 levels at Pegasus. Stope production from the Rubicon 5975 level, the Hornet 5925, 5905, 5885 and 5865 levels and the Pegasus 6170, 6150, 6130, 6110, 6090, 6050 and 6030 levels continued during the quarter.

Contained gold in stope development mined during the quarter, estimated by grade control face chip sampling, is tabulated below:

	UNDERGROUNDGRADECONTROL ESTIMATES
ORE BODY	RUBICON & HORNET				PEGASUS
**Month **	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	**troy oz **	t	g/t	**troy oz **
April	34,344	6.72	7,417	30,943	10.82	10,768
May	41,775	4.79	6,430	41,106	8.80	11,624
June	38,631	6.29	7,812	40,829	9.70	12,738
June 16 Q	114,750	5.9	21,659	112,878	9.7	35,130
March 16 Q	110,337	7.4	26,399	86,054	8.4	23,413
Rand’s Entitlements (12.25%)
June 16 Q	14,057	5.9	2,653	13,828	9.7	4,303
March 16 Q	13,516	7.4	3,234	10,542	8.4	2,868

Rubicon Underground Mine Development

During the quarter, decline development at Rubicon, Hornet and Pegasus continued. At the end of the quarter, the bottom of the Rubicon Decline is at 5912 m RL, 431 m from the surface, the bottom of the Hornet Decline is at 5768 m RL, 575 m from the surface, the top of the Pegasus Incline is at 6236 m RL, 107 m from the surface and the bottom of the Pegasus Decline is at 5937 m RL, 406 m from the surface.

	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT
ORE BODY	RUBICON & HORNET					PEGASUS
Month	Capital		Operating			Capital			Operating
	Decline	Other	Waste	Ore	Paste	Decline	Other	Waste	Ore	Paste
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)
April	73.7	147.2	0.0	359.6	24.0	86.7	160.2	0.0	193.7	12.0
May	35.3	240.3	0.0	363.7	36.0	153.8	127.9	0.0	375.7	24.0
June	73.1	242.1	0.0	373.0	24.0	153.5	110.7	0.0	282.8	12.0
June 16 Q	182.1	629.6	0.0	1,096	84.0	394.0	398.8	0.0	852.2	48.0
March 16 Q	306.3	295.0	0.0	1,051	82.0	258.5	285.8	0.0	804.6	45.0

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The diagrams below show the status of the mine at the end of each month of the quarter.

April 16 Green indicates new development at Rubicon, Hornet and Pegasus

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May 16 Green indicates new development at Rubicon, Hornet and Pegasus

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June 16 Green indicates new development at Rubicon, Hornet and Pegasus

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Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during June 2016 Quarter were $104 per tonne mined or $549 per ounce mined compared with the March 2016 Quarter costs of $105 and $441 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during June 2016 Quarter were $97 per tonne mined or $311 per ounce mined compared with the March 2016 costs of $106 and $389 respectively.

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Toll Processing

**EKJV Ore **	hauled to Kanowna Belle (tonnes‐wet)	hauled to Kanowna Belle (tonnes‐wet)	hauled to Kanowna Belle (tonnes‐wet)
**Quarter **	**Raleigh **	**Rubicon **	Pegasus
June 16	51,900	101,989	94,866
March 16	43,199	105,126	66,797

During the quarter, 256,233 tonnes of EKJV ore were processed.

Bullion accredited to RANDand TRIBUNE	Bullion accredited to RANDand TRIBUNE	Bullion accredited to RANDand TRIBUNE	from Kanowna Belle
**Quarter **	**Gold (oz) **	Silver (oz)	Rand’s share gold
June 16	28,398.340	6,054.796	**7,099.584 **
March 16	28,484.833	5,395.148	7,121.208

EKJV Exploration

Resource and exploration drilling at Hornet, Pegasus and Raleigh South continued to generate strong high‐grade results during the quarter.

Significant drilling results revealing a continuous 2km‐long ore body at Kundana, were released to the ASX on 7 April 2016 and the June Quarterly EKJV Exploration Report was released to the ASX on 20 July 2016.

OTHER EXPLORATION

Seven Mile Hill Joint Venture (Rand’s Interest 50%)

The current drilling programme has been completed. No material results have been received. A new drilling programme is being planned.

Tapeta Iron Ore Project, Liberia, West Africa

Drilling has recommenced. Any material results will be announced when assays become available.

A detailed report reviewing all drill results is expected shortly and will be released to ASX when received.

CORPORATE

Securities on issue

No securities were cancelled under the Company’s current Share Buy – Back plan during the quarter ended 30 June 2016.

The number of securities on issue as at 30 June 2016 is 60,148,475.

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INTERESTS IN MINING TENEMENTS

Project/Tenements	Location	Held at end of quarter	Acquired during the **quarter **	Disposed during the quarter
Kundana	WA, Australia
M15/1413 M15/993 M16/181 M16/182 M16/308 M16/309 M16/325 M16/326 M16/421 M16/428 M24/924		12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25%
Seven Mile Hill M15/1233 M15/1234 M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 M26/563 P15/5182 P15/5183 P15/5184 P26/3617	WA, Australia	50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%		Surrendered 30 May 2016
Tapeta Iron Ore Project (currently under option to acquire issued capital of Iron Resources Ltd, the owner of the project)	Liberia, West Africa	100% (under option)

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RAND MINING LTD ASX ANNOUNCEMENT | 27 JULY 2016

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

	Name of entity		Quarter ended (“current quarter”) 30 June 2016	Quarter ended (“current quarter”) 30 June 2016
	Rand Mining Ltd
	ABN 41 004 669 658 Consolidated statement of cash flows
			30 June 2016
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows			Current quarter $A’000	Year to date (12 months) $A’000
			10,143 (352) (1,102) (4,981) (526) ‐ ‐ 5 (7) (1,390) ‐	32,090 (2,051) (3,830) (18,273) (1,004) ‐ 24 (19) (2,928) ‐
			1,790	4,009
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid to other entities 1.12 Loans repaid by other entities Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			‐ (199) (534) ‐ ‐ ‐ ‐ ‐ ‐	‐ (199) (2,232) ‐ ‐ ‐ ‐ ‐ ‐
			(733)	(2,431)
			1,057	1,578

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)	1,057	1,578
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – Share buy‐back Net financing cash flows	‐ ‐ ‐ (87) ‐ ‐	‐ ‐ ‐ (239) ‐ ‐
	(87)	(239)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	970 2,781 ‐	1,339 2,412 ‐
	3,751	3,751

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		(49)
		‐
1.25	Explanation necessaryfor an understandingof the transactions
	(1) Directors fees and superannuation (included in administration 1.2(d)) (35) (2) Royalty payment (included in production 1.2(c)) (3) (3) Rent payment (included in administration 1.2(d)) (11) (4) Purchase of 31,615 shares in Tribune Resources Ltd (included in purchases of equity investments 1.8) (199)

Non‐cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Not applicable

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not applicable

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	‐	‐
	‐	‐

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	500
	1,200
	4,000
	500
Total	6,200

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	3,751	2,781
5.2 Deposits at call	‐	‐
5.3 Bank overdraft	‐	‐
5.4 Other (provide details)	‐	‐
Total: cash at end of quarter(item 1.22)	3,751	2,781

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	P26/3617	Joint Venture	50%	Nil

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy‐ backs	60,148,475	60,148,475
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

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7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 27 July 2016 (Director) Print name: Anthony Billis

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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