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ST GEORGE MINING LIMITED Interim / Quarterly Report 2020
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Interim / Quarterly Report
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29 January 2021
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2020
MT ALEXANDER PROJECT:
- Deeper diamond drilling intersects targeted mafic-ultramafic rocks over a strike of more than 5km, increasing the prospectivity for the discovery of further nickel-copper sulphides
- Multiple off-hole electromagnetic (EM) anomalies identified by downhole EM (DHEM) surveys in deeper drill holes
- New DHEM anomalies are the deepest identified in the Cathedrals Belt and situated upto 800m north-west of known nickel-copper sulphides, indicating outstanding potential for a new discovery of high-grade mineralisation
- Petrographic analysis of drill core confirms the presence of intrusive rocks at depth that are very favourable for hosting significant deposits of sulphide mineralisation
- Positive interim results from metallurgical test work underway in Canada on the shallow, highgrade Stricklands deposit
PATERSON PROJECT:
- Preparations underway for inaugural drill programme in Q2 2021 pending completion of heritage survey
- Multiple strong targets prospective for copper and gold mineralisation
St George Mining Limited (ASX: SGQ) ("St George" or "the Company") is pleased to present its Quarterly Activities Report for the quarterly period ended 31 December 2020.
MT ALEXANDER PROJECT:
Deeper drilling confirms prospective intrusive unit with strong EM conductors:
Eight deep diamond drill holes were completed in Q4 2020 as part of a deep drilling programme along the Cathedrals Belt that was launched in June 2020.
The drill holes were designed to test the large conductive structure identified by Magnetotelluric (MT) and Audio-magnetotelluric (AMT) surveys completed earlier in 2020, as well as new EM conductors identified by DHEM surveys in recent drill holes.
All deeper drill holes intersected mafic-ultramafic intrusive-style rocksthat are similar to those known to host high-grade massive nickel-copper sulphides at shallow depths along the Cathedrals Belt.
This intrusive unit has now been confirmed by drilling to extend for a strike of more than 5km in an east-west trend along the Cathedrals Belt and down-dip for at least 600m. The unit remains open in all directions.
Figure 1 illustrates that large target horizon of prospective intrusive rocks interpreted from the deeper drilling.
The drill hole data from MAD185, MAD192 and MAD193 was particularly significant, with each of these intersecting thick mafic-ultramafic rocks that included minor disseminated and blebby nickel-copper sulphides on the basal contact. Although not of economic grade, mineralisation of this kind is very significant as it may represent the halo around proximal massive sulphide mineralisation.
DHEM surveys in these drill holes successfully identified strong EM conductors that present as stand-out targets for massive sulphides. These include:
- MAD185 five EM conductors with the two highest priority targets modelled with conductivity of 33,100 Siemens and 14,225 Siemens, respectively
- MAD192 two EM conductors with modelled conductivity of 55,550 Siemens and 26,000 Siemens, respectively
- MAD193 four EM conductors with the two highest priority targets modelled with conductivity of 4,585 Siemens and 2,850 Siemens, respectively
A diamond rig arrived at Mt Alexander this week and drilling of the new EM conductors will start in the coming days.
Figure 1 – Orthographic view of the Cathedrals Belt showing the large interpreted target horizon, the new discoveries in recent drill holes including MAD192 and MAD193 as well as existing drilling and shallow massive nickel-copper sulphides discovered in previous drilling.
For further details on the deeper drilling and the new EM conductors, see our ASX Release dated 3 December 2020 Multiple New EM Conductors at Mt Alexander and ASX Release dated 21 October 2020 New 49,000 Siemens EM Conductor at Mt Alexander.
Figure 2 – plan view map (against MMR data) of the West End and western Investigators Prospect areas showing the location of the recent drill holes and the new EM plates modelled from the latest DHEM surveys.
Petrographic Analysis Confirms Favourable Intrusive Rocks:
Petrographic analysis was completed on drill core from MAD181, which was drilled at Investigators to a downhole depth of 794.5m and intersected a 49.45m thick mafic-ultramafic unit from 502.3m downhole.
Given the relatively intact and complete suite of interpreted mafic-ultramafic rocks intersected in MAD181, the drill hole provided an excellent opportunity to complete a detailed assessment of the rock types and sulphide mineralogy. These observations could be then used to interpret the potential source and further prospectivity for nickel-copper sulphide mineralisation.
Petrographic analysis was completed on seven samples of drill core across the interpreted intrusive interval. Polished thin sections of the core were examined using optical microscopy in transmitted and reflected light using an Olympus BH2 microscope.
The petrography was completed by Dr Ben Grguric, principal of Mineralium Pty Ltd and a mineralogist with industry leading credentials particularly in the field of nickel sulphide systems.
The petrology identified two main intrusive rocks – an upper leuconorite from 502.3m to 541m and a basal mela-olivine gabbronorite unit from 541m to 551.75m downhole. This is a suite of intrusive mafic and ultramafic rocks that is highly unusual in the Archean central Yilgarn where Mt Alexander is located, and typically found in Proterozoic provinces.
Norite and gabbronorite are typically associated with a large igneous event – the kind of geological event that is associated with the formation of very significant mineral deposits. In Western Australia, gabbronorite is known to be associated with significant nickel sulphide deposits at IGO's Nova Bollinger (ASX: IGO),
Panoramic's Savannah (ASX: PAN) and Oz Mineral's Nebo-Babel (ASX: OZL). The confirmation of gabbronorite at the Cathedrals Belt is a positive indicator for the potential of the mineral system to host a large volume of mineralisation.
The analysis also observed that the contact between the upper leuconorite and basal gabbronorite units in MAD181 was sharp and therefore likely to represent separate injections from a deeper magmatic chamber.
The potential for two or more magma pulses is very significant as large mineral deposits are typically formed through a dynamic emplacement environment where there have been multiple magma injections through the same conduit structures. Abundant country rock xenoliths were noted in the leuconorite, which also suggest a dynamic emplacement environment.
Small amounts of zinc-lead sulphides in addition to magmatic nickel-copper sulphides were observed in the mineralisation of MAD181. This suggests contamination with sedimentary sulphides or volcanic massive sulphides (VMS), which typically occurs if the sulphide mineralisation has a deep source.
Mineralisation sourced from magmatic plumbing at depth is indicative of a large mineral system with potential to host significant volumes of mineralisation.
This further supports the prospectivity of the Cathedrals Belt for the discovery of larger nickel-copper sulphide deposits at depth or in other parts of the project tenure.
Figure 3 - Detail of recrystallised magmatic sulphide in MAD181 at 551.1m downhole seen under microscope and reflected light (field of view is 0.6mm). Sulphides consist of millerite (mill) and chalcopyrite (cp) intergrown with blades of actinolitetremolite (act). The presence of magmatic sulphides supports the potential for significant deposits of sulphide mineralisation in other parts of the large intrusive system.
Positive Results from Interim Metallurgical Test Work for Stricklands:
Interim results on metallurgical test work on the shallow, high-grade deposit at Stricklands are very positive.
XPS (Expert Process Solutions), based in Sudbury in Canada, is completing the test work on the metallurgical performance of the Stricklands mineralisation and will also develop a flowsheet for the potential mining and processing of the Stricklands ore.
Interim results indicate:
- The combined oxide and fresh composite is amenable to the production of separate nickel and copper concentrates from conventional flotation circuits
- Overall copper recoveries of 91% to 93%
- Overall nickel recoveries of 73% to 84%
- Talc up to 1% to 1.5%, which can be suppressed in the flotation process
Further drill core samples will be air-freighted to Canada to enable completion of the test work.
Final test work is critical to the scoping study for Stricklands and is required for the resource estimate, the mine design and development, the mining production schedules and the completion of financial modelling.
Completed Deeper Drilling:
Drill hole details for all the holes completed as part of the diamond drill programme in 2020 are shown in Table 1. MAD185 to MAD193 (inclusive) were drilled in Q4 2020.
| Hole ID | Prospect | East | North | RL | Depth | Azi | Dip |
|---|---|---|---|---|---|---|---|
| MAD179 | Investigators | 230928 | 6806709 | 418 | 351.9 | 180 | -70 |
| MAD180 | Investigators | 231439 | 6807031 | 423 | 850 | 180 | -90 |
| MAD180W1 | Investigators | 231442.0 | 6806869.6 | -71.6 | 357.1 | 180 | -70 |
| MAD181 | Investigators | 231726 | 6807301 | 425 | 794.5 | 180 | -65 |
| MAD182 | Cathedrals | 233960 | 6807824 | 412 | 700.4 | 170 | -65 |
| MAD183 | Fairbridge | 233095.0 | 6807173.3 | 415 | 693.5 | 180 | -65 |
| MAD184 | West End | 230606 | 6806836 | 415 | 497.8 | 180 | -75 |
| MAD185 | Investigators | 230930 | 6806710 | 418 | 361.2 | 154 | -72 |
| MAD186 | Cathedrals | 233418 | 6807161 | 425 | 399.6 | 180 | -70 |
| MAD187 | West End | 230201 | 6806550 | 414 | 253 | 180 | -65 |
| MAD188 | Stricklands | 232665.1 | 6807061 | 430 | 600.4 | 196 | -65 |
| MAD189 | Investigators | 230958 | 6806968 | 421 | 501.9 | 180 | -65 |
| MAD190 | Investigators | 231570 | 6806620 | 425 | 240.7 | 180 | -70 |
| MAD191 | Investigators | 231718 | 6806600 | 427 | 280 | 180 | -70 |
| MAD192 | West End | 230610 | 6806836 | 414 | 500 | 165 | -77 |
| MAD193 | West End | 230608 | 6806836 | 414 | 487.7 | 175 | -77 |
Table 1 – Drill hole details for diamond holes completed in the 2020 deeper drilling campaign.
Assay results for these diamond drill holes are contained in Table 2. Holes not listed in Table 2 returned no significant intersection of mineralisation.
Although the assays indicate low-grade metal values, mineralisation includes the usual polymetallic suite of magmatic sulphides typically intersected in the Cathedrals Belt with nickel, copper, cobalt and PGEs.
The presence of magmatic sulphides throughout the mafic-ultramafic intrusives along the Belt, even in low amounts, confirms the prospectivity and wide-spread nature of the mineralisation event.
The presence of sulphide mineralisation also supports the potential for stronger mineralisation along strike from these intersections and elsewhere in the large intrusive system.
The very strong EM conductors identified nearby to these low-grade intersections are outstanding targets for this kind of stronger mineralisation.
| Hole ID | From | To | Width | Ni_pct | Cu_ppm | PGEs_ppb | Au_ppb | Co_ppm |
|---|---|---|---|---|---|---|---|---|
| MAD181 | 544 | 548.7 | 4.7 | 0.16 | 192 | 62.5 | 10.1 | 103.2 |
| MAD183 | 364.5 | 365.25 | 0.75 | 0.11 | 377 | 74.0 | 3.0 | 90.0 |
| MAD184 | 464 | 466.15 | 2.15 | 0.12 | 199 | 70.1 | 16.3 | 89.8 |
| MAD184 | 466.53 | 466.91 | 0.38 | 0.11 | 163 | 89.0 | 42.0 | 68.0 |
| MAD185 | 313 | 326.2 | 13.2 | 0.23 | 521 | 170.0 | 17.4 | 126.3 |
| MAD192 | 470 | 471.18 | 1.18 | 0.11 | 81 | 41.2 | 2.5 | 84.6 |
| MAD192 | 472.65 | 473.12 | 0.47 | 0.24 | 2720 | 876.0 | 105.0 | 38.0 |
| MAD193 | 463 | 466.12 | 3.12 | 0.13 | 377 | 82.7 | 3.7 | 84.9 |
Table 2 – assay results for diamond drill holes completed in 2020.
PATERSON PROJECT:
An inaugural drill campaign has been designed to test high priority targets at the Paterson Project which have been assessed by our technical team as prospective for base metals and gold. A Programme of Works for this drill campaign has been approved by the Department of Mines, Industry Regulation and Safety. Drilling is subject to completion of a heritage survey, which is scheduled for Q1 2021.
The Paterson Province of Western Australia, particularly the North Paterson, is now one of the most active exploration frontiers in Australia. Exploration programs are underway by major mining companies such as Rio Tinto (ASX: RIO), Fortescue (ASX: FMG), OZ Minerals (ASX: OZL) and Newcrest (ASX: NCM).
Figure 4 – map showing St George's tenements in the Paterson Province as well as major mines and other exploration projects in the region.
EAST LAVERTON PROJECT:
Following a strategic review of the tenement package at East Laverton, St George decided to surrender a number of tenements in the large landholding of the Project. This has significantly reduced the Company's minimum expenditure obligations for the East Laverton Project.
Exploration planning is in progress for the remaining East Laverton tenements to test for potential base and precious metals.
CORPORATE:
Annual General meeting of shareholders:
The Annual General Meeting of Shareholders was held on 25 November 2020. The agenda for the Meeting is contained in the Notice of Meeting dated 21 October 2020.
All resolutions proposed at the Meeting were approved.
Expiry of Listed Options:
The Company's Listed Options (ASX: SGQOB) expired on 30 September 2020.
As at the expiry date, 24,521,817 Listed Options remained unexercised and expired. 54,279 Listed Options had been exercised before the expiry date. Following this, the Company's capital structure is as follows:
- Fully Paid Ordinary Shares 503,543,376
- Unlisted Options ex $0.15 on or before 31 July 2022 2,500,000
- Unlisted Performance Rights (various exercise dates and milestones) 297
COVID -19:
St George is managing its operations in compliance with COVID-19 regulations issued by State and Commonwealth authorities. We will continue to proactively manage drilling and other field programmes to protect the health and safety of our team and service providers.
Border restrictions in Western Australia and elsewhere have impacted on the movement of personnel for drill rig crews, which is constraining the availability of drill rigs. St George is in close contact with its drilling contractors to best manage access and continuity to drilling services.
Restrictions on international travel as well as lockdowns in parts of Canada have impacted on the timing for completion of metallurgical test work underway in Canada. St George is working closely with its service provider to progress the test work with minimal delays.
APPENDIX 5B:
An Appendix 5B – Quarterly Cash Flow Report for the quarter ended 30 September 2020, accompanies this Activities Report.
St George provides the following information in relation to payments to related parties and their associates, as required by section 6.1 of the Appendix 5B. During the quarter ended 31 December 2020, a total of $152,000 was paid to the Directors' of the Company as remuneration.
TENEMENT INFORMATION:
Details of the Company's tenement holdings are listed below. There were no changes to the tenement holdings during the quarter other than as mentioned below.
East Laverton Project
Nine Exploration Licences were surrendered during the quarter to leave the Company with 100% ownership of nine granted Exploration Licences at the East Laverton Project.
Mt Alexander Project
St George has 100% ownership of six granted Exploration Licences E29/548, E29/962, E29/954, E29/972, E29/1041 and E29/1093.
Exploration Licence E29/638 is held in joint venture between St George (75%) and Western Areas (25%).
Hawaii Project
Post the end of the quarter, St George surrendered Exploration Licence E36/741 at the Hawaii Project.
Paterson Project
St George has 100% ownership of two Exploration Licences.
COMPETENT PERSON STATEMENT:
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves for the Mt Alexander Project is based on information compiled by Mr Dave O'Neill, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O'Neill is employed by St George Mining Limited to provide technical advice on mineral projects, and he holds performance rights issued by the Company.
Mr O'Neill has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr O'Neill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Authorised for release by the Board of St George Mining Limited.
This ASX announcement contains information extracted from the following reports which are available on the Company's website at www.stgm.com.au:
- 1 April 2020 Breakthrough Results at Mt Alexander
- 8 April 2020 Strong Results at Paterson Province Hotspot
- 22 April 2020 MT Survey Continues to Unlock Mt Alexander
- 22 May 2020 St George Starts Major Drilling Campaign
- 5 June 2020 St George Steps Up Drilling at Mt Alexander
- 2 July 2020 Mt Alexander – Drilling Update
- 23 July 2020 Mt Alexander – Drilling Update
- 13 August 2020 Mt Alexander – Drilling Update
- 27 August 2020 Thick Mineralised Unit Intersected at Investigators
- 9 September 2020 More Thick Intercepts of Mineralised Units
- 14 September 2020 Excellent Metallurgical Results for Mt Alexander
- 21 October 2020 New 49,000 Siemens EM Conductor at Mt Alexander
- 3 December 2020 Multiple New EM Conductors at Mt Alexander
- 21 December 2020 Mt Alexander Exploration and Development Update
The Company confirms that it is not aware of any new information or data that materially affects the exploration results included in any original market announcements referred to in this report and that no material change in the results has occurred. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.
Authorised for release by the Board of St George Mining Limited.
For further information, please contact:
John Prineas Executive Chairman St George Mining Limited +61 (0) 411 421 253 [email protected] Peter Klinger Media and Investor Relations Cannings Purple +61 (0) 411 251 540 [email protected]
TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3
Other than as detailed in the body of the Quarterly Activities Report and in the table below, no tenements, in part or whole, were relinquished, surrendered or otherwise divested during the quarterly period ended 31 December 2020.
EAST LAVERTON:
| Tenement | Registered Holder | Location | Ownership | Change in Quarter |
|---|---|---|---|---|
| ID | (%) | |||
| E39/0981 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/0982 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/0985 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1229 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1472 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1475 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1476 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1467 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1492 | Desert Fox Resources Pty Ltd | East Laverton Property | 0 | Surrendered |
| E39/1518 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/1520 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/1572 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/1608 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/1667 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/2027 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/2028 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/2029 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
| E39/2030 | Desert Fox Resources Pty Ltd | East Laverton Property | 100 | N/A |
MT ALEXANDER/HAWAII:
| Tenement | Registered Holder | Location | Ownership | Change in Quarter |
|---|---|---|---|---|
| ID | (%) | |||
| E29/638 | Blue Thunder Resources Pty Ltd | Mt Alexander | 75 | N/A |
| E29/548 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E29/954 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E29/962 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E29/972 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E29/1041 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E29/1093 | Blue Thunder Resources Pty Ltd | Mt Alexander | 100 | N/A |
| E36/741 | Blue Thunder Resources Pty Ltd | Hawaii | 100 | N/A |
PATERSON:
| Tenement | Registered Holder | Location | Ownership | Change in Quarter |
|---|---|---|---|---|
| ID | (%) | |||
| E45/5226 | St George Mining Limited | Paterson | 100 | N/A |
| E45/5422 | St George Mining Limited | Paterson | 100 | N/A |
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Name of entity | |
|---|---|
| St George Mining Limited | |
| ABN | Quarter ended ("current quarter") |
| 21 139 308 973 | 31 December 2020 |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(6 months)$A'000 | |
|---|---|---|---|
| 1. | Cash flows from operating activities | ||
| 1.1 | Receipts from customers | ‐ | ‐ |
| 1.2 | Payments for | ||
| (a)exploration & evaluation | (2,511) | (4,046) | |
| (b)development | ‐ | ‐ | |
| (c)production | ‐ | ‐ | |
| (d)staff costs | (336) | (593) | |
| (e)administration and corporate costs | (162) | (468) | |
| 1.3 | Dividends received (see note 3) | ‐ | ‐ |
| 1.4 | Interest received | 4 | 9 |
| 1.5 | Interest and other costs of finance paid | ‐ | ‐ |
| 1.6 | Income taxes paid | ‐ | ‐ |
| 1.7 | Government grants and tax incentives | 12 | 170 |
| 1.8 | Other (provide details if material) | 53 | 86 |
| 1.9 | Net cash from / (used in) operating activities | (2,940) | (4,842) |
| 2. | Cash flows from investing activities | |||
|---|---|---|---|---|
| 2.1 | Payments to acquire or for: | |||
| (a) | entities | ‐ | ‐ | |
| (b) | tenements | ‐ | (36) | |
| (c) | property, plant and equipment | ‐ | ‐ | |
| (d) | exploration & evaluation | ‐ | ‐ | |
| (e) | investments | ‐ | ‐ | |
| (f) | other non‐current assets | ‐ | (20) |
| Appendix 5B | |
|---|---|
| Mining exploration entity or oil and gas exploration entity quarterly cash flow report |
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(6 months)$A'000 | |
|---|---|---|---|
| 2.2 | Proceeds from the disposal of: | ||
| (a)entities | ‐ | ‐ | |
| (b)tenements | ‐ | ‐ | |
| (c)property, plant and equipment | ‐ | ‐ | |
| (d)investments | ‐ | ‐ | |
| (e)other non‐current assets | ‐ | ‐ | |
| 2.3 | Cash flows from loans to other entities | ‐ | ‐ |
| 2.4 | Dividends received (see note 3) | ‐ | ‐ |
| 2.5 | Other (provide details if material) | ‐ | ‐ |
| 2.6 | Net cash from / (used in) investing activities | ‐ | (56) |
| 3. | Cash flows from financing activities | ||
|---|---|---|---|
| 3.1 | Proceeds from issues of equity securities(excluding convertible debt securities) | ‐ | ‐ |
| 3.2 | Proceeds from issue of convertible debtsecurities | ‐ | ‐ |
| 3.3 | Proceeds from exercise of options | ‐ | ‐ |
| 3.4 | Transaction costs related to issues of equitysecurities or convertible debt securities | ‐ | ‐ |
| 3.5 | Proceeds from borrowings | ‐ | ‐ |
| 3.6 | Repayment of borrowings | ‐ | ‐ |
| 3.7 | Transaction costs related to loans andborrowings | ‐ | ‐ |
| 3.8 | Dividends paid | ‐ | ‐ |
| 3.9 | Other (provide details if material) | ‐ | ‐ |
| 3.10 | Net cash from / (used in) financing activities | ‐ | ‐ |
| 4. | Net increase / (decrease) in cash and cashequivalents for the period | ||
|---|---|---|---|
| 4.1 | Cash and cash equivalents at beginning ofperiod | 6,332 | 8,290 |
| 4.2 | Net cash from / (used in) operating activities(item 1.9 above) | (2,940) | (4,842) |
| 4.3 | Net cash from / (used in) investing activities(item 2.6 above) | ‐ | (56) |
| 4.4 | Net cash from / (used in) financing activities(item 3.10 above) | ‐ | ‐ |
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Current quarter$A'000 | Year to date(6 months)$A'000 | |
|---|---|---|---|
| 4.5 | Effect of movement in exchange rates on cashheld | ‐ | ‐ |
| 4.6 | Cash and cash equivalents at end of period | 3,392 | 3,392 |
| 5. | Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts | Current quarter$A'000 | Previous quarter$A'000 |
|---|---|---|---|
| 5.1 | Bank balances | 70 | 208 |
| 5.2 | Call deposits | 3,322 | 6,124 |
| 5.3 | Bank overdrafts | ‐ | ‐ |
| 5.4 | Other (provide details) | ‐ | ‐ |
| 5.5 | Cash and cash equivalents at end of quarter(should equal item 4.6 above) | 3,392 | 6,332 |
| 6. | Payments to related parties of the entity and their associates | Current quarter$A'000 |
|---|---|---|
| 6.1 | Aggregate amount of payments to related parties and their associatesincluded in item 1 | 152 |
| 6.2 | Aggregate amount of payments to related parties and their associatesincluded in item 2 | ‐ |
| Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for,such payments. |
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| 7. | Financing facilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of the sourcesof finance available to the entity. | Total facility amountat quarter end$A'000 | Amount drawn atquarter end$A'000 |
|---|---|---|---|
| 7.1 | Loan facilities | ‐ | ‐ |
| 7.2 | Credit standby arrangements | ‐ | ‐ |
| 7.3 | Other (please specify) | ‐ | ‐ |
| 7.4 | Total financing facilities | ‐ | ‐ |
| 7.5 | Unused financing facilities available at quarter end | ‐ | |
| 7.6 | Include in the box below a description of each facility above, including the lender, interest rate,maturity date and whether it is secured or unsecured. If any additional financing facilities have beenentered into or are proposed to be entered into after quarter end, include a note providing detailsof those facilities as well. | ||
| Not Applicable |
| 8. | Estimated cash available for future operating activities | $A'000 |
|---|---|---|
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (2,940) |
| 8.2 | (Payments for exploration & evaluation classified as investing activities)(item 2.1(d)) | ‐ |
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) | (2,940) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) | 3,392 |
| 8.5 | Unused finance facilities available at quarter end (item 7.5) | |
| 8.6 | Total available funding (item 8.4 + item 8.5)3,392 | |
| 8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) | 1.15 |
| Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | ||
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions:8.8.1Does the entity expect that it will continue to have the current level of net operating cashflows for the time being and, if not, why not? | |
| Answer: The net cash outflow in Q1 2021 is expected to be significantly less than in Q4 2020 due tocomparatively less drilling costs. The Company is reviewing its operations to ensureactivities are within its funding abilities. | ||
| 8.8.2Has the entity taken any steps, or does it propose to take any steps, to raise further cash tofund its operations and, if so, what are those steps and how likely does it believe that theywill be successful? | ||
| Answer: The Company is reviewing various funding opportunities in the equity and debt capitalmarkets as well as with potential strategic investors. The Company is confident of raisingnew funds as appropriate to fund its operations. |
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
Answer: Yes, the Company expects to be able to continue its operations and meet its business objectives.
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.
Compliance statement
- 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
- 2 This statement gives a true and fair view of the matters disclosed.
Date: 29 January 2021
Authorised by: Sarah Shipway
Non‐Executive Director/Company Secretary (Name of body or officer authorising release – see note 4)
Notes
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- This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
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- If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
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- Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
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- If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
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- If thisreport has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.