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STRIKE RESOURCES LIMITED Interim / Quarterly Report 2006
65855_rns_2006-10-31_9a750c4f-d84c-4371-8296-7fd2bcb3dbdb.pdf
Interim / Quarterly Report
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KI KILLER RESOURCES LIMITED
30 SEPTEMBER 2006 OUARTERLY REPORT
SUMMARY OF ACTIVITIES IN SEPTEMBER 2006 QUARTER
2 July 2006 -Strike retains a right to earn a 51% (or greater) interest in the Apurimac Project or the Cuzco Project or both (at Strike's election) through the acquisition of up to a 51% (or greater) shareholding in Apurimac Ferrum S.A. (AF) a Peruvian company that will hold one or both projects, under agreement with AF and Agreement between Minera los Andes y el Pacifico S.A. (MAPSA) and D&C group $S.A.C (DEC).$
14 July 2006 - Appointment of William Johnson as Non-Executive Director.
17 July 2006 - Company seeks extension of due diligence period from 15 July to 30 November 2006 on KP2 thermal coal concession in East Kalimantan (Indonesia) - the confirmation of which was not received and accordingly, the Company did not proceed with this coal project
17 July 2006 - Mapping and sampling at Paulsen East P47/1170 (West Pilbara, WA) indicates the presence of high grade hematite mineralisation (hematite conglomerate in hematite matrix) as a ridge rising up to ~60m above the valley floor, extending for a strike distance of ~3,000m and varying in width from 6 to 12m in a single and continuous outcrop.
25 July 2006 - Strike believes the granite and Proterozoic sandstone hills that drain into the Hinkler Well palaeo channel (situated in Strike's Mt Lawrence Wells project tenements (East Murchison, WA)) are the source for uranium mineralisation in the Hinkler Well tenements of U308 Limited.
9 October 2006 - Completion of satisfactory due diligence investigations into Apurimac Ferrum (AF) and the Apurimac and Cuzco Iron-Ore Projects in Peru. Strike expects to make its initial equity investment into AF upon receipt of confirmation that the transfer of titles to the Project tenements (previously held by MAPSA) has been officially recorded in the Cuzco Public Registry in the name of AF - expected to be completed within 2 to 6 weeks.
For further information: Shanker Madan Managing Director T | (08) 9214 9700 E | [email protected]
Registered Office:
Level 14, The Forrest Centre 221 St Georges Terrace Perth, Western Australia 6000
T | (08) 9214 9700
F | (08) 9322 1515 $E + [email protected]$
W | www.strikeresources.com.au
CHALLENGES FOR DECEMBER 2006 QUARTER
Peru - Upon receipt of confirmation that the transfer of titles to Apurimac and Cuzco Iron-Ore Project tenements has been officially recorded in the Cuzco Public Registry in the name of Apurimac Ferrum expected to be completed in November 2006 - Strike will undertake its initial equity investment in Apurimac Ferrum with the funds invested being immediately applied towards an exploration and evaluation programme involving:
- a detailed gravity survey over existing outcrops and over large known magnetic anomalies in the Cuzco Project areas followed by drilling to determine a JORC compliant resource estimate for this project area;
- additional drilling to determine JORC compliant resource estimates within the Opaban I and the other 19 tenements in the Apurimac Project areas;
- additional drilling to gain further confidence and improve the quality of the JORC resource estimate at the Opaban III tenement in the Apurimac Project area.
Paulsens East - Strike will undertake the following studies to advance the possibility of producing and shipping 500,000 tonnes of high grade iron for an early cash flow:
- Heritage Survey, gravity survey, drilling, analyses, resource estimation and mining studies.
- Transport studies to truck the ore from mine to Dampier.
The Company will also continue negotiations with the Dampier Port Authority to gain access to stockpile layout area and shipping birth at the Bulk Jetty and conduct infrastructure studies for shipping.
West Java Banten (Indonesia) - Strike is exploring for porphyry copper and stock work gold mineralisation in the area. Strike will conduct additional sampling and IP surveys in the area during the quarter.
Victor Ho Company Secretary T | (08) 924 9700
A, B, N, 94 088 488 724
ASX Codes: SRK + SRKO
Share Registry:
Advanced Share Registry Services 110 Stirling Highway Perth, Western Australia 6009
T | (08) 9389 8033
F | (08) 9389 7871
COMPANY PROFILE
Strike Resources Limited (ASX Code: SRL) is an Australian based mineral exploration and development company with a prospective portfolio of mineral exploration projects in Australia, Peru and Indonesia:
- $(1)$ Apurimac and Cuzco (Peru) - Iron-Ore
- $(2)$ Paulsens East (West Pilbara, Western Australia) - Iron-Ore and Gold
- $(3)$ Bigrlyi South (Northern Territory) - Uranium
- $(4)$ Mt James (Gascoyne, Western Australia) - Uranium
- $(5)$ Mt Lawrence Wells (East Murchison, Western Australia) - Uranium
- $(6)$ Canning Well (Pilbara, Western Australia) - Gold and Uranium
- West Java Banten (Indonesia) Copper/Gold $(7)$
The Board has members with extensive experience in the resources sector, including Chairman, Dr John Stephenson, previously Exploration Director for Rio Tinto Australasia with more than 35 years experience in the mineral exploration business, Managing Director, Mr H. Shanker Madan, an experienced senior geologist with more than 30 years of world-wide experience in the exploration and evaluation of mineral deposits for various commodities, and Professor Malcolm Richmond, who has 30 years experience with the Rio Tinto and CRA Groups in a number of positions including: Vice President, Strategy and Acquisitions, Managing Director, Research and Technology, Managing Director Development (Hamersley Iron Pty Limited).
CURRENT ISSUED CAPITAL
| 27 October 2006 | Quoted /To be Quoted | Not Quoted /Subject toEscrow | Total |
|---|---|---|---|
| Fully paid ordinary shares | 47,040,431 | 1,783,334 | 48,823,765 |
| $0.20 (30 June 2008) Options | 22,381,077 | 22,381,077 | |
| $0.20 (9 February 2011) Hume Options | 1,833,333 | 1,833,333 | |
| $0.30 (9 February 2011) Hume Options | ٠ | 1,666,667 | 1,666,667 |
| $0.96 (21 July 2011) Directors' Options | 4,600,000 | 4,600,000 | |
| $0.96 (13 September 2011) Directors'Options | 500,000 | 500,000 | |
| $1.20 (6 October 2011) Employee Options | 150,000 | 150,000 |
On 24 October 2006, the Company announced the completion of a $3 million share placement to institutional, professional and sophisticated investors and the undertaking of a $5 million Share Purchase Plan (SPP) at the same price ($1.30 per share).
Under the SPP, shareholders registered as at 7 November 2006 (the record date) will be eligible to apply for either $1,000, $3,000 or $5,000 of shares at an issue price of $1.30 per share.
The $3 million placement of 2,307,693 shares had not been allotted as at 27 October 2007 for inclusion in the above table.
Peruvian Iron-Ore Projects
The Company has secured the right to progressively earn a 51% or greater interest in potentially large high grade hematite and magnetite deposits in Peru - the Apurimac and Cuzco Projects through an investment in Apurimac Ferrum S.A. (AF), a Peruvian company that will hold the projects.
STRIKE RESOURCES LIMITED PERU IRON ORE PROJECTS LOCATION PLAN
Australian Projects
The Company has a 75% interest in a suite of uranium exploration tenement applications located principally in the northern part of the Ngalia Basin in the Northern Territory together with a 75% interest in a series of further tenement interests in Western Australia.
In addition, the Company has secured interests in further tenements prospective for other mineral commodities and has also directly pegged tenements in Western Australia.
The Company's project areas in the Northern Territory and Western Australia are located in the geographic map below.
Indonesian Project
West Java Banten Copper/ Gold
The Company has entered into an agreement to acquire a 100% interest in a 5,601 hectare concession located approximately 100 kilometres south-west of Jakarta. The Company has identified epithermal gold veins, gold stock works and associated porphyry copper targets within the concession.
STRIKE RESOURCES LIMITED WEST JAVA BANTEN COPPER/GOLD PROJECT LOCATION PLAN
Apurimac and Cuzco Iron-Ore Projects (Peru) 1.
By agreement dated 2 July 2006 between the Company and Peruvian companies, Apurimac Ferrum S.A (AF), Minera los Andes y el Pacifico S.A. (MAPSA) and D&C Group S.A.C (D&C), the Company has secured the right to earn a 51% (or greater) interest in the Apurimac Project or the Cuzco Project or both (at the Company's election) through a progressive investment in AF (which will hold the projects) within a 5 year period.
Project summary details are as follows:
$(i)$ The Apurimac Project
- Based upon a report issued by the Peruvian Ministry of Energy and Mines: estimated resource of 730 million tonnes of high grade hematite and magnetite iron-ore grading at between 60 and 66% Fe, between 2 and 5% Silica and between 0.2 and 0.8% Alumina;
- 21 mining tenements having a total area of 18,488 hectares;
- Tenements are located close to the city of Andahuaylas in Peru's southern Andes.
$(ii)$ The Cuzco Project
- The Company has revised the resource target in the Cuzco tenements of between 570Mt to 650MT of high grade iron ore based on its review of a report on recent (2006) detailed geophysical surveys on the Cuzco project area by Val D'or Geofisica, a Peruvian geophysical consultancy group. This geophysical work was completed in part to validate a report on the iron ore resources within the Cuzco project area published by the Peruvian Ministry of Energy and Mines in December 1974 which suggested the resource to be of the order of 500Mt with an average grade of 64.96% Fe, 5.06% SiO2, 0.09% P and 0.2% Cu;
- The Company further believes that the estimate of 570Mt to 650Mt is based on conservative geophysical parameters adopted by Val D'or Geofisica and therefore this target may be conservative.
- Six mining tenements having a total area of 4,926 hectares;
- Tenements are located approximately 150 kilometres south south-west from the city of Cuzco in Peru's southern Andes.
It is noted that the potential quantity and grades referred to above are conceptual in nature; there has been insufficient exploration to define a JORC compliant Mineral Resource; it remains to be ascertained if exploration will result in the determination of a Mineral Resource. The Company further notes that the Peruvian Ministry of Energy and Mines estimates have been based on mapping and surface sampling and have not been based on drilling. Detailed exploration will be required to confirm the above estimates and to determine the full iron-ore potential of the two projects.
The Company's investigations suggest that the iron oxide deposits in the Apurimac and Cuzco districts are metamorphic skarn deposits in limestone in the contact region of intrusive monzonites and granodioritic rocks. At both these locations, much of the contact is obscured by Quaternary sediments. Most of the deposits outcrop as massive hematite and hematite-magnetite deposits having being variously oxidised since their formation.
The Company believes that, based upon published literature and knowledge of similar deposits in Iran, these Peruvian deposits may range from high-grade hematite, hematite-goethite to high-grade hematitemagnetite and magnetite enrichment to various grades. Such deposits are generally known to be subsequently intruded by porphyry dykes and may also contain remnants of partly metamorphosed calcareous rocks or interbedded argillaceous or arenaceous layers.
STRIKE RESOURCES LIMITED PERU IRON ORE PROJECTS PROJECT LOCATION PLAN
Completion of Due Diligence
On 9 October 2006, the Company was pleased to announce that it had completed and was satisfied with its due diligence investigations into Apurimac Ferrum and the Apurimac and Cuzco Projects. Title to the project tenements previously held by MAPSA has been transferred to Apurimac Ferrum. The Company expects to make its initial equity investment into Apurimac Ferrum upon receipt of confirmation that the transfer of such titles has been officially recorded in the Cuzco Public Registry in the name of Apurimac Ferrum. Such recording of the transfer of title is expected to be completed in November 2006.
The funds invested into Apurimac Ferrum will be immediately applied towards an exploration and evaluation programme involving:
- additional drilling to determine a JORC compliant resource estimates within the Opaban I and the other 19 tenements in the Apurimac Project areas;
- additional drilling to gain further confidence and improve the quality of the JORC resource estimate at the Opaban III tenement in the Apurimac Project area;
- a detailed gravity survey over existing outcrops and over large known magnetic anomalies in the Cuzco Project areas followed by drilling to determine a JORC compliant resource estimate for this project area.
Magnetite versus Hematite
The Company notes that, with respect to West Australian iron-ores, the market currently appears to distinguish between hematite ores (generally regarded as 'high grade') and magnetite ore (generally regarded as 'low grade'). In comparison the mineralisation in the Opaban I and Opaban III concessions within the Apurimac Project is a mix of high grade hematite and high grade magnetite, which presents as an aggregate of the two minerals. This high grade nature of the aggregate mix makes the deposits significantly better in quality than the majority of the magnetite projects currently proposed in Western Australia and equivalent to many high grade hematite deposits in Western Australia.
THE APURIMAC PROJECT $(1)$
Reconnaissance Drilling Programme
The Company has analysed the drilling data and gravity survey results presented by AMEC Consultants (Peru) on reconnaissance drilling conducted in the first 2 (Opaban I and Opaban III) of the 21 concessions that make up the Apurimac Project.
Location of 9 Apurimac Project Concessions in Opaban Area
This drilling programme was undertaken by AMEC in 2005 to commence validation of the 730 million tonnes of high grade iron-ore resource estimated by Takahashi Trading S.A. in 1961 and the Peruvian Ministry of Energy and Mines to exist within the areas covered by the 21 concessions in the Apurimac Project.
Whilst the initial drilling has so far only covered outcropping targets in 2 of the 21 Apurimac Project concessions, the Company is encouraged by the high grade nature and thickness of mineralisation. Other nearby concession areas with significant outcropping mineralisation were not drilled. These provide an early opportunity to expand the resource base. The results to date appear to support the original Takahashi and Peruvian Ministry of Energy and Mines estimates for these concessions and, by extrapolation, for the Apurimac Project as a whole.
The gravity map below illustrates the width and strike length of the two deposits at Opaban I and Opaban Ш.
Resource Estimates
From its analysis of the AMEC drilling data in just these two Opaban I and Opaban III concessions, the Company now provides the following resource estimates:
- A JORC compliant Inferred Resource of 21 million tonnes of 63.1% Fe based on drilling, located on a gravity anomaly, in Opaban III;
- A resource target of 210 to 260 million tonnes at Opaban I, based on widely spaced drilling (15 drill holes over a strike distance of 2.2 kilometres); and a gravity anomaly which is of an order of magnitude 10 times larger than that encountered at Opaban III.
(It is noted that the potential quantity referred to above in relation to Opaban I is conceptual in nature; there has been insufficient exploration to define a JORC compliant Mineral Resource in this concession and it remains to be ascertained if exploration will result in the determination of a Mineral Resource).
The southern portion of Opaban III and 19 additional concession areas including prominent ones at Los Andes and Cristoforo 22 (near Opaban I) and Pampachiri (located approximately 40 kilometres south of Opaban I) are still to be drilled and analysed. It is expected that these deposits will also continue to be high grade with widths likely to be in excess of 100 metres in a similar manner to those at both Opaban I (between 100 to 500 metres) and Opaban III (average of 200 metres).
The Company also notes that the 21 million tonnes Inferred Resource in Opaban III is of sufficient size and grade to potentially commence a trucking operation of up to one million tonnes of direct shipping ore per year, that could generate short term cash-flow whilst the grades and tonnages of iron-ore in the remaining 26 concessions in both the Apurimac and the Cuzco Projects are being defined.
Iron-ore surface samples from Apruimac Project
The Company is encouraged by the high grade nature and thicknesses of mineralisation in Opaban I and Opaban III. However, additional drilling will be required to gain further confidence and improve the quality of the JORC resource estimate at Opaban III and to determine JORC compliant resource estimates within Opaban I and the other 19 concessions of the Apurimac Project areas.
In addition, no drilling work has yet been undertaken in the Cuzco Project areas (located approximately 160 kilometres east-south east of the Opaban I concession in the Auprimac Project area). The Company has identified that the initial work in the Cuzco Project area should include a detailed gravity survey over existing outcrops and over large known magnetic anomalies prior to drilling.
Resource Quality
Drilling to date suggests high-grade magnetite/hematite mineralisation (63.1% Fe at Opaban III and between 51% and 64.4% Fe at Opaban III). The Company notes that deposits containing magnetite and hematite aggregate of such high quality and of this magnitude are limited and found in only a small number of locations throughout the world. Illustratively, various magnetite projects currently promoted in Australia are based on generally lower grades (29 to 36% Fe) magnetite, with iron minerals occurring in extremely fine grained rocks mostly within very hard banded iron formations (BIF) which typically require expensive crushing and beneficiation.
Gravity Survey
The high-grade nature of mineralisation in the Apurimac Project area lends itself to definition in the subsurface through the use of gravity surveys. Accordingly an initial orientation gravity survey was undertaken in Opaban I and Opaban III. The gravity survey included lines spaced east-west 100 metres apart in Opaban I and 50 metres apart in Opaban III with station spacings of 50 metres along the lines, covering parts of Opaban I and III. The gravity data was processed and a map showing the residual gravity was produced. It is shown on the following page.
Subsequent reconnaissance drilling in parts of the two concessions has shown that the gravity mapping picks up the extent of subsurface mineralisation quite well but it also shows that the modelling parameters used by Val D'Or Geofisica who conducted the survey and the subsequent interpretation are conservative and consistently underestimate the thickness and the extent of mineralisation. A cross section from Opaban III, shown below illustrates this. In the cross section the geophysical interpretation of the mineralisation is shown in solid red and the actual mineralisation encountered in drill holes as black outline surrounding the red.
In Opaban I most of the drilling is scattered along the perimeter of the mineralised body defined by residual gravity. In Opaban III the drilling is concentrated around a smaller gravity anomaly at the northcentral section of the concession to establish a smaller resource. It is noted that gravity mapping has not been conducted in the southern portion of this concession nor in the adjoining Cristoforo 22 concession.
Residual Gravity Anomaly - Opaban I and Opaban III
Reconnaissance Drilling Results
The reconnaissance drilling has confirmed the presence of high-grade iron-ore to vertical depths of 128 metres and 82.5 metres in the Opaban I and Opaban III concessions respectively. A total of 31 diamond core holes were drilled for a total of 2,667 metres.
Opaban III
At Opaban III, a smaller outcrop area at the north-central section of the concession of approximately $500 \times$ 200 metres was drilled approximately every 100 metres along strike and in a fan pattern across the width of the outcrop with 16 drill holes. The intercepts of continuous mineralisation along the drill holes varied from 22.6 metres to 106.95 metres in length (mostly commencing at or near surface). The iron grades in the reconnaissance holes in this concession ranged from 58.65% to 64.54% Fe. The best intercept recorded in this concession was 64.54% Fe for 92.27 metres. The average of all intercepts in this concession including the included waste (intrusives and unmineralised remnants) was reported as 62.29% Fe.
Drill hole intersections in Opaban III:
| Hole | Eastingn | Northingn | Dip | Azimuthdegrees | Depthm | Fromm | Tom | Widthm | Fe% | LO1K, | PK. | S% | SiO 2$%$ | $\mathsf{Al}_2\mathsf{O}_3$% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OP001 | 680650 | 8481200 | $-90$ | 0 | 67.5 | $\bf{0}$ | 67.5 | 67.5 | 63 | 2.37 | 0.079 | 0.07 | 3.63 | 1.24 |
| OP002 | 680650 | 8481200 | $-45$ | 225 | 77.6 | 0 | 69 | 69 | 64.53 | 1.8 | 0.055 | 0.04 | 2.49 | 1 |
| OP003 | 680700 | 8481150 | -90 | Ū | 64.25 | $\Omega$ | 60.6 | 60.6 | 64.09 | 1.27 | 0.078 | 0.011 | 3.69 | 1.04 |
| OP004 | 680740 | 8481000 | -90 | 0 | 60 | 1.5 | 53.2 | 51.7 | 63.18 | 2.57 | 0.058 | 0.097 | 3.64 | 1.42 |
| OP005 | 680740 | 8481000 | $-45$ | 225 | 74.2 | $\Omega$ | 63 | 63 | 63.7 | 2.01 | 0.055 | 0.043 | 3.98 | 0.88 |
| OP006 | 680700 | 8481150 | $-45$ | 225 | 74.15 | 0 | 57.65 | 57.65 | 62.62 | 2.28 | 0.056 | 0.01 | 4.55 | 1.31 |
| OP007 | 680700 | 8481150 | $-45$ | 45 | 31.6 | $\mathbf{0}$ | 21.5 | 21.5 | 63.25 | 2.59 | 0.077 | 0.015 | 3.17 | 1.31 |
| OP008 | 680740 | 8481000 | $-45$ | 45 | 112.85 | $\Omega$ | 105.4 | 105.4 | 62.5 | 2.59 | 0.074 | 0.23 | 4.54 | 1.05 |
| OP009 | 680850 | 8480975 | -90 | o | 65.4 | $\bf{0}$ | 20.65 | 20.65 | 64.15 | 2.47 | 0.084 | 0.224 | 3.06 | 1.03 |
| OP010 | 680850 | 8480975 | $-45$ | 225 | 63.4 | $\Omega$ | 22.8 | 22.8 | 64.7 | 0.8 | 0.044 | 0.016 | 2.93 | 1.7 |
| OP011 | 680780 | 8480940 | -90 | Ū | 54.1 | $\mathbf 0$ | 49.1 | 49.1 | 63.63 | 2.64 | 0.082 | 0.092 | 3.01 | 1.14 |
| OP012 | 680800 | 8481050 | -90 | 0 | 87.4 | $\Omega$ | 82.5 | 82.5 | 61.23 | 2.4 | 0.081 | 0.7 | 5.55 | 1.43 |
| Including | Ū | 26 | 26 | 64.23 | 2.24 | 0.072 | 0.01 | 2.95 | 0.95 | |||||
| OP013 | 680780 | 8480940 | $-45$ | 225 | 88 | $\mathbf{0}$ | 74.5 | 74.5 | 63.65 | 2.35 | 0.073 | 0.111 | 3.36 | 0.98 |
| OP014 | 680800 | 8481050 | $-45$ | 225 | 42.65 | 0 | 42.65 | 42.65 | 64.13 | 1.16 | 0.063 | 0.01 | 3.56 | 0.98 |
| OP015 | 680650 | 8481250 | $-45$ | 225 | 66 | 7.5 | 60.05 | 52.55 | 63.37 | 2.03 | 0.058 | 0.011 | 3.67 | 1.3 |
| OP016 | 680750 | 8481100 | $-45$ | 225 | 73.15 | 3.5 | 58.4 | 54.9 | 62.07 | 1.7 | 0.072 | 0.02 | 5.67 | 1.38 |
Average grade for all mineralised intervals (+6.3mm fraction) in this deposit is 63.12%Fe, 2.10% LOI, 0.069%P, 3.98% SiO2, 1.16% Al2O3, and 0.11% S.
Mapping and drilling suggest that the dimensions of the iron deposit in the north-central section of the concession are approximately 500 x 188 metres. 16 drill holes confirm the quality of the mineralised material and the extent of the deposit. Average thickness of the deposit is estimated at 62.5 metres. Density measurements made by AMEC on mineralised material from Opaban III suggest that the density varies between 3.23 tonnes per cubic metre (t/cum) in the near surface brecciated earthy ore to 4.25 t/cum in high grade massive ore at depth. Based on an average density of 4.0/cum and high grade material representing 90% of the deposit an inferred Resource of 21 million tonnes of high grade material averaging greater than 63% Fe is estimated to occur at Opaban III.
Opaban I
At Opaban I, the larger of the two resources, only 15 holes were drilled at wide spacing essentially to define the perimeter of the mineralisation. Surface outcrops in this deposit are up to 350 metres wide and extend with small gaps, for a strike distance of approximately 2.2 kilometres. The intercepts of continuous mineralisation along the drill holes varied from 29.5 metres to 132.3 metres in length (mostly commencing at or near surface). The iron grades for lump material (+6.3 millimetres) in the reconnaissance holes in this concession ranged from 45.64% (at the margin of the deposit) to 63.37% Fe (without using any cut-off grade). The best intercept recorded in this concession was 63.37% Fe for 87.9 metres of lump material and the reported average of all lump material intercepts in this concession including the included waste was 55% Fe.
Drill intersections and assay data for the +6.3 millimetre fraction (representing greater than 90% of the mineralised intervals by weight) in Opaban I:
| Hole | Easting | Northing | Dip | Azimuth | Depth | From | To | Width | Fe | LOI | p | SiO2 | $\mathbf{Al}_2\mathbf{O}_3$ | s |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| degrees | m | w | m | m | % | X, | X | % | X | % | ||||
| OP017 | 679200 | 8484500 | -90 | 0 | 112 | 28.6 | 106 | 77.4 | 58.87 | 1.2 | 0.04 | 7.59 | 2.13 | 0.046 |
| Including | 55 | 104 | 49 | 62.35 | $-0.28$ | 0.04 | 5.34 | 1.34 | 0.019 | |||||
| OP018 | 679250 | 8484700 | -90 | 0 | 104.5 | 9.9 | 97.8 | 87.9 | 63.26 | 0.87 | 0.03 | 4.7 | 1.03 | 0.049 |
| OP019 | 679500 | 8484402 | -89 | 0 | 80.8 | 16 | 69.5 | 53.5 | 51.19 | 0.94 | 0.06 | 14.63 | 2.71 | 0.01 |
| OP020 | 679270 | 8484350 | -90 | 0 | 131 | 0 | 128 | 128 | 59.81 | 2.23 | 0.04 | 6.35 | 2.05 | 0.108 |
| Including | 0 | 37.5 | 37.5 | 64.45 | 1.44 | 0.032 | 2.74 | 1.35 | 0.026 | |||||
| ne ka | 50.35 | 73.1 | 22.75 | 63.96 | 1.96 | 0.03 | 3.15 | 0.97 | 0.09 | |||||
| ne be | 77.35 | 82.3 | 4.95 | 62.41 | 2.09 | 0.03 | 4.44 | 1.94 | 0.01 | |||||
| re ve | 89.5 | 99.6 | 10.1 | 60.75 | 2.02 | 0.05 | 5.45 | 1.28 | 0.078 | |||||
| ųы | 110.2 | 119.9 | 9.7 | 62.33 | 0.6 | 0.04 | 5.21 | 0.73 | 0.181 | |||||
| OP021 | 679548 | 8484204 | -45 | 270 | 168.3 | 30 | 162.1 | 132.1 | 54.44 | 2.97 | 0.03 | 10.76 | 2.54 | 0.066 |
| Including | 56.5 | 62.9 | 6.4 | 62.93 | 2.31 | 0.04 | 4.36 | 0.89 | 0.035 | |||||
| n w | 85.5 | 162.1 | 76.6 | 61.62 | 2.58 | 0.03 | 5.17 | 1.27 | 0.105 | |||||
| OP022 | 679450 | 8484075 | -90 | 0 | 106.9 | 24 | 99.6 | 75.6 | 57.29 | 2.99 | 0.04 | 8.73 | 2.42 | 0.032 |
| Including | 24 | 45.3 | 21.3 | 64.1 | 2.08 | 0.03 | 3.61 | 0.45 | 0.047 | |||||
| n w | 51.6 | 57.9 | 6.3 | 60.79 | 2.11 | 0.03 | 6.03 | 1.42 | 0.03 | |||||
| n w | 76.8 | 99.6 | 22.8 | 61.29 | 2.35 | 0.03 | 5.48 | 1.4 | 0.033 | |||||
| OP023 | 679550 | 8484800 | -90 | 0 | 125.4 | 13.4 | 106.4 | 93 | 55.99 | 3.41 | 0.04 | 6.84 | 1.98 | 0.058 |
| Including | 13.4 | 66.5 | 53.1 | 60.89 | 1.76 | 0.04 | 4.85 | 1.49 | 0.068 | |||||
| n u | 106.4 | 13.9 | 62.34 | 1.12 | 0.04 | 4.41 | 1.17 | 0.038 | ||||||
| OP024 | 679273 | 8484252 | -90 | 0 | 75 | No significant mineralisation (drilled outside resource boundary) | ||||||||
| OP025 | 679457 | 8484602 | -90 | 0 | 80.8 | 47.1 | 20.2 | 62.47 | 0.53 | 0.03 | 5.13 | 0.93 | 0.01 | |
| OP026 | 679150 | 8484600 | -43 | 90 | 90 | 77.6 | 42.7 | 58.35 | 2.48 | 0.03 | 8.26 | 2.06 | 0.035 | |
| Including | 58.2 | 23.3 | 60.4 | 2.47 | 0.03 | 6.18 | 1.73 | 0.039 | ||||||
| n w | 77.6 | 7.6 | 60.96 | 0.16 | 0.02 | 8.25 | 1.03 | 0.01 | ||||||
| OP027 | 679801 | 8485400 | $-90$ | 0 | 37.6 | 29.5 | 15.9 | 63.18 | 2.19 | 0.02 | 3.82 | 1.03 | 0.047 | |
| OP028 | 679720 | 8485264 | .90 | 0 | 131 | 63.7 | 42.4 | 59.13 | 2.82 | 0.03 | 6.96 | 2.26 | 0.075 | |
| OP028 | 679306 | 8484002 | -90 | 0 | 131 | 105.2 | 8.7 | 58.7 | 1.99 | 0.04 | 5.75 | 1.71 | 2.9 | |
| OP029 | 679801 | 8485400 | $-45$ | 90 | 78.4 | 60.1 | 58.1 | 58.19 | 2.99 | 0.03 | 7.43 | 2.17 | 0.059 | |
| Including | 11.6 | 9.6 | 62.74 | 2.21 | 0.04 | 4.25 | 1 | 0.113 | ||||||
| n w | 60.1 | 36.6 | 61.5 | 2.26 | 0.02 | 4.81 | 0.98 | 0.056 | ||||||
| OP030 | 679300 | 8483544 | -90 | 0 | 62 | 15.2 | 4 | 61.95 | 1.31 | 0.09 | 4.73 | 1.23 | 0.115 | |
| OP031 | 679401 | 8483798 | $-45$ | 270 | 181 | 89.9 | 8.5 | 61.73 | 2.78 | 0.02 | 3.79 | 0.77 | 0.373 | |
| OP031 | 679401 | 8483798 | $-45$ | 270 | 181 | 111.5 | 11.1 | 62.78 | 1.73 | 0.03 | 4.43 | 0.62 | 0.077 | |
| OP031 | 679401 | 8483798 | $-45$ | 270 | 181 | 181 | 22.8 | 61.93 | 1.37 | 0.03 | 4.31 | 1.23 | 0.017 |
It is noted that Opaban I holes OP18 and OP 20 were drilled towards the centre of the deposit and show thicker intersections of high grade mineralisation for 87.9 metres at 63.26% Fe (OP18) and cumulative thickness of 85 metres at 63.5% Fe within a thickness of 128 metres at 59.81% Fe (OP20). The mineralised zone is likely to be thicker and deeper in the centre of the deposit where the gravity anomaly is highest. The drilling done at Opaban I is widely spaced and largely along the perimeter. The strike length of the deposit is approximately 2.2 kilometres with widths of between 100 to 500 metres. Average thickness of mineralisation from the 15 holes drilled is estimated at 66.5 metres. This average does not take into account the central portion of the main gravity anomaly in Opaban I, where only a few holes have been drilled and where it is assumed that the mineralisation will be significantly thicker.
Based upon a 150 metre area of influence around the drill holes, AMEC Consultants considered a resource potential of 104 to 122 million tonnes (Non-JORC) around the drill holes at Opaban I. Given the size of the deposit relative to the drilling undertaken a JORC compliant resource estimate cannot currently be made.
However, based on a comparison of the gravity anomalies at Opaban III (21 Mt) and Opaban 1 (which presented a gravity anomaly greater than 10 times that at Opaban III), the Company estimates a resource target of between 210 and 260 million tonnes of high grade mineralisation at Opaban I.
Based upon mapping and extensive surface sampling, Takahashi Trading in 1961 suggested a resource target greater than 270 million tonnes at Opaban I.
(It is noted that the potential quantity referred to above in relation to Opaban I is conceptual in nature; there has been insufficient exploration to define a JORC compliant Mineral Resource in this concession and it remains to be ascertained if exploration will result in the determination of a Mineral Resource).
Sampling, Analysis and Grades
AMEC Consultants analysed all samples from the drilling, where possible, as +6.3 millimetre (the premium lump fraction) and -6.3 millimetre fractions.
AMEC's report shows that in Opaban I, the -6.3 millimetre fraction in the mineralised zone weighs on average less than 10% (typically between 5% and 8%) of the total weight of the sample.
Therefore the analytical results summarised below for Opaban I and Opaban III represent the grades and quality of greater than 90% of the resource drilled in those deposits.
$(2)$ THE CUZCO PROJECT
Resource Estimates
The Company has recently completed a review of detailed geophysical work conducted on the Cuzco project area by Val D'or Geofisica, a Peruvian geophysical consultancy earlier this year. This work included detailed ground magnetic survey, limited gravity and Induced Polarisation (IP) surveys.
The surveys were completed in part to validate a report on the iron-ore resources within the Cuzco project area published by the Peruvian Ministry of Energy and Mines in December 1974 which suggested the resource to be of the order of 500Mt with an average grade of 64.96% Fe, 5.06% SiO2, 0.09% P and 0.2% Cu.
From its analysis of the Val D'or Geofisica report, the Company is now pleased to advise that it is has formed a resource target estimate of between 570Mt and 650Mt of high grade iron-ore for the Cuzco Project area.
(It is noted however that the potential quantity and grade referred to above is conceptual in nature as there has been insufficient exploration to define a JORC compliant Mineral Resource and it remains to be ascertained if exploration will result in the determination of a Mineral Resource.)
The Company further believes that this estimate may be conservative given a comparison between geophysical modelling and actual deposit thicknesses and mass encountered at the Opaban I and Opaban III concessions (through previous drilling) in the Apurimac project area and that outlined in the geophysical modelling for the Cuzco project area by Val D'Or Geofisica.
Geophysical Surveys
Val D'or Geofisica was engaged by Apurimac Ferrum to conduct geophysical work within the Cuzco project area. This engagement was a continuation of geophysical work previously conducted by Val D'or Geofisica on the Opaban I and Opaban III concessions within the Apurimac project area.
Val D'or Geofisica's geophysical work on the Cuzco project area included a detailed ground magnetic survey together with a limited gravity and IP survey.
Outlined below is an image of the total magnetic intensity as prepared by Val D'or Geofisica.
The survey indicates a potential zone of iron mineralisation of approximately 4 km by 4 km appearing as two curvilinear magnetic bodies (orange and red areas) around a small central core.
The radial nature of the deposit is best explained as an uplifted roof pendent of gently dipping mineralised bodies around an intrusive non-magnetic core providing the hydrothermal solutions responsible for the iron ore skarn mineralisation in the limestone.
This zone of mineralisation is also supported by various surface iron outcrops previously inspected by the Company.
Cross sections drawn on the basis of geophysical modelling indicate iron ore bodies are likely to be subparallel or gently dipping commencing at or near the surface with potentially low waste to ore ratio.
The Company notes that the geophysical modelling by Val D'Or Geofisica on the Cuzco project area estimates a mineralisation depth of between 10 to 60 metres
Val D'or Geofísica has confirmed that the geology of the Opaban concession areas in the Apurimac project and the Cuzco project is similar.
The Company further notes that drilling at Opaban I and Opaban III confirmed the actual mineralisation depth to extend to over 100 metres. However, it may be noted that the geophysical modelling of such iron ore bodies indicated significantly smaller depths essentially on the basis that a higher rock density of 4.5 tonnes per cubic metre (t/cum) was assumed in the modelling exercise whilst the actual rock density of the mineralised zones as measured in drill cores in the Opaban areas averaged between 3.8 and 4.0 t/cum. In addition, the ore bodies were generally wider and deeper than anticipated in the modelling.
The conservative nature of the geophysical modelling is illustrated in a cross section from Opaban III which shows the geophysical interpretation of the mineralisation in solid red and actual high-grade mineralisation intersected in drill holes as a black outline through the drill holes surrounding the solid red area.
Based upon a comparison of the geophysical modelling and actual thicknesses and mass at Opaban I and Opaban III (determined through the previous drilling programme at such concessions conducted by AMEC Consultants in 2005) and the geophysical work on the Cuzco project area conducted by Val D'Or Geofísica in 2006, it is contemplated that the mineralisation depth of between 10-60 metres is conservative and the resource potential for the Cuzco project may be significantly larger than the 570-650 Mt stated above.
Conclusion
Whilst the Company is pleased with the results of the geophysical work conducted on the Cuzco concessions to date, it notes that no drilling has occurred to confirm either the resource size or the iron grades of such project.
The Company is accordingly moving to confirm this initial work on the Cuzco concessions through the conduct of a detailed gravity survey followed by drilling.
These works will be conducted contemporaneously with further drilling concentrated on the Opaban I and Opaban III concessions within the Apurimac project area.
It is contemplated that such works will commence shortly and will be completed prior to the start of the anticipated wet season in the area in late January early February 2007.
$(3)$ SUMMARY OF THE APURIMAC FERRUM PERUVIAN IRON-ORE AGREEMENT
By agreement dated 2 July 2006 between the Company and Peruvian companies, Apurimac Ferrum S.A (AF), Minera los Andes y el Pacifico S.A. (MAPSA) and D&C Group S.A.C (D&C), the Company has secured the right to earn a 51% (or greater) interest in the Apurimac Project or the Cuzco Project or both (at the Company's election) through a progressive investment in AF (which will hold the projects) within a 5 year period.
The agreement was subject to completion of satisfactory due diligence by the Company which was completed as announced on 9 October 2006.
Title to the project tenements previously held by MAPSA has been transferred to Apurimac Ferrum. The Company expects to make its initial equity investment into Apurimac Ferrum upon receipt of confirmation that the transfer of such titles has been officially recorded in the Cuzco Public Registry in the name of Apurimac Ferrum. Such recording of the transfer of title is expected to be completed within 2 to 6 weeks.
After undertaking its initial equity investment into Apurimac Ferrum, the Company will appoint 3 out of 5 directors (including the President) to the board of AF and will have control of operating budgets and mining activities on the projects.
The acquisition by the Company of a shareholding interest in AF has been structured on a staged basis as follows:
Stage 1 - Share Investment During Earn-In Period
The Company has the right to progressively earn an initial 9.62% shareholding in AF by investing US$5 million during a 5 year earn-in period (Earn-In Period) with a minimum investment commitment of US$1.4 million spread over 4 tranches during the first 12 months.
The parties have committed AF to conduct an initial drilling programme of 1,500 metres on the Apurimac Project and 1,500 metres on the Cuzco Project within 12 months.
Stage 2 - Share Acquisition from D&C and MAPSA
D&C and MAPSA have agreed to equally sell to the Company, shares held by them in AF equivalent to a total of 2.88% of AF's issued capital for a US$1.5 million consideration. This sale will occur in two tranches with one-third to be sold no later than one year after the commencement of the Earn-In Period and the balance to be sold no later than two years after the commencement of the Earn-in Period.
Accordingly, after the completion of Stages 1 and 2, the Company shall hold a total of 12.5% of AF.
Stage 3 - Working Capital Loan During Earn-In Period
If further funds are required by AF (pre exercise of Options under Stage 4), the Company may provide a loan to AF (capped at US$5 million), repayable within 12 months or convertible into equity in AF by the Company in accordance with an agreed dilution formula. For example, if the full US$5 million loan is converted, the Company will increase its AF shareholding from 12.5% (post Stage 1 and 2) to 22.2% (post loan conversion/Stage 3).
Stage 4 - Exercise of Options
During the Earn-In Period, the Company shall have the following Options to acquire an additional 38.5% shareholding interest in AF, taking its shareholding interest in AF to 51% (or greater if D&C and/or MAPSA are further diluted as a consequence of the Stage 3 loan being converted into equity in $AF$ ):
Option 1: for the Apurimac Project tenements, the Company may elect to pay US$8.625 million to each of D&C and MAPSA; and/or
Option 2: for the Cuzco Project tenements, the Company may elect to pay US$8.625 million to each of D&C MAPSA.
If the Company elects to exercise one but not both Options, then the tenements corresponding to the Option/Project that was not exercised by the Company is transferred into a new Peruvian incorporated company in which the shareholding interests shall be the same as the shareholding interests of the parties in AF immediately prior to the exercise of the Option.
Further Working Capital
If the Company exercises both Options, each of D&C and MAPSA have agreed to provide loan/equity funds of US$5 million to AF or a collective total of US$10 million.
After Stage 1 and after the Company has exercised one or both of the Options under Stage 4, if further funds are required by AF each party (the Company, MAPSA and D&C) shall contribute its proportionate share of such funding according to its shareholding interest in AF at such time or otherwise such party shall be diluted in accordance with an agreed dilution formula.
Project Plan
The parties have agreed that during and after the Earn-in Period, the Board of AF shall have absolute control of any and all mining activities to be performed by AF and that AF shall apply its exploration expenditure towards (inter alia) the following objectives:
- The conduct of exploration works to define a minimum JORC-compliant Inferred iron-ore $(a)$ resource of 100 million tonnes;
- Complete a feasibility study for a Sponge Iron plant; $(b)$
- The conduct of pre-feasibility and feasibility studies for mining of ore; $(C)$
- $(d)$ The conduct of transportation studies;
- $(e)$ The conduct of port and other infrastructure studies;
- $(f)$ The conduct of mine production studies;
- The establishment of trial mining and transportation pilot programmes; (g)
- The conduct of financial and technical studies on proposed production models; and $(h)$
- $(i)$ The conduct of marketing studies for proposed production models.
Paulsens East Iron-Ore Project (West Pilbara Region, $2.$ Western Australia, Australia)
The Paulsens East tenements cover a total area of 19.64 square kilometres. The tenements are located approximately 140 kilometres west of Tom Price (close to bitumised road) and eight kilometers eastnortheast of the Paulsens Gold mine in the northwest of Western Australia.
A map outlining these tenements and the area of the high grade hematite conglomerate mineralisation is shown below.
The Company recently conducted mapping and sampling at PL 47/1170 which has confirmed the presence of high grade hematite mineralisation.
This mineralisation occurs as a ridge rising up to approximately 60 metres above the valley floor, extends for a strike distance of approximately 3,000 metres and varies in width from 6 to 12 metres. The mineralisation occurs as a hematite conglomerate in hematite matrix.
The following aerial view and ground photographs illustrate the nature of this occurrence.
Aerial View of Hematite Ridge at Paulsens East
Profile view: A section of Hematite Ridge
Close up view of hematite conglomerate in hematite matrix
Company geologists sampled the outcrop at various points along the length of the ridge and the following table summarises the results of such sampling, which indicates the presence of high grade direct shipping ore.
| Sample | Fe | SIO 2 | AI2O3 | T102 | MnO | CaO | ₽ | s |
|---|---|---|---|---|---|---|---|---|
| UNITS | % | % | X | X | X | % | % | % |
| PE3001001 | 65.22 | 2.49 | 1.60 | 0.11 | 0.01 | 0.03 | 0.093 | 0.032 |
| PE3002001 | 62.59 | 4.44 | 3.39 | 0.24 | 0.02 | 0.04 | 0.087 | 0.023 |
| PE3003001 | 64.35 | 3.17 | 2.47 | 0.14 | 0.02 | 0.02 | 0.085 | 0.015 |
| PE3003002 | 66.60 | 2.06 | 1.53 | 0.07 | 0.02 | 0.03 | 0.058 | 0.025 |
| PE3003003 | 63.54 | 3.10 | 2.62 | 0.15 | 0.02 | 0.03 | 0.181 | 0.020 |
| PE3003004 | 65.42 | 2.48 | 2.10 | 0.14 | 0.02 | 0.02 | 0.077 | 0.013 |
| PE004001 | 65.36 | 2.32 | 1.57 | 0.10 | 0.02 | 0.03 | 0.139 | 0.029 |
| PE3005001 | 65.66 | 2.29 | 1.58 | 0.11 | 0.03 | 0.05 | 0.101 | 0.054 |
| PE3005002 | 67.05 | 1.51 | 1.28 | 0.09 | 0.02 | 0.02 | 0.069 | 0.010 |
| PE3005003 | 66.01 | 2.24 | 1.36 | 0.09 | 0.02 | 0.02 | 0.103 | 0.024 |
| PE3006001 | 65.09 | 2.30 | 1.89 | 0.12 | 0.01 | 0.02 | 0.110 | 0.019 |
| PE3006002 | 63.26 | 3.40 | 2.59 | 0.11 | 0.08 | 0.06 | 0.107 | 0.065 |
| PE3007003 | 65.94 | 1.93 | 1.60 | 0.11 | 0.02 | 0.05 | 0.095 | 0.026 |
| PE3007004 | 65.30 | 2.84 | 2.03 | 0.10 | 0.03 | 0.06 | 0.056 | 0.027 |
| PE3008001 | 64.83 | 2.61 | 2.24 | 0.12 | 0.03 | 0.03 | 0.133 | 0.021 |
| PE3009001 | 66.57 | 2.06 | 1.45 | 0.12 | 0.08 | 0.04 | 0.059 | 0.053 |
| PE3012001 | 66.75 | 2.08 | 0.90. | 0.08 | 0.02 | 0.11 | 0.089 | 0.088 |
| PE3007001A | 64.96 | 2.86 | 2.17 | 0.13 | 0.03 | 0.06 | 0.092 | 0.023 |
| PE003005 | 66.42 | 1.92 | 1.60 | 0.10 | 0.04 | 0.03 | 0.066 | 0.016 |
Surface Samples of Hematite Conglomerate and Mineralised Iron Formation (June 2006)
The Company is encouraged by the presence of such high grade mineralisation along an approximate 3 kilometres strike length. The mineralisation extends to a height of up to approximately 60 metres above the valley floor and the Company believes this mineralisation extends at depth. Accordingly the Company proposes to drill the area along the length of the ridge to determine its extent at depth.
In the first instance the Company will target a mineralisation depth of approximately 50 metres below the valley floor which if proven successful will significantly enhance the possibility for a commercially viable mining operation.
The Company will undertake the following studies to advance the possibility of producing and shipping 500,000 tonnes of high grade iron for an early cash flow:
- Heritage Survey, gravity survey, drilling, analyses, resource estimation and mining studies.
- Transport studies to truck the ore from mine to Dampier. ٠
The Company will also continue negotiations with the Dampier Port Authority to gain access to a stockpile layout area and shipping birth at the Bulk Jetty and conduct infrastructure studies for shipping.
South Uranium Project (North Territory, Bigryli $31$ Australia)
The Company has a 75% interest in 5 exploration tenements located principally in the northern part of the Ngalia Basin in the Northern Territory (located approximately 390 kilometres north-west of Alice Springs). These tenements, having a total area of approximately 1,666 square kilometres, are adjacent to tenements surrounding the Bigrlyi Uranium Deposit (held by Energy Metals Limited - ASX Code: "EME") which has a stated JORC resource of 8.37 million pounds of $U_3O_8$ at a cut-off grade of 0.1%1.
In particular, the Company's key NT uranium tenement (EL 24879) lies approximately 5 kilometres south of EME's Bigrlyi uranium deposit and ELA 24927, EL 24928 and EL 24929 also surround a number of EME's stated strategic uranium tenements in the Ngalia Basin (refer map below).
The Company's initial examination of the geology of EL 24879 indicates that it may contain a similar geological environment as that hosting the Bigrlyi Uranium Deposit and has a potential for economic uranium mineralisation. The Bigrlyi Uranium Deposit occurs in arkosic sandstones in the lower part of the late Devonian-late Carboniferous Mt Eclipse Sandstone which is host to 20 regional uranium prospects and radiometric anomalies principally along the northern margin of the Ngalia basin.
The Bigrlyi Uranium Deposit is regarded as a typical "modified roll front deposit" where uranium bearing oxidizing fluids meet with reducing conditions in layers of predominantly carbonaceous matter in a permeable formation. The uranium bearing fluids are believed to have flowed from north to south at the time of formation of the Bigrlyi deposit and other prospects in the area. Regional geological setting indicates these uraniferous fluids probably have originated from granites of the underlying Arunta complex, and migrated southwards. Here, reaction with the reductant lithologies led to the precipitation of uranium mineralisation in the rocks of the Mount Eclipse Sandstone.
The Company considers that this regional uranium-bearing formation continues into EL 24879.
STRIKE RESOURCES LIMITED BIGRLYI SOUTH URANIUM PROJECT
EME market Announcement "JORC Compliant Reporting of Resource Estimate for Bigriyi" dated 25 July 2006
All tenements which contain the lower Mt Eclipse Sandstone can be regarded as prospective for economic uranium mineralisation.
In particular the twin conditions of a pre-existing north to south flow regime (with ELA 24879 lying in the path of the movement of these fluids and to the south) and the nature of permeable strata interlayered with carbonaceous matter may occur in EL 24879. Further, low angle thrust faults are postulated as additional primary fluid conduits into the Mt Eclipse Sandstone. These lines of evidence support the view that ELA 24879 has potential to host economic uranium mineralisation.
With the grants of EL 24879, 24928, 24929 and 24930 in August 2006, the Company is now able to commence exploration for uranium and vanadium mineralisation at Bigrlyi South in Mt Eclipse Sandstone similar to that occurring at Bigrlyi 5 kilometres to the north.
Three radiometric anomalies are known to occur along the southern margin of the tenement.
The Company's geologists believe that the known thrust fault and fold hinges located in the tenement offer additional opportunities for the discovery of uranium mineralisation.
The Company's focus will be to identify drilling targets as soon as possible. The exploration work planned will therefore include:
- Ground validation of interpretation of geology and structure obtained from photo and satellite imagery.
- Sample existing water bores for enhanced uranium values
- Validation of known radiometric anomalies by high-resolution ground radiometric survey.
- Conducting high-resolution ground radiometric survey along favourable structures and geology.
- Follow up of identified radiometric anomalies with detailed grid radiometric surveys to outline drill targets.
- Conducting heritage surveys for preparation of access tracks and drill pads.
- Conducting reconnaissance reverse circulation drilling.
The Company looks forward to commencing such works to determine the extent of uranium mineralisation of EL 24879.
Mt James Uranium Project (Gascoyne Region, Western 4. Australia, Australia)
EL 09/1253 and EL 09/1245 cover ground previously explored by AGIP Nucleare (Australia) Pty Ltd (AGIP), (a subsidiary of Italian multi-national energy group ENI) where 0.14% U (equivalent to 0.17% U3O8) as uraninite in a diamond drill hole was discovered by AGIP in the 1970s.
The Company has determined that AGIP conducted significant exploration activity for uranium in the Gascoyne region in the 1970s. This activity included an airborne radiometric survey which identified a number of radiometric anomalies leading to drilling occurring on a number of those anomalies.
Temporary Reserve TR 5963H was applied for by AGIP and appears to have been the main focus of AGIP's exploration activities in the Gascoyne region during the 1970s. The Company has secured rights to a large portion of the area previously comprising TR 5963H including areas where AGIP conducted trenching and drilling for uranium and where AGIP's reports show that it intersected carnotite mineralisation in shallow trenches and up to 1400 ppm U over 0.2m from 69.45 metres in hole MJD3 (0.14% U or 0.17% $U_3O_8$ ) as uraninite in a diamond drill hole in EL 09/1245. Lower grade uraninite mineralisation was also intersected in percussion drill holes nearby.
| Hole | From $(m)$ | To $(m)$ | U ppm | %U Equivalent of %U 3 0. | |
|---|---|---|---|---|---|
| MJD 3 | 69.10 | 69.25 | 100 | 0.0100% | 0.0118% |
| MJD 3 | 69.25 | 69.45 | 520 | 0.0520% | 0.0613% |
| MJD 3 | 69.45 | 69.65 | 1,450 | 0.1450% | 0.1709% |
| MJD 3 | 69.65 | 70.00 | 24 | 0.0024% | 0.0028% |
| MJD 3 | 89.30 | 89.50 | 105 | 0.0105% | 0.0124% |
| MJD 3 | 90.60 | 90.80 | 260 | 0.0260% | 0.0306% |
| MJD 3 | 91.80 | 92.10 | 430 | 0.0430% | 0.0507% |
| MJD 2 | 108.30 | 108.60 | 10 | 0.0010% | 0.0012% |
| MJD 2 | 108.60 | 108,90 | 1,200 | 0.1200% | 0.1414% |
| MJD 2 | 108.90 | 109.25 | 75 | 0.0075% | 0.0088% |
| MJD 2 | 109.25 | 109.55 | 220 | 0.0220% | 0.0259% |
| MJD 2 | 109.55 | 109.90 | 140 | 0.0140% | 0.0165% |
A summary of the diamond drilling results in two of the better holes referred to above are as follows:
Note: 32.5 (ppm) U = Equivalent 38.3 (ppm) $U_3O_8$
The presence of primary uraninite mineralisation in drill holes in this area (coupled with untested anomalies and with a broader pattern of a large number of uranium occurrences in the duricrust in the district) demonstrates the potential of the Company's interest in EL 09/1253 and EL 09/1245 as being prospective for vein type high-grade mineralisation associated with pegmatites in granitic rocks as well as carnotite mineralisation at shallow depth in the duricrust.
Available records show that AGIP investigated only a handful of the identified radiometric anomalies. The Company's initial investigations reveal that in the Mt James EL 09/1253 tenement alone, eight significant radiometric anomalies remain untested.
The grant of Mt James EL's 09/1253 and 09/1245 will now allow the Company to conduct exploration to expand on the works previously conducted by AGIP. The Company believes that on the basis of previously encountered uranium mineralisation (including carnotite at shallow depth and uraninite at depth) and identified radiometric anomalies, that these tenements offer potential for both near surface secondary mineralisation in the saprolite zone as well as deeper primary vein-type mineralisation in pegmatite zones at depth.
The exploration strategy of the Company will now be to follow up the known uranium intersections and untested anomalies with confirmatory ground surveys and RAB drilling.
The Company's other tenement interests in the area, EL 09/1257 and ELA 09/1258 in the Injinu Hills and the Mortimer Hills areas, southwest and west respectively from EL 09/1253 and EL 09/1245 are covered with large areas of duricrust and known to host near surface uranium mineralisation as carnotite within adjacent ground. No detailed follow-up work was done in these areas.
The Company proposes to explore for uranium mineralisation on the granted tenements using detailed structural analysis and modern exploration methods. In the first instance the focus will be around the known drill intersections that encountered uranium mineralisation and the known but untested anomalies identified by AGIP. The Company will also review the possibility of mineable resources of carnotite at shallow depth in the deeply weathered saprolite zone in the duricrust.
On the basis of data available from previous work, the number of radiometric anomalies, drill intersections within the said tenements and the general geological setting and potential for uranium mineralisation, the Company believes these Gascoyne tenements will, upon grant, become a key focus of its uranium exploration activities in Western Australia.
Mt Lawrence Wells Uranium Project (East Murchison 5. Region, Western Australia, Australia)
These exploration licences are located 25 kilometres south of Wiluna and north of a palaeo drainage that hosts the Hinkler Well. Centipede and Millipede uranium prospects.
The project area is located immediately north of the Hinkler Well tenements of ASX listed U308 Limited where U3O8 Limited has recently announced uranium mineralisation in calcrete extending for approximately 20 kilometres. The mineralisation extends along an east west palaeo channel. Part of this calcrete channel and also the source of the gravels that cover the northern extent of the channel extend into the Company's tenements.
The Company's geologist believes the granite and the Proterozoic sandstone hills that drain into Hinkler Well palaeo channel and are situated in EL 53/1203 and ELA 53/1259, are the source for uranium mineralisation in the Hinkler Well deposit.
The Company owns 100% of two contiguous tenements north of the Hinkler Well deposit (EL 53/1203 and ELA 53/1259) and is earning an 85% interest in another (EL 53/1115).
The alluvial wash discharging into the palaeo drainage extends upstream into the Dawsons Well and Mt Wilkinson tenements for several kilometres. The nearby Lake Way uranium prospect consisting of carnotite as coatings and in bedding plain partings of rock fragments in alluvial gravels contains a JORC Inferred Mineral Resource of 8.51 million tonnes of ore at 0.054% $\bigcup_3 O_8$ or 4,600 tonnes of contained $\bigcup_3 O_8$ .
Nova Energy Limited (NEL) Market Announcement "JORC Compliant Inferred Resource Upgraded to 9,000 U309" dated 23 March 2006
Canning Well Uranium and Gold Project (Pilbara Region, 6. Western Australia, Australia)
The Company has a 75% interest in granted Canning Well Exploration Licence EL 46/629 and Little Sandy Desert Exploration Licence application ELA 46/585 (in the later case, to acquire 75% of Hume Mining NL's 85% interest therein, excluding manganese mineral rights which are retained by Giralia Resources NL) in the East Pilbara region.
The Company's initial due diligence has indicated that uranium anomalies of up to 11 times the background were recorded in the project area in lag samples by previous explorers but were never followed up.
The project area is located approximately 80 kilometres west of the Kintyre uranium deposit and covers approximately 20 kilometres of the Canning Fault and associated splay and intersecting faults which bring together rocks of the Archaean Fortescue Group in juxtaposition with Proterozoic rocks of the Manganese Groups, the Tacunyah Group, the Yeneena Supergroup and the Savory Group.
Several major unconformities including Archaean to Proterozoic and within the Proterozoic rocks occur in close physical proximity to each other. The sandy facies of the Proterozoic rocks, which are wide-spread have been previously explored for copper and unconformity-type uranium mineralisation in the area of these two tenements.
Factors including significant uranium anomalies, the nature of unconformities in the Middle Proterozoic, the presence of sandy and carbonaceous rocks, suitable source basement rocks and the presence of regional faults are favourable for unconformity-type uranium mineralisation.
Banten Copper/Gold Project (West Java, Indonesia) 7.
The total area of the concession is 5,601 hectares. It is located approximately 100 kilometres south-west of Jakarta and is accessible by bitumen road from Jakarta via Serang. The concession is located close to the western tip of the island of West Java.
The Company has identified epithermal gold vein targets and potential for gold stock work systems in the Eocene Bayah Formation and Oligocene granodiorite. In parts of the concession area from where the gold system has been largely eroded, the underlying granodiorite offers a target for porphyry copper mineralisation. In addition, in the overlying Chikoto Formation, volcanic tuffs and breccias may contain rich pods of hydrothermal lead and zinc mineralisation.
During a recent mapping programme the Company's geologists noted extensive argillic and silicic alterations and several small gold workings, some of which are currently worked by the family members of the owner of the concession.
Historical rock chip sampling during 2001 and 2002 returned the following best results from the area:
| Sample | Au | Zn | Pb |
|---|---|---|---|
| UNITS | g/t | X | % |
| AD100704 | 38.60 | ||
| AG100715 | 15.30 | ||
| AD100705 | 8.85 | ||
| AG100591 | 7.04 | ||
| AG100586 | 1.99% | 5.06% | |
| AG100598 | 2.70% | ||
| G10126 | 62.40 | ||
| G10124 | 25.30 | ||
| G10106 | 12.10 | ||
| G10120 | 6.21 | ||
| G10129 | 4.14 | ||
| G10117 | ۰ | 70Y |
STRIKE RESOURCES LIMITED WEST JAVA BANTEN COPPER/GOLD PROJECT LOCATION PLAN
Reports filed by PT Suda Miskin Source : with the Indonesian Mines Department.
By a cooperation agreement dated 16 March 2005 between SOPL, Indo Coal and PT Suda Miskin (Suda Miskin), Indo Coal has acquired the right to exclusively conduct general survey activities, explore for, exploit, mine and sell gold and any other minerals in the concession area (the West Java Gold Agreement) (West Java Copper/Gold Project).
Under the terms of the West Java Agreement, the Company has paid US$35,000 (after exercising due diligence) to Suda Miskin and has the following future payment and profit sharing obligations to Suda Miskin:
- Staged cash payments totalling US$50,000 over an 18 month period; and $(a)$
- A 19% share of after tax net profits from production. $(b)$
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been compiled by Mr Hem Shanker Madan who is a Member of The Australian Institute of Mining and Metallurgy. Mr Madan is the Managing Director of the Company. Mr Madan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves (the JORC Code)." Mr Madan consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
$\mathbf{1}$ . CAPITAL RAISING
On 24 October 2006, the Company was pleased to announce the completion of a $3 million share placement to institutional, professional and sophisticated investors.
The Company had also determined to allow current shareholders the opportunity to also subscribe for shares at the same price ($1.30 per share) through a $5 million Share Purchase Plan (SPP).
The funds raised will ensure the timely advancement of exploration, evaluation and development of the Company's mineral projects. In particular, the raising will secure the Company's ability to accelerate its investment commitments in relation to the Apurimac and Cuzco Iron-Ore Projects in Peru (which is a total investment of US$6.5 million over 5 years; a minimum of US$1.4 million within the first 12 months).
Under the SPP, shareholders registered as at 7 November 2006 (the Record Date) will be eligible to apply for either $1,000, $3,000 or $5,000 of shares at an issue price of $1.30 per share.
The SPP issue price represents a 20% discount to the volume weighted average price (VWAP) of SRK in the one month, and a 26% discount to SRK's VWAP in the 5 day period, prior to the date of the announcement.
If the total value of SPP subscriptions exceed $5 million, the Company reserves the right to scale-back the applications or retain some or all of the over subscriptions.
Indicative SPP Timetable
| Notice to SRKO option-holders of the SPP | Wednesday, 25 October |
|---|---|
| Record Date under the SPP | Tuesday, 7 November |
| Despatch of SPP documentation including Entitlement Forms | Wednesday, 8 November |
| Opening Date of SPP | Thursday, 9 November |
| Closing Date of SPP | Thursday, 23 November |
| Allotment of SPP shares and despatch of holding statements | Monday, 27 November |
The SPP will result in the issue of a maximum of approximately 3,846,153 shares (based on $5 million raised).
$2.$ SUMMARY OF CAPITAL CHANGES
A summary of capital changes since 31 March 2006 is as follows:
| Running Balance of | Running Balance of | |||||
|---|---|---|---|---|---|---|
| Date | Description | Issue Price | No. Shares | Value of Issue | Issued Share Capital | Issued Listed Options |
| 30/06/2006 | Balance | 47,835,701 | 23, 369, 141 | |||
| 3/07/2006 | Conversionof options | $0.20 | 5,000 | $1,000.00 | 47,840,701 | 23, 364, 141 |
| 13/07/2006 | Conversionof options | $0.20 | 28,917 | $5,783.40 | 47,869,618 | 23, 335, 224 |
| 19/07/2006 | Conversionof options | $0.20 | 30,000 | $6,000.00 | 47,899,618 | 23, 305, 224 |
| 27/07/2006 | Conversionof options | $0.20 | 97,034 | $19,406.80 | 47,996,652 | 23,208,190 |
| 1/08/2006 | Conversionof options | $0.20 | 539 | $107.80 | 47,997,191 | 23,207,651 |
| 2/08/2006 | Conversionof options | $0.20 | 80,000 | $16,000.00 | 48,077,191 | 23, 127, 651 |
| 8/08/2006 | Conversionof options | $0.20 | 55,167 | $11,033.40 | 48, 132, 358 | 23,072,484 |
| 14/08/2006 | Conversionof options | $0.20 | 50,000 | $10,000.00 | 48, 182, 358 | 23,022,484 |
| 17/08/2006 | Conversionof options | $0.20 | 24,000 | $4,800.00 | 48,206,358 | 22,998,484 |
| 24/08/2006 | Conversionof options | $0.20 | 11,000 | $2,200.00 | 48,217,358 | 22,987,484 |
| 12/09/2006 | Conversionof options | $0.20 | 80,000 | $16,000.00 | 48,297,358 | 22,907,484 |
| 14/09/2006 | Conversionof options | $0.20 | 16,000 | $3,200.00 | 48, 313, 358 | 22,891,484 |
| 26/09/2006 | Conversionof options | $0.20 | 62,000 | $12,400.00 | 48,375,358 | 22,829,484 |
| 28/09/2006 | Conversionof options | $0.20 | 17,200 | $3,440.00 | 48, 392, 558 | 22,812,284 |
| 6/10/2006 | Conversionof options | $0.20 | 24,370 | $4,874.00 | 48,416,928 | 22,787,914 |
| 10/10/2006 | Conversionof options | $0.20 | 30,334 | $6,066.80 | 48, 447, 262 | 22,757,580 |
| 13/10/2006 | Conversionof options | $0.20 | 25,834 | $5,166.80 | 48,473,096 | 22,731,746 |
| 16/10/2006 | Conversionof options | $0.20 | 76,001 | $15,200.20 | 48,549,097 | 22,655,745 |
| 19/10/2006 | Conversionof options | $0.20 | 115,500 | $23,100.00 | 48,664,597 | 22,540,245 |
| 24/10/2006 | Conversionof options | $0.20 | 139,168 | $27,833.60 | 48,803,765 | 22,401,077 |
| 27/10/2006 | Conversionof options | SO.20 | 20.000 | $4,000.00 | 48.823.765 | 22.381.077 |
The $3 million placement of 2,307,693 shares had not been allotted as at 27 October 2007 for inclusion in the above table.
3. OPTIONS
Listed Options (ASX CODE: SRKO) $(a)$
During the quarter ending 30 September 2006, 556,857 listed $0.20 (30 June 2008) options were exercised and converted into shares (as described in the above table), raising a total of $111,371.40.
Directors' Options $(b)$
On 14 July 2006, shareholders approved the issue of a total of 4,600,000 options to its four Directors (Messrs Stephenson, Madan, Khan and Ho). Such options were granted on 21 July 2006 on the following terms, including:
- at an exercise price of 96 cents (being 133% of the volume weighted average share price of the $\mathbf{1}$ . Company's shares on ASX in the 5 trading days leading up to and including the date of the general meeting:
- $2.$ after they have vested, each option is exercisable at any time on or before 5 years from the date of issue (Option Expiry Date).
-
- the options will vest as follows:
- 30% of the options issued to each Director will vest at the date of issue of the options (which $(a)$ options may therefore be exercised at any time prior to the Option Expiry Date);
- 30% of the options issued to each Director will vest at the date being 12 months after their $(b)$ date of issue (which options may therefore be exercised at any time thereafter and prior to the Option Expiry Date); and
- 40% of the options issued to each Director will vest at the date being 24 months after their $(C)$ date of issue (which options may therefore be exercised at any time thereafter and prior to the Option Expiry Date).
-
- otherwise on the terms and conditions set out in Annexure A to the Explanatory Statement accompanying the Company's Notice of Meeting dated 31 May 2006.
On 13 September 2006, shareholders approved the issue of a total of 500,000 options to Mr William Johnson, who joined the Board as Non-Executive Director on 14 July 2006. Such options were granted on 13 September 2006 with an expiry date of 13 September 2011 and otherwise on the same terms as the 4.6 million $0.96 (21 July 2011) Directors' Option.
$(C)$ Employee Options
On 6 October 2006, the Company granted 150,000 $1.20 (6 October 2011) Employee Options, on the following terms, including:
- at an exercise price of $1.20; 1.
-
- after they have vested, each option is exercisable at any time on or before 5 years from the date of issue (Option Expiry Date).
-
- the options will vest as follows:
- one-third (50,000) of the options will vest on 6 March 2007 (which options may therefore be $(a)$ exercised at any time prior to the Option Expiry Date);
- $(b)$ one-third (50,000) of the options will vest on 6 March 2008 (which options may therefore be exercised at any time thereafter and prior to the Option Expiry Date); and
- $(C)$ one-third (50,000) of the options will vest on 6 March 2009 (which options may therefore be exercised at any time thereafter and prior to the Option Expiry Date).
-
- otherwise on the terms and conditions set out in Annexure A to the Appendix 3B New Issue announcement dated 13 October 2006.
| Project | Status | Application No | Grant A | Expiry Date | Area (Blocks) | Area | Location / Property Name | State Company's Interest | |
|---|---|---|---|---|---|---|---|---|---|
| Application Date | (km 2 ) | ||||||||
| Bigrlyi South | Granted | EL 24879 | 14/08/06 | N/A | 82 | 260 | Mount Doreen | NT | 75% |
| Application EL 24927 | 12/09/05 | N/A | 338 | 999 | Haasts Bluff | NT | 75% | ||
| Granted | EL 24928 | 24/08/06 | N/A | 15 | 35. | Mount Doreen | NT | 75% | |
| Granted | EL 24929 | 24/08/06 | N/A | 26 | 56 | Mount Doreen | N٣ | 75% | |
| Granted | EL 24930 | 24/08/06 | N/A | 99 | 314 | Mount Doreen | N٣ | 75% | |
| Mt James | Granted | EL 09/1253 | 29/06/06 | 28/06/11 | 49 | 147 | Mt James | W٨ | 75% |
| (Gascoyne Region) | Granted | EL 09/1245 | 23/03/06 | 22/03/11 | 35 | 105 | Rubberoid Well | WA. | 70% |
| Granted | EL 09/1257 | 28/06/06 | 28/06/11 | 27 | 81 | Injinu Hills | W٨ | 100% | |
| Granted | EL 09/1258 | 29/09/06 | N/A | 26 | 78 | Mortimer Hills | WA | 100% | |
| Paulsen East | Granted | EL 47/1328 | 05/10/06 | 04/10/11 | 6. | 18 | Paulsen East | WA | 75% |
| (West Pilbara Region) | Granted | PL 47/1170 | 27/03/06 | 26/03/11 | 164 hectares | 1.64 | Paulsen East | W٨ | 75% |
| Mt Lawrence Wells | Granted | EL 53/1115 | 06/10/04 | 05/10/09 | 6 | 18 | Dawsons Well | WA | 85% |
| (East Murchison Region) | Application ELA 53/1259 | 27/07/06 | N/A | 8 | 24 | Millgool Camp | WА | 100% | |
| Granted | EL 53/1203 | 02/08/06 | 01/08/11 | 17 | 52 | Mt Wilkinson | WΑ | 100% | |
| Canning Well | Granted | EL 46/629 | 02/08/05 | 01/08/10 | 19 | 57 | Canning Well | W٨ | 75% |
| (Pilbara Region) | Application ELA 46/585 | 17/10/03 | N/A | 69 | 207 | Canning Well | W٨. | 63.75% (excluding manganesemineral rights) |
BOARD OF DIRECTORS
| Farooq Khan | $-$ Executive Director |
|---|---|
| Appointed $-9$ September 1999 | |
| Qualifications - BJuris, LLB. (Western Australia) | |
| Experience $-$ Mr Khan is a qualified lawyer having previously practiced principally in the field of corporatelaw. Mr Khan has extensive experience in the securities industry, capital markets andparticularly capital raisings, mergers and acquisitions and investments. Mr Khan has also ledthe executive management of a number of ASX listed companies through their establishmentand growth | |
| securities | Relevant interest in $-$ Shares - 353,340 (directly) and 2,029,610 (indirectly 3 )Listed $0.20 (30 June 2008) options - 176,670 (directly) and 1,014,806 (indirectly 3 )Unlisted $0.20 (9 February 2011) Hume Options - 1,833,333 (indirectly 4 )Unlisted $$0.30$ (9 February 2011) Hume Options - 1,666,667 (indirectly 4 )Unlisted $0.96 (21 July 2011) directors' options - 1,400,000 (directly) |
| directorships in . | Other current - Current Chairman and Managing Director of:Queste Communications Limited (since 10 March 1998)(1) |
| listed entities | Current Chairman of:Orion Equities Limited (OEQ) (since 23 October 2006)(2)Bentley International Limited (BEL) (director since 2 December 2003)(3)Scarborough Equities Limited (SCB) (since 29 November 2004)(4) |
| Malcolm Richmond - Non-Executive Director | |
|---|---|
| Appointed $-25$ October 2006 | |
| Qualifications - B. Science Hons (Metallurgy) and B. Commerce Merit (Econs) (New South Wales) | |
| Experience - Professor Richmond has 30 years experience with the Rio Tinto and CRA Groups in a numberof positions including: Vice President, Strategy and Acquisitions, Managing Director,Research and Technology, Managing Director Development (Hamersley Iron Pty Limited) andDirector of Hismelt Corporation Pty Limited. He was formerly Deputy Chairman of theAustralian Mineral Industries Research Association and Vice President of the WA Chamber ofMinerals and Energy. Professor Richmond also served as a Member on the Boards of anumber of public and governmental bodies and other public listed companies. | |
| Professor Richmond is a qualified metallurgist and economist with extensive seniorexecutive and board experience in the resource and technology industries both in Australiaand internationally. His special interests include corporate strategy and the development ofmarkets for internationally traded minerals and metals - particularly in Asia. | |
| He is currently a Visiting Professor at the Graduate School of Management and School ofEngineering, University of Western Australia, and a Fellow of the Australian Academy ofTechnological Sciences & Engineering, a Fellow of Australian Institute of Mining andMetallurgy and a Member of Strategic Planning Institute (US). | |
| Relevant interest in $-$ Nilsecurities | |
| directorships inlisted entities | Other current $-$ Non-Executive Director of:Magnesium International Limited (MGK)(1)Structural Monitoring Systems Plc (SMN)(2)Safe Effect Technologies Limited (SAF)(3) |
$\mathbf{a}_i$ Held by Hume
3 Held by Orion Equities Limited (OEQ) and Hume Mining NL (Hume) (a subsidiary of OEQ); Queste Communications Limited (QUE) is deemed to be a controlling shareholder of OEQ; Mr Farooq Khan (and associated companies) is deemed to have a deemed relevant interest in the securities in which QUE has a relevant interest, by reason of having >20% voting power in QUE.
BOARD OF DIRECTORS
| William M. Johnson — Non-Executive Director | |
|---|---|
| Appointed $-$ 14 July 2006 | |
| Qualifications — MA (Oxon), MBA | |
| $\mathsf{Experience}$ – Mr Johnson commenced his career in resource exploration and has most recently held seniormanagement and executive roles in a number of public companies in Australia, New Zealandand Asia. Mr Johnson brings a considerable depth of experience in business strategy,investment analysis, finance and execution. | |
| Mr Johnson is Executive Chairman of Orion Equities Limited, a significant shareholder inStrike Resources Limited. | |
| Relevant interest in $-$ Shares - nilsecurities | Listed $0.20 (30 June 2008) options - 88,000Unlisted $0.96 (13 September 2011) directors' options - 500,000 |
| directorships inlisted entities | Other current $-$ Current Director of:Orion Equities Limited (OEQ) (since 28 February 2003)(1)Scarborough Equities Limited (SCB) (since 29 November 2004)(2)Drillsearch Energy Limited (DLS) (since 23 October 2006)(3)Sofcom Limited (SOF) (since 18 October 2005)(4) |
| Victor P. H. Ho | Executive Director and Company Secretary | ||
|---|---|---|---|
| Appointed - Secretary since 9 March 2000 and Director since 12 October 2000 | |||
| Qualifications - BCom, LLB (Western Australia) | |||
| Experience – Mr Ho has been in company secretarial/executive roles with a number of public listedcompanies since early 2000. Previously, Mr Ho had 9 years experience in the taxationprofession with the Australian Tax Office and in a specialist tax law firm. Mr Ho has beenactively involved in the structuring and execution of a number of corporate transactions,capital raisings and capital management matters and has extensive experience in publiccompany administration, corporations law and stock exchange compliance and shareholderrelations. | |||
| Relevant interest in $-$ Shares - 16,667securities | Listed $0.20 (30 June 2008) options - 184,334Unlisted $0.96 (21 July 2011) directors' options - 600,000 | ||
| in listed entities | Other positions held $-$ Current Executive Director and Company Secretary of:Orion Equities Limited (OEQ) (Secretary since 2 August 2000 and Director since 4 July(1)2003)Sofcom Limited (SOF) (Director since 3 July 2002 and Secretary since 23 July 2003)(2) | ||
| Current Company Secretary of:Queste Communications Limited (QUE) (since 30 August 2000)(3)Bentley International Limited (BEL) (since 5 February 2004)(4)Scarborough Equities Limited (SCB) (since 29 November 2004)(5) |
SECURITIES INFORMATION
DISTRIBUTION OF LISTED ORDINARY FULLY PAID SHARES
| Spread | οf | Holdings | Number of Holders | Number of Units | % of Total Issue Capital |
|---|---|---|---|---|---|
| $1 -$ | 1,000 | 254 | 119,554 | 0.244 | |
| 1,001 | $\hat{\phantom{a}}$ | 5,000 | 451 | 1,349,322 | 2.763 |
| 5,001 | $\hat{\phantom{a}}$ | 10,000 | 255 | 2,060,106 | 4.219 |
| 10.001 | $\hat{\phantom{a}}$ | 100,000 | 392 | 13, 384, 373 | 27,413 |
| 100.001 | $\sim$ | and over | 62 | 31,910,410 | 65.358 |
| Total | 1,414 | 48,823,765 | 100% |
TOP 20 LISTED ORDINARY FULLY PAID SHAREHOLDERS
| Rank | Shareholders | Total Shares | % Issued Capital |
|---|---|---|---|
| 1 | DATA BASE SYSTEMS LIMITED * | 9,008,800 | 18.451% |
| 2 | NEFCO NOMINEES PTY LTD | 1,925,000 | 3.942% |
| 3 | SUNSHORE HOLDINGS PTY LTD | 1,416,933 | 2.902% |
| 4 | DR SALIM CASSIM | 1,280,000 | 2.621% |
| 5 | HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED | 900,000 | 1.843% |
| 6 | PATER INVESTMENTS PTY LTD | 800,000 | 1.638% |
| 7 | ANZ NOMINEES LIMITED | 758,372 | 1.553% |
| 8 | BELL POTTER NOMINEES LTD | 700,000 | 1.433% |
| 9 | BLUE CRYSTAL PTY LTD | 700,000 | 1.433% |
| 10 | CLASSIC CAPITAL PTY LTD | 700,000 | 1.446% |
| 11 | MRS LINDA SALA TENNA & MRS LISA SHALLARD | 600,000 | 1.228% |
| 12 | RENMUIR HOLDINGS LIMITED | 569,511 | 1.166% |
| 13 | CITYSIDE INVESTMENTS PTY LTD | 563,333 | 1.153% |
| 14 | MR GEORGE BRYANT MACFIE | 560,000 | 1.146% |
| 15 | R & A MULE INVESTMENTS PTY LTD | 500,000 | 1.024% |
| 16 | CITICORP NOMINEES PTY LIMITED | 441,000 | 0.903% |
| 17 | MR RUSS WALKER | 370,000 | 0.757% |
| 18 | ORION EQUITIES LIMITED | 362,944 | 0.743% |
| 19 | FAROOQ KHAN | 353,340 | 0.723% |
| 20 | MRS PATRICIA ULLMAN | 335,000 | 0.686 |
| Total | 22,844,233 | 46,8% |
UNLISTED (ESCROWED) ORDINARY FULLY PAID SHAREHOLDERS
| Shareholders | Escrow Expiry | Total Shares % Issued Capital | |
|---|---|---|---|
| HUME MINING NL | 23 Dec 2006 | 1.666.667 | 3.44% |
| UNRANIUM OIL AND GAS LIMITED | 9 Feb 2007 | 116.667 | 0.241% |
| Substantial shareholder of the Company |
SECURITIES INFORMATION
DISTRIBUTION OF LISTED $0.20 (30 JUNE 2008) OPTIONS
| Spread | οf | Holdings | Number of Holders | Number of Units | % of Total Issue Capital |
|---|---|---|---|---|---|
| $\mathbf{1}$ | $\hat{\phantom{a}}$ | 1,000 | 47 | 27,762 | 0.119% |
| 1,001 | $\hat{\phantom{a}}$ | 5,000 | 129 | 385,966 | 1.660% |
| 5,001 | $\hat{\phantom{a}}$ | 10,000 | 90 | 778,212 | 3.348% |
| 10,001 | $\tilde{\phantom{a}}$ | 100,000 | 208 | 7,031,253 | 30.247% |
| 100.001 | $\sim$ | and over | 31 | 15,022,758 | 64.625% |
| Total | 505 | 23,245,951 | 100.000% |
TOP 20 LISTED $0.20 (30 JUNE 2008) OPTIONS
| Rank | Optionholder | Total Options | % Total Options On Issue |
|---|---|---|---|
| 1 | DATA BASE SYSTEMS LIMITED | 4,537,734 | 19.521% |
| 2 | SUNSHORE HOLDINGS PTY LTD | 1,360,879 | 5.854% |
| 3 | TALEX INVESTMENTS PTY LTD | 1,190,000 | 5.119% |
| 4 | CLASSIC CAPITAL PTY LTD | 1,070,000 | 4.603% |
| 5 | HUME MINING NL | 833,334 | 3.585% |
| 6 | ANZ NOMINEES LIMITED | 532,552 | 2.291% |
| 7 | MR DENIS IVAN RAKICH | 868,000 | 3.734% |
| 8 | RENMUIR HOLDINGS LIMITED | 417,917 | 1.798% |
| 9 | MR TROY VALENTINE | 300,000 | 1.291% |
| 10 | MRS ANUPAM SHOBHA MADAN | 290,000 | 1.248% |
| 11 | CITYSIDE INVESTMENTS PTY LTD | 281,666 | 1.212% |
| 12 | MRS LINDA SALA TENNA & MRS LISA SHALLARD | 250,000 | 1.075% |
| 13 | CHOTAL INTERNATIONAL PTY LTD | 238,436 | 1.026% |
| 14 | MS ROSANNA DE CAMPO | 217,598 | 0.936% |
| 15 | BLUE CRYSTAL PTY LTD | 200,000 | 0.860% |
| 16 | MR RODNEY MALCOLM JONES & MRS CAROL ROBIN JONES | 195,000 | 0.839% |
| 17 | MR VICTOR HO | 184,334 | 0.793% |
| 18 | ORION EQUITIES LIMITED | 181,472 | 0.781% |
| 19 | FAROOQ KHAN | 176,670 | 0.760% |
| 20 | MR SHANKER MADAN & MRS ANU MADAN | 166,667 | 0.717% |
| Total | 13,492,259 | 58,04% |