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STRIKE RESOURCES LIMITED Interim / Quarterly Report 2014
65855_rns_2014-07-30_98099c9e-ceb3-482b-8613-096f62aca8c5.pdf
Interim / Quarterly Report
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Quarterly Report
Strike Resources Limited (ASX: SRK, "Strike" or "the Company") is pleased to present the Quarterly Report for the period ended 30 June 2014.
Overview
- Company in advanced discussions regarding sale of Peru assets.
- Arbitration in Peru concluded in Strike's favour.
- Cash burn minimal whilst Company reviews future strategy.
ABOUT STRIKE:
Strike Resources is an ASX listed iron ore project developer, owner of the high grade Apurimac magnetite project in Peru.
Apurimac is 100% owned by Strike and has the potential to support the establishment of a significant iron ore operation, based on some of the highest magnetite grades in the world.
Alongside Apurimac, Strike holds the Cusco Iron Ore Project, and an interest in the Cerro Ccopane project, both of which are also magnetite projects in Peru.
Strike retains significant cash reserves and is presently reviewing alternative options with regard to utilisation of these funds.
June Quarterly Report
During the quarter, the Company focused on progressing opportunities to realise value from its assets in Peru, being the Apurimac and Cusco Iron Ore projects (which are wholly owned by the Company) and an interest in Canadian explorer Cuervo Resources Limited (which holds exploration concessions in Peru, adjacent to Strike's Cusco project).
The Company confirms that during this time, it has conducted detailed discussions with a number of parties who have expressed serious interest in acquiring the Peru assets - as of the date of this announcement, the Board is currently reviewing an offer which it has received for these assets.
Should the Company successfully conclude a sale of its Peru assets, the Board will then proceed to review its options regarding a future strategy for the Company.
Legal Claims
A long running legal dispute with Peruvian companies Millenium Trading S.A.C. ("Millenium") and Minera Apu ("Apu") was resolved during the quarter, with an award issued by the appointed arbitrator in Peru in favour of Strike subsidiary Apurimac Ferrum S.A. (now S.A.C., "AF"), on all accounts and completely rejecting all of Millenium and Apu's arguments.
Details on the arbitration award and other pending claims can be found in the Company's ASX announcement of 1st May 2014, Strike Wins Millenium Arbitration Case In Peru.
Cash
The Company continues to operate with a low cash burn. All operations in Peru remain suspended and all corporate services in Australia and Peru are managed by outsourced service providers.
As at 30 June 2014, the Company's cash balance stood at $10.3 million.
Projects
Apurimac Iron Ore Project
Strike's flagship Apurimac magnetite project is one of the highest grade, large scale magnetite projects in the world and has the potential to support the establishment of a significant iron ore operation.
The exceptionally high grade 57% Fe is almost twice as high as magnetite deposits currently being developed in Australia; ore bodies are course grained, and soft, allowing for cheaper processing costs once in production.
A prefeasibility study completed in 2008 and updated in 2010 on the Apurimac Project indicated clear potential for development of a world class iron ore project:
- JORC Resource of 269Mt of iron ore at Apurimac of 57.3% Fe (142 Mt Indicated at 57.84% Fe and 127 Mt Inferred at 56.7% Fe).
- Mineralisation predominantly high-grade, coarse-grained magnetite providing comparatively high mass recoveries (>60%) at coarse grind size (>500 microns).
- Excellent exploration potential within current concessions with several targets containing ironstones grading >60%Fe in similar geological settings to main Opaban concessions.
- Base case of 20Mtpa of concentrate produced by open pit mining and processing 20 27Mtpa of ore with transport of the high grade (>66%Fe) product to the coast via a slurry pipeline for drying and shipment to customers.
- Attractive life-of-mine operating expenses (2010) of US$ 17 20 per tonne of product.
- Estimated capital expenditure (2010) of US$ 2.6 2.9 billion, competitive with other major iron ore projects.
- Undulating topography at project mine site.
- Consolidation opportunities.
An initial drilling program at Apurimac established 269 Mt resources of high grade, coarse grained magnetite with an average grade of 57.3% iron. Of this, potentially 67 million of Direct Shipping Ore (DSO) at an average grade of 61.5% Fe has been identified.
In early 2014 Strike demonstrated the viability of transporting this ore by truck, delivering quantities of 64% Fe ore for sale to a local steel plant on the coast of Peru.
Cusco
The Cusco project lies approximately 150km to the south - east of Apurimac and forms an attractive secondary development target for the Company in Peru.
Like Apurimac, iron ore mineralisation at the project is coarse grained and dominated by magnetite, with high grades recorded. Preliminary metallurgical tests indicate a concentrate grade of >65% Fe can be produced from this ore using conventional grinding and magnetic separation processes.
An initial inferred resource estimate of 104Mt at 32.6% Fe is recorded for the Project, which has the scope for upgrade following further exploration work (including drilling) which would support re-evaluation of the resource methodology.
No work was undertaken on the Cusco project during the quarter.
Cerro Ccopane (operated by Cuervo Resources Inc)1
The Cerro Ccopane project, located approximately 20km to the north of the company's Cusco project and is operated by Canadian listed company Cuervo Resources Inc ("Cuervo").
On December 11, 2013 Strike announced it had issued a demand notice for C$5,250,000 plus applicable interest to Cuervo in respect of the Investment Agreement between the two Companies, relating to the financing of the Cerro Ccopane project. The demand notice was issued following Strike's concerns regarding the solvency of Cuervo and events of default occurring under the current agreements between the companies.
Strike also issued a notice of its intention to enforce its security held over 90% of the shares of the Peruvian company holding the key assets of the project, if the full amount owed to Strike was not paid by December 16 2013. To date no further action has been undertaken.
-ENDS-
For further information, please contact:
Peru: William Johnson Managing Director Strike Resources Tel: +(511) 715-8090 [email protected] Australia: David Palumbo Company Secretary Strike Resources Tel: +(61) 8 94810389 [email protected]
1 Strike has advanced Cuervo C$5.25M to fund the Stage 1 drilling and exploration program and, in return, was issued warrants that can be converted to 31.5% of Cuervo's shares on an undiluted basis, at C$0.30 per share. Strike holds a share pledge (similar to a share mortgage) over 90% of the shares in Cuervo's 100% owned Peruvian subsidiary that, in turn, owns Cuervo's concessions. Upon Cuervo validly estimating a 500 Mt inferred resource across its Cerro Ccopane Project, this security is reduced so as to cover only 45% of those shares.
The information in respect to mineral resources and other exploration results at Cerro Ccopane is extracted from the report entitled "Cerro Ccopane Resource and Funding Update" released by Strike to the ASX on 30 July 2013 and available at www.strikeresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The company confirms that the form and context in which the Competent Peron's findings are presented have not been materially modified from the original market announcement.
JORC Code (2004) Competent Person Statement - Apurimac and Cuervo
The information in this document that relates to exploration results and mineral resources In respect of the Apurimac and Cuervo projects has been compiled by Mr Ken Hellsten, B.Sc. (Geology), who is a consultant to Strike Resources Ltd and is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Hellsten has sufficient experience 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 Hellsten consents to the inclusion in this document of the matters based on this information in the form and context in which it appears.
Appendix 1 - Apurimac and Cusco mineral resources
Apurimac
The Apurimac project has a JORC resource of 269.4 Mt, consisting of:
- a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and
- a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.
Combined Mineral Resources for Opaban 1 and Opaban 3
| Category | Project | Density t/m3 | Mt | Fe% | SiO2% | Al2O3% | P% | S% |
|---|---|---|---|---|---|---|---|---|
| Inferred | Opaban 1 | 4 | 127.19 | 56.7 | 9.66 | 2.7 | 0.04 | 0.2 |
| Indicated | Opaban 1 | 4 | 133.71 | 57.57 | 9.46 | 2.54 | 0.04 | 0.12 |
| Indicated | Opaban 3 | 4 | 8.53 | 62.08 | 4.58 | 1.37 | 0.07 | 0.25 |
| Totals | 269.4 | 57.3 | 9.4 | 2.56 | 0.04 | 0.16 |
Cusco
| Category | Project | Density t/m3 | Mt* | Fe% | SiO2% | Al2O3% | P% | S% |
|---|---|---|---|---|---|---|---|---|
| Inferred | Santo Tomas | 4 | 104.4 | 32.62 | 0.53 | 3.19 | 0.035 | 0.53 |
| Totals | 104.4 | 32.62 | 0.53 | 3.19 | 0.035 | 0.53 |
Cerro Ccopane
| Bob1 NewResources | Tonnes (Mt) | Iron (%) | SiO2 (%) | Al2O3 (%) | P (%) | S% |
|---|---|---|---|---|---|---|
| Inferred | 217.0 | 40.2 | 21.6 | 5.0 | 0.08 | 2.2 |
| Cerro CcopaneNew Total2 | Tonnes (Mt) | Iron (%) |
|---|---|---|
| Inferred | 340.0 | 43.3 |
| Indicated | 35.9 | 45.9 |
| Measured | 19.7 | 48.3 |
| Total | 395.6 | 43.8 |
2 Although a full suite of elementary analyses were completed on all drilling at Cerro Ccopane the resources apart from Bob1 (Golder) were not estimated for SiO2, Al2O3, or P and S grade estimates were completed only for Orcopura and Bob1 (Golder) resources.
ASX Listing Rule 5.3.3 - Details of Strike Resources Tenements Held at 30 June.
Note: No tenements were acquired or disposed of during the quarter. No farm in or farm out agreements are in effect.
Perú (Strike - 100%)
Apurimac Project tenements
| Name | Area (Ha) | Province | Code | Title | File No |
|---|---|---|---|---|---|
| (1) Opaban I | 999 | Andahuaylas | 05006349X01 | No 8625-94/RPM Dec 16, 1994 | 20001465 |
| (2) Opaban III | 990 | Andahuaylas | 05006351X01 | No 8623-94/RPM Dec 16, 1994 | 20001464 |
| (3) Los Andes I | 999 | Andahuaylas | 05006372X01 | No 0134-95-RPM Jan 31, 1995 | 200001481 |
| (4) Pitumarca II | 1,000 | Andahuaylas | 05006385X01 | No 8686-94-RPM Dec 22, 1994 | 20001478 |
| (5) LucreciaEsperanza | 66 | Andahuaylas | 01-00649-99 | No 00623-2001-INACC/J Jul 26, 2001 | 11032475 |
| (6) NuevaOropampa 6 | 400 | Andahuaylas | 01-00860-99 | No 04043-2000-RPM Oct 13, 2000 | 11032603 |
| (7) Mapsa 2001 | 800 | Andahuaylas | 01-01204-01 | No 00590-2002-INACC/J Apr 8, 2002 | 11032600 |
| (8) Coriminas II | 1,000 | Andahuaylas | 01-01624-99 | No 02760-2000-RPM Jul 25, 2000 | 11032965 |
| (9) Coriminas V | 1,000 | Andahuaylas | 01-01626-99 | No 0936-00-RPM Mar 16, 2000 | 20003140 |
| (10) Ferrum 1 | 965 | Andahuaylas | 01-02983-04 | No 00228-2005-INACC/J Jan 19, 2005 | 11053798 |
| (11) Ferrum 2 | 1,000 | Andahuaylas | 01-02984-04 | No 00227-2005-INACC/J Jan 19, 2005 | 11053836 |
| (12) Ferrum 3 | 1,000 | Andahuaylas | 01-02985-04 | No 00229-2005-INACC/J Jan 19, 2005 | 11053807 |
| (13) Ferrum 4 | 1,000 | Andahuaylas/Aymaraes | 01-02986-04 | No 00230-2005-INACC/J Jan 19, 2005 | 11053810 |
| (14) Ferrum 5 | 959 | Aymaraes | 01-02987-04 | No 00323-2005-INACC/J Jan 25, 2005 | 11053816 |
| (15) Ferrum 7 | 437 | Aymaraes | 01-02989-04 | No 00396-2005-INACC/J Jan 27, 2005 | 11053822 |
| (16) Ferrum 8 | 900 | Andahuaylas | 01-02990-04 | No 00232-2005-INACC/J Jan 19, 2005 | 11053827 |
| (17) Ferrum 9 | 1,000 | Aymaraes | 01-02991-04 | No 00326-2005-INACC/J Jan 25, 2005 | 11053830 |
| (18) Ferrum 10 | 1,000 | Aymaraes | 01-02992-04 | No 00325-2005-INACC/J Jan 25, 2005 | 11053833 |
| (19) Ferrum 11 | 1,000 | Aymaraes | 01-02993-04 | No 02512-2005-INACC/J Jun 16, 2005 | 11053835 |
| (20) Ferrum 13 | 600 | Andahuaylas | 01-03139-06 | No 4416-2006-INACC/J Oct 16, 2006 | 11061068 |
| (21) Ferrum 26 | 827 | Andahuaylas | 01-02274-07 | No 000853-2007-INGEMMET/PCD/PM Sept 7, 2007 | 11073793 |
| (22) Ferrum 27 | 1,000 | Andahuaylas | 01-02629-07 | No 000581-2007-INGEMMET/PCD/PM Sept 5, 2007 | 11073799 |
| (23) Ferrum 36 | 1,000 | Andahuaylas | 10553307 | RP 0176-2008-INGEMMET/PCD/PM Feb 29, 2008 | 11075418 |
| (24) Cristoforo 22 | 379 | Andahuaylas | 01-01656-02 | RP2849-2007-INGEMMET/PCD/PM Dec 13, 2007 | 11067786 |
| (25) Ferrum 28 | 1,000 | Andahuaylas | 10507407 | RP0601-2008-INGEMMET/PCD/PCM Mar 07, 2008 | 11075423 |
| (26) Ferrum 29 | 1,000 | Andahuaylas | 10507507 | RP0365-2008-INGEMMET/PCD/PM Mar 07, 2008 | 11075419 |
| (27) Ferrum 30 | 963 | Andahuaylas | 10525907 | PP 1024-2008-INGEMMET/PCD/PM May 05, 2008 | 11076757 |
| (28) Ferrum 31 | 327 | Andahuaylas | 10552807 | RP 1266-2008-INGEMMET/PCD/PM May 12, 2008 | 11076509 |
| (29) Ferrum 32 | 900 | Andahuaylas | 10552907 | RP0402-2008-INGEMMET/PCD/PM Mar 07, 2008 | 11075425 |
| (30) Ferrum 33 | 900 | Andahuaylas | 10553007 | RP0547-2008-INGEMMET/PCD/PM Mar 07, 2008 | 11075421 |
| (31) Ferrum 34 | 800 | Andahuaylas | 10553107 | RP0764-2008-INGEMMET/PCD/PM Apr 17, 2008 | 11075427 |
| (32) Ferrum 35 | 1,000 | Andahuaylas | 10553207 | RP0347-2008-INGEMMET/PCD/PCM Mar 07, 2008 | 11075426 |
| (33) Ferrum 37 | 695 | Andahuaylas | 10621507 | RP 1164-2008-INGEMMET/PCD/PM May 12, 2008 | 11076534 |
| (34) Ferrum 56 | 1,000 | Andahuaylas | 10133508 | RP 1971-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077123 |
| (35) Ferrum 57 | 1,000 | Andahuaylas | 10133608 | RP 3279-2008-INGEMMET/PCD/PM Sept 9, 2008 | 11081417 |
| (36) Ferrum 58 | 1,000 | Andahuaylas | 10133708 | RP 2206-2008-INGEMMET/PCD/PM 27 Jun, 2008 | 11077127 |
| (37) Ferrum 59 | 1,000 | Andahuaylas | 10133808 | RP 2272-2008-INGEMMET/PCD/PM 27 Jun, 2008 | 11077122 |
| (38) Ferrum 61 | 1,000 | Aymaraes | 10073308 | - | in process |
| (39) Pacunco 1 | 800 | Andahuaylas | 10019508 | RP 1806-2008-INGEMMET/PCD/PM May 29, 2008 | 11076523 |
| (40) MinasHuaycco | 800 | Abancay | 10168708 | RP 2541-2008-INGEMMET/PCD/PM Aug 08, 2008 | 11081416 |
| (41) Roncco | 400 | Aymaraes | 10521708 | Notification 153150-2008 INGE< <et 2008<="" 30="" oct,="" td="">TBA | TBA |
| (42) Ferrum 12 | 700 | Andahuaylas | 10299404 | RP 030326-2005-INACC/J 25 Jan, 2005 | TBA |
| (43) Sillaccassa 3 | 200 | Andahuaylas | 10491311 | RP 000192-2012-INGEMMET/PCD/PM 30 Mar, 2012 | TBA |
Strike Resources Limited (ABN 94 088 488 724)
Registered Office: Level 11, 216 St Georges Terrace, Perth Western Australia 6000 web: www.strikeresources.com.au email: [email protected]
| Name | Area (Ha) | Province | Code | Title | File No |
|---|---|---|---|---|---|
| (44) Ferrum 21 | 999 | Lucanas | 10027007 | RP 129-2008-MEM/CM 21 Apr, 2008 | TBA |
| (45) Cassio 100 | 400 | Andahuaylas | 10182808 | RP 003321-2008- INGEMMET/PCD/PM 10 Sep,2009 | TBA |
| (46) Ferrum 25 | 1,000 | Andahuaylas | 10227307 | TBA | TBA |
| (47) Ferrum 19 | 1,000 | Cotabombas | 10026807 | RP 006426-2008-INGEMMER/PCD/PM 30 Dec,2008 | TBA |
| (48) Ferrum 6 | 1,000 | Aymaraes | 10298804 | RP 00231-2005-INACC/J 19 Jan, 2005 | TBA |
| (49) Ferrum 64 | 600 | Andahuaylas | 10073108 | RP 000647-2009-INGEMMET/PCD/PM 27 Feb, 2009 | TBA |
| (50) Ferrum 20 | 800 | Cajamarca | 10026907 | RP 000064-2009-INGEMMET/PCD/PM 28 Jan, 2009 | TBA |
| (51) Ferrum 16 | 1,000 | Chumbivilcas | 10026507 | RP 001979-2007-INACC/J 24 May, 2007 | TBA |
| (52) Ferrum 38 | 800 | Andahuaylas | 10623507 | RP1288-2008-INGEMMET/PCD/PM May 12, 2008 | 11064280 |
| (53) Ferrum 39 | 1,000 | Andahuaylas | 10131408 | RP 1573-2008-INGEMMET/PCD/PM May 29, 2008 | 11076755 |
| (54) Ferrum 40 | 1,000 | Andahuaylas | 10131508 | RP 2905-2008-INGEMMET/PCD/PM Aug 19, 2008 | 11079783 |
| (55) Ferrum 41 | 1,000 | Andahuaylas | 10131608 | RP 1965-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077113 |
| (56) Ferrum 42 | 1,000 | Andahuaylas | 10131708 | RP 1975-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077114 |
| (57) Ferrum 43 | 1,000 | Andahuaylas | 10131808 | RP 3243-2008-INGEMMET/PCD/PM Sept 9, 2008 | 11081446 |
| (58) Ferrum 44 | 1,000 | Andahuaylas | 10131908 | RP 1934-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077115 |
| (59) Ferrum 45 | 1,000 | Andahuaylas | 10132008 | RP 2283-2008-INGEMMET/PCD/PM Jun 27, 2008 | 11077116 |
| (60) Ferrum 46 | 1,000 | Andahuaylas | 10132108 | RP 2523-2008-INGEMMET/PCD/PM Aug 08, 2008 | 11079784 |
| (61) Ferrum 47 | 1,000 | Andahuaylas | 10132208 | RP 1908-2008-INGEMMET/PCD/PM Jun 18, 2008 | 11077117 |
| (62) Ferrum 48 | 1,000 | Andahuaylas | 10132308 | RP 1756-2008-INGEMMET/PCD/PM May 29, 2008 | 11076584 |
| (63) Ferrum 49 | 1,000 | Andahuaylas | 10132408 | RP 2000-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077118 |
| (64) Ferrum 50 | 900 | Andahuaylas | 10132508 | RP 1922-2008-INGEMMET/PCD/PM Jun 19, 2008 | 11077120 |
| (65) Ferrum 51 | 1,000 | Andahuaylas | 10132608 | RP 1893-2008-INGEMMET/PCD/PM Jun 18, 2008 | 11077121 |
| (66) Ferrum 52 | 1,000 | Andahuaylas | 10132708 | RP 2803-2008-INGEMMET/PCD/PM Aug 18, 2008 | 11079786 |
| (67) Ferrum 53 | 1,000 | Andahuaylas | 10132808 | RP 2550-2008-INGEMMET/PCD/PM Aug 08, 2008 | 11079787 |
| (68) Ferrum 54 | 700 | Andahuaylas | 10132908 | RP 2899-2008-INGEMMET/PCD/PM Aug 19, 2008 | 11079788 |
| (69) Ferrum 55 | 800 | Andahuaylas | 10133408 | RP 2951-2008-INGEMMET/PCD/PM Aug 19, 2008 | 11079789 |
| (70) Ferrum 60 | 200 | Abancay | 10073208 | RP 6379-2008-INGEMMET/PCD/PM Dec 29, 2008 | 11084879 |
| (71) Ferrum 62 | 900 | Abancay | 10073408 | RP 3147-2008-INGEMMET/PCD/PM Aug 28, 2008 | 11079791 |
| (72) Ferrum 63 | 300 | Grau | 10073008 | RP 1492-2008-INGEMMET/PCD/PM May 26, 2008 | 11076586 |
| (73) Pichirhua 1 | 800 | Abancay | 10151708 | RP 2638-2008-INGEMMET/PCD/PM Aug 11, 2008 | 11079794 |
| (74) Pichirhua 2 | 400 | Abancay | 10151808 | RP 3244-2008-INGEMMET/PCD/PM Sept 9, 2008 | 11081445 |
| (75)Colcabamba 1 | 600 | Aymaraes | 10212308 | RP 2986-2008-INGEMMET/PCD/PM Aug 19, 2008 | 11079780 |
| (76)Colcabamba 2 | 500 | Aymaraes | 10212408 | RP 3177-2008-INGEMMET/PCD/PM Sept 8, 2008 | 11081451 |
| (77)Colcabamba 3 | 900 | Aymaraes | 10217208 | RP 3040-2008-INGEMMET/PCD/PM Aug 28, 2008 | 11079781 |
| (78)Colcabamba 4 | 400 | Aymaraes | 10580108 | RP 1117-2009-INGEMMET/PCD/PM Mar 31, 2009 | 11093827 |
| (79) Sillaccassa 1 | 700 | Andahuaylas | 10212508 | RP 5088-2008-INGEMMET/PCD/PM Nov 19, 2008 | 11084877 |
| (80) Sillaccasa 2 | 400 | Andahuaylas | 10212608 | RP 3183-2008-INGEMMET/PCD/PM Sept 8, 2008 | 11081449 |
| (81) Helimag 1 | 900 | Andahuaylas | 10294109 | No 000741-2010 INGEMMET/PCD/PM Mar 22,2010 | TBA |
| (82) Quimsa 1 | 1,000 | Melgar | 10248007 | RP 000913-2007-INGEMMET/PCD/PM Sept 7, 2007 | TBA |
| (83) Quimsa 2 | 1,000 | Melgar | 10246007 | RP 000345-2007-INGEMMET/PCD/PM Aug 09,2007 | TBA |
| (84) Pucaccasa | 600 | Andahuaylas | 10353408 | RP 005978-2008-INGEMMET/PCD/PM Dec 17,2008 | TBA |
Apurimac Project tenements
Strike Resources Limited (ABN 94 088 488 724) Registered Office: Level 11, 216 St Georges Terrace, Perth Western Australia 6000 web: www.strikeresources.com.au email: [email protected]
| Name | Area (Ha) | Province | Code | Title | File No. | |||
|---|---|---|---|---|---|---|---|---|
| (1) Flor de María | 907 | Chumbivilcas | 05006521X01 | No 7078-95-RPM Dec 29, 1995 | 20001742 | |||
| (2) DeliaEsperanza | 1,000 | Chumbivilcas | 05006522X01 | No 0686-95-RPM Mar 31, 1995 | 20001743 | |||
| (3) Julia Clara | 1,000 | Chumbivilcas | 05006523X01 | No 4600-95/RPM Sept 26, 1995 | 20001744 | |||
| (4) El Pacífico I | 618 | Chumbivilcas | 05006536X01 | No 7077-95/RPM Dec 29, 1995 | 20001785 | |||
| (5) El Pacífico II | 1,000 | Chumbivilcas | 05006524X01 | No 7886-94/RPM Nov 25, 1994 | 20001746 | |||
| (6) Ferrum 14 | 268 | Chumbivilcas | 01-03047-05 | No 05032-2005-INACC/J Nov 30, 2005 | 11053842 | |||
| (7) Ferrum 15 | 992 | Chumbivilcas | 10494906 | RJ 0753-2007-INACC/J Mar 05, 2007 | 11073796 | |||
| (8) Ferrum 17 | 500 | Chumbivilcas | 10026607 | RP 1815-2007-INGEMMET/PCD/PM Oct 30, 2007 | 11073794 | |||
| (9) Ferrum 18 | 800 | Chumbivilcas/Cotabambas | 10026707 | RP 1761-2008-INGEMMET/PCD/PM May 29, 2008 | 11076514 | |||
| (10) Ferrum 72 | 1,000 | Paruro | 10408208 | RP 4435-2008-INGEMMET/PCD/PM Oct 21, 2008 | 11084851 | |||
| (11) Ferrum 73 | 1,000 | Paruro | 10409608 | RP 5050-2008-INGEMMET/PCD/PM Nov 19, 2008 | 11084874 | |||
| (12) Ferrum 74 | 1,000 | Chumbivilcas/Paruro | 10409708 | RP 5006-2008-INGEMMET/PCD/PM Nov 19, 2008 | 11084871 | |||
| (13) Ferrum 75 | 303 | Chumbivilcas | 10409808 | RP 5130-2008-INGEMMET/PCD/PM Nov 19, 2008 | 11084873 | |||
| (14) Ferrum 76 | 974 | Chumbivilcas | 10409908 | RP 4323-2008-INGEMMET/PCD/PM Oct 20, 2008 | 11084870 | |||
| (15) Ferrum 77 | 1,000 | Paruro | 10408108 | RP 5227-2008-INGEMMET/PCD/PM Nov 19, 2008 | 11084868 | |||
| (16) Ferrum 65 | 1,000 | Paruro | 10580008 | RP 0337-2009-INGEMMET/PCD/PM Feb 19, 2009 | 11093825 | |||
| (17) Ferrum 66 | 100 | Paruro | 10580208 | RP 1613-2009-INGEMMET/PCD/PM Jun 4, 2009 | 11093823 | |||
| (18) Ferrum 67 | 100 | Chumbivilcas | 10579908 | RP 5849-2008-INGEMMET/PCD/PM Dec 17, 2008 | 11084880 | |||
| (19) Ferrum 68 | 1,000 | Acomayo | 10579808 | RP 1185-2009-INGEMMET/PCD/PM Mar 31, 2009 | 11093824 | |||
| (20) Ferrum 69 | 1,000 | Acomayo | 10579708 | RP 1633-2009-INGEMMET/PCD/PM Jun 4, 2009 | TBA | |||
| (21) Ferrum 70 | 1,000 | Acomayo | 10579608 | RP 1848-2009-INGEMMET/PCD/PM Jun 11, 2009 | TBA | |||
| (22) Ferrum 71 | 1,000 | Acomayo | 10579508 | RP 1120-2009-INGEMMET/PCD/PM Mar 31, 2009 | TBA |
Cusco Project tenements
Paulsens East Project – Western Australia (Strike – 100%)
| Tenement No | Status | GrantDate | ExpiryDate | Area(blocks/Ha) | Area (km²) |
|---|---|---|---|---|---|
| (1) PL 47/1170* | Granted | 27/03/06 | 26/03/13 | 164 Ha | 1.64 |
*An application has been made to convert PL 47/1170, together with a portion of expired former exploration licence E47/1328, into a retention licence with a total area of 381Ha.
Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Name of entity
STRIKE RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
94 088 488 724 30 June 2014
ABN Quarter ended ("current quarter")
Consolidated statement of cash flows
| Current quarter | Year to date | ||
|---|---|---|---|
| Cash flows related to operating activities | $A'000 | (12 months) | |
| $A'000 | |||
| 1.1 | Receipts from product sales and related | - | 99 |
| debtors | |||
| 1.2 | Payments for(a) exploration & evaluation | (164) | (1,580) |
| (b) development | - | - | |
| (c) production | - | - | |
| (d) administration | (730)* | (3,147) | |
| 1.3 | Dividends received | - | - |
| 1.4 | Interest and other items of a similar nature | 80 | 467 |
| received | |||
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Other (provide details if material) | - | - |
| Net Operating Cash Flows | (814) | (4,161) | |
| Cash flows related to investing activities | |||
| 1.8 | Payment for purchases of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | - | (4) | |
| 1.9 | Proceeds from sale of:(a) prospects | - | - |
| (b) equity investments | - | - | |
| (c) other fixed assets | - | 1 | |
| 1.10 | Loans to other entities | - | - |
| 1.11 | Loans repaid by other entities | - | - |
| 1.12 | Other (provide details if material) | - | - |
| Net investing cash flows | - | (3) | |
| 1.13 | Total operating and investing cash flows | ||
| (carried forward) | (814) | (4,164) |
* Includes final termination payments for employees in Peru and payment of accrued tax liabilities
+ See chapter 19 for defined terms.
| 1.13 | Total operating and investing cash flows(brought forward) | (814) | (4,164) |
|---|---|---|---|
| 1.141.151.161.171.181.19 | Cash flows related to financingactivitiesProceeds from issues of shares, options, etc.Proceeds from sale of forfeited sharesProceeds from borrowingsRepayment of borrowingsDividends paidOther (provide details if material) | ------ | ------ |
| Net financing cash flows | - | - | |
| Net increase (decrease) in cash held | (814) | (4,164) | |
| 1.201.21 | Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20 | 11,136- | 14,41571 |
| 1.22 | Cash at end of quarter | 10,322 | 10,322 |
Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities
| Current quarter$A'000 | |||
|---|---|---|---|
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 135 | |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
1.25 Explanation necessary for an understanding of the transactions
1.23 includes director's fees and salaries for executive and non-executive directors
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Nil
+ See chapter 19 for defined terms.
Financing facilities available
Add notes as necessary for an understanding of the position.
| Amount available$A'000 | Amount used$A'000 | ||
|---|---|---|---|
| 3.1 | Loan facilities | - | - |
| 3.2 | Credit standby arrangements | - | - |
Estimated cash outflows for next quarter
| $A'000 | ||
|---|---|---|
| 4.1 | Exploration and evaluation | - |
| 4.2 | Development | - |
| 4.3 | Production | - |
| 4.4 | Administration* | 750 |
| Total | 750 |
* 4.4 includes one off payment of legal fees incurred over the past two (2) years.
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows. | Current quarter$A'000 | Previous quarter$A'000 | |
|---|---|---|---|
| 5.1 | Cash on hand and at bank | 772 | 1,286 |
| 5.2 | Deposits at call | 9,550 | 9,850 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other (provide details) | - | - |
| Total: cash at end of quarter (item 1.22) | 10,322 | 11,136 |
+ See chapter 19 for defined terms.
| Tenementreference andlocation | Nature of interest(note (2)) | Interest atbeginningof quarter | Interest atend ofquarter | ||
|---|---|---|---|---|---|
| 6.1 | Interests in miningtenements andpetroleum tenementsrelinquished, reducedor lapsed | Nil | |||
| 6.2 | Interests in miningtenements andpetroleum tenementsacquired or increased | Nil |
Changes in interests in mining tenements and petroleum tenements
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issue price persecurity (seenote 3) (cents) | Amount paid upper security (seenote 3) (cents) | ||
|---|---|---|---|---|---|
| 7.1 | Preference | ||||
| +securities | |||||
| (description) | |||||
| 7.2 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs, | |||||
| redemptions | |||||
| 7.3 | +Ordinary | 145,334,268 | 145,334,268 | ||
| securities | |||||
| 7.4 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs | |||||
| 7.5 | +Convertible | ||||
| debt | |||||
| securities | |||||
| (description) |
+ See chapter 19 for defined terms.
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
| 7.6 | Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted | |||
|---|---|---|---|---|
| 7.7 | Options | Exercise price | Expiry date | |
| Director options | 500,000 | 36.0 cents | 23 November 2016 | |
| Director options | 500,000 | 42.0 cents | 23 November 2016 | |
| Director options | 500,000 | 56.0 cents | 23 November 2016 | |
| Director options | 916,666 | 36.0 cents | 23 November 2016 | |
| Director options | 916,666 | 42.0 cents | 23 November 2016 | |
| Director options | 916,668 | 56.0 cents | 23 November 2016 | |
| Director options | 3,000,000 | 30.0 cents | 17 June 2018 | |
| 7.8 | Issued during | |||
| quarter | ||||
| 7.9 | Exercised | |||
| during quarter | ||||
| 7.10 | Expired during | |||
| quarter | ||||
| 7.11 | Debentures | |||
| (totals only) | ||||
| 7.12 | Unsecured | |||
| notes (totals | ||||
| only) | ||||
Compliance statement
- 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 31 July 2014
Managing Director
Print name: William Johnson
+ See chapter 19 for defined terms.
Notes
- 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
- 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
- 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities*.*
- 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
- 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
+ See chapter 19 for defined terms.