AI assistant
SUREFIRE RESOURCES NL — Interim / Quarterly Report 2023
Jul 30, 2023
65857_rns_2023-07-30_5bd4a61c-59ec-42ce-9ce7-0589973841be.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
==> picture [596 x 62] intentionally omitted <==
==> picture [596 x 62] intentionally omitted <==
----- Start of picture text -----
31 July 2023
----- End of picture text -----
JUNE 2023 QUARTERLY ACTIVITIES REPORT
Surefire Resources NL ( Surefire , or the Company ) is pleased to report on its activities for the quarter ending 30 June 2023.
VICTORY BORE CRITICAL MINERALS PROJECT
==> picture [353 x 362] intentionally omitted <==
Figure 1: Location map of Victory Bore Project
The Victory Bore Project is a Critical Minerals project located in the Mid-West of Western Australia approximately 530km north of Perth (refer Figure 1).
The Victory Bore deposit contains Critical Minerals of both high-grade Vanadium and high-grade Aluminum Oxide.
The Project has advanced to Pre-Feasibility Stage and the Company is considering options for development. The Company continues to evaluate the Victory Bore resource for the emerging Vanadium storage battery and other Vanadium products.
==> picture [595 x 70] intentionally omitted <==
ASX Announcement ASX Codes: SRN
Geology
31 July 2023 The project consists of multiple stacked vanadium-titanium-magnetite rich layers up to 80m wide contained within a layered gabbro. Weathering is shallow, with fresh rock consistently logged from 10m to 25m below surface. The project area covers two prospect areas, Victory Bore and Unaly Hill, collectively the “ Victory Bore Project” or “Project” , and covers an approximate 25km strike length of near contiguous Vanadiferous magnetite defined from aeromagnetic data, drilling, and outcrop.
Victory Bore Resource
The resources and exploration target of the Victory Bore project form a robust mineral resource of world class status, setting it apart from other potential vanadium resources in Australia (refer ASX announcement 7 March 2023 and Table 1 below):
Table 1: Victory Bore Resources
| Victory Bore Measured: | 16.8 Mt @ 0.42% V2O5 |
|---|---|
| Victory Bore Indicated: | 70.3 Mt @ 0.40% V2O5 |
| Victory Bore Inferred: | 147.7 Mt @ 0.38% V2O5 |
| Total | 234.8 Mt@**0.39% V2O5 ** |
| Unaly Hill Inferred: | 86.2 Mt @ 0.42% V2O5 |
| Project Total:2 | 321.0 Mt @ 0.39% **V2O5 ** |
When the existing Mineral Resource Estimate ( MRE ) is added to the Exploration Target Estimate ( ETE ), the potential of the Victory Bore Project is the range of 1,003Mt to 1,511Mt @ 0.2% to 0.43% V205.
| Lower Limit ETE682 Mt @ 0.20% V2O5 | Upper Limit ETE1,190 Mt @ 0.43% V2O5 |
|---|---|
| Project321 Mt @ 0.39% V2O5 | Project321 Mt @ 0.39% V2O5 |
| Total 1,003 Mt @ 0.20% to 0.39% V2O5 | to 1,511 Mt @ 0.39% to 0.43% V2O5 |
1 The potential quantity and grade of the Exploration target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource over the entire area of the Exploration Target, and it is uncertain if further exploration will result in the estimation of an increased Mineral Resource.
2 The total numbers may include rounding. The Victory Bore resource is based on a 0.26% V2O5 cut-off grade. Resource estimation by external consultants HGMC using ordinary kriging.
The company confirms that all material assumptions and technical parameters underpinning the estimates in the announcement dated 7 March 2023 continue to apply and have not materially changed.
High Purity Vanadium Extraction
The Company is developing plans to produce a high purity vanadium oxide from which a clean high purity vanadium electrolyte can be recovered for use in the emerging vanadium battery sector in Australasia.
Following a review of previous metallurgical results from the Victory Bore deposit, and in particular the mineralogical characteristics where Scanning Electron Microscope ( SEM ) assessment showed spot grade vanadium within the magnetite ranges from 1.8% to 3.9% V2O5, the Company concluded that the Victory Bore magnetite hosts relatively clean intrinsic vanadium, which will enable a simpler and cleaner separation in processing (see ASX release 13 February 2023).
Page | 2
ASX Announcement ASX Codes: SRN
Perth based METS were selected to undertake this work as they have an unrivalled depth of advanced metallurgical experience in assessment of Western Australian vanadium deposits and new extraction 31 July 2023 processes. Test work is underway, and results may be incorporated into the current Pre-Feasibility Study.
Pre-Feasibility Study (PFS)
During the quarter the Company progressed the PFS appointing METS Engineering to complete the required work streams and the report. The Company is focussing on a low cost, high value operation and has instructed METS to look at ways to extract maximum value using a streamlined process. This work is progressing using existing technology and processes. Progress on the PFS to date is detailed in Table 2 below.
Table 2: Victory Bore PFS Status
| AREA | STATUS |
|---|---|
| Metallurgical testwork review | Completed. No deleterious elements or issues |
| Beneficiation review | Completed. Magnetite Oregrade isgood |
| Geology and Resources | Completed |
| **Process Design ** | Completed |
| Process Flow Diagrams | Completed |
| Ownership and Legal | Completed |
| Environmental report | Completed |
| Statutory approvals andpermits | Completed: MiningLicence Application submitted |
| Mining | Inprogress |
| Market study | Inprogress |
| Mechanical Equipment List/ Electrical Load | Inprogress |
| Plant Infrastructure | Inprogress |
| Transport and Logistics | Inprogress. |
| Human Resources OH&S | Inprogress |
| CAPEX Estimate(±25%) | Inprogress and beingupdated |
| OPEX Estimate(±25%) | Inprogress and beingupdated |
| Economic Evaluation | Awaitingabove information |
| Project Execution | Inprogress and beingupdated |
| Risk Assessment | Inprogress and beingupdated |
Process Plant Options
The company is assessing options for processing of Victory Bore concentrate to provide operating and market advantages. The company has engaged with several proponents and will provide an update when agreements are reached.
Offtake and Offshore Discussions
The company has commenced discussions with interested parties and will provide an update when any agreements are reached.
Environmental Survey
Surefire engaged Onshore Environmental Consultants Pty Ltd. ( Onshore Environmental) in November 2022 to undertake the required detailed flora and vegetation survey and desktop vertebrate fauna assessment at the Victory Bore Vanadium Project which is in the Murchison bioregion of Western Australia.
Page | 3
ASX Announcement ASX Codes: SRN
No findings or species are within commonwealth or state listed Threatened Ecological Communities (TECs), or state listed Priority Ecological Communities (PECs) documented from the Murchison 31 July 2023 bioregion (refer ASX announcement 18 April 2023).
Maiden Aluminium (Al2O3) Mineral Resource Es�mate
During the quarter the Company announced a Maiden Mineral Resource for the Aluminium Oxide mineralisation (see Table 3).
Table 3: Victory Bore Maiden Aluminium (Al2O3) Mineral Resource Es�mate resources. (Resources calculated by HGMC using a lower 22% Al2O3 cutoff and Ordinary Kriging es�ma�on methodology.
| Classification | Tonnes |
|---|---|
| Measured: | 5.2 Mt @ 23.1% Al2O3 |
| Indicated: | 11.8 Mt @ 23.1% Al2O3 |
| Inferred: | 20.7 Mt @ 23.5% Al2O3 |
| Total: | 37.7 Mt @ 23.3% Al2O3 |
The Victory Bore project contains strongly elevated Aluminium Oxide (Al2O3) in the host rock surrounding the high-grade Vanadium resource (see Figure 2). When mined and the magnetite extracted, this material would effectively be waste rock from which the Company is exploring the potential for HPA to be commercially extracted.
High Purity Alumina (HPA) potential
The maiden Mineral Resource Estimate is from a near-surface measured and indicated component. Potential future mining at Victory Bore will likely produce significant quantities of high Aluminium waste rock which could be used as a low-cost feed material for HPA production.
The Company appointed Lava Blue Ltd. to undertake laboratory test work in order to demonstrate a method to produce 4N (99.99%) purity alumina from this material, (refer ASX announcement 21 March 2023). Lava Blue uses a proprietary process developed with Queensland University of Technology (QUT) where the test work is undertaken.
Page | 4
ASX Announcement ASX Codes: SRN
==> picture [401 x 113] intentionally omitted <==
==> picture [401 x 112] intentionally omitted <==
==> picture [401 x 112] intentionally omitted <==
Figure 2: Victory Bore Project Cross section 6.873,050mN – displaying a width 200m of Aluminium and Vanadium mineralisation, drilling results and central location of the Aluminium resource compared to the Vanadium resource
Results
Ini�al test work including leaching and concentra�on of liquor was completed during the quarter.
Aluminium chloride hexahydrate (ACH) has been produced from the leachate. Following recrystalliza�on ACH was analysed as being 99.8% pure and contaminants were iden�fied. Lava Blue then applied contaminant control strategies prior to 4N HPA produc�on.
Subsequent to the end of the quarter, Lava Blue reported 4N (99.99%) HPA produc�on had been achieved (refer ASX announcement 25 July 2023).
Surefire is progressing this path in parallel with its plans to produce high purity Vanadium.
YIDBY GOLD PROJECT
The Yidby Gold project is located on the Great Northern Highway, 350km North of Perth and 40km southwest of Paynes Find in the Mid-West of Western Australia (Figure 3). The Project comprises granted exploration licences with a total area of 114 km² within the prolific gold producing southern portion of the Yalgoo-Singleton Greenstone Belt.
Page | 5
ASX Announcement ASX Codes: SRN
==> picture [342 x 401] intentionally omitted <==
Figure 3 : Location of the Yidby Gold Project
Drilling Program
During the quarter the Company completed additional drilling to establish the continuity of mineralisation and to test structural targets.
A total of 25 reverse circulation ( RC ) drill holes for a total of 3,381m as part of a broad spaced followup drilling program to cover previously untested gold targets. The programme was also designed to test continuity of mineralisation along strike and along-dip from the gold mineralisation discovered at the Yidby Project, Figure 3 (see ASX announcements 14 March 2023 and 5 April 2023).
Results
Assay results produced broad gold intersections in each drill hole with a maximum result up to 20.81 g/t Au and have shown continuity in areas without previous geochemical anomalies indicating the area remains open in all directions (refer ASX announcement 1 June 2023).
The Company has identified through its work that there is potential for coarse gold in the Yidby mineralised system. This may suggest under reporting in some sample assays where 50gm or 25gm samples were split for analyses by the traditional Fire Assay.
Page | 6
ASX Announcement ASX Codes: SRN
Photon Assay method can overcome this by using a larger 500m samples and analysing the whole sample with high energy XRAYS. As a trial, during the quarter the Company selected some 31 July 2023 representative samples for assay by this method. Results are expected next quarter.
The Yidby Gold System
The mineralised system intersected to date is extensive and now covers over 3km in a NW-SE trending strike length with Gold intercepts at the Yidby, Fender, and Marshall targets (see Figure 4).
The gold mineralised system is quartz-porphyry within an assemblage of mafic and ultra-mafic rocks above a large porphyry system. This is very similar to that seen at the Mt Gibson gold mine (2.75MOz) located 30km to the south.
==> picture [452 x 151] intentionally omitted <==
==> picture [452 x 151] intentionally omitted <==
Figure 4: Plan view interpretation of the geological controls, mineralisation, and prospects
Metallurgical Test Work
During the quarter the Company initiated column leach test work following the excellent sighter metallurgy test work results completed by ALS Perth, (see ASX: 16 November 2022), (see Table 6).
The sighter test results are summarised below:
-
92% gold extracted in 2 hours;
-
43.2% to 67.0% gravity gold recovery;
-
97.6% to 99.5% recovery - gravity and cyanide leach;
-
Low cyanide and lime consumption; and
-
No undesirable or refractory mineralisation.
Page | 7
ASX Announcement ASX Codes: SRN
Table 4: Yidby Gold Project Metallurgical Sighter Test Work –results at P80 75µm and NaCN 1000ppm 31 July 2023
| COMPOSITE | Head Au Grade (g/t) | Head Au Grade (g/t) | Au Extraction (%) | Au Extraction (%) | Au Extraction (%) | Au Extraction (%) | Au Extraction (%) | Au Extraction (%) | Tail Au Grade (g/t) |
Reagents (kg/t) | Reagents (kg/t) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Assay | Calc. | Gravity | 2-hr | 4-hr | 8-hr | 24-hr | 48-hr | NaCN | Lime | ||
| 1 | 0.87 | 1.06 | 50.91 | 91.93 | 95.40 | 97.45 | 97.45 | 98.11 | 0.02 | 0.37 | 2.60 |
| 2 | 2.58 | 2.45 | 43.26 | 92.23 | 94.33 | 95.81 | 97.27 | 97.55 | 0.06 | 0.51 | 0.63 |
| 3 | 14.2 | 12.5 | 66.97 | 96.46 | 96.81 | 97.98 | 98.55 | 99.56 | 0.06 | 0.40 | 0.50 |
The column leach test work will be carried out on Diamond Drill ( DD ) diamond drill core material (see ASX announcement 14 November 2022).
Results of the leach test work are expected in the coming quarter.
PERENJORI HIGH GRADE MAGNETITE PROJECT
==> picture [442 x 102] intentionally omitted <==
==> picture [442 x 102] intentionally omitted <==
==> picture [442 x 102] intentionally omitted <==
Figure 5: Location of the Perenjori Magnetite project
The Perenjori Magnetite project is in the infrastructure-rich Mid-West mining district of Western Australia, with rail links within 14km and a high voltage transmission line nearby the Project (Figure 5).
Page | 8
ASX Announcement ASX Codes: SRN
The project is well positioned to deliver high-grade iron concentrates into next-generation zerocarbon steel plants. The project is significantly closer to the coast than other Western Australian 31 July 2023 magnetite projects, with rail distance to the port of Geraldton at 219km.
Metallurgical test-work, completed by previous owners Quest Minerals Ltd (see ASX release 26 February 2013), recovered 66% to 70% Fe concentrate grades from the relatively coarse and favourable grind size of 75 µm, with SiO2 averaging 4.9% and less than 0.2% Al2O3. A premium grade feed will be suitable for blast furnace pellet production or as a Direct Reduction Iron ( DRI ) feed.
Environmental Survey and Permitting
A comprehensive flora and fauna survey has been completed which identified some Threatened Ecological Communities ( TEC ). These will need to be considered with an offset plan prior to future work. The company has engaged an external environmental group RPM Global to advise on this strategy and expects to engage with the EPA for approval next quarter.
Once approval is granted a 5,000m RC drilling program is planned for the Perenjori Premium Iron Project to infill the current 200m spaced drilling lines to 100m spacing. This infill drilling is designed to upgrade the resource category, and to provide samples for metallurgical testwork as part of the planned Pre-feasibility Study.
KOOLINE SIVER-LEAD PROJECT
The Kooline Base Metals Project in the Ashburton region of Western Australia covers 240km2 and 50km of strike of prospective lead-silver and copper mineralisation. Sampling results recently announced (ASX release 14 September 2022) confirm the high-grade tenor of the lead (14%-16.2%) and silver (up to 55g/t) mineralisation.
High-grade mineralisation in the project area is associated with an airborne electromagnetic conductor ( AEM ) with the strongest AEM targets at Mt Conspicuous, Phar Lap and Northerly prospects (see Figure 6). The Mt Conspicuous AEM target is over 600m in strike length and lies within a structural corridor that contains the historic Mt Conspicuous Mine.
The conductor is interpreted to commence close to surface and persists to 400m in depth, which suggests the interpreted sulphide mineralisation is of significant scale.
During the quarter all previous data was reviewed, and a ground exploration programme planned for next quarter. This will include soil sampling, and geophysics (Ground EM) to locate targets for a drilling program.
CORPORATE ACTIVITIES
Conversion of Partly-Paid shares
During the quarter Mr Vladimir Nikolaenko, Executive Chairman, elected to convert 70,000,000 partly paid Surefire shares into fully paid shares for a total consideration of $413,000.
Mutual Holdings Pty Ltd
The release of the Mineral Resource Announcement for Victory Bore on 1 February 2023 triggered certain payment obligations to Mutual Holdings Pty Ltd. (Refer ASX announcement 5 April 2023). During this quarter, a part payment of $450K was made and the balance remains outstanding until arrangements can be made to settle the debt by agreement.
Page | 9
ASX Announcement ASX Codes: SRN
Managing Director SRN Share Purchase
31 July 2023 During the quarter, the Company’s Managing Director, Paul Burton, purchased 3.67M ASX:SRN shares on-market.
Cash Reserves
The Company’s end of quarter cash position was $1.488M.
Authorised for release to ASX by Paul Burton, Managing Director.
Inquiries: Paul Burton Managing Director +61 8 6331 6330
ASX Additional Information – Guidance Note 23 Disclosures
Surefire provides the following information pursuant to ASX Listing Rule requirements:
-
ASX Listing Rule 5.3.1 - Exploration and Evaluation Expenditure during the quarter was $574K. Full details of exploration activities during the quarter are set out in this report;
-
ASX Listing Rule 5.3.2 - There was no substantive mining production and development activities during the quarter;
-
ASX Listing Rule 5.3.3 – Details of mining tenements acquired or disposed of during the quarter, and held at the end of the quarter are set out in this report; and
-
ASX Listing Rule 5.3.5 - Payments to related parties of the Company and their associates during the quarter: $102K. The Company advises that this relates to remuneration of Directors for managing director consultancy and directorial services, all paid to director related entities.
Page | 10
ASX Announcement ASX Codes: SRN
QUALIFYING STATEMENTS
Competent Person Statement:
The details contained in this report that pertain to an exploration target result are based upon information compiled by Mr Marcus Flis, an independent consultant to Surefire Resources NL. Mr Flis is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Flis consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.
The information in this report that relates to exploration results has been reviewed, compiled, and fairly represented by Mr Horst Prumm, a Member of the Australian Institute of Mining and Metallurgy (‘AusIMM’) and the Australian Institute of Geoscience (‘AIG’) and a fulltime employee of Prumm Corporation Pty Ltd. Mr Prumm has sufficient experience relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Prumm consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
The information in this report that relates to the Victory Bore Vanadium and Aluminium mineral resource estimation is based on work completed by Mr. Stephen Hyland, a Competent Person and Fellow of the AusIMM. Mr. Hyland is Principal Consultant Geologist with Hyland Geological and Mining Consultants (HGMC), who is a Fellow of the Australian Institute of Mining and Metallurgy and holds relevant qualifications and experience as a qualified person for public reporting according to the JORC Code in Australia. Mr Hyland is also a Qualified Person under the rules and requirements of the
The information in this report that relates to metallurgical results has been reviewed, compiled, and fairly represented by Mr Damian Connelly, a Member of the Australian Institute of Mining and Metallurgy (‘AusIMM’) and the Australian Institute of Geoscience (‘AIG’) and a fulltime employee of METS engineers. Mr Connelly has sufficient experience in the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Connelly consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
Cautionary Statement:
The Exploration Target referred to in this announcement, being conceptual in nature, takes no account of geological complexity, possible mining method or metallurgical recovery factors. The Exploration Target was estimated to provide an assessment of the potential scale of the exploration and the Perenjori Iron Project and to inform the Company prior to a decision to proceed with additional resource definition work and mare advanced and definitive studies.
There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or Reserves.
No New Information or Data:
SRN confirms that it is not aware of any new information or data that materially affects the information included previous market announcements and, in the case of Mineral Resources, which all material assumptions and technical parameters underpinning the estimates in the relevant
Page | 11
ASX Announcement ASX Codes: SRN
announcements continue to apply and have not materially changed. The Company confirms that the farm and context in which the Competent Person’s findings are presented have not materially 31 July 2023 changed from the original market announcement.
Forward Looking Statements:
This announcement contains 'forward-looking information' that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flaw, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.
Page | 12
ASX Announcement ASX Codes: SRN
APPENDIX 1 TENEMENT HOLDINGS AT 30 June 2023
| 31 | July 2023 PROJECT |
LEASE | NAME | LOCALITY | LEASE STATUS |
|---|---|---|---|---|---|
| YIDBY GOLD PROJECT | E59/2426 | Nynghan | WA | Granted | |
| E59/2390 | Yalgoo | WA | Granted | ||
| E59/2444 | Yidby Hill | WA | Granted | ||
| NORTH PERENJORI | E70/5575 | Kadji | WA | Granted | |
| E59/2446 | Perenjori 2 | WA | Granted | ||
| E70/5573 | Pinjarrah Hill | WA | Granted | ||
| SOUTH PERENJORI | E70/5311 | Southwest | WA | Granted | |
| E70/6402 | White Pointer | WA | Granted | ||
| E70/5572 | Fitzroy | WA | Granted | ||
| UNALY HILL | E57/1068 | Unaly Hill | WA | EOT in Application Retention Status in Application |
|
| VICTORY BORE | E57/1036 | Victory Bore | WA | M Application | |
| KOOLINE | E08/2373 | Kooline-Wyloo | WA | Granted | |
| E08/2956 | Kooline | WA | Granted |
Page | 13
Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
Name of entity
| SUREFIRE RESOURCES NL | SUREFIRE RESOURCES NL | ||
|---|---|---|---|
| ABN: | Quarter ended (“Current Quarter”) | ||
| 48 083 | 274 024 | 30 June | 2023 |
| Consolidated statement of cash flows | Current quarter | Year to date | |
| $A’000 | (12 months) | ||
| $A’000 | |||
| 1. | Cash flows from operating activities | ||
| 1.1 | Receipts from customers | - | - |
| 1.2 | Payments for | ||
| (a) exploration & evaluation | (574) | (1,968) | |
| (b) development | - | - | |
| (c) production | - | - | |
| (d) staff costs | (274) | (977) | |
| (e) administration and corporate costs | (210) | (608) | |
| 1.3 | Dividends received (see note 3) | - | - |
| 1.4 | Interest received | 6 | 25 |
| 1.5 | Interest and other costs of finance paid | - | - |
| 1.6 | Income taxes paid | - | - |
| 1.7 | Government grants and tax incentives | - | - |
| 1.8 | Other (provide details if material) | - | - |
| 1.9 | Net cash from / (used in) operating | (1,052) | (3,528) |
| activities | |||
| 2. | Cash flows from investing activities | ||
| 2.1 | Payments to acquire or for: | ||
| (a) entities | - | - | |
| (b) tenements | (450) | (457) | |
| (c) property, plant and equipment | - | (17) | |
| (d) exploration & evaluation | - | - | |
| (e) investments | - | - | |
| (f) other non-current assets |
- | - |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 1
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Consolidated statement of cash flows | Current quarter | Year to date |
|---|---|---|---|
| $A’000 | (12 months) | ||
| $A’000 | |||
| 2.2 | Proceeds from the disposal of: | ||
| (a) entities | - | - | |
| (b) tenements | - | - | |
| (c) property, plant and equipment | - | - | |
| (d) investments | - | - | |
| (e) other non-current assets | - | - | |
| 2.3 | Cash flows from loans to other entities | - | - |
| 2.4 | Dividends received (see note 3) | - | - |
| 2.5 | Other (provide details if material) | - | - |
| 2.6 | Net cash from / (used in) investing | (450) | (474) |
| activities | |||
| 3. | Cash flows from financing activities | ||
| 3.1 | Proceeds from issues of equity securities | ||
| (excluding convertible debt securities) | - | - | |
| 3.2 | Proceeds from issue of convertible debt | - | - |
| securities | |||
| 3.3 | Proceeds from exercise of options and | 413 | 420 |
| conversion of partly paid shares into fully | |||
| paid shared | |||
| 3.4 | Transaction costs related to issues of equity | - | - |
| securities or convertible debt securities | |||
| 3.5 | Proceeds from borrowings | - | - |
| 3.6 | Repayment of borrowings | - | - |
| 3.7 | Transaction costs related to loans and | - | - |
| borrowings | |||
| 3.8 | Dividends paid | - | - |
| 3.9 | Other (provide details if material) | - | - |
| 3.10 | Net cash from / (used in) financing | 413 | 420 |
| activities | |||
| 4. | Net increase / (decrease) in cash and | ||
| cash equivalents for the period | |||
| 4.1 | Cash and cash equivalents at beginning of | 2,577 | 5,070 |
| period | |||
| 4.2 | Net cash from / (used in) operating | (1,052) | (3,528) |
| activities (item 1.9 above) | |||
| 4.3 | Net cash from / (used in) investing activities | (450) | (474) |
| (item 2.6 above) | |||
| 4.4 | Net cash from / (used in) financing activities | 413 | 420 |
| (item 3.10 above) |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 2
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| Consolidated statement of cash flows | Consolidated statement of cash flows | Current quarter | Year to date |
|---|---|---|---|
| $A’000 | (12 months) | ||
| $A’000 | |||
| 4.5 | Effect of movement in exchange rates on | - | - |
| cash held | |||
| 4.6 | Cash and cash equivalents at end of | 1,488 | 1,488 |
| period | |||
| 5. | Reconciliation of cash and cash | Current quarter | Previous quarter |
| equivalents | $A’000 | $A’000 | |
| at the end of the quarter (as shown in the | |||
| consolidated statement of cash flows) to the | |||
| related items in the accounts | |||
| 5.1 | Bank balances | 48 | 65 |
| 5.2 | Call deposits | 1,422 | 2,494 |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (provide details) Office rental bond | 18 | 18 |
| 5.5 | Cash and cash equivalents at end of | 1,488 | 2,577 |
| quarter (should equal item 4.6 above) | |||
| 6. | Payments to related parties of the entity and their | Current quarter | |
| associates | $A'000 | ||
| 6.1 | Aggregate amount of payments to related parties and their | 102 | |
| associates included in item 1 | |||
| 6.2 | Aggregate amount of payments to related parties and their | - | |
| associates included in item 2 | |||
| Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an | |||
| explanation for, such payments. | |||
| 7. | Financing facilities | Total facility | Amount drawn at |
| Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. |
amount at quarter end $A’000 |
quarter end $A’000 |
|
| 7.1 | Loan facilities | - | - |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (please specify) | - | - |
| 7.4 | Total financing facilities | - | - |
| 7.5 | Unused financing facilities available at quarter end | - | |
| 7.6 | Include in the box below a description of each facility above, including the lender, interest | ||
| rate, maturity date and whether it is secured or unsecured. If any additional financing | |||
| facilities have been entered into or are proposed to be entered into after quarter end, | |||
| include a note providing details of those facilities as well. |
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 3
Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report
| 8. | Estimated cash available for future operating activities $A’000 |
|---|---|
| 8.1 | Net cash from / (used in) operating activities (item 1.9) (1,052) |
| 8.2 | (Payments for exploration & evaluation classified as investing - |
| activities) (item 2.1(d)) | |
| 8.3 | Total relevant outgoings (item 8.1 + item 8.2) (1,052) |
| 8.4 | Cash and cash equivalents at quarter end (item 4.6) 1,488 |
| 8.5 | Unused finance facilities available at quarter end (item 7.5) - |
| 8.6 | Total available funding (item 8.4 + item 8.5) 1,488 |
| 8.7 | Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.41 |
| Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. | |
| Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. | |
| 8.8 | If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
| 8.8.1 Does the entity expect that it will continue to have the current level of net operating |
|
| cash flows for the time being and, if not, why not? | |
| Answer: SRN expects that it will continue to have negative operating cash flows as is usual | |
| for mining exploration entities, but expenditures on discretionary exploration | |
| expenses will be curtailed as needed, dependent on available cash resources. | |
| 8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further |
|
| cash to fund its operations and, if so, what are those steps and how likely does it | |
| believe that they will be successful? | |
| Answer: SRN is currently in discussions and having regard to its record of raising funds as | |
| and when required, these negotiations are expected to result in additional capital | |
| being raised. The Company has entered into a Controlled Placement Agreement | |
| with Acuity Capital (refer September 2018 quarterly report) which as yet has not | |
| been actioned. A total of 20 million ASX:SRN shares could be placed at market to | |
| activate the facility. | |
| 8.8.3 Does the entity expect to be able to continue its operations and to meet its business |
|
| objectives and, if so, on what basis? | |
| Answer: SRN expects to be able to continue its operations and meet its business objectives | |
| based on its responses to 8.8.1 and 8.8.2 above. | |
| Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
Compliance statement
-
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
-
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 July 2023
Authorised by: Rudolf Tieleman – Company Secretary (Name of body or officer authorising release – see note 4)
Notes
- This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 4
Appendix 5B
Mining exploration entity or oil and gas exploration entity quarterly cash flow report
entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
-
If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
-
Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
-
If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
-
If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.
Page 5