Quarterly Activities Report
July 29 2011 - 2:00AM
UK Regulatory
TIDMGGG
GGG Resources plc
(the "Company" or "GGG")
QUARTERLY ACTIVITIES REPORT
FOR THE PERIOD ENDED 30 JUNE 2011
HIGHLIGHTS
Corporate
- Successful raising of $8.13 million sees GGG Resources plc list on the ASX
(Code: GGB) on 17 May 2011. The ASX listing complements the Company's London
Stock Exchange AIM listing (Stock Ticker: GGG).
- The total number of shares in the capital of the Company on issue is
165,746,090 of which 20,322,500 shares are traded as CDIs on the ASX.
- On 14 March 2011 GGG launched a scrip takeover bid for all the fully paid
ordinary shares in ASX listed Auzex Resources Limited (AZX). The offer terms
are 7 shares in GGG for every 5 shares in AZX, closing on 6 June 2011.
- On 27 May 2011 GGG extended the AZX takeover offer to 20 June 2011.
- On 10 June 2011 GGG extended the AZX takeover offer to 4 July 2011.
- On 24 June 2011 GGG extended the AZX takeover offer to 4 August 2011.
- On 25 July 2011GGG extended the AZX takeover offer to 4 September 2011
HIGHLIGHTS (continued)
Exploration
- Development of Bullabulling continues on track with over 60,000m of drilling
completed since the project acquired in May 2011.
- Phase I drilling completed and Phase 2 drilling commenced with three rigs on
site.
- Approval received from the WA Government for a Programme of Works for a planned
194,000m drilling programme.
- Results from drilling continue to confirm and expand the current resource
model, and include high grade intersections. Current JORC Inferred Resource is
1,982,000 ounces of contained gold.
- Approximately 22% of reported mineralised sections are outside the current
resource model.
- Joint venture resource consultant has confirmed that an adequate QAQC exists
which validates the use of all historic RC drill data for resource and reserve
estimation.
- JORC update is expected shortly.
- A deep drilling programme to test for high grade mineralisation below the
current resource limit is planned.
EXPLORATION
GGG has a 50% interest in the Bullabulling gold project located 65 kilometres
south-west of Kalgoorlie in Western Australia. The remaining 50% interest is
held by ASX listed Auzex Resources Limited (AZX).
Bullabulling is a large tonnage, low grade deposit associated with the regional
Bullabulling shear zone, which extends over tens of kilometres. The mineralised
structure is up to 800m wide, consisting of multiple west dipping low grade
stacked zones with narrow high grade mineralisation.
During the June quarter Phase I drilling to define the resources between the
Bacchus and Phoenix pits was completed. Phase II drilling to define the
resources north of Phoenix to the Bonecrusher pit has also commenced, with 3
rigs actively drilling on site.
A total of 36,540m of drilling in 254 drill holes was completed for Phase I and
over 24,000m of drilling has so far been completed for Phase II. A JORC update
is expected shortly for the Phase I drilling programme.
Results from the drilling programmes continue to confirm and expand the current
resource model and include new high grade intersections.
Approximately 60% of mineralised intersections returned similar or better
grades and/or widths than expected from the resource model and a quarter of the
reported mineralised sections are outside the current resource model.
Drill highlights reported during this period include:
1m @ 23.8 g/t Au from 34m in BJ0118
3m @ 9.3 g/t Au from 158m in BJ0106
2m @ 8.4 g/t Au from 94m in BJ0154
1m @ 11.7 g/t Au from 128m in BJ1059
1m @ 12.0 g/t Au from 62m in BJ0160
3m @ 6.8 g/t Au from 155m in BJ1072
7m @ 24.5 g/t Au from 36m, including 1m @ 164 g/t Au from 38m in BJ0180
5m @ 7.6 g/t Au from 78m in BJ0207
6m @ 7.3 g/t Au from 90m in BJ0208
2m @ 13.3 g/t Au from 29m in BJ0210
4m @ 4.73 g/t Au from 7m in BJ0236
1m @ 13.75 g/t Au from 44m in BJ 0238
6m @ 1.42 g/t Au from 124m in BJ0243
12m @ 1.52 g/t Au from 136m in BJ0243
11m @ 1.73 g/t Au from 105m in BJ0251
14m @ 1.27 g/t Au from 133m in BJ0251
3m @ 3.36 g/t Au from 119m in BJ0280
6m @ 1.57 g/t Au from 12m in BJ0344
1m @ 9.12 g/t Au from 249m in BJ0350
3m @ 2.31 g/t Au from 28m in BJ0369
4m @ 2.06 g/t Au from 119m in BJ0369
10m @ 2.25 g/t Au from 137 m in BJ0240
2m @14.20 g/t Au from 82 m in BJ0245
4m @ 4.45 g/t Au from 101 m in BJ0249
4m @ 10.61 g/t Au from 126 m in BJ0259
7m @ 3.85 g/t Au from 82 m in BJ0268
9m @ 2.17 g/t Au from 70 m in BJ0274
5m @ 2.76 g/t Au from 95 m in BJ0277
8m @ 3.35 g/t Au from 5 m in BJ0347
4m @ 2.89 g/t Au from 23 m in BJ0389
8m @ 2.00 g/t Au from 159 m in BJ0393
12m @ 6.96 g/t Au from 157 m in BJ0397
10m @ 1.76 g/t Au from 120 m in BJ0419
8m @ 2.25 g/t Au from 27 m in BJ0457
9m @ 1.57 g/t Au from 28 m in BJ1228
12m @ 1.33 g/t Au from 48 m in BJ1246
5m @ 14.09 g/t Au from 70 m in BJ1274
13m @ 1.55 g/t Au from 152 m in BJ1470
6m @ 3.49 g/t Au from 194 m in BJ1946
6m @ 3.10 g/t Au from 39 m in BJ2022
4m @ 3.19 g/t Au from 14 m in BJ2023
7m @ 1.78 g/t Au from 156 m in BJ2047 and
10m @ 5.59 g/t Au from 69 m in BJ2050.
PROPOSED DRILLING PROGRAMME
The joint venture has received approval for a proposed new programme of up to
194,000 metres of drilling. This would comprise 1,210 drill holes to an average
depth of 160m.
This drilling will infill resources to the north, south and at depth, and will
also include exploration drilling to define the footwall and handling wall
contacts of the mineralised trend. Exploration drilling is also planned at
depth to test for repetitions of the stacked lodes at depth that may have
better continuity of high grade mineralisation.
RESOURCE ESTIMATION
Discussion with resource consultant Snowden are now at an advanced stage.
Preliminary optimisation studies have been completed and a final sign-off on
the resource estimate classification is expected shortly. Once completed, the
JORC resource statement will be released based on Phase I drilling as well as
prior work.
METALLURGY TEST WORK
Consultant metallurgical engineers (AMMTEC) are reviewing metallurgical
comminution recovery and variability testwork data andhave started modelling
potential processing and plant capital costs.
Preliminary crushing mill and plant design work has been carried out by
Lycopodium. This information will be used to optimise plant throughput and
define operating and capital cost.
FUTURE WORK PLAN
- The following work is expected to be completed in the coming months:
- Sign-off on processing costs
- Finalise preliminary engineering design
- Sign-off on capital costs
- Start next phase of drilling, either exploration or infill, driven by the
results of optimisation studies
- Commence high grade deep drilling
- Development of a resource estimate using infill drilling
- Optimisation and reserve estimation
- Commencement of Bankable Feasibility Study
COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results is based on
information compiled by Dr.Jeff Malaihollo who is a full-time employee of the
Company and a Fellow of the Australasian Institute of Mining and Metallurgy and
a Fellow of the Geological Society of London. He 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 of
Reporting of Exploration Results, Mineral Resources and Ore Reserves". Jeff
Malaihollo consents to the inclusion in this report of the matters based on the
information in the form and context in which it appears.
Contacts
David McArthur David Brook
GGG Resources plc (Australia) Professional Public Relations
41 Stirling Highway (Australia Media)
Nedlands, WA, 6009
Australia
Email: david.brook@ppr.com.au
Tel: +61 8 9423 3200 Tel: +61 8 9388 0944 / +61 433 112 936
Dr. Jeffrey Malaihollo Westhouse Securities Limited
Managing Director, GGG Resources plc (UK Nominated Adviser)
(UK)
Email:jeff.malaihollo@gggresources.com Tom Price / Martin Davison
Tel: +44 1992 531820 Tel: +44 20 7601 6100
Neil Boom Collins Stewart Europe Limited (Broker)
MD, Gresham PR Ltd (UK media) John Prior / Adam Miller
Tel: +44 7866 805 108 Tel: +44 20 7523 8350
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/01, 01/06/10, 17/12/10
Name of entity
GGG RESOURCES PLC
ARBN Quarter ended ("current quarter")
143 978 376 30 June 2011
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating $A'000 (6 months)
activities $A'000
1.1 Receipts from product sales and
related debtors
1.2 Payments for (a) exploration and (2,383) (3,955)
evaluation
(b) development
(c) production
(d) administration (526) (841)
1.3 Dividends received
1.4 Interest and other items of a 3 3
similar nature received
1.5 Interest and other costs of finance
paid
1.6 Income taxes paid
1.7 Other (provide details if material)
Net Operating Cash Flows (2,906) (4,793)
Cash flows related to investing
activities
1.8 Payment for purchases of:
(a)prospects
(b) equity investments
(c) other fixed assets
1.9 Proceeds from sale of:
(a)prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)
Net investing cash flows
1.13 Total operating and investing cash
flows (carried forward) (2,906) (4,793)
1.13 Total operating and investing cash (2,906) (4,793)
flows (brought forward)
Cash flows related to financing
activities
1.14 Proceeds from issues of shares, 8,129 8,129
options, etc.
1.15 Proceeds from sale of forfeited
shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other - capital raising costs (715) (715)
Net financing cash flows 7,414 7,414
Net increase (decrease) in cash 4,508 2,621
held
1.20 Cash at beginning of quarter/year 14,625 16,285
to date
1.21 Exchange rate adjustments to item 622 849
1.20
1.22 Cash at end of quarter 19,755 19,755
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties 108
included in item 1.2
1.24 Aggregate amount of loans to the parties included Nil
in item 1.10
1.25 Explanation necessary for an understanding of the transactions
1.23 - Includes salaries paid to directors, as well as superannuation
paid on behalf of directors. Also includes corporate and accounting
services paid to a company associated with one of the 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
None
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
None
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 3,000
4.2 Development
4.3 Production
4.4 Administration 350
Total
Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter
quarter (as shown in the consolidated $A'000 $A'000
statement of cash flows) to the related
items in the accounts is as follows.
5.1 Cash on hand and at bank 19,755 14,625
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) - -
Total: cash at end of quarter 19,755 14,625
(item 1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest
reference (note (2)) at at end of
beginning quarter
of
quarter
6.1 Interests in
mining tenements
relinquished, N/A
reduced or
lapsed
6.2 Interests in
mining tenements N/A
acquired or
increased
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 Amount paid up
per security per security
(see note 3) (see note 3)
(cents) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary
securities 20,322,500 20,322,500 N/A N/A
(ASX
listed
securities)
7.4 Changes during
quarter
(a) Increases 20,322,500 20,322,500 40 cents 40 cents
through issues
(b) Decreases
through
returns
of capital,
buy-
backs
7.5 +Convertible
debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options
(description
and conversion
factor)
7.8 Issued during
quarter
7.9 Exercised
during quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Print name: David McArthur Date: 28 July 2011
Notes
1 The quarterly report provides a basis for informing the market how the
entity's activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 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.
END
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