TIDMMNC
RNS Number : 6702M
Metminco Limited
01 August 2017
ASX ANNOUNCEMENT 31 July 2017
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QUARTERLY ACTIVITIES REPORT & APPIX 5B
3 MONTHS TO 30 JUNE 2017
An extract from the Report is set out below. The
full Report, including images, can be accessed from
the Company's website www.metminco.com.au.
Highlights for quarter ending 30 June 2017 for Metminco
Limited ("the Company"):
Miraflores Gold Project
Feasibility Study work for the Miraflores Gold Project
("Miraflores" or the "Project") is anticipated to
be completed by the end of the 3(rd) Quarter 2017.
Work undertaken during the quarter included:
* Final feasibility study mining report received by the
Company including mine design, mine schedules, the
reporting of mined tonnages and grades, mine
ventilation and geotechnical reports and capital and
operating costs. Life of Mine (LOM) operating costs
for the mining operations reduced by approximately
19% from previous studies due mainly to changes to
development and backfilling requirements for the
operation.
* The Phase 1 metallurgical testwork was completed and
the final testwork report received by the Company
during the quarter. The testwork results confirmed
previous results and the process design adopted by GR
Engineering. The overall gold recovery from the
gravity + flotation & cyanidation process averaged
93.45%.
* A preferred power line route from Quinchia to the
Miraflores site was selected and access negotiations
with landowners commenced to undertake environmental
studies and to complete detailed design and costings
for the power line.
* Gaining of a social licence for the development of
the Project through engagement with the local
communities, municipality and government agencies and
other stakeholders continued.
The critical path for the development of the project
remains the completion of the baseline monitoring
for the Environmental Licence (EIA) and the social
licence. It is expected that the baseline monitoring
will be completed in October 2017 with submission
of the EIA application to the relevant authorities
targeted for the end of 2017.
Corporate
* The Company's cash position at the end of the quarter
(30 June 2017) was approximately AUD
$ 6,351,000. This was a result of the proceeds received
from the sale of Metminco Limited's interest in Los
Calatos for US $ 5 million. During the quarter there
were proceeds ($ 750,000) received from Convertible
Notes.
* Following shareholder approval the Company completed
a consolidation of securities in the ratio of 50:1
early January 2017.
Mr William Howe, Managing Director, commented: "The
Miraflores Gold Project feasibility study continues
to progress with the Company receiving the final
mining report from Ausenco for the feasibility study.
The mining operating costs have been positively impacted
by a reduction in the total life of mine development
required and changes to the backfilling operations
from the previous studies reported. The confirmatory
Phase 1 metallurgical testwork has been completed
and confirms the Scoping Study results and the process
design adopted by GR Engineering in the feasibility
study.
The sale of the Los Calatos project during the quarter
to CD Capital Natural Resources Fund III LP has provided
funding for the completion of the Miraflores feasibility
study and EIA process."
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MIRAFLORES PROJECT - COLOMBIA
Feasibility Study
The Miraflores Project represents a near-term gold development
opportunity, with a Measured and Indicated Mineral Resource of 9.27
million tonnes at 2.82g/t gold and 2.77g/t silver (840,000 oz Au
and 826,000 oz Ag) at a cut-off grade of 1.2 g/t. The Company
commissioned a feasibility study in November 2016 with an estimated
completion date during 2017. The feasibility study is focussed on
an underground operation producing approximately 50,000 ounces of
gold per annum for 9 years as projected by the Scoping Study
announced 8 September 2016. The Feasibility Study is now 70%
completed with remaining work being the completion of the Phase 2
metallurgical testwork which will look at tailings and concentrate
thickening and filtration, processing schedule, processing capital
and operating costs, geotechnical testwork on the tailings for
confirmation of the design adopted by Company consultants,
geotechnical fieldwork including test pitting, core drilling and
geophysics covering the tailings facility and plant site for civil
engineering design and financial modelling.
Feasibility Study - Mining
The purpose of the study was to develop and present a
comprehensive and detailed description of the final optimized
underground mine design and plan for the Project that presents a
technically and economically viable mining opportunity.
The results of this study will allow the determination of the
size or rate of material treatment and economic value assigned to
the business, which will provide the justification for the
development of the planned operation.
The mining report integrates all the work done and
recommendations for future work. It also includes an evaluation,
together with comments and reports, on the following tasks;
Rock Mechanics (Rock Mechanics Laboratory Test and Rock Mass
Model Review, Structural Model 3D (Major Faults) Analysis and
Construction, Conceptual Hydrogeological Model Data and Test
Analysis, Empirical Method Analysis and Design, Stability Wedges
Analysis in Mine Structure, Underground Support Design and
Quantity, Numerical Modelling (FLAC 3D) underground method
selected).
Mining (Mine Layout Review, Cut-Off Grade Calculation &
Economic Grade Shell Determination, Underground Methods Trade Off
(Sublevel Stopping vs. Mix Stope Method), Mine Access Design
(Optimizing Distances and Access for different Faces), Design of
Selected Stope Method, Mine Planning (Selected Underground Method),
Equipment Fleet & Staff / Selection and Quantity, Ventilation
Planning, Mining Services, Optimum Weekly Mining Work Shift,
Capital and Mine Operating Costs).
Key achievements of the mining feasibility;
The key achievement of this study is the reduction in the mining
costs from the scoping study of approximately 19%, realised by the
following:
-- Provision of an operative mine design and mine plan that
feeds the plant at full capacity in a short period of time
-- Elimination of the use of cemented backfill
-- An appropriate understanding of the rock mechanics of the
mine allowing a mine design that maximizes mine recovery and a
reduction of the quantity of backfill for mining extraction by more
than 50%
-- Provision of more payable gold ounces in the mine plan
-- Haulage profile optimized
-- Reduced mine development
An owner's work force has been considered for the underground
mining operations. Metminco intends to manage the production
operations, and plans to use an experienced training team during
the first year of ore production to train the Colombian labour.
This labour will be required to construct the infrastructure for
the mining activities. The infrastructure is to include workshops,
electrical substation, access portal, powder magazine and others.
Mining will commence with construction of three portals. One is the
main portal giving access to the development of a decline ramp and
lateral haulage levels.
The mining method for the Miraflores deposit will be longhole
stoping.
Underground Development
Active mining areas in the Miraflores mine will be accessed
through three portals. Access ramps are driven to establish
sublevels. Every sublevel has a main attack drift (cross-cut) and
production galleries. The drift production galleries give access to
the stopes between levels. In longitudinal mining areas,
development is done in mineralization on 26 m vertical intervals
(4m drift + 22 m stope, successively).
The primary development ramps are designed to be 4.5 m wide by
4.5 m high with an arched roof and are typically driven at a
maximum grade of +/-12%. The drift development headings allowing
access to the individual stope are designed at 4 m wide by 4 m
high.
Ventilation Shafts, Raises and Drifts
Ventilation shafts and raises will be connected to primary
development. The ventilation shafts have been incorporated into the
design. For fresh air, two injection shafts of 3.1 m diameter have
been included and in the central zone one extraction shaft is
located. The design of the extraction shaft is 5 x 5 m.
Mining Method
The Miraflores deposit has been planned as an underground mining
operation. The advantages of underground mining include:
-- Underground mining reduces the footprint of the mine and its environmental impacts;
-- The deposit is ideally suited to underground mining methods
which minimise dilution from the mining process; and
-- Underground selectivity will help to maximize run of mine (ROM) feed grades.
For blasting cost assumptions a contract (by Enaex) for powder
magazine administration, charging and detonation operations plus
explosives acquisition has been assumed. Contract mining is assumed
for initial capital development. The infrastructure is to include
workshops, warehouse, fuel supply, and transportation.
Retreat longhole open stope with backfill is the mining method
proposed. This method permits the extraction of the ore at maximum
hydraulic radius after backfilling the stopes. The backfill assumed
is waste material from mining and fine tailings material. Backfill
is required for both stability and environmental reasons, allowing
all waste material generated by the mining operation to be
redeposited as fill in the mine.
Cut-off grade
The cut-off grade was calculated for the economic parameters
which were provided by Metminco. The value of the cut-off grade is
1.53 g Au/t, which has been used in of the determination of the
economic stopes for the project. A post analysis confirms that for
a life of mine around 10 years, ore to plant of 1,300 tpd producing
4,000 oz Au per month, the cut-off grade would be 1.75 g Au/t.
Therefore this cut-off grade was used in the optimization
algorithm.
Backfill
To reduce the environmental impact the Miraflores mine will use
the waste and tailings within the mine for backfilling and
stability. The mine plan requires the backfill to start in Q2 of
the second year. The proportion of fill is 34% waste and 66%
tailing. The mechanical property of this mixture will be the
subject of further analysis. The fill is not intended to improve
the mechanical conditions; but rather to help control the hydraulic
radius of the mine extraction supporting the hanging wall.
In some zones the use of metal bulkheads may be required. These
will be used to contain the backfill material in the stope without
the need for a complete backfill of the extracted stope. This
measure will reduce the quantity of backfill required. For the
backfill operations the same low profile trucks used in mining
production will be employed.
Stope Design
The stopes derived from the mining optimization have been used
as the basis for the mine design. These stopes define the ore
extraction along the ore body. The optimization considered a
cut-off grade of 1.75 g/t Au, which permits the extraction at
maximum grade and generates a plant feed that produces 4,000 oz per
month. A 40 m crown pillar to surface from the upper stopes has
been allowed.
Ventilation
The mine has its own primary ventilation circuit. Taking into
account the various characteristics of the Miraflores Project
design, such as the long hole open stopes and ore haulage by trucks
on the main ramp, the mine will be ventilated by an exhausting
system using surface fans extracting through a VCR raise with a
section of 5 x 5 meters. This, at 336 meters in length, will
connect the 1,071 mine level with the surface and control air flow
in the main extraction circuit.
Description of air flow
The main ventilation system is an Exhaust System. Two main fans
will be installed, operating in parallel. These satisfy the
operating criteria obtained by simulation carried out using the
Ventsim Visual(TM) software.
Fresh air will enter the mine via 5 airways, namely 3 access
portals and 2 bored raises. The air flows via ramps (main and
secondary) to the production and development areas and the drifts
that access such levels.
Contaminated air will then be extracted from the various sectors
of the mine to the Central VCR Raise (main extraction shaft with
surface elevation of 1,407 m.a.s.l.). This is driven by the pair of
surface fans generating the exhaust flow through the VCR raise.
The required air flow rate is 540 Kcfm.
Geotechnical Studies
All the mine accesses will be developed in rock mass with good
geotechnical conditions. The first 80 meters of the decline ramp
will be developed in Basalt before transitioning to Breccia. The
geotechnical characterization is described in the geotechnical
report (SRK, 2013).
Drill cores adjacent to the three accesses show Saprolite in the
first 3 to 7 meters, followed by 15 to 20 meters of weathered
Basalt, and after 20 to 30 meters, of fractured Basalt. The same
conditions should be expected in the first meters of the decline
ramp hosted by Breccia rock.
No landslides were observed in the portal pad areas. A design of
crown ditches and cut benches supported by mesh, bolts and
shotcrete is recommended to mitigate the erosion problems, to
control runoff into the pad area and to support the structural
wedges and rock planes which could exist in the bench faces.
The geotechnical conditions for the mine designs are as follows:
Ground conditions can be described, according to the Q system, as
"fair" in veins. Below surface (first 40 to 50 meters), where
weathered and fractured rock mass is developed, the condition can
be described as "good" for fresh basalt and "very good" for fresh
breccia. The majority of ground conditions at Miraflores are
classified as "good".
The stope design is based on a 30 meters sub-level spacing and
30 meters strike length. Geotechnical information is used to
identify possible areas of poor ground conditions and to limit
stope spans in these areas to 20 meters strike length, and/or to
increase dilution estimates.
Hydrogeological Studies
As a result of the constant measurements of geotechnical and
hydrogeological bore holes, it has been possible to generate a
database allowing the construction of a conceptual hydrogeological
model of the deposit. In order to establish the level of the local
water table results from the GT-13 and Hydro bore holes (six GT-13
and three Hydro bore holes) were analyzed.
Modeling of the phreatic surfaces from the geotechnical bore
holes was undertaken, at maximum, minimum and average level. These
have been triangulated in a 3D model, obtaining 3 surfaces
representing the maximum, minimum and average water table
levels.
The water table appears in the upper area of the deposit, having
an area of influence that would cover the surface area (Soil and
Saprolite) plus the fractured rock mass (first meters due to
surface weathering). This would not have influence at depth where
the rock mass is of good geotechnical quality, except for
infiltrations through major structures and mineralized veins
(evidence in the La Cruzada tunnel), where a flow rate of 3 to 5
lt/s was observed.
This surface has been correlated along the water table surface
and along with the 3D structural model and mineralized veins. From
the result, it is inferred that the water table would have an
influence at the level of the rock mass of regular geotechnical
quality (fractured) and surface cover, so that its infiltration
towards the rock mass where the underground mine will be developed
would be given only through structures and mineralized veins,
maintaining a level of infiltration as observed in the visit to the
La Cruzada tunnel, where a flow rate of 3 to 5 lt/s was
observed.
Mine Development and Production Scheduling
Mine development and stope production were scheduled using
Vulcan Gantt Scheduler(TM). The schedule includes a one year
pre-production period. During that time, the portal and main
decline will be developed to the bottom of the primary exhaust
ventilation shaft. At the same time, sublevel ramps and haulage
drifts will be developed as areas become accessible.
Production will start in year 1, focusing on high-grade zones
and the early level development. The production will ramp up
relatively quickly, allowing the processing of 1,300 tons per day
(plant design capacity) in the first month of the mine
schedule.
Cross-cuts were used as precedents to ensure that required
development was completed before a mining location was scheduled
for production. The rate of backfill was considered as 1,000 ton
per day. The ore feed to plant is scheduled to be 1,300 ton per day
from the first month of plant operations.
The LoM strategy is to feed a total of 4,326,214 ton @ 3.29 Au
(g/t), to the plant recovering 415,850 ounces Au, at a
metallurgical recovery rate of 91%. Gold grade in the mine plan
tends to be stable across the LoM without major variations.
Mine Capital costs
The LoM mine capital cost estimate for the Miraflores Project
totals US$ 30.8 million. The capital is broken down by initial
capital required to start and develop the mine, sustaining capital
used to continue operations and LoM investments.
The capital expenditure estimate for the project includes the
following major items:
LoM Capital Cost (US$ millons)
Description Initial Sustaining LoM
---------------------------- -------- ----------- -----
Decline Ramp Development 0.7 5.5 6.2
---------------------------- -------- ----------- -----
Drift & Cross-cut
Development 2.0 - 2.0
---------------------------- -------- ----------- -----
Raise Borer Development - 2.9 2.9
---------------------------- -------- ----------- -----
VCR Development - 0.8 0.8
---------------------------- -------- ----------- -----
Special Sections
Development 0.3 3.8 4.1
---------------------------- -------- ----------- -----
Underground Mine
Equipment 3.7 1.5 5.2
---------------------------- -------- ----------- -----
Stope Production 0.4 - 0.4
---------------------------- -------- ----------- -----
G&A 1.3 - 1.3
---------------------------- -------- ----------- -----
Services 1.3 - 1.3
---------------------------- -------- ----------- -----
Infrastructure 4.5 2.1 6.6
---------------------------- -------- ----------- -----
Total 14.2 16.6 30.8
---------------------------- -------- ----------- -----
Mine Operating costs
Operating costs are based on underground mining and G&A
estimates. All costs are in Q2 2017 US dollars. The mining
operating costs do not include capitalized development costs. LoM
operating costs are estimated at US$ 28.16/t-milled.
Underground mining operating costs
Description US$/t-mill LoM (US$
millions)
--------------------------------- ----------- -----------
Drift & Cross Cut Development
(4 m x 4 m) 5.18 22.4
--------------------------------- ----------- -----------
Stope Production 7.88 34.1
--------------------------------- ----------- -----------
Backfill 1.15 4.9
--------------------------------- ----------- -----------
G&A 5.64 25.7
--------------------------------- ----------- -----------
Services 5.84 25.3
--------------------------------- ----------- -----------
Leasing Equipment 2.47 10.7
--------------------------------- ----------- -----------
Total 28.16 123.1
--------------------------------- ----------- -----------
Conclusions - Mining
The 3D Structural Model has several interpretations and
estimates that should be continually updated during the development
and operations of the mine. The model is considered to be at
Conceptual level.
In terms of the Empirical Design, the analysis for stope design
was carried out using the geotechnical characterization as a
preliminary assessment.
After the preliminary assessment, Ausenco's mapping of the La
Cruzada exploration tunnel and the in-situ review of geotechnical
drilling campaign (2013) and the updated geotechnical
characterization, the empirical design using the Mathews Stability
Graph shows an improved stability number N for the stope
design.
The calculations and designs associated with Rib Pillar and Dip
Pillar are subject to the spatial arrangement that the deposit
presents and to the alternative of using or not using these types
of pillars. The use of these pillars should be reviewed on a
case-by-case basis.
For the 3D numerical modeling, the use of the strength
properties according to their average values and under dry
conditions has been taken as main edge conditions. The model used
the design a global level evaluating the responses of stopes to the
mine sequence at 200 meters and 400 meters in depth with
interaction between them and the local and district structures.
A sensitively analysis has been performed using the 30th percent
of the strength properties in order to understand the different
responses that the rock mass could present at these conservative
levels.
The results of the 3D numerical modeling shows unconfined zones
in the period of excavation number 10, 15 and 20 according to the
mine sequence. These unconfined zones involve stopes in some cases
and the pillars between stopes in other ones when the analysis used
the 30th percent of the strength properties. The unconfined zones
are less when the analysis used the average values of the strength
properties, but the deformation velocity still represent high
values, thus the rock mass in hangingwalls and in the roof of the
stopes continue to show instability.
The strength properties of the rock mass (2013) are considered
to be very conservative values after the geotechnical
characterization performed in the La Cruzada tunnel during 2017,
where the value of the RMR was increased by 23%.
The mine plan delivered 1,300 tpd of ore to the plant with an
average grade of 3.29 Au (g/t). The total LoM ore mined to is
4,326,214 tons. The LoM gold produced is 415,850 ounces at 91%
recovery.
Feasibility Study - Metallurgical Testwork
Summary of Testwork and Results
A confirmatory metallurgical testing program was conducted on
two composite samples originating from the Miraflores Project,
located in the Quinchia District of Colombia, to confirm the
metallurgical findings from the 2012 feasibility test program (BV
Minerals Internal Project #1208712), and to obtain additional
design parameters.
Two Miraflores composite samples (Lower Orebody and Upper
Orebody) representing mill feed for the first and second four
yearly mining periods were tested in this program, following the
flowsheet developed in the 2012 feasibility study. In addition,
Unconfined Compressive Strength (UCS) test and comminution testing
including Bond Impact Crushing Work Index and Bond Rod Mill Work
Index tests were performed on a separate whole HQ core sample.
The presence of coarse free gold caused persistent scatters in
gold head assay on the Miraflores samples tested. Standard fire
assays of the two composite head samples showed that gold grades
varied in a wide range from 0.88- to 4.39g/t, and averaged 2.27 g/t
Au on Lower Orebody and 2.05 g/t Au on Upper Orebody composite.
Calculated head grade from metallic assays on about 500g
sub-samples resulted in 6.04g/t Au and 2.63g/t Au on Lower Orebody
and Upper Orebody, respectively
Hardness testing indicated that the HQ core material was very
hard, yielding a Bond rod mill work index of 21 kWh/tonne and an
averaged crushability work index of 15.8 kWh/tonne. Comminution
Bond ball mill work index were 18.6 and 18.7 kWh/tonne for Lower
and Upper Orebody composite respectively, indicating moderately
hard character of the Miraflores ore with respect to breakage in
ball mills.
Confirmatory testing, including gravity pre-concentration
followed by gold flotation from the gravity tailing and then
cyanidation of flotation concentrate, was conducted on the Lower
and Upper Orebody composites. On average, gravity concentration was
able to recover 70.9% gold on Lower Orebody and 64.4% gold on Upper
Orebody at a primary grind size of 105 um. Sulfide flotation of
gravity scalped tailings recovered the majority of the fine gold
remaining in gravity tailings, leaving 0.04-0.06 g/t Au in
flotation tailings for direct disposal. Upgrading of flotation
rougher concentrates was effective with 95.6 - 98.4% Au in gravity
tailings reported to cleaner concentrates at low mass recoveries of
3.1 - 3.5%.
Cyanidation of flotation cleaner concentrates at 30 wt.% solids
in 2 g/L sodium cyanide solution with aeration yielded 91.6% and
83.4% gold extractions from Upper Orebody and Lower Orebody,
respectively. Cyanidation with oxygen injection produced similar
results.
It can be concluded that similar metallurgical performances can
be expected from the Lower and Upper Orebody composites following
the same Gravity + Flotation & Cyanidation process flowsheet
established in the 2012 feasibility study.
More work is required to study the cyanidation mechanism to
improve gold extraction efficiency.
Proposed Phase II Metallurgical Testwork
The objectives of the Phase II test program are:
-- To conduct large scale gravity + flotation & concentrate
cyanidation testwork following conditions confirmed in Phase I to
generate sufficient concentrate and tailings for characterization
and treatment studies,
-- To conduct SLS testing to provide a comprehensive thickening
and filtration analysis for concentrate and tailings.
The scope of this test program consists of:
-- Large scale gravity concentration followed by flotation of
gravity scalped tailings and then cyanidation of flotation
concentration,
-- Thickening and filtration studies on flotation tailings as well as concentrate leach residue.
Tailings Storage Facility (TSF)
The tailings generated from the Phase II metallurgical testwork
will be shipped to Colombia where geotechnical testwork will be
undertaken to provide information relating to the characteristics
of the material to be placed on the TSF. Tailings will be filtered
and stacked on what will be a dry tailings facility.
Geotechnical Investigations
Geotechnical investigations including test pitting, core
drillinag and geophysics covering the processing plant and TSF
areas will be undertaken to confirm design criteria for these
installations as part of the feasibility study.
Power
The Company has identified a preferred power line route from
Quinchia to the Miraflores site and has now commence with landowner
negotiations for a right of way to facilitate the construction of
the power line. The power line to be constructed will be a
dedicated power line (33kva) and will be between 7 and 9km in
length. A substation upgrade at Quinchia will be necessary to
accommodate the power requirements of the operation.
Community Relations and EIA
Community relations are an important issue with regards to
gaining a social licence for the development of the project. The
Company continues to work with the local communities, municipality
and government agencies and other stakeholders to gain its social
licence for the project.
The critical path for the development of the project remains the
completion of the baseline monitoring for the EIA. It is expected
that the baseline monitoring will be completed in October 2017 with
the EIA application likely submitted to the relevant authorities by
the end of 2017.
MOLLACAS PROJECT - CHILE
The Company holds title to 21 Exploitation Concessions covering
the Mollacas deposit and surrounding area, and owns 179 ha of land
adjacent to the proposed open pit operation.
In addition, Metminco also owns water rights to approximately
175 litres/sec from two canals, albeit that the estimated water
usage for the mining operation will only be 40 litres/sec.
The Project is currently on care and maintenance.
CORPORATE
Sale of Los Calatos
During the quarter Metminco Limited announced the settlement of
the sale of its 49% interest in Los Calatos.
The proceeds were approximately US $ 5 million (AUD $ 6.6
million). The sale represents achievement of another important
milestone for Metminco Limited in its transition to becoming a gold
producer. This sale enables the Company to advance Miraflores where
significant near term value exists.
Convertible Note
During the quarter, the Company received the proceeds from a
convertible note - $ 750,000.Key terms of the Convertible Notes,
which are fully underwritten by Redfield, are:
Face Value: A$ 750,000
Coupon Rate: 12.5% per annum, compounded monthly interest to be capitalised
Conversion: No later than 12 months from date of issue at which
time the Convertible Notes and capitalised interest automatically
convert to fully paid ordinary shares (shares) at the Conversion
Price
Conversion Price: $0.06075
Options Granted: i) 12,345,639 exercisable at $0.081 per Share
any time prior to 12 months from date of issue
ii) 12,345,639 exercisable at $0.081 per Share any time prior to 12 months from date of issue as soon as the Company's available placement capacity under ASX Listing Rule 7.1 is refreshed
Funding: A$300,000 has been received by the Company post 31
March 2017, and the remainder to be received no later than 12 May
2017 subject to limited due diligence and long form
documentation.
Underwriting Fee: 4.5% of Face Value
Cash Position and Funding (update)
As at 30 June 2017, Metminco Limited had approximately A $
6,5351,000 after receiving the funds mentioned above.
Expenditure for the quarter ended 30 June 2017 was focussed on
the Miraflores Feasibility Study, care and maintenance costs on its
other projects (Mollacas, Vallecillo and Loica) and corporate
overheads.
Share Buyback (unmarketable parcels)
Following the approval of the Metminco Board, the Company made
an offer to all Shareholders who, on Monday 10 July 2017 (record
date) held a marketable parcel of Shares with a value of less $ 500
(Small Holding). This offer was made to Shareholders who wished to
liquidate their small holding of shares in the Company and was
based on a closing price of $ 0.045 per Share. Notices were
dispatched to the appropriate Shareholders on Thursday 13 July
2017. The offer emphasized that any owner of a small holding who
wished to retain their Metminco Shares could do so and was not
compelled to sell their holding under this offer. The closing date
is 25 August 2017 and the settlement date is 30 August 2017.
Metminco Limited ABN Level 4, 6 Help St, Chatswood,
43 119 759 349 NSW, 2060
ASX Code: MNC.AX; AIM Tel: +61 (0) 2 9460 1856;
Code: MNC.L Fax: +61 (0) 2 9460 1857
www.metminco.com.au
William Howe
Managing Director
For further information,
please contact:
METMINCO LIMITED
Brian Jones Office: +61 (0) 2
9460 1856
Company Secretary
NOMINATED ADVISOR AND BROKER
RFC Ambrian
Australia
Will Souter / Nathan Forsyth Office: +61 (0) 2
9250 0000
United Kingdom
Charlie Cryer Office: +44 (0) 20
3440 6800
JOINT BROKER
SP Angel Corporate Finance
LLP (UK)
Ewan Leggat Office: +44 (0) 20
3470 0470
PUBLIC RELATIONS
Camarco
United Kingdom
Gordon Poole / Tom Huddart Office: + 44 (0) 20
3757 4997
----------------------------- --------------------
SRK Consulting (U.S.) Inc.
The information provided in this ASX Release as it relates to
mining plan and production schedule for the Miraflores Gold Project
is based on information compiled by Mr Jeff Osborn BEng Mining,
MMSAQP, on behalf of SRK. Mr Osborn has consented to be named in
this announcement and inclusion of information attributed to him in
the form and context in which it appears herein.
SRK have given their consent to be named in this Announcement
and to the inclusion of all statements by SRK included in said
Announcement that Metminco says are based on a statement by us, in
the form and context in which these statements are included.
This consent relates to the Announcement of Metminco in
Australia and the United Kingdom in both paper and electronic
form.
Apart from as set out above, SRK takes no responsibility for any
other part of the aforementioned Announcement.
Forward Looking Statement
All statements other than statements of historical fact included
in this announcement including, without limitation, statements
regarding future plans and objectives of Metminco are
forward-looking statements. When used in this announcement,
forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "future",
"intend", "may", "opportunity", "plan", "potential", "project",
"seek", "will" and other similar words that involve risks and
uncertainties.
These statements are based on an assessment of present economic
and operating conditions, and on a number of assumptions regarding
future events and actions that, as at the date of this
announcement, are expected to take place. Such forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of the
Company, its directors and management of Metminco that could cause
Metminco's actual results to differ materially from the results
expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the
results, performance or achievements expressed or implied by the
forward-looking statements contained in this announcement will
actually occur and investors are cautioned not to place undue
reliance on these forward-looking statements. Metminco does not
undertake to update or revise forward-looking statements, or to
publish prospective financial information in the future, regardless
of whether new information, future events or any other factors
affect the information contained in this announcement, except where
required by applicable law and stock exchange listing
requirements.
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98,
30/9/2001.
Name of entity
Metminco Limited
-----------------
ABN Quarter ended ("current
quarter")
43 119 759 349 30 June 2017
--------------- -----------------------
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
Payments for:
(a) exploration and
1.2 evaluation (189) (1,273)
(b) development - -
(c) production - -
(d) administration (764) (1,594)
1.3 Dividends received - -
1.4 Interest and other items - -
of a similar nature
received
1.5 Interest and other costs - -
of finance paid
1.6 Income taxes paid - -
1.7 Other - -
Net Operating Cash Flows (953) (2,867)
----- ----------------------------------------- ---------------- -------------
Cash flows related to
investing activities
1.8 Payment for purchases
of: - -
(a) prospects - -
(b) equity investment - -
(b) other fixed assets
Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
1.9 (c) other fixed assets 6,623 6,623
1.10 Loans to other entities - -
1.11 Loans repaid by other - -
entities
1.12 Other - -
Net investing cash flows 6,623 6,623
Total operating and
investing cash flows
1.13 (carried forward) 5,670 3.756
----- ----------------------------------------- ---------------- -------------
Total operating and investing
1.13 cash flows (brought forward) 5,670 3,756
----- ----------------------------------
Cash flows related to
financing activities
Proceeds from issues of
1.14 shares, options, etc. 6 2,111
Costs of issue (31) (287)
1.15 Proceeds from sale of - -
forfeited shares
Proceeds from Convertible
1.16 Notes 750 750
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other :
- -
Net financing cash flows 725 2,574
----- ---------------------------------- --------
Net increase (decrease)
in cash held 6,395 6,330
Cash at beginning of quarter/year
1.20 to date 10 72
Exchange rate adjustments
1.21 to item 1.20 (54) (51)
-------- --------
1.22 Cash at end of quarter 6,351 6,351
----- ---------------------------------- -------- --------
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
----------------
Aggregate amount of payments to
1.23 the parties included in item 1.2 11
----------------
1.24 Aggregate amount of loans to the -
parties included in item 1.10
------- ---------------------------------- ----------------
1.25 Explanation necessary for an understanding
of the transactions
Item 1.23 includes aggregate amounts paid
to directors for the period
01 April 17 - 30 June 17 for:
Directors' fees: A$10,833
----------------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions
which have had a material effect on consolidated
assets and liabilities but did not involve
cash flows
None
--------------------------------------------------
2.2 Details of outlays made by other entities
to establish or increase their share in projects
in which the reporting entity has an interest
None
--------------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
A$'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 700
-------
4.2 Development -
-------
4.3 Production -
-------
4.4 Administration 300
-------
Total 1,000
---- --------------------------- -------
Reconciliation of cash
Reconciliation of cash Current quarter Previous
at the end of the quarter A$'000 quarter
(as shown in the consolidated A$'000
statement of cash flows)
to the related items in
the accounts is as follows.
--------------------------------- ---------------- ---------
Cash on hand and at
5.1 bank 6,351 10
---------------- ---------
5.2 Deposits at call - -
---------------- ---------
5.3 Bank overdraft - -
---------------- ---------
5.4 Other (provide details) - -
---------------- ---------
Total: cash at end
of quarter (item 1.22) 6,351 10
----- -------------------------- ---------------- ---------
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest
reference (note (2)) at beginning at end
of quarter of quarter
----------- ------------------- -------------- ------------
6.1 Interests
in mining
tenements
relinquished,
reduced or
lapsed
----------- ------------------- -------------- ------------
6.2 Interests
in mining
tenements
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
per security up per security
(see note (see note
3) (cents) 3) (cents)
--------------------------------- -------------- -------------- -------------- -----------------
7.1 Preference
+securities
(description)
----- -------------------------- -------------- -------------- -------------- -----------------
7.2 Changes during
quarter:
(a) Increases
through Issues
Is
(b) Decreases
through returns
of capital,
buy backs,
redemptions
----- -------------------------- -------------- -------------- -------------- -----------------
+Ordinary
7.3 securities 127,200,299 127,200,299
----- -------------------------- -------------- -------------- -------------- -----------------
7.4 Changes during
Quarter:
(a) Increases
through Issues
(b) Decreases
through returns
of capital,
buy backs,
redemptions
----- -------------------------- -------------- -------------- -------------- -----------------
+Convertible
Debt securities Convertible
unlisted at: Expiry date:
Convertible
7.5 Notes 12,345,639 12,345,639 A$0.06075 17 May 2018
----- -------------------------- -------------- -------------- -------------- -----------------
Changes during
quarter:
(a) Increases
through issues
(b) Decreases
through Securities Convertible
matured, at: Expiry date:
7.6 converted 12,345,639 12,345,639 A$0.06075 17 May 2018
----- -------------------------- -------------- -------------- -------------- -----------------
7.7 Options (description Unlisted: Exercise Expiry date:
and conversion price:
factor) 100,000 01 Aug 2017
A$1.51
12,345,639 17 May 2019
A$0.081
12,345,.639 25 May 2019
A$0.081
----- -------------------------- -------------- -------------- -------------- -----------------
12,345,639 A$0.081 17 May 2019
Issued during
7.8 quarter 12,345,.639 A$0.081 25 May 2019
----- -------------------------- -------------- -------------- -------------- -----------------
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
4).
2 This statement does give a true and fair view of the matters
disclosed.
Sign here:
Date: 31.07.2017
Print name: Brian Jones (Company Secretary)
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 1022: Accounting
for Extractive Industries and AASB 1026: Statement of Cash Flows
apply to this report.
5 Accounting Standards: ASX will accept, for example, the use of
International Accounting 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCXFLBBDVFZBBQ
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