TIDMSGZ
RNS Number : 5381I
Scotgold Resources Ltd
15 March 2010
15 March 2010
Scotgold Resources Limited ("Scotgold" or the "Company")
Interim Financial Report
for the Six Months to 31 December 2009
Scotgold Resources Limited is a gold exploration and development company with
projects located in the Grampian region of central Scotland. The Cononish gold
and silver deposit forms the core economic basis of the Company's Grampian
Project.
Highlights
During the six months period under review:
· Snowden update, based on new drilling and review of data, leads to an
increased resource estimate for Cononish gold and silver project
· Total metal inventory now stands at 163,000oz Au and 596,000 oz Ag
· New drilling, started October 2009, aimed at infilling a portion of the
existing inferred mineral resource and testing high grade gold targets
· Eastern extension holes regarded as particularly encouraging
· First drilling into Beinn Udlaidh Breccia Pipe Field produces promising
result
Post balance sheet event:
· Formal planning application for Cononish gold and silver Project
submitted in January 2010
· Admission of ordinary share capital to trading on AIM in February 2010
following a successful placing to raise GBP704,000 before expenses
Chris Sangster, Chief Executive, commented:
"The Company has made distinct progress over the period towards our goal of
production from Cononish, whilst our recent exploration activities have
underlined the potential for the Grampian region to host substantial
mineralisation".
For further information:
United Kingdom:
+---------------------+---------------------+-------------------------+
| Scotgold Resources | Westhouse | Bankside Consultants |
| Limited | Securities Limited | |
+---------------------+---------------------+-------------------------+
| Chris Sangster | Richard Baty / | Simon Rothschild / |
| (CEO) | Petre Norton | Oliver Winters |
+---------------------+---------------------+-------------------------+
| Tel: +44 | Tel: +44 (0)20 | Tel +44 (0)20 7367 8888 |
| (0)1838 400 306 | 7601 6100 | |
+---------------------+---------------------+-------------------------+
Australia:
+---------------------+---------------------+
| Scotgold Resources | Professional Public |
| Limited | Relations |
+---------------------+---------------------+
| Shane Sadleir | Karen Oswald |
| (Non-Executive | |
| Director) | |
+---------------------+---------------------+
| Tel: +61 (8) | Tel: +61 (8) |
| 9428 2950 | 9388 0944 |
| Mobile: +61 (0) 411 | Mobile: +61 (0) 423 |
| 704 498 | 602 353 |
+---------------------+---------------------+
REVIEW OF OPERATIONS
· HISTORY
Scotgold Resources Limited ("Scotgold" or the "Company") is the holding company
of a gold exploration and development group with projects located in the
Grampian Highlands of mid-West Scotland (the "Group"). The Cononish gold and
silver deposit forms the core economic basis of the Group's Grampian Gold
Project. The Group has 100 per cent. ownership of the Cononish gold and silver
project at Tyndrum. The deposit is located on Cononish Farm within the
north-western extremity of the Loch Lomond and Trossachs National Park and lies
about 90km northwest of Glasgow.
Within Scotland, the Grampian Highlands are bounded by the Great Glen Fault to
the northwest and the Highland Boundary Fault to the southeast; it is highly
prospective for gold and base metals. This terrane consists mostly of
metasediments and volcanics of Dalradian age, and is a direct continuation of
the Dalradian gold province of Northern Ireland which hosts the Curraghinalt and
Cavanacaw gold deposits.
Within the SW Grampian Highlands is the Tyndrum Mineral Field, a historic mining
area which contains several vein-hosted deposits of base metals, including lead,
copper and zinc. The best known of these is the historic Tyndrum group of lead
mines, which were discovered in 1741 and intermittently produced lead for more
than a century. Less commonly some veins also contain gold and by far the most
important example to date is the Cononish vein-hosted gold and silver deposit
situated about 4km SSW of Tyndrum.
Previous exploration has identified the Tyndrum-Glen Fyne Fault, one of the
major fault structures of the Grampian terrane, as a zone of significant
potential for lode-hosted gold mineralisation in the general Tyndrum area.
Additionally there is also scope for new precious metal and base metal
discoveries, by the identification of specific geological settings which
elsewhere in the world, host significant metalliferous deposits. The British
Geological Survey (BGS), which has completed geochemical surveys over the entire
area held by Scotgold, has repeatedly expressed the view that there are
significant metalliferous deposits yet to be discovered in the Dalradian of
Scotland.
The Cononish gold and silver vein is hosted by a meta-sedimentary sequence of
pelites, psammites and calcareous rocks of the Appin and Argyll groups belonging
to the Dalradian Supergroup. The gold and silver occurs within a
steeply-dipping quartz vein which is up to 8.3m wide, with an average width of
about 2m. It has a known vertical dimension of about 500m and it can be traced
along strike for more than 1km.
The Cononish gold and silver deposit was defined by diamond drilling carried out
between 1985 and 1988 and an underground development program was initiated in
1990. A total of 1,280m of underground adit development was also completed, of
which 590m was driven on the vein.
In November 2007 Scotgold's applications for exploration licences for gold and
silver between Craignure in the southwest and Pitlochry in the northeast were
granted. The granted exploration licences cover an area of about 3,200 km2 and
include much of the prospective Dalradian Supergroup.
· MINERAL RESOURCES
In May 2008, Scotgold released the first Mineral resource Statement on the
Cononish gold-silver deposit reported in accordance with the JORC code, prepared
by Snowden Mining Industry Consultants ("Snowden"). The Measured, Indicated and
Inferred Mineral Resource categories totalled 154,000 ounces of gold and 589,000
ounces of silver (using 3.5 g/t gold cut-off).
Snowden subsequently noted "based on our experience of the Cononish vein system,
we believe that there is an Exploration Target around the mine of between 0.5 Mt
to 1.0 Mt at a grade of between 10 g/t Au to 15 g/t Au for up to 320,000 oz Au.
Much of this potential is based on the along strike and down dip extensions of
the Cononish vein, but there are indications that other reefs are present in the
area too. At this stage, such figures are highly conceptual and there is no
guarantee that further exploration will define additional resources."
As a result of further investigations and exploration by Scotgold during 2008 -
2009, Snowden was asked in late 2009 to undertake an update on the Cononish
resource.
The following is an extract from Snowden's 'Cononish Resource Update' report
dated 9th January 2010:
"At the request of Scotgold, Snowden has undertaken an update on the Cononish
resource based on the following factors:
· Reconsideration of classification criteria around the No 2 raise;
· Additional drill hole at depth (CON11B); and
· Review of data at the eastern end of the adit not previously
considered by Snowden."
A revised resource for Cononish is shown below.
Cononish Main Vein Gold Mineral Resources (reported at a 3.5 g/t Au cut-off).
Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces
rounded to the nearest 1,000 t or 1,000 oz. Grade rounded to the nearest 0.1 g/t
Au. The Inferred Resource grade is reported with a grade range to indicate the
likely upside due to the information effect.
+----------------+-------------+--------------+-------------+
| Classification | Tonnes (t) | Grade (g/t) | Ounces (oz) |
+ + +--------------+-------------+
| | | Gold | Gold |
+----------------+-------------+--------------+-------------+
| Measured | 53,000 | 17.9 | 31,000 |
+----------------+-------------+--------------+-------------+
| Indicated | 73,000 | 10.2 | 24,000 |
+----------------+-------------+--------------+-------------+
| Inferred | 311,000 | 10.8 (10 - | 108,000 |
| | | 16) | |
+----------------+-------------+--------------+-------------+
Scotgold Note: Incorporating the grade range, the Inferred Mineral Resource is
estimated to lie between 100,000 oz Au and 160,000 oz Au. It should be noted
that any upside may not exist or it may only be present in a portion of the
resource.
Cononish Main Vein Silver Mineral Resources (reported at a 3.5 g/t Au cut-off).
Reported using the 2004 JORC Code (JORC, 2004). Tonnages and contained ounces
rounded to the nearest 1,000 t or 1,000 oz.
+----------------+-------------+---------------+-------------+
| Classification | Tonnes (t) | Grade (g/t) | Ounces (oz) |
+ + +---------------+-------------+
| | | Silver | Silver |
+----------------+-------------+---------------+-------------+
| Measured | 53,000 | 75.0 | 128,000 |
+----------------+-------------+---------------+-------------+
| Indicated | 73,000 | 43.1 | 101,000 |
+----------------+-------------+---------------+-------------+
| Inferred | 285,000 | 40.1 | 367,000 |
+----------------+-------------+---------------+-------------+
This update gives a total metal inventory of 163,000 oz Au and 596,000 oz Ag.
There has been no change to the Measured Mineral Resource category.
Snowden notes that there is resource potential in the eastern adit zone and that
the estimation of additional Mineral Resources are likely once further drilling
is complete.
EXPLORATION
Cononish
The Company identified extensive additional, high grade gold mineralisation in
and around the Cononish gold and silver project, following a thorough search of
historic data generated by previous exploration companies.
The zones of mineralisation lie outside the envelope of the project's current
JORC Resources and include:
· 30.5 g/t Au and 22.9 g/t Ag (weighted average) in a 1.59 m quartz
vein exposed over 12 metres within existing adit,
· 73.1 g/t Au over 1.77 metres in quartz vein intersected in
diamond drilling,
· 16.1 g/t Au over 2.1 m in trench in quartz vein at surface, and
· 55 g/t Au in grab sample of quartz vein at surface.
Scotgold believes that there is potential to define further resources close to
the Cononish mine, subject to appropriate studies. The extensive gold-in-soil
anomalies, mineralisation associated with outcrops and trenching and the large,
unexplained geophysical anomaly clearly warrants further follow-up.
Scotgold resumed drilling at the Cononish gold and silver project in Scotland in
October 2009. The objectives of the program were to:
· infill a portion of the existing Inferred Mineral Resource at
Cononish as a part of the Company's ongoing program to advance the project to
production; and
· test high grade gold targets which lie within the recently
identified eastern extension of the Cononish mineralisation and outside the
envelope of the previously existing Mineral Resource.
Eight infill holes were planned.
The drilling program also targets mineralisation outside the previously defined
resource envelope, specifically the potential down dip continuation of the
mineralisation encountered in trenches (up to 16.12 g/t Au over 2.10 metres)
surface drill holes (up to 73.10 g/t Au over 1.77 metres) and underground holes
(up to 12.35 g/t Au over 1.49 metres).
A program of 12 short AQ size diamond drill holes were planned from within the
Cononish adit to test for possible extensions to the identified mineralisation
in the eastern part of the adit outside the existing resource, in particular a
1.6 metre-wide quartz vein where high grades (up to 119.9 g/t gold and 97.2g/t
silver) have been reported from historic assays and also possible 'off adit'
intersections on the Cononish vein.
Four holes in the above programs have been completed up to December 2009.
Hole 09 - 01 (resource infill), holes EA - 01, EA - 02 and UG EA 03 (potential
resource extension) and results are shown in the table below. Drill hole
statistics are shown in Appendix 1.
All distances are measured in metres.
+--------------+--------+--------+--------------+-----------+-------+-------+
| Hole | From | To | Downhole | Est. | Au | Ag |
| | | | intersection | true | g/t | g/t |
| | | | | thickness | | |
+--------------+--------+--------+--------------+-----------+-------+-------+
| 09-01 | 103.95 | 106.00 | 2.05 | 1.98 | 9.84 | 41.6 |
| | | | | | | |
+--------------+--------+--------+--------------+-----------+-------+-------+
| EA 01* | 49.30 | 49.70 | 0.40 | (pending) | 8.65 | 3.0 |
| (incomplete) | | | | | | |
| | | | | | | |
+--------------+--------+--------+--------------+-----------+-------+-------+
| EA 02 | 60.40 | 64.00 | 3.60 | 2.25 | 7.84 | 12.20 |
| (including) | 60.40 | 60.65 | 0.25 | 0.18 | 28.35 | 16.6 |
| | 63.00 | 64.00 | 1.00 | 0.72 | 15.67 | 33.8 |
| | | | | | | |
+--------------+--------+--------+--------------+-----------+-------+-------+
| EA UG | 1.00 | 3.00 | 2.00 | 2.00 | 2.28 | 2.1 |
| 03 | 2.5 | 3.00 | 0.50 | 0.50 | 5.16 | 3.6 |
| (including) | | | | | | |
+--------------+--------+--------+--------------+-----------+-------+-------+
Note * Two assays remain outstanding immediately above and below the current
quoted intersection
o Infill drilling into Inferred Resource:
Hole 09 - 01 was drilled into the existing Inferred Resource on the eastern side
of the mine.
o Potential Resource Extension Drilling - 'Eastern Extension'
Hole EA 01 was drilled into the recently announced 'eastern extension' to
intersect the vein 30m below drillhole UG 89 - 04 (see Figure 2). Two assays
immediately above and below the reported result remain outstanding.
Hole EA 02 was drilled approximately 30m down dip of hole EA 01.
Hole EA UG 03 was drilled to intersect the possible strike extension of the high
grade vein encountered near the adit entrance.
Scotgold views the results in the eastern extension holes as particularly
encouraging and indicating the existence of a further possible significant
payshoot which support Scotgold's opinion that the eastern extension hosts
significant additional resources.
Beinn Udlaidh Breccia Pipe Field
Scotgold has recently identified significant breccia-hosted gold-silver
mineralisation at the Beinn Udlaidh prospect in association with a lamprophyre
field. The prospect is located five kilometres north northwest of the high grade
Cononish Gold and Silver Deposit, highlighting the potential of Beinn Udlaidh
prospect to host a large additional gold/silver resource. The breccia bodies at
Beinn Udlaidh are spatially associated with lamprophyre intrusions which are
also commonly observed in many world class goldfields e.g. Yilgarn Block,
Western Australia.; Carlin Trend, Nevada; Superior Province, Canada.
Scotgold initially drilled a single, short, 12 metre-deep drill hole (BEBULB1)
into one of the breccia bodies (BU1) to test its potential to host economic
gold-silver mineralisation.
The entire length of BEBULB1 is mineralised (>0.1 g/t gold) averaging 12 metres
@ 1.45 g/t gold and 8.9 g/t silver. Higher grade results (>0.5 g/t gold) from
the drill hole include:
BEBULB1 1.5 metres @ 2.90g/t gold and 20.2g/t silver from 1.5 metres
2.0 metres @ 2.65g/t gold and 13.6g/t silver from 4
metres
0.5 metres @ 12.3g/t gold and 78.7g/t silver from 9.5
metres
Scotgold considered these initial results are extremely encouraging, given the
limited drilling and the number of other breccia bodies which have had no drill
testing. BEBULB1 was drilled by Scotgold's man-portable AQ diamond core drill
rig which has a limited penetration depth.
At least 15 other breccia bodies (BU2-16) with surface dimensions up to 80 by
200 metres have been mapped which have had no previous drill testing.
In February 2010 Scotgold announced that five of seven short, small diameter
(AQ) holes completed in recent drilling at the Beinn Udlaidh breccia pipe field
have returned wide intersections of highly anomalous gold and silver values,
including:
· 14 metres averaging 0.26 g/t gold and 1.49 g/t silver over in Pipe BU 1
(best 0.5 m intersection 1.50 g/t gold and 8.38 g/t silver), and
· 16 metres averaging 0.28 g/t gold and 1.30 /t silver in Pipe BU 20,
(best 0.5 m intersection 6.99 g/t gold and 40.24 g/t silver).
Scotgold has now confirmed an exploration target at the Beinn Udlaidh Breccia
Pipe field of between 0.57 and 5.7 Mt at a grade of between 1 and 2 g/t Au.
The basis for the tonnage potential is the current mapped area of individual
pipe outcrops to a depth of between 10m (observed/ drilled) to 100m, using a
specific gravity of 2.65 and a 'complexity factor' of 70%. It is noted that
breccia pipes can extend to greater depths than 100m.
Limited drilling to date at the Beinn Udlaidh breccia pipefield has confirmed
anomalous gold grades. Economic gold grades encountered in breccia hosted
mineralisation may lie in the range of 1.0g/t to 2.0g/t based on similar style
occurrences elsewhere in the world. Breccia hosted mineralisation may show
zonation and include higher grade zones.
The potential quantity and grade of the exploration target is conceptual in
nature; there has been insufficient exploration to define a Mineral Resource and
it is uncertain if further exploration will result in the determination of a
Mineral Resource.
Scotgold is also investigating the significance of the tungsten/molybdenum
bearing Starav Granite complex immediately west of Beinn Udlaidh and certain
geophysical features such as a large gravity anomaly nearby. Similar features
commonly occur in association with breccia-hosted gold deposits elsewhere in the
world
Beinn Udlaidh Vein
Previous explorers had also identified a 900 metre long mineralised vein
structure (i.e. Beinn Udlaidh Vein) which is located one to two kilometres east
and south of the mapped breccias.
A number of diamond core holes were drilled into this structure in 1989 by a
previous explorer (Ennex) to a vertical depth of approximately 100 metres.
Ennex's drilling intersected gold and silver mineralisation over 500 metres
strike, with better results including:
GO 88-01 2.57 metres @ 3.8 g/t gold and 221 g/t silver from 51.97
metres
GO 88-04 1.02 metres @ 2.9 g/t gold and 109 g/t silver from 104.73
metres
GO 88-05 1.47 metres @ 3.3 g/t gold and 21 g/t silver from 102.54
metres
GO 88-09 1.56 metres @ 1.2 g/t gold and 36 g/t silver from 123.30
metres
GO 88-11 0.53 metres @ 2.2 g/t gold and 95 g/t silver from 60.97 metres
Scotgold has recently drilled three 13 to 20 metre-deep, diamond core holes into
the Beinn Udlaidh Vein to check previous results. All 3 holes intersected
significant gold values with better results (>0.5 g/t gold) including:
BUAQ1 1 metre @ 1.98g/t gold and 83.6g/t silver from 1.5 metres
2 metres @ 12.85g/t gold and >200g/t* silver from 4
metres
1 metre @ 2.43g/t gold and 31.3g/t silver from 7 metres
(or 6.5 metres @4.75g/t Au and 87.0g/t Ag)
*Assay method incapable of reading values >200g/t - samples currently being
assayed by another method
BUAQ2 1.5 metres @ 1.93g/t gold and 69.1g/t silver from 18 metres
BUAQ3 1 metre @ 3.53g/t gold and 135g/t silver from 3.5 metres
0.5 metres @ 1.87g/t gold and 43.4g/t silver from 6
metres
The mineralisation has been recorded over 900 metres strike and remains open
laterally and at depth.
Beinn Udlaidh General
Limited rock chip sampling has also returned encouraging results:
· A single composite rock chip sample of breccia pipe BU 13 (one of the
largest breccia pipes identified) assayed 8.9g/t gold and 5.1 g/t silver; and
· A single composite rock chip sample from the far east extension of the
Beinn Udlaidh vein assayed 16.7g/t gold and >200g/t silver.
The Company is now planning a comprehensive target definition program including
detailed geological mapping and acquisition / compilation of geophysical and
geochemical data to identify priority drill targets in the Beinn Udlaidh area.
PLANNING APPLICATION FOR CONONISH MINE
Background:
The Cononish gold and silver project was granted planning permission in 1996 for
the establishment of an underground mine, processing facility, tailings
management facility and associated infrastructure. The permission was valid for
ten years from the commencement of the development (deemed to have started in
April 1997).
In April 2007, prior to expiry of the permission, Scotgold submitted an
application for extension. Since April 2007, the Company has been engaged in
work to update the technical aspects of the proposed development and assess
their impacts in relation to new legislation and land designation relating to
the site.
Scotgold has held a number of meetings with the Planning Authority (Loch Lomond
and The Trossachs National Park Authority) during the intervening period.
In July 2009 Scotgold submitted a 'scoping document' to the Planning Authority.
As part of the pre-application consultation process under Scottish planning law,
the Company subsequently held three 'public' meetings. A presentation was made
to the local Community Council and Strathfillan Community Development Trust and
two public 'open days' were held in Tyndrum, which is the nearest town to the
proposed mine.
A substantial proportion of the community attended the open days and public
support for the project has been most encouraging. This support has been
reflected in reporting on the Cononish project by the mainstream UK news media
over recent months.
Preparation and Lodgement:
Scotgold lodged their application for revision and extension on 25 January 2010.
The application has subsequently been validated and accepted and the parties
have recently signed a non-legally binding processing agreement which indicates
a decision date of 7 June 2010, with final notices shortly thereafter.
The application was prepared with the assistance of Scotgold's planning and
environmental consultants, Dalgleish Associates. Dalgleish Associates is a well
established consultancy based in Scotland, specialising in resource (minerals
and renewable energy) projects in the United Kingdom with considerable expertise
in the Scottish system.
Specialised technical input regarding the application was provided by Scotgold's
tailings consultants AMEC Earth and Environmental (UK), Cantab Consulting (as
competent person for 'sign off' of the tailings management facility), Vibrock
Ltd (ground vibration and noise consultants) and Rathmell (archaeological
studies).
The application envisages a development along the same scales as previously
proposed, including the establishment of an underground mine with associated
processing and tailings management facilities and infrastructure associated with
the project and concurrent restoration of the site.
Scotgold believes the application contains many improvements to the previously
permitted development and is in line with currently accepted 'best practice'.
Competent Persons' Statements:
The information in this report that relates to Exploration Results is based on
information compiled by Mr David Catterall. Pr Sci Nat, who is a member of the
South African Council for Natural Scientific Professions. Mr Catterall is
employed as a consultant to Scotgold Resources Ltd. Mr Catterall has sufficient
experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Catterall consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The Information in this report that relates to Mineral Resources and Exploration
Results is based on information compiled by EurGeol Dr S C Dominy FAusIMM (CP),
FGS (CGeol), MAIG, General Manager (UK) and Executive Consultant with Snowden
based in the London, England Office. Dr. Dominy has sufficient experience that
is relevant to the style of deposit under consideration and to the activity
which he is undertaking to qualify as Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore reserves. Dr Dominy consents to the inclusion in the report of
the matters based on this information in the form and context in which it
appears.
EVENTS SUBSEQUENT TO REPORTING DATE
On 24 February 2010 Scotgold Resources Limited's (ASX: SGZ) ordinary share
capital was admitted to trading on the AIM Market of the London Stock Exchange
("AIM") under TIDM code SGZ.
In conjunction with the AIM admission, the Company has raised approximately
GBP704,000 before expenses through a placing of 15,300,000 new Ordinary Shares
at 4.6 pence per ordinary share (the "Placing"). Following this issue, the total
number of ordinary shares in issue on commencement of trading on AIM was
117,306,762.
This interim financial report has been reviewed by HLB Mann Judd and a full copy
is available at www.scotgoldresources.com.
Condensed Statement of Comprehensive Income
+--------------------------------+----+-+----------+----------+----------+
| | | | Consolidated |
+--------------------------------+----+-+--------------------------------+
| All figures reported in | | | | | |
| Australian dollars | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| | | | 31 | | 31 |
| | | | December | | December |
| | | | 2009 | | 2008 |
+--------------------------------+----+-+----------+----------+----------+
| | | | $ | | $ |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Interest Revenue | | | (17,006) | | (77,692) |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Employee costs less recoveries | | | 95,852 | | 18,994 |
+--------------------------------+----+-+----------+----------+----------+
| Directors fees | | | 154,500 | | 37,000 |
+--------------------------------+----+-+----------+----------+----------+
| Investor and public relations | | | 107,030 | | 39,942 |
+--------------------------------+----+-+----------+----------+----------+
| Travel and accommodation | | | 39,882 | | 12,959 |
+--------------------------------+----+-+----------+----------+----------+
| Professional fees | | | 20,421 | | 13,676 |
+--------------------------------+----+-+----------+----------+----------+
| Listing and Stock Exchange | | | 56,801 | | 38,948 |
| fees | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Insurances and other financial | | | 31,174 | | 21,761 |
+--------------------------------+----+-+----------+----------+----------+
| Office and administration | | | 87,345 | | 62,703 |
+--------------------------------+----+-+----------+----------+----------+
| Depreciation | | | 24,432 | | 37,680 |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| | | | 600,431 | | 205,971 |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Exchange loss | | | 12,773 | | 19,751 |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Loss before income tax expense | | | 613,204 | | 225,722 |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Income tax expense | | | - | | - |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Net loss for the period | | 613,204 | | 225,722 |
+-------------------------------------+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Other comprehensive loss | | | - | | - |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Total comprehensive loss for | | | 613,204 | | 225,722 |
| the period | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| | | | | | |
+--------------------------------+----+-+----------+----------+----------+
| Basic loss per share (cents | | | 0.76 | | 0.36 |
| per share) | | | | | |
+--------------------------------+----+-+----------+----------+----------+
Condensed Statement of Financial Position
+--------------------------------+------+-+-------------+----------+-------------+
| | | | Consolidated |
+--------------------------------+------+-+--------------------------------------+
| All figures reported in | | | | | |
| Australian dollars | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| |Note | | 31 | | 30 June |
| | | | December | | 2009 |
| | | | 2009 | | |
+--------------------------------+------+-+ +----------+ +
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | $ | | $ |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| CURRENT ASSETS | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Cash and cash equivalents | | | 2,593,845 | | 695,461 |
+--------------------------------+------+-+-------------+----------+-------------+
| Trade and other receivables | | | 103,159 | | 35,026 |
+--------------------------------+------+-+-------------+----------+-------------+
| Other current assets | | | 10,500 | | 8,308 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Total Current Assets | | | 2,707,504 | | 738,795 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| NON CURRENT ASSETS | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Trade and other receivables | | | 87,500 | | 102,564 |
+--------------------------------+------+-+-------------+----------+-------------+
| Property, plant and equipment | | | 196,909 | | 221,341 |
+--------------------------------+------+-+-------------+----------+-------------+
| Deferred exploration and | 2 | | 7,664,024 | | 6,331,773 |
| evaluation expenditure | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Total Non Current assets | | | 7,948,433 | | 6,655,678 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| TOTAL ASSETS | | | 10,655,937 | | 7,394,473 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| CURRENT LIABILITIES | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Trade and other payables | | | 330,678 | | 202,085 |
+--------------------------------+------+-+-------------+----------+-------------+
| Other current liabilities | | | 28,365 | | 41,082 |
+--------------------------------+------+-+-------------+----------+-------------+
| Interest bearing liabilities | | | 10,898 | | 13,551 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Total Current Liabilities | | | 369,941 | | 256,718 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| NON CURRENT LIABILITIES | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Interest bearing liabilities | | | 1,891 | | 7,478 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Total Non Current Liabilities | | | 1,891 | | 7,478 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| TOTAL LIABILITIES | | | 371,832 | | 264,196 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| NET ASSETS | | | 10,284,105 | | 7,130,277 |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| EQUITY | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| Issued capital | 3 | | 11,498,918 | | 7,731,885 |
+--------------------------------+------+-+-------------+----------+-------------+
| Reserves | | | 602,304 | | 602,304 |
+--------------------------------+------+-+-------------+----------+-------------+
| Accumulated losses | | | (1,817,117) | | (1,203,912) |
+--------------------------------+------+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+------+-+-------------+----------+-------------+
| TOTAL EQUITY | | | 10,284,105 | | 7,130,277 |
+--------------------------------+------+-+-------------+----------+-------------+
Condensed Statement of Changes in Equity
+------------------------+------------+-------------+---------+------------+
| All figures reported | Issued | Accumulated | Option | Total |
| in Australian dollars | Capital | Losses | Reserve | Equity |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| Half-year to 31 | $ | $ | $ | $ |
| December 2008 | | | | |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| Balance at 1 July 2008 | 7,731,885 | (604,613) | 331,000 | 7,458,272 |
+------------------------+------------+-------------+---------+------------+
| Issue of options | - | - | 297,992 | 297,992 |
+------------------------+------------+-------------+---------+------------+
| Share issue expenses | (26,688) | - | - | (26,688) |
+------------------------+------------+-------------+---------+------------+
| Loss for the period | - | (225,722) | - | (225,722) |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| As at 31 December 2008 | 7,705,197 | (830,335) | 628,992 | 7,503,854 |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| Half-year to 31 | | | | |
| December 2009 | | | | |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| Balance at 1 July 2009 | 7,731,885 | (1,203,912) | 602,304 | 7,130,277 |
+------------------------+------------+-------------+---------+------------+
| Issue of shares | 4,007,500 | - | - | 4,007,500 |
+------------------------+------------+-------------+---------+------------+
| Share issue expenses | (240,467) | - | - | (240,467) |
+------------------------+------------+-------------+---------+------------+
| Loss for the period | - | (613,205) | - | (613,205) |
+------------------------+------------+-------------+---------+------------+
| | | | | |
+------------------------+------------+-------------+---------+------------+
| As at 31 December 2009 | 11,498,918 | (1,817,117) | 602,304 | 10,284,105 |
+------------------------+------------+-------------+---------+------------+
Condensed Statement of Cash Flows
+--------------------------------+----+-+-------------+----------+-------------+
| All figures reported in | | | Consolidated |
| Australian dollars | | | |
+--------------------------------+----+-+--------------------------------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | 6 months | | 6 months |
| | | | to | | to |
| | | | 31 | | 31 |
| | | | December | | December |
| | | | 2009 | | 2008 |
+--------------------------------+----+-+ +----------+ +
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | $ | | $ |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| CASH FLOWS FROM OPERATING | | | | | |
| ACTIVITIES | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Payments to suppliers | | | (714,198) | | (389,678) |
+--------------------------------+----+-+-------------+----------+-------------+
| Interest income received | | | 16,959 | | 75,740 |
+--------------------------------+----+-+-------------+----------+-------------+
| Interest and other finance | | | (684) | | (1,144) |
| costs paid | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Net cash used in operating | | | (697,923) | | (315,082) |
| activities | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| CASH FLOWS FROM INVESTING | | | | | |
| ACTIVITIES | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Payments for exploration | | | (1,149,441) | | (1,474,452) |
| expenditure | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Payment for property, plant | | | - | | (129,006) |
| and equipment | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Net cash used in investing | | | (1,149,441) | | (1,603,458) |
| activities | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| CASH FLOWS FROM FINANCING | | | | | |
| ACTIVITIES | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Proceeds from issue of shares | | | 4,007,500 | | 297,992 |
| and options | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Share and option issue | | | (240,467) | | (26,689) |
| transaction costs | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Hire purchase repayments | | | (6,285) | | (6,246) |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Net cash provided by financing | | | 3,760,748 | | 265,057 |
| activities | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Net increase/(decrease) in | | | 1,913,385 | | (1,653,483) |
| cash held | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Cash and cash equivalents at | | | 695,461 | | 3,510,774 |
| the beginning of the period | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Effect of exchange rate | | | (15,001) | | (3,426) |
| fluctuations on cash held | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
| Cash and cash equivalents at the | | 2,593,845 | | 1,853,865 |
| end of the period | | | | |
+--------------------------------+----+-+-------------+----------+-------------+
NOTES TO THE FINANCIAL STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2009
These accompanying notes form part of the financial statements.
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
The interim consolidated financial statements are a general purpose financial
report prepared in accordance with the requirements of the Corporations Act
2001, applicable accounting standards including AASB 134 'Interim Financial
Reporting', Accounting Interpretations and other authoritative pronouncements of
the Australian Accounting Standards Board ('AASB'). Compliance with AASB 134
ensures compliance with IAS 34 'Interim Financial Reporting'.
This condensed half-year report does not include full disclosures of the type
normally included in an annual financial report. Therefore, it cannot be
expected to provide as full an understanding of the financial performance,
financial position and cash flows of the group as in the full financial report.
It is recommended that this financial report be read in conjunction with the
annual financial report for the year ended 30 June 2009 and any public
announcements made by Scotgold Resources Limited and its subsidiaries during the
half-year in accordance with continuous disclosure requirements arising under
the Corporations Act 2001 and the ASX Listing Rules.
The accounting policies adopted are consistent with those of the previous
financial year and corresponding interim reporting period, except as set out
below.
Basis of preparation
The interim report has been prepared on a historical cost basis. Cost is based
on the fair value of the consideration given in exchange for assets. The company
is domiciled in Australia and all amounts are presented in Australian dollars,
unless otherwise noted.
For the purpose of preparing the interim report, the half-year has been treated
as a discrete reporting period.
Significant accounting judgements and key estimates
The preparation of interim financial reports requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expense.
Actual results may differ from these estimates.
Except as described below, in preparing this interim report, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied to
the consolidated financial report for the year ended 30 June 2009.
In the half-year ended 31 December 2009, management reassessed its estimates in
respect of:
Carrying value of exploration expenditure
The Group performed a detailed review of its exploration tenements at period end
to determine whether the related expenditure should continued to be capitalised
under AASB 6 or written off to profit or loss.
Adoption of new and revised Accounting Standards
In the half-year ended 31 December 2009, the Group has reviewed all of the new
and revised Standards and Interpretations issued by the AASB that are relevant
to its operations and effective for annual reporting periods beginning on or
after 1 July 2009.
During the current period, certain accounting policies have changed as a result
of new or revised accounting standards which became operative for the annual
reporting period commencing on 1 July 2009.
The affected policies and standards are :
· Segment reporting - New AASB 8 operating segments
The Group has also reviewed all new Standards and Interpretations that have been
issued but are not yet effective for the half-year ended 31 December 2009. As a
result of this review the Directors have determined that there is no impact,
material or otherwise, of the new and revised Standards and Interpretations on
its business and, therefore, no change necessary to Group accounting policies.
Segment Reporting
The Group has applied AASB 8 Operating Segments from 1 July 2009. AASB 8
requires a 'management approach' under which segment information is presented on
the same basis as that used for internal reporting purposes.
Operating segments are now reported in a manner that is consistent with the
internal reporting provided to the chief operating decision maker. The chief
operating decision-maker has been identified as the Board of Scotgold Resources
Limited. Refer to Note 5 for more information.
NOTE 2 - DEFERRED EXPLORATION AND EVALUATION
+--------------------------------+----+-+-----------+----------+-----------+
| | Consolidated |
+---------------------------------------+----------------------------------+
| All figures reported in | | | | | |
| Australian dollars | | | | | |
+--------------------------------+----+-+-----------+----------+-----------+
| | | | Half | | Year to |
| | | | year to | | |
+--------------------------------+----+-+-----------+----------+-----------+
| | | | 31 | | 30 June |
| | | | December | | |
+--------------------------------+----+-+-----------+----------+-----------+
| | | | 2009 | | 2009 |
+--------------------------------+----+-+-----------+----------+-----------+
| | | | $ | | $ |
+--------------------------------+----+-+-----------+----------+-----------+
| | | | | | |
+--------------------------------+----+-+-----------+----------+-----------+
| Balance at beginning of period | | | 6,331,773 | | 3,850,163 |
+--------------------------------+----+-+-----------+----------+-----------+
| Expenditure incurred during | | | 1,332,251 | | 2,481,610 |
| the period | | | | | |
+--------------------------------+----+-+-----------+----------+-----------+
| Total deferred exploration and | | 7,664,024 | | 6,331,773 |
| evaluation expenditure | | | | |
+--------------------------------+----+-+-----------+----------+-----------+
The recoupment of costs carried forward in relation to areas of interest in the
exploration and evaluation phases is dependent upon the successful development
and commercial exploitation or sale of the respective areas.
+--------------------------------+----+-+------------+----------+-----------+
| NOTE 3 - ISSUED CAPITAL | | | Consolidated |
+--------------------------------+----+-+-----------------------------------+
| All figures reported in | | | | | |
| Australian dollars | | | | | |
+--------------------------------+----+-+------------+----------+-----------+
| | | | 31 | | 30 June |
| | | | December | | |
+--------------------------------+----+-+------------+----------+-----------+
| | | | 2009 | | 2009 |
+--------------------------------+----+-+------------+----------+-----------+
| Ordinary Shares | | | $ | | $ |
+--------------------------------+----+-+------------+----------+-----------+
| | | | | | |
+--------------------------------+----+-+------------+----------+-----------+
| Issued and fully paid | | | 11,498,918 | | 7,731,885 |
+--------------------------------+----+-+------------+----------+-----------+
Movements in ordinary share capital of the Company were as follows:
+--------------------------------+----+-+-------------+----------+------------+
| | | | Number | | $ |
+--------------------------------+----+-+-------------+----------+------------+
| | | | | | |
+--------------------------------+----+-+-------------+----------+------------+
| At July 1 2009 | | | 63,415,852 | | 7,731,885 |
+--------------------------------+----+-+-------------+----------+------------+
| Placement 3 July 2009 | | 9,500,000 | | 807,500 |
+-------------------------------------+-+-------------+----------+------------+
| Placement 20 October 2009 | | 10,900,000 | | 1,199,000 |
+-------------------------------------+-+-------------+----------+------------+
| Placement 27 November 2009 | | 18,190,910 | | 2,001,000 |
+-------------------------------------+-+-------------+----------+------------+
| Transaction costs | | | | (240,467) |
+-------------------------------------+-+-------------+----------+------------+
| At 31 December 2009 | | 102,006,762 | | 11,498,918 |
+--------------------------------+----+-+-------------+----------+------------+
Movements in options were as follows:
+--------------------------------+----+-+------------+----------+----------+
| | | | Number | | $ |
+--------------------------------+----+-+------------+----------+----------+
| | | | | | |
+--------------------------------+----+-+------------+----------+----------+
| At July 1 2009 | | | 38,799,204 | | 602,304 |
+--------------------------------+----+-+------------+----------+----------+
| At 31 December 2009 | | 38,799,204 | | 602,304 |
+--------------------------------+----+-+------------+----------+----------+
Options are exercisable at $0.30 on or before 30 April 2010.
NOTE 4 - CONTINGENT LIABILITIES
Scotgold Resources Limited and its controlled entities have no known material
contingent liabilities as at 31 December 2009.
NOTE 5 - SEGMENT INFORMATION
During the half year the Group operated principally in one business segment
being mineral exploration.
Previously the Group reported that it operated principally in two geographical
segments being Australia and Scotland.
NOTE 6 - EVENTS SUBSEQUENT TO REPORTING DATE
On 24 February 2010 Scotgold Resources Limited was admitted to trading on the
AIM Market of the London Stock Exchange ("AIM") under TIDM code SGZ.
In conjunction with the AIM admission, the Company has raised approximately
GBP704,000 before expenses through a placing of 15,300,000 new Ordinary Shares
at 4.6 pence per ordinary share (the "Placing"). Following this issue, the total
number of ordinary shares in issue on commencement of trading on AIM was
117,306,762.
NOTE 7 - PUBLICATION OF INTERIM FINANCIAL REPORT
The report is extracted from the Company's full interim financial report for the
six month period to 31 December 2009. A copy of the full report is available on
the Company's website - www.scotgoldresources.com.
GLOSSARY OF GEOLOGICAL TERMS
+----------------+-----------------------------------------------+
| ADIT | a type of entrance to an underground mine |
| | which is horizontal or nearly horizontal. |
| | |
+----------------+-----------------------------------------------+
| APPIN GROUP | the oldest subgroup of the Dalradian |
| | Supergroup, c. 4 km thick, made up of |
| | quartzites, pelitic and limestone units. |
| | |
+----------------+-----------------------------------------------+
| AQ | nominal diamond drill core diameter of 27mm. |
| | |
| | |
+----------------+-----------------------------------------------+
| ARGYLL GROUP | a subgroup of the Dalradian Supergroup, c. |
| | 9km thick, made up of tillites, quartzites, |
| | pelitic and psammitic units. |
| | |
+----------------+-----------------------------------------------+
| ASSAY | a procedure to determine the proportions of |
| | metal in an ore or to test an ore or mineral |
| | for composition, weight, purity etc. |
| | |
+----------------+-----------------------------------------------+
| AZIMUTH | the angle of horizontal difference, measured |
| | clockwise, of a bearing from a standard |
| | direction, as from north or south. |
| | |
+----------------+-----------------------------------------------+
| BASE METALS | more common chemically active metals, e.g. |
| | copper, lead, tin, zinc etc. |
| | |
+----------------+-----------------------------------------------+
| BEDROCK | the solid rock lying beneath superficial |
| | material such as gravel or soil. |
| | |
+----------------+-----------------------------------------------+
| BRECCIA | a rock composed of angular fragments of |
| | minerals or rocks in a matrix (cementing |
| | material), that may be similar or different |
| | in composition to the fragments. |
| | |
+----------------+-----------------------------------------------+
| BRECCIA PIPE | a mass of breccia, often in an irregular and |
| | cylindrical shape, that appears as an |
| | iron-stained knob, from several feet to |
| | several hundred feet in diameter. Breccia |
| | pipes may or may not be silicified. They |
| | usually consist of fragments of the host rock |
| | (the rock layer they are contained in) |
| | cemented together by silica. |
| | Breccia-hosted, precious metal deposits occur |
| | throughout the world and are known to host |
| | very large resources. Examples in Australia |
| | are Kidston (4.5 M oz gold), Mt Leyshon (3.5 |
| | M oz gold) and Mt Wright (1 M oz gold) all of |
| | which are located in North Queensland. |
| | Examples in North America are Golden Sunlight |
| | in Wyoming (3.8 M oz gold) and Cripple Creek |
| | in Colorado (21 M oz gold) which are |
| | associated with lamprophyre fields. |
| | |
+----------------+-----------------------------------------------+
| CALCAREOUS | a rock that contains as much as 50% calcium |
| ROCK | carbonate. |
| | |
+----------------+-----------------------------------------------+
| COMPLEXITY | a factor applied to the tonnage to indicate |
| FACTOR | uncertainty in the geometric shape at depth |
+----------------+-----------------------------------------------+
| | |
+----------------+-----------------------------------------------+
| DALRADIAN | a succession of Late Precambrian and Cambrian |
| SUPERGROUP | marine sedimentary rocks which have been |
| | metamorphosed in parts of Scotland and |
| | Ireland. It is typically developed in the |
| | high grounds which lie southeast of the Great |
| | Glen of Scotland. It is made up of four |
| | subgroups the Grampian, Appin, Argyll and |
| | Southern Highland groups. |
| | |
+----------------+-----------------------------------------------+
| DIAMOND | a diamond-studded rotary-drilling bit, used |
| DRILLING | for coring and drilling in very hard rock. |
| | |
+----------------+-----------------------------------------------+
| DIP | the angle in degrees between a horizontal |
| | plane and an inclined earth feature. |
| | |
+----------------+-----------------------------------------------+
| GEOCHEMICAL | the application of methods and techniques of |
| SURVEYS | geochemistry to the search for mineral or |
| | petroleum deposits. |
| | |
+----------------+-----------------------------------------------+
| GRADE | the relative quantity or percentage of |
| | mineral content in an ore body. |
| | |
+----------------+-----------------------------------------------+
| HIGH GRADE | a high quantity or percentage of mineral |
| | content in an ore body. |
| | |
+----------------+-----------------------------------------------+
| INCLINATION | See DIP |
| | |
+----------------+-----------------------------------------------+
| INDICATED | part of a Mineral Resource for which tonnage, |
| MINERAL | densities, shape, physical characteristics, |
| RESOURCE | grade and mineral content can be estimated |
| | with a reasonable level of confidence. It is |
| | based on exploration, sampling and testing |
| | information gathered through appropriate |
| | techniques from locations such as outcrops, |
| | trenches, pits, workings and drill holes. |
| | |
+----------------+-----------------------------------------------+
| INFERRED | part of a Mineral Resource for which tonnage, |
| MINERAL | grade and mineral content can be estimated |
| RESOURCE | with a low level of confidence. It is |
| | inferred from geological evidence and assumed |
| | but not verified geological and/or grade |
| | continuity. It is based on information |
| | gathered through appropriate techniques from |
| | locations such as outcrops, trenches, pits, |
| | workings and drill holes which may be limited |
| | or of uncertain quality and reliability. |
+----------------+-----------------------------------------------+
| IP ANOMALY | an anomaly in the 'induced potential', where |
| | geophysicists put electrical pulses into the |
| | ground and then measure the decay of voltage. |
| | |
+----------------+-----------------------------------------------+
| JORC | the Australian 'Joint Ore Reserves Committee' |
| | sets out minimum standards, recommendations |
| | and guidelines for Public Reporting in |
| | Australasia of Exploration Results, Mineral |
| | Resources and Ore Reserves. |
| | |
+----------------+-----------------------------------------------+
| LAMPROPHYRE | ultrapotassic, igneous rock primarily |
| | occurring as dykes, lopoliths, laccoliths, |
| | stocks and small intrusions. It is an |
| | alkaline, silica-undersaturated and |
| | ultramafic rock. |
| | |
+----------------+-----------------------------------------------+
| LOW GRADE | a low quantity or percentage of mineral |
| | content in an ore body. |
| | |
+----------------+-----------------------------------------------+
| MEASURED | part of a Mineral Resource for which tonnage, |
| MINERAL | densities, shape, physical characteristics, |
| RESOURCE | grade and mineral content can be estimated |
| | with a high level of confidence. It is based |
| | on detailed and reliable exploration, |
| | sampling and testing information gathered |
| | through appropriate techniques from locations |
| | such as outcrops, trenches, pits, workings |
| | and drill holes. |
| | |
+----------------+-----------------------------------------------+
| METALIFFEROUS | containing, yielding, or producing metal or |
| | ore. |
| | |
+----------------+-----------------------------------------------+
| METASEDIMENT | sediment or sedimentary rock that shows |
| | evidence of having been subjected to |
| | metamorphism. |
| | |
+----------------+-----------------------------------------------+
| MINERALISATION | a process by which valuable minerals are |
| | introduced into a rock, resulting in an ore |
| | deposit, either actual or potential. |
| | |
+----------------+-----------------------------------------------+
| MINERAL | is a concentration or occurrence of material |
| RESOURCE | of intrinsic economic interest in or on the |
| | Earth's crust in such form, quality and |
| | quantity that there are reasonable prospects |
| | for eventual economic extraction. The |
| | location, quantity, grade, geological |
| | characteristics and continuity of a Mineral |
| | Resource are known, estimated or interpreted |
| | from specific geological evidence and |
| | knowledge. Mineral Resources are sub-divided, |
| | in order of increasing geological confidence, |
| | into Inferred, Indicated and Measured |
| | categories |
| | |
+----------------+-----------------------------------------------+
| PELITES | metamorphosed sediment with a dominantly |
| | mudstone/siltstones protolith. |
| | |
+----------------+-----------------------------------------------+
| PRECIOUS | naturally occurring metallic chemical element |
| METALS | of high economic value, which is not |
| | radioactive, commonly part of the platinum |
| | group. |
| | |
+----------------+-----------------------------------------------+
| PSAMMITES | metamorphosed sediment with a dominantly |
| | sandstone protolith. |
| | |
+----------------+-----------------------------------------------+
| QUARTZ | crystalline silica, SiO2. . |
| | |
+----------------+-----------------------------------------------+
| STRIKE | parallel to the direction taken by a |
| | structural surface such as a fault or bedding |
| | plane as it intersects the horizontal. |
| | |
+----------------+-----------------------------------------------+
| VEIN | a tabular or sheet like body of one of more |
| | minerals deposited in openings of fissures, |
| | joints or faults, frequently with associated |
| | replacement of host rock. |
+----------------+-----------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KKBDQABKDAND
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