Wrap Text
2012 Financial Statements Released
GOLIATH GOLD MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number 1933/004523/06)
Share code: GGM ISIN: ZAE000154753
(“Goliath Gold” or “the company”)
2012 FINANCIAL STATEMENTS RELEASED
Goliath Gold is pleased to announce the release of the company’s financial statements for the 12
months ended 31 December 2012.
The period under review was an exciting year of significant growth for Goliath Gold. Not only did the
company achieve its primary goal of advancing its East Rand exploration assets and increasing its
footprint in this region, but simultaneously diversified its project portfolio into different commodities
and took the first steps towards expansion beyond the borders of South Africa. These achievements
were especially pleasing considering the tough economic climate in 2012, which was a difficult year for
many exploration companies both locally and internationally.
During the year under review, the net loss for the group was ZAR 85.863 million, compared to a net loss
of ZAR 29.219 million for the year ended 31 December 2011. The main items contributing to the loss for
the year were increased exploration expenditure as well as the share based payment expense of ZAR
23.770 million, which was incurred as a result of the black economic empowerment transaction entered
into by the group to ensure compliance with the black economic empowerments requirements of the
Mineral and Petroleum Resources Development Act of South Africa. The impairment loss of ZAR 22.914
million in 2012 relates to assets that were flooded at Megamine’s Sub Nigel site.
Closing of the Megamine Transaction
In March 2012 the company expanded its footprint in the East Rand Basin through the successful
acquisition of Gold One’s Megamine business, for a consideration of ZAR 262 million. This consideration
was settled by way of the issue of 104,891,947 Goliath Gold ordinary shares and resulted in Gold One
International Limited (“Gold One”), through its wholly owned subsidiary Gold One Africa Limited,
acquiring a 72% controlling interest in Goliath Gold. In addition, Goliath Gold entered into a
management agreement with Gold One, thereby allowing Goliath Gold access to the extensive skills and
knowledge base that resides in Gold One in an extremely cost effective manner.
Exploration
The amalgamation of historically independent but contiguous mining properties on the East Rand into a
single exploration project has allowed Goliath Gold to undertake a regional and holistic geological
modelling approach. This approach has underpinned the development of a novel and robust geological
model for Megamine’s primary target: the Nigel Reef. Geological knowledge and the models developed
have been utilised to identify prospective shallow targets and guide a focused exploration programme
that has to date included the drilling of 39 surface boreholes as well as extensive surface and
underground mapping.
Resources and Reserves
The exploration programme has facilitated the estimation of mineral resources across the Megamine
Project. Total estimated mineral resources include 12.19 million ounces of gold (including 82.07 million
tonnes grading at 4.62 grams per tonne), with indicated mineral resources of 3.64 million ounces
(including 25.62 million tonnes grading at 4.42 grams per tonne) and inferred mineral resources of 8.56
million ounces (including 56.45 million tonnes grading at 4.72 grams per tonne). Importantly, for the
first time at Megamine this resource has included the up-dip Wit Nigel portion of the project.
Approximately 3.6 million ounces of the total estimated mineral resource base occur at depths
shallower than 1,000 metres below surface, of which 1.5 million ounces are estimated to occur at
depths shallower than 500 metres. The 2013 focus at the Megamine Project will be on enhancing the
value of the substantial mineral resource base by advancing selected targets through additional drilling
and the application of economic studies to ultimately define minable mineral reserves.
Pamodzi East Rand Acquisition
In April 2012 Goliath Gold took a further step in establishing its position in the East Rand by announcing
that the company, together with Gold One, had entered into an acquisition agreement to acquire
control over selected underground deposits of Grootvlei Proprietary Mines Limited, Consolidated
Modderfontein Mines 1979 Limited and Nigel Gold Mining Company (Pty) Limited from subsidiaries
belonging to Pamodzi Gold East Rand (Pty) Limited (“Pamodzi Gold East Rand”), which is currently in
provisional liquidation. Goliath Gold will pay ZAR 5 million for the acquisition of the historical mining and
technical data and, in addition, will secure prospecting rights that will provide the company access to
explore one of the largest single brownfield exploration properties remaining in the Witwatersrand
Basin. The opportunity to explore and develop such assets without the associated legacy of pumping
and environmental liabilities is critical to the successful execution of Goliath Gold’s strategy to extend
the life of gold mining in the East Rand. The prospecting rights for which Goliath Gold has applied have
been formally accepted by the Department of Mineral Resources and it is expected that the approval
process will be completed by July 2013.
Project Elephant
In August 2012 Goliath Gold initiated Project Elephant following the successful granting of prospecting
rights in the Vredendal magisterial district of South Africa’s Western Cape Province. Project Elephant
comprises heavy mineral sand deposits. These deposits are mined on a large scale to the north of the
project area by Exxaro Resources’s Namakwa Sands Mine.
Expanding into Africa
Goliath Gold took its first steps towards expanding its African footprint during the year under review by
applying for an exclusive prospecting licence for the Etendeka Project in Namibia and is currently
awaiting the successful granting of the licence. The prospecting licence encompasses base, rare and
precious metals.
Appointment of Richard Stewart as CEO
On 29 November 2012 Goliath Gold announced the resignation of CEO Neal Froneman and the
appointment of Richard Stewart as CEO. Neal, who was instrumental in the creation of Goliath Gold, has
been appointed as CEO of Sibanye Gold, which holds the South African assets (excluding South Deep)
previously belonging to Gold Fields. On behalf of CEO Richard Stewart and the board, the company
would like to extend sincere thanks to Neal for his valuable contribution in creating and developing
Goliath Gold and wish him the best of success in his future endeavours.
2013 Focus
For 2013 the company’s immediate focus will be on advancing the Megamine Project, successfully
closing the Pamodzi Gold East Rand transaction and identifying further shallow exploration targets with
near term production potential, securing the exclusive prospecting licence for Etendeka, and initiating
exploration in the Project Elephant area. Across all of Goliath Gold’s assets the company will continue to
employ its technical and commercial exploration approach to identify and advance high value yielding
exploration targets.
CEO Richard Stewart comments: “With the ongoing support of our strategic partners and financial
backing from Gold One, our major shareholder, Goliath Gold is well positioned to take full advantage of
difficult exploration market conditions and establish itself as a leading African explorer. Following our
bold growth in 2012 I look forward to reporting on our continued progress during the 2013 year”.
Johannesburg
28 March 2013
Sponsor
Merchantec Capital
Richard Stewart
CEO
+27 11 726 1047 (office)
+27 82 857 2173 (mobile)
richard.stewart@gold1.co.za
Grant Stuart
VP: Investor Relations
+27 11 726 1047 (office)
+27 82 602 5992 (mobile)
grant.stuart@gold1.co.za
Carol Smith
Investor Relations
+27 11 726 1047 (office)
+27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Competent Person’s Statement
The information in this press release that relates to exploration results, mineral resources or ore
reserves is based on information compiled by the following Competent Persons for the purposes of the
SAMREC Code.
The Competent Person for Goliath Gold’s exploration results is Mr Quartus Meyer, who has a master’s
degree in science (geology) and who is a professional natural scientist registered with the South African
Council for Natural Scientific Professions (“SACNASP”) membership number 400063/88, and resides at
27 Mynhardt van Graan Street, Hennenman, 9445. Mr Meyer is Vice President: Exploration and is a
fulltime employee of Gold One, which has entered into a management agreement with Goliath Gold. Mr
Meyer has 26 years’ experience relevant to the style of mineralisation and type of deposit under
consideration, and to the activity which he is undertaking, to qualify as a Competent Person for the
purposes of the SAMREC Code. Mr Meyer is also the overall Competent Person for Goliath Gold.
The Competent Person for Goliath Gold’s mineral resources is Dr Lemmer, who has a doctorate in
applied earth sciences (geostatistics) and who is a professional natural scientist registered with
SACNASP, membership number 400021/03, and resides at 15 Chiselhurst Drive, Rossmore, 2092. Dr
Lemmer is an independent consultant to Goliath Gold, and has been an independent consultant to the
South African mining industry for the past 23 years. Dr Lemmer has 35 years’ experience in resource
estimation relevant to the style of mineralisation and type of deposit under consideration, and to the
activity which she is undertaking, to qualify as a Competent Person for the purposes of the SAMREC
Code.
Mr Meyer and Dr Lemmer consent to the inclusion in this release of the matters based on information
compiled by themselves in the form and context in which they appear.
Date: 28/03/2013 09:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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