Go Back Email this Link to a friend


TAWANA RESOURCES NL - Quarterly Activities Report for the quarter to 30 September 2014

Release Date: 21/10/2014 09:28:00      Code(s): TAW       PDF(s):  
Quarterly Activities Report for the quarter to 30 September 2014

Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7


PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES.
PLEASE REFER TO TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.

Quarterly Activities Report For the quarter to 30 September 2014

Highlights

Mofe Creek Iron Ore Project

Studies

   -   The Mofe Creek Iron Ore Project Scoping Study1 was completed in July and a
       Preliminary Feasibility Study (‘PFS’) commenced in August.

   -   The Scoping Study confirmed the technical and financial robustness of the Mofe
       Creek Project with a very low OPEX cost of US $40.60/t, low-capital start-up cost
       of less than US$53M and the production of a premium +65% Fe product.

   -   The PFS will focus on the design and construction of a modular processing plant(s)
       and associated logistics for the transportation and export of 2.5 million tonnes per
       annum (‘Mtpa’).

   -   Tenova Mining and Minerals and Engenium were appointed joint Study Managers for
       the PFS; Coffey Mining will undertake the mining-related scope; and Earth Systems
       the environmental assessments.

Mine, Logistics, Infrastructure and Approvals

   -   Formal notification was received from the Environmental Protection Agency (‘EPA’)
       of Liberia for Tawana to proceed to conduct the Environmental and Social
       Impact Assessment (‘ESIA’) for the Project. Meetings with community stakeholders
       are currently in progress.

   -   Tawana received formal acknowledgment and approval from the Ministry of Lands,
       Mines and Energy (‘MLME’) to commence the Company’s Mineral Development
       Agreement for the Mofe Creek Project.

   -   A definitive application for a pilot mining and bulk sampling extraction permit
       was submitted to the MLME.
Exploration

   -    New exploration licence encompassing high-potential itabirite mineralisation
        directly south and adjoining the Company’s 100%-owned Mofe Creek tenement, was
        granted during the Quarter.

   -    Exciting new itabirite discovery made at Zaway North-West target.

   -    1,100m of diamond drilling was completed at Gofolo Main and Zaway, targeting
        resource growth. Results are currently pending.

Corporate

   -    As at 30 September 2014, Tawana Resources held $3.3 million in cash.

   -    Aaron Finlay retired as Joint Company Secretary.

   -    Health, Safety, Environmental and Community (HSEC) Management plan for future
        pilot scale operations is being developed, along with a Risk and Event Management
        plan, including an Ebola Management program.

Mofe Creek Iron Ore Project

Studies

Mofe Creek Preliminary Feasibility Study

Following the delivery of a robust technical and economically viable Scoping Study for the
Mofe Creek Project (‘the Project’) in July, the company authorised the immediate start of a
Preliminary Feasibility Study in August. The PFS will provide a +/- 20% cost estimate for the
project and in particular will focus on the mine development, processing plant design and
the logistics componets of the Project to effect the transportation of 2.5 Mtpa of product to
the proposed new coastal port site location (refer Figure 1).

The key findings1 of the Project from the Scoping Study were as follows:

 Initial Mine Life                                               14 years
 Production Target Profile                                       2.5 Mtpa
 Capital Cost        to   Initial   Production   (incl   20%
                                                                 US$52.9M
 Contingency)
 Revenue (at FOB price of US$87/Dmt – Pre-Tax)                   US$2.5B
 Operating Costs (LOM avg. Cash Costs - FOB)                     US$40.60 per tonne
 Net Present Value (NPV at 8% DCF, post Royalties
                                                  US$435M
 at 4.5%)
 Internal Rate of Return (IRR) – Pre-Tax                         55.8%
 Total Project Capital cost (mine, logistics and port            US$280M – Staged across 4 years of
 incl. 20% Contingency)                                          prod’n
                                                                 15 months from approval of Mining
 Timeline to initial production
                                                                 Licence
 Product Quality                                                 64 – 68% Fe “Mofe Creek Premium
                                                                 Fines”


The Company appointed joint Study Managers for the Project, constituted by Tenova Mining
and Minerals (“Tenova”) and Engenium. Both companies will manage and coordinate the
major design and logistics components of the PFS.

Tenova has a strong track record in delivering projects similar in design and capacity to the
Mofe Creek project and recently completed the Company’s Scoping Study. Engenium is a
leading project and study management delivery company servicing the mining and resource
sectors with a specific focus on mine, port and rail projects, linked to iron ore development
companies.

The PFS will build on the results of the Scoping Study, which confirmed the very positive
economic potential of the Project at a production rate of 2.5 Mtpa. Key aspects associated
with the development of the PFS will include:

   -   Marine infrastructure and logistics studies and design, including barging solutions for
       transhipment and direct ship-loading facilities

   -   Landside logistics including the design of an independent heavy-haul road from mine
       to port, and final product storage and export facilities

   -   Logistics permitting - including mine, road and port construction, transportation and
       port operating licenses and leases
   -   Hydrology and water management studies and design
   -   Process engineering and modular design of the beneficiation plant(s)
   -   Mining engineering, mining schedules and preliminary pit design
   -   Tailings engineering and storage facility design
   -   Geotechnical and geophysical investigations – for mine development
   -   Power demand and operational studies
   -   Environmental and social impact assessments

Modelling of the sea-conditions at this proposed location has commenced and this
information will be correlated into a detailed barging/transhipment study. This study will be
undertaken by CSL Transhipment Group, who have well-established transhipment
operations around the world and have country-specific experience in Liberia at the southern
port of Buchanan.

Preliminary design of a port receival, storage and discharge system has commenced, with
the aim of developing a simple, but efficient port facility, capable of managing in excess of
2.5 Mtpa.

The concept will be to receive 150-220t payload trucks, which will side-tip into a conveyor
system for storage. The product will be reclaimed by front-end loaders at a nominal rate of
4000-5000 t/hr, depending upon the final design of the “outflow” system and barge
loading/transhipment facility.

Several marine engineering firms are currently conceptualising the design of a “fit for
purpose” wharf, that will minimise start-up capital and is readily constructed, with minimal
piling and strucutral complexity.
The length of the wharf will be confirmed via local bathymetric surveys, to be conducted next
year. The final sea-side point for loading the barges or ships, will be contingent on the water
depth required to load varying draft vessels.

Further studies on the most practical and cost-effective design of the transhipment barges
will also be undertaken by CSL. The level of sophistication and design of self-loading barges
directly into the hull of the ocean going vessels (‘OGV’), has advanced significantly over the
past years, and is generating very cost-effective OPEX costs for such activities, along with
faster ship loading rates, hence decreased demurrage costs.

The Company is now in the process of confirming the precise coordinates of the proposed
port site, in order that detailed surveys and land acquisition/leases can be instigated. This
scope of work will dove-tail into the final design of the haul road at the discharge end of the
road.

WorldView satellite imagery was acquired for the project, inclusive of the proposed mine
locations, logistics corridor(s) and port handling and despatch areas.
The acquisition of high resolution DTM satellite imagery of sufficient quality and resolution to
allow PFS mining and engineering studies to be completed is currently being assessed.

Road Transport, Haul Road Design and Approvals

As part of the PFS, the Company is considering a three-stage road development and
transportation program to capitalise on existing roads in the immediate vicinity of the
Project, with a view to then migrating to an independent haul-road, as tonnages, efficiencies,
capital and OPEX savings dictate.

Applications to the relevant Liberian Government agencies for interim and long-term trucking
solutions for the Project, including the construction of a dedicated 32km haul road from the
mine to a new coastal barge/transhipment port location and a port lease and operating
licence for the new port facility are being progressed.

As the production throughput of the Project increases, and the truck sizes consequentially
increase, there will be an economic justification to haul the ore on a private haul-road,
thereby increasing pay-loads/vehicles, improving safety, and decreasing the unit rate/tonne
of product transported. This will be modelled in the coming months, as and when
expressions of interest are received from mining/haulage companies, and vehicle capacities
and availabilities are confirmed.

A review of the trucking arrangements currently operational in Liberian mines, and those
operating in Sierra Leone (African Minerals – 20 Mtpa and London Mining – 8 Mtpa) will
likewise be completed as a deliverable of the PFS.

Pilot Plant Study

The purpose of this study is to establish the economics of building a pilot plant scale mining,
bulk-sampling and processing operation to achieve an early start-up scenario.
The benefits of such a program are compelling:
   -   It facilitates the recruitment and training of key operating and maintenance personnel
       earlier than would otherwise be possible;
   -   It provides an opportunity to test mine development parameters and processing
       characteristics at a meaningful scale;
   -   It allows for the production of sufficient quantities of product for testing the logistics
       chain and for customer trials and acceptance, including sintering tests and value-in-
       use analyses;
   -   It will provide technical and metallurgical data and performance criteria essential for
       the final beneficiation plant design;
   -   It will provide crucial pit, mine and geotechnical data necessary for the safe and
       optimal design of the future pits; and
   -   It will provide employment for local staff and in-country contractors, along with payroll
       taxes and community engagement

Pilot plant design proposals have been received by a selection of Australian and African
engineering firms, and will be assessed for the practicability, capital cost, operability and
whether the engineering firms will participate in specialised funding proposals such as turn-
keys, and build, own, operate and transfer (“BOOT”) agreements.

Mineral Development Agreement – MDA

The Company received formal acknowledgment and approval from the Ministry of Lands,
Mines and Energy to commence the Company’s Mineral Development Agreement for the
Mofe Creek Project during the quarter (refer ASX release 24 September 2014).

The approval to proceed with formal negotiations associated with this agreement coincides
with the successful completion of the Project’s sustainable and robust Scoping Study in July
this year. Detailed meetings with representatives of the Ministry, and members of the Inter-
Ministerial Technical Committee, along with subsequent field visits in July, confirmed the
commitment by both parties (the Government of Liberia and Tawana), to progress this
essential and key agreement.

The MDA is a legally binding agreement, outlining the technical, commercial and
social/environmental commitments to be undertaken to build, operate and sustain a project
within Liberia, and is a legislative document passed as a bill in parliament, for a term of 25
years.

The MDA negotiation process is scheduled to proceed for a period of six to nine months, and
is optimally being coordinated to align with the completion of the Project’s PFS.

Extensive work on the final design, construction and staging of the Project and the
transitional logistics solutions associated therein, will be negotiated during the MDA process.

Tawana presented the results of its Scoping Study on the Mofe Creek project to the MLME
in Monrovia in July 2014 and also hosted a corresponding MLME delegation at the Mofe
Creek project site. Both the presentation and the site visits were a necessary precursor to
receiving support to proceed with MDA negotiations from the Ministry.

The Mineral Development Agreement process continues to be accelerated with the selection
of a legal representative and the preparation of the extensive submission, for negotiation and
ratification.

Health, Safety, Environmental and Community

Tawana is committed to maintaining its social licence to operate within Liberia, building
stakeholder relationships, and protecting the environment whilst providing a safe working
place for our employees. As such, Tawana is currently developing a Health, Safety,
Environmental and Community Management Plan for future pilot scale operations and full-
scale operations, along with a Risk and Event Management Plan, which contains an Ebola
Management Program.

This Risk and Event Management Plan complements the Company’s Corporate
Occupational Health and Safety and Corporate Risk Management Policies, and has been
designed to assist the Business Risk Team and the Event Response Team in proactively
managing risks and responding appropriately to Events (Incidents, Emergencies and Crisis).

Ebola Virus Disease Update

The Company temporarily suspended all non-essential field activities within Liberia, in
response to the current health risk associated with the Ebola Virus Disease (‘EVD’) (refer
ASX release 8 August 2014).

President Ellen Johnson Sirleaf declared a State of Emergency in Liberia on August 6th, in a
pro-active, controlled process to mitigate the spread of EVD within Liberia and across
international borders.

Whilst the current drilling program has been temporarily suspended, as outlined earlier, all
other activities associated with the PFS not requiring sustained and direct field presence, are
continuing both within Liberia and Australia.

Tawana’s commitment to the health, safety and well-being of all its employees and
contractors, has been at the forefront of many recent decisions with regard to the most
suitable time to recommence operations and field work within Liberia and the Grand Cape
County. Extensive work on the EVD procedures and “trigger-points” for operations
suspension or re-commencement have been developed, in conjunction with discussions and
reviews of other working companies and contractors procedures, and international health
organisations and local Ebola task force liaison.

The Company has assisted, where practical (both financially and physically) to support the
eradication of the Ebola virus within the wider Liberian community

Environmental and Social Impact Assessment (ESIA)

The Company received formal notification from the Environmental Protection Agency of
Liberia of its official right to proceed to conduct the Environmental and Social Impact
Assessment for the project (refer ASX release 1 October 2014).

The EPA reviewed the “Project Brief” document that presented an overview of the Project
and its environmental and social context, and subsequently authorised the Company to
proceed on the basis of the document submitted.

The Notice of Intent was published in August in Monrovian newspapers and broadcast within
the communities surrounding the Project (refer ASX release 26 August 2014). The Notice of
Intent is an integral first step in the consultative process with the community.

Subsequent to this, the Company started conducting local community briefing meetings with
stakeholders, whilst this report was being compiled. Photos from the local community
meetings are presented below.

Detailed imagery evaluation, mapping and analysis of existing information and resources for
the ESIA studies are being progressed. The Project is well placed to make notable advances
on these studies based on preliminary information collected by Earth Systems and their local
partner Earth Environmental Consultancy. Planning for the first formal field work component
has been completed, starting with a scoping exercise and stakeholder consultation, as
outlined above.

Exploration

The Company was awarded a new exploration licence (MEL 1223/14 – Refer Figure 3) to
Tawana Liberia Inc.; a wholly owned subsidiary of Tawana Resources NL, during the quarter
(refer ASX release 23 September 2014). Concurrently, the Konblo Bumi Inc. Option
Agreement over the approximate same area was terminated. The new licence covers a
186.16km2 area and is directly south, and adjoining the Company’s 100%- owned
MEL12029.

The new area contains coincident magnetic anomalies, topographic highs and itabirite
outcrops with exploration target areas defined within 3km to 8km of the main mineralisation
hubs. Rock chip sampling of itabirite outcrops within the new area have returned Fe values
between 20% and up to 64% Fe over five prospective areas. Studies of aeromagnetic data,
together with the sampling results, have outlined several areas of potential itabirite
enrichment, providing attractive targets for initial exploration.

Resource drilling commenced for the PFS during the quarter, with approximately 1,100m of
a 7,500m diamond core programme being completed prior to the suspension of drilling due
the Ebola Virus Disease. The drilling campaign was designed to target a resource upgrade
to 100-120Mt in the inferred and indicated category and inclusive 20-30Mt of indicated
material.

The 7,500m PQ/HQ diamond core drilling programme was to consist of approximately 80
drill holes from 50m up to 180m deep and across both existing resource footprints and new
exploration targets, utilising two track-mounted Atlas Copco CS1000 rigs on double shift.
The drill programme is targeting an overall resource increase from the current 61.9Mt
Maiden Resource Estimate across the Gofolo, Zaway and Koehnko mineralisation “hubs”.

Ongoing field work and the recent opening of drill access tracks and drill pads defined
exciting new exploration targets at Gofolo West, Zaway North-West and Koehnko South. All
exploration targets follow the Company’s strategy of qualifying the potential tonnages
associated with the three operational “hubs” centered around the Gofolo, Zaway and
Koehnko mineralisation deposits – Refer Figure 14.

The Zaway North-West target is defined by a coincident 3.5km long ridge with an
aeromagnetic anomaly and outcropping coarse, friable itabirite mineralisation similar to
Gofolo and Zaway Main deposits. The target occurs approximately 750m north of Zaway
Main and is characterised by shallow dipping itabirite outcrops along the ridge.

Corporate

As at 30 September 2014, Tawana Resources held $3.3 million in cash. Refer to the
Appendix 5B (ASX website) for principal movements in cash for the quarter.

The Company is in a strong cash position to advance the PFS and is prudently managing
the study and value-accretion activities of the staff and Liberian employees during this period
in which field activities have been curtailed or suspended.

Appropriate fiscal management programs and policies have been implemented across the
quarter, to minimise expenditure both at a Corporate and Project level, but with the strategy
of maintaining key personnel and intellectual property to advance the study and prepare for
an immediate re-start of Project-specific site activities, as and when the EVD has been
effectively reduced or eliminated.

An international roadshow to Hong Kong, Singapore and China was conducted in late
August, with the support of Canaccord Hong Kong and Canaccord Sydney executives.
The Executive Chairman presented at the Africa Down Under Conference in Perth in
September and a booth promoting Tawana and the Project was managed.

Closure of the Botswana entity is ongoing with PWC preparing de-registration documents.
BlueRock Diamonds have expressed a desire to purchase the Company’s total shareholding
and loan account in Diamond Resources (a 100% -owned subsidiary of Tawana Resources
NL).

Baosteel Iron and Steel Group acquired Aquila Resources during the quarter.
Representatives of the newly formed entity have completed site visits to the Company’s -
Rakana RSA assets and are finalising a strategic review of their assets this month. Pending
the outcome of the review, Tawana Company representatives will attend a meeting with
Rakana–associated parties in November.

About Tawana (ASX & JSE: TAW)

Tawana Resources NL is an iron ore focused ASX and JSE-listed Company with its principal
project in Liberia, West Africa. Tawana’s 100% owned Mofe Creek Project (“the Project”) is a
new discovery in the heart of Liberia’s historic iron ore district, located 20km from the coast
and 85km from the country’s capital city and major port, Monrovia.

Tawana is committed to becoming a mid-tier iron ore producer through the development of the
Mofe Creek Project, which covers 471km2 of highly prospective tenements in Grand Cape
Mount County. The Project hosts high-grade friable itabirite mineralisation which can be easily
upgraded to a superior quality iron ore product in the 64-68% Fe grade range, for which there is
consistent global demand, attracting significant price premiums.
Notes
1
 Cautionary Statement
Full details of the Scoping Study referred to in this announcement were initially released to
the ASX in an announcement dated 3 July 2014, and should be read in conjunction with this
announcement. All material assumptions underpinning the Scoping Study, production
targets and forecast financial information derived from the production targets as well as any
cautionary statements and disclosures as required under the ASX Listing Rules and 2012
JORC Code are set out in the announcement dated 3 July 2014 and continue to apply and
have not materially changed.

The Scoping Study referred to in this announcement is preliminary in nature as its
conclusions are drawn on inferred (74%) and indicated mineral resources (26%). The
Scoping Study is based on lower-level technical and economic assessments, and are
insufficient to support estimation of Ore Reserves or to provide assurance of an economic
development case at this stage, or to provide certainty that the conclusions of the Scoping
Study will be realised.

There is a low level of geological confidence associated with inferred mineral resources and
there is no certainty that further exploration work will result in the determination of indicated
mineral resources or that the production target itself will be realised. There is also no
certainty that the forecast financial information derived from the production targets will be
realised.

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Len Kolff and Iain Macfarlane, who are
members of the Australian Institute of Geoscientists. Len Kolff is a full-time employee of the
Company and 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 2012 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Iain Macfarlane is a full-time
employee of Coffey Mining Ltd and 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 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’ Len Kolff and Iain Macfarlane consent to the inclusion in the report of the matters
based on his information in the form and context in which it appears. Relevant CP initials are
presented under the competent person column in the attached JORC code 2012 Table 1.

Forward Looking Statement

This report may contain certain forward looking statements and projections regarding
estimated, resources and reserves; planned production and operating costs profiles; planned
capital requirements; and planned strategies and corporate objectives. Such forward looking
statements/projections are estimates for discussion purposes only and should not be relied
upon. They are not guarantees of future performance and involve known and unknown risks,
uncertainties and other factors many of which are beyond the control of Tawana Resources
NL. The forward looking statements/projections are inherently uncertain and may therefore
differ materially from results ultimately achieved.

Tawana Resources NL does not make any representations and provides no warranties
concerning the accuracy of the projections, and disclaims any obligation to update or revise
any forward looking statements/projects based on new information, future events or
otherwise except to the extent required by applicable laws. While the information contained
in this report has been prepared in good faith, neither TAW or any of its directors, officers,
agents, employees or advisors give any representation or warranty, express or implied, as to
the fairness, accuracy, completeness or correctness of the information, opinions and
conclusions contained in this presentation. Accordingly, to the maximum extent permitted by
law, none of TAW, its directors, employees or agents, advisers, nor any other person
accepts any liability whether direct or indirect, express or limited, contractual, tortuous,
statutory or otherwise, in respect of, the accuracy or completeness of the information or for
any of the opinions contained in this presentation or for any errors, omissions or
misstatements or for any loss, howsoever arising, from the use of this presentation.


Wayne Richards
Executive Chairman
Tel +61 8 9287 4344
Detailed information on all aspects of Tawana’s projects can be found on the Company’s
website www.tawana.com.au


21 October 2014
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd

                                                        Appendix 5B
                                  Mining exploration entity quarterly report
  Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10



  Name of entity
   Tawana Resources NL

  ABN                                                                                   Quarter ended (“current quarter”)
  69 085 166 721                                                                        30 September 2014


  Consolidated statement of cash flows
                                                                              Current quarter                Year to date
Cash flows related to operating activities                                    $A’000                         (9 months)
                                                                                                             $A’000
1.1       Receipts from product sales and related debtors                             -                        -

1.2       Payments for     (a) exploration & evaluation                             (722)                   (2,677)
                           (b) development                                             -                         -
                           (c) production                                              -                         -
                           (d) administration                                       (481)                   (1,676)
1.3       Dividends received                                                           -                         -
1.4       Interest and other items of a similar nature
          received                                                                     20                       52
1.5       Interest and other costs of finance paid                                      -                        -
1.6       Income taxes paid                                                             -                        -
1.7       Other R&D tax refund                                                        132                      132

          Net Operating Cash Flows                                                 (1,051)                  (4,169)

          Cash flows related to investing activities
1.8       Payment for purchases of:
                          (a) prospects                                                 -                       -
                          (b) equity investments                                        -                       -
                          (c) other fixed assets                                        -                     (10)
1.9       Proceeds from sale of:
                          (a) prospects                                                 -                        -
                          (b) equity investments                                        -                        -
                          (c) other fixed assets                                       80                       80
1.10      Loans to other entities                                                       -                        -
1.11      Loans repaid by other entities                                                -                        -
1.12      Other (provide details if material)                                           -                        -

          Net investing cash flows                                                      80                      70
1.13      Total operating and investing cash flows
          (carried forward)                                                           (971)                  (4,099)
1.13    Total operating and investing cash flows
        (brought forward)                                                             (971)                  (4,099)

        Cash flows related to financing activities
1.14    Proceeds from issues of shares, options, etc.                                    1                    5,608
1.15    Proceeds from sale of forfeited shares                                           -                        -
1.16    Proceeds from borrowings                                                         -                        -
1.17    Repayment of borrowings                                                          -                        -
1.18    Dividends paid                                                                   -                        -
1.19    Other – share issue costs                                                        -                    (296)
                                                                                         1                    5,312
        Net financing cash flows

        Net increase (decrease) in cash held                                           (970)                  1,213

1.20    Cash at beginning of quarter/year to date                                      4,17                   2,045
1.21    Exchange rate adjustments to item 1.20                                           90                      38
                                                                                      3,296                   3,296
1.22    Cash at end of quarter


  Payments to directors of the entity and associates of the directors
  Payments to related entities of the entity and associates of the related entities
                                                                                        Current quarter
                                                                                        $A'000

1.23     Aggregate amount of payments to the parties included in item 1.2               156

1.24     Aggregate amount of loans to the parties included in item 1.10                 -

1.25     Explanation necessary for an understanding of the transactions

         Directors salaries, fees and superannuation


  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

       N/A



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

       N/A
  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                                                                     300

4.2    Development                                                                                                  -

4.3    Production                                                                                                   -

4.4    Administratio                                                                                  300


       Total                                                                                          600

  Reconciliation of cash
 Reconciliation of cash at the end of the quarter (as               Current quarter            Previous quarter
 shown in the consolidated statement of cash flows) to              $A’000                     $A’000
 the related items in the accounts is as follows.
 5.1     Cash on hand and at bank                                          744                     1,621
                                                                         2,552                     2,555
 5.2     Deposits at call
                                                                              -                        -
 5.3     Bank overdraft
                                                                              -                        -
 5.4     Other (provide details)
                                                                           3,296                    4,176
         Total: cash at end of quarter (item 1.22)


  Changes in interests in mining tenements
                                         Tenement                Nature of interest           Interest at   Interest at
                                         reference               (note (2))                   beginning     end of
                                                                                              of quarter    quarter
 6.1     Interests in mining
         tenements relinquished,
         reduced or lapsed


 6.2     Interests in mining
         tenements acquired or           MEL 1223/14             100%                         0%            100%
         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 per        Amount paid up per
                                                                             security (see note     security (see note 3)
                                                                             3) (cents)             (cents)
7.1      Preference                                 -                    -
         +securities

7.2      Changes during
         quarter
7.3      +Ordinary securities        1,475,250,387        1,475,250,387
7.4      Changes during
         quarter
         (a) Increases through           10,000,000          10,000,000      $0.0001                $0.0001
          issues
         (b) Decreases
         through returns of
         capital, buy-backs
7.5      +Convertible debt                          -                    -
         securities
7.6      Changes during
         quarter
7.7      Options                                                             Exercise price         Expiry date
         Unlisted options                 1,250,000                      -   $0.05                  10 November 2015
         Unlisted options                28,500,000                      -   $0.036                 30 April 2015
         Performance options             10,000,000                      -   $0.0001                31 August 2015
         Performance options             10,000,000                      -   $0.0001                31 August 2016
         Unlisted options                30,750,000                      -   $0.015                 12 December 2016
         Unlisted options                10,000,000                      -   $0.046                 12 December 2016
         Unlisted options                10,000,000                      -   $0.018                 12 December 2016
         Unlisted options                 1,000,000                      -   $0.039                 20 January 2017
         Unlisted options                 5,000,000                      -   $0.032                 2 June 2017

7.8      Issued during quarter            5,000,000                      -   $0.032                 2 June 2017
7.9      Exercised during                10,000,000                      -   $0.0001                31 August 2014
         quarter
7.10     Expired during                   5,000,000                      -   $0.05                  9 September 2014
         quarter                          5,000,000                          $0.032                 2 June 2017 (Lapsed
                                                                                                    on employee
                                                                                                    ceasing)
7.11     Debentures                                 -                    -

7.12     Unsecured notes                            -                    -




Compliance statement
1          This statement has been prepared under accounting policies which comply with accounting
           standards as defined in the Corporations Act or other standards acceptable to ASX (see note
           5).

2          This statement does give a true and fair view of the matters disclosed.
Sign here:     ............................................................   Date: 21 October 2014
                    Company secretary



Print name:    Winton Willesee

Notes
1        The quarterly report provides a basis for informing the market how the entity’s activities
         have been financed for the past quarter and the effect on its cash position. An entity wanting
         to disclose additional information is encouraged to do so, in a note or notes attached to this
         report.

2        The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining
         tenements acquired, exercised or lapsed during the reporting period. If the entity is involved
         in a joint venture agreement and there are conditions precedent which will change its
         percentage interest in a mining tenement, it should disclose the change of percentage interest
         and conditions precedent in the list required for items 6.1 and 6.2.

3        Issued and quoted securities The issue price and amount paid up is not required in items
         7.1 and 7.3 for fully paid securities.

4        The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
         Resources and AASB 107: Statement of Cash Flows apply to this report.

5        Accounting Standards ASX will accept, for example, the use of International Financial
         Reporting Standards for foreign entities. If the standards used do not address a topic, the
         Australian standard on that topic (if any) must be complied with.

Date: 21/10/2014 09:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.