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Company News
November 1999
The closest anyone ever comes to perfection is on a job application form.
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Company News
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Finders has announced a placement of 11.5 million fully paid ordinary shares at an issue price of 5 cents each and 4,367,275 free options exercisable at 20 cents each on or before 31 December 2002 to raise $575,000. The funds raised will be utilised to provide additional working capital for Finders to fulfill its exploration commitments in Australia, India and Indonesia. The issue of ordinary shares pursuant to the placement represents 4.83% of the Company's existing issued capital and 6.26% of the existing options exercisable at 20 cents on or before 31 December 2002.
The gold price fell US$7.20 overnight following the latest Bank of England's gold sale. 25 tonnes of gold was sold at US$293.50 - a small discount to spot prices. AngloGold bid successfully for 300 000 ounces. The purchase by AngloGold formed part of the broader management of the company's hedge book in the run-up to the financial year-end on 31st December, said Kelvin Williams, AngloGold's executive director responsible for marketing.
Ramu Nickel Project gets backing from Orogen Minerals
Orogen Minerals acquires Nord’s 31.5% interest in Ramu
Orogen Minerals Limited (OML) today announced it has agreed to purchase Nord Australex Nominees (PNG) Limited’s 31.5% interest in the Ramu Nickel Project.
The joint venture equity structure as a result of OML’s purchase is HPL 68.5% and OML 31.5%.
Commenting on the deal, Mr Ian Holzberger, Managing Director of Highlands Pacific Limited said he believes that "OML’s purchase of Nord’s interest will significantly strengthen and facilitate the development of the Ramu Project, which will make an important contribution to the Papua New Guinean economy.
"As Papua New Guinean companies with a common objective to see the Project developed as soon as possible, OML and HPL will work together to finalise permitting and proceed to the financing stage.
"In addition HPL and OML are committed to work together to reinforce the joint venture by introducing a third major equity partner, with both OML and HPL seeking to sell some of their joint venture equity to an incoming party," he said.
Capital costs are estimated to total US$838 million for the project.
Following permitting and the issue of the Special Mining Lease, Orogen has also indicated that it intends to exercise its rights under the Orogen Option Agreement with the State of Papua New Guinea, to a further 25% interest in the joint venture.
After the exercise of this option and before any sell down to a third party, the joint venture equity in the Ramu Project would be HPL 47.95%, OML 47.05% and Landowners 5%.
As part of the transaction HPL and Nord have agreed to resolve the dispute over the operation of the joint venture. As part of the settlement, HPL will receive US$1.25 million, payable in three tranches.
HPL has also agreed to a put option with OML whereby if project financing has not been secured within two years of completion of OML’s transaction with Nord, OML may require HPL to purchase OML’s interest, bought from Nord, for its actual cost. For additional information, click here.
North Limited has announced that it is establishing a Domestic Medium Term Note Programme for up to a total value of A$700 million. The establishment of the programme is part of the company's long term funding strategy and, as such, no time frame has been set for any issues under the programme.
North's Managing Director, Mr Malcolm Broomhead, said, "North believes that the strength of the domestic capital market provides an opportunity for the company to diversify its funding investor base and to extend its debt maturity profile. We believe the domestic market will further evolve and will become an ongoing source of competitive funding for the company."
Petroz advises that Baru-5, located in the Korinci-Baru PSC, has intersected a number of gas sands. Extended cased hole testing of the interval 260-266.5 metres flowed gas at the rate of 7.4 million cubic feet/day through a 25mm choke. This is the first of 2 zones to be tested in the well.
Baru-5 is a new field discovery.
Australasian has acquired options over several tenements at Dalgaranga in Wa's Murchison mineral field, north-west of Mt Magnet. The company has also applied for additional tenements covering an additional 400 sq.km.
The Qld Dep't of Mines and Energy has approved exploration applications covering 6700 sq.km. located 350km from Mt Isa - the area included part of what was thought to be the southern extension of the mineralised Mt Isa Block.
Meekatharra has changed its name to AuIron Energy Limited (new ASX Code : AUY). The change reflects the company's strategic focus on value-adding to coal and iron ore by smelting pig iron and generating electricity.
Blinman Joint Venture with Perilya Mines NL
The Board of Minotaur Gold NL advises that the company has entered into a joint venture with Perilya Mines NL on Minotaur's ELs 2593, 2627 (Blinman) and ELA 539/97 (Ediacara) covering over 2 400 square kilometres in the Adelaide Geosyncline, South Australia. The Blinman licences contain numerous old copper, zinc and lead mines/prospects, the largest being the old Blinman copper mine from which over 200 000 tonnes of ore grading 5% copper were extracted. The Ediacara ELA, containing the Ediacara lead mines, has been offered to the Company. Total inferred resources of 29 000 000 tonnes at approximately 1% lead with minor copper and silver credits were calculated from the results of earlier drilling. While this estimate has not been confirmed by Minotaur, it is considered an indication of the potential for the region to host significant mineralisation.
Under the terms of the agreement, Perilya may expend $600 000 to earn a 51% equity in the tenements with an option to earn an additional 30% through expenditure of an additional $400 000. Once diluted to 20%, Minotaur may elect to contribute pro rata or reduce to a 10% free carried interest until production of a bankable feasibility document.
Perilya will be manager.
Exploration Results, Mutooroo Joint Venture
(Billiton Plc earning 51%)
EL 2264 is located 75 kilometres south west of Broken Hill.
Results from detailed mapping and rock sampling outlined a 3 kilometres long corridor with a number of outcropping iron/manganese-rich quartz-garnet and quartz-gahnite horizons, ranging up to 45 metres in thickness. Quartz-gahnite is the zinc-bearing host rock to the Broken Hill lead-zinc-silver mine, but is not itself the source of recoverable zinc. Its presence, and that of the lead also recorded, is an indication of the highly prospective nature of the corridor.
For more information, click here.
Spinifex has revised its JV agreement with Ashanti - Ashanti can earn 55% in the Buckreef/Rwamagaza and Kitongo projects. Spinifex will receive $15 million over 3 years while Ashanti has agreed to spend another $14 million on exploration.
Tanami has acquired a 5.25% stake in Glengarry Resources.
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| All Ords | 3060.0 |
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Dow Jones | 10,988.91 |
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| All Resources |
1305.7 |
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S&P 500 | 1416.62 |
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| All Mining | 731.8 |
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Nasdaq | 3447.81* |
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| All Gold | 1018.7 |
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FTSE 100 | 6684.80 |
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| Energy | 1400.6 |
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Nikkei | 18,914.5 |
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| All Industrials | 5299.2 |
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Gold - spot |
US$297.80 |
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| A$ = US63.45c |
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Silver - spot |
US$5.19 |
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| A$ = 64.51yen |
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Platinum - spot | US$440.00 |
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| A$ = 0.624Euro |
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Bridge CRB Index | 202.79 |
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| US 30-Year Bond |
6.226% | +0.023 | Crude Oil (NYMEX) | US$26.87 |
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1999 OPERATING RESULTS
It is very pleasing to report that our company completed the 1998-99 year with record gold production levels from the Jubilee operations. This record production underwrote a major boost to our profitability, generating our best ever financial result - a profit of $14.2 million.
This also propelled our share price back into realistic territory, for the benefit of all shareholders, and especially those who hung on through the tougher times.
The gold production of 125,185 ounces was a record for the Jubilee Operations - some 12 years after gold production commenced, with a then estimated five year ore supply, demonstrating how reserves can be replaced as mined - year in, year out.
This record production and financial result also reflect the expertise and dedication of a professional group of people now working as a cohesive and dedicated team since New Hampton assumed management at Jubilee nearly three years ago.
The excellent result came from above budget production from several open pits, including Dawns Hope, Gala and the first stage of Golden Ridge. It was very gratifying to have Dawns Hope overperform on our expectations. Gala, as previously reported, produced a modest output overall, but one certainly above our original expectations.
And the opening of Golden Ridge represented a very special occasion for New Hampton. Golden Ridge was acquired during the old Copperfield Gold NL era, representing its flagship exploration project. Golden Ridge has since become New Hampton's flagship production project.
The Jubilee treatment plant continued to perform with exceptional results and with very little capital requirement, showing excellence in operating costs, availability and recoveries.
In corporate terms, the group has also been very active on three fronts, two of which are in the gold sector within our Kalgoorlie region. The third is the acquisition by our 42 percent subsidiary company of highly regarded mineral sands production on Australia's east coast.
Against these excellent results for 1998-99, the outlook for our company, and indeed the entire world gold sector, became very clouded due to the dramatic fall in the gold price (some 20 percent in $A terms since October 1998). Regrettably, investor confidence then slumped.
Very recently, however, a group of central banks announced restrictions on their future sales of gold, which has caused a spectacular revival in gold's fortunes and its outlook.
SHARE PRICE
New Hampton was not immune from the malaise of investor confidence surrounding the gold industry and our share price suffered accordingly. We are pleased that our share price has since recovered in accordance with our excellent production and profit results, and more recently from the gold price resurgence.
CORPORATE
In recognition of the industry rationalisation that must occur for the Australian gold industry to prosper, New Hampton has sought to position itself with strategic investments and alliances that underpin our future. We also set return criteria for investments that we make.
Accordingly, we remain very comfortable with our investment in Croesus Mining NL - a well managed neighbouring gold producer holding an excellent ground tenure in the Kalgoorlie region. Croesus is also enjoying record production and cash flow. We also have loaned $1 million to Mineral Commodities NL, the 49% owner of the one million ounce White Foil deposit, located near Kalgoorlie.
LIQUID ASSETS
New Hampton continues to be aggressive, both operationally and corporately, but cautious with respect to debt and forward sales. We continue to hold no bank debt and we held a high liquid asset position at June 1999. Much of this represents loans made to our 42 percent subsidiary company, Mineral Deposits Limited, which acquired its east coast mineral sands production business in November 1998.
Our forward sales book has been a substantial contributor to our strength and, as at balance date, has a value of about $6 million. Given the presently lower contango, (the effective gold interest rate) and to take advantage of the lower gold price, we closed out a major part of our forward sales book in July and have been progressively resetting it closer to the market prices.
MINERAL DEPOSITS LIMITED (MDL)
New Hampton remains pleased with MDL's acquisition of a cash flow business. MDL has continued its dredging and separating operations near Newcastle and remains comfortable that extended mine life will be achieved. Sales of zircon and rutile have been made to global markets, continuing MDL's 40 year tradition of supplying mineral sands to the world. MDL also continues to assess opportunities for further growth.
NICKEL
The low prevailing price for nickel during the beginning of the year, plus our primary focus on gold operations, has meant a reduced level of nickel exploration. However, specialist geological mapping on parts of our ground continues to improve the prospects of finding a viable nickel resource.
For details of the 1999 Annual Report, click here.
BHP's Ok Tedi copper mine in PNG has agreed to a request by the PNG Government to delay any big operational changes until a review by the World Bank is completed.
Cumnock says it will remain at the mercy of an unfavourable exchange exposure for at least the next 2 years. This is one of the main factors which puts Cumnock at a disadvantage with its competitors.
Emperor expects a strong performance in 1999-2000 as a result of major mine improvements. In 1998/99, gold production at the Vatakoula mine increased 17% and cash costs were slashed from $503/oz to $405/oz.
GRANNY SMITH JV REPORTS HIGH GRADE GOLD INTERSECTIONS ON GCR'S LAVERTON PROJECT
The Placer (Granny Smith) Pty Ltd/Delta Gold NL Granny Smith Joint Venture reported high grade gold intersections of 6m at 17.59 g/t and 2m at 7.54 g/t from the first programme of six RC drill holes on GCR's 100%-owned Laverton gold project in WA.
The drilling was conducted on GCR's "Merolia" exploration licence lying within an easy trucking distance of approximately 30 km northeast of Placer/Delta Gold's Granny Smith Mine and Mill. Placer/Delta may earn a 70% interest in GCR's Laverton project by completing a bankable feasibility study by May 2002.
Placer completed six RC drill holes to follow up and confirm encouraging RAB drill results of up to 12m at 6 g/t gold reported by GCR to ASX on 30 September 1999. The RAB and RC drilling indicates a 700m-long anomalous gold zone trending in a north-westerly direction parallel to local stratigraphy.
The RC drilling programme comprised six holes (MMC0001 - MMC0006) for a total of 665m. All holes were drilled at a declination of 60 degrees and an azimuth of 215 degrees, except holes 2 and 3, which were drilled at an azimuth of 205 degrees.
EXCERPTS - CHAIRMAN'S ADDRESS TO ANNUAL GENERAL MEETING 1999
The gold industry has suffered another poor year, with exceedingly low commodity prices, and unfortunately this was fully reflected in our share price for most of the year.
Some improvement has been seen recently, buoyed up by a stronger gold price along with exploration success in our subsidiary company's (International Annax Ventures Inc) zinc project in Indonesia and the Empress North gold project in the Coolgardie Joint Venture.
Previously announced results such as:
17 metres grading 18.8% Zn and 12.4% Pb; and
6.83m grading 21.35% Zn and 12.93% Pb
at Sopokomil, are world class and we can look forward to an exciting year of exploration ahead at this project.
At our Coolgardie project, Empress North, near Tindals, has produced drill results of:
32m @ 9.1g/t Au
39m @ 8.0g/t Au;
13m @ 175g/t Au; and
16m @ 14.3g/t Au.
These give hope that at some time in the future we may be able to restart production at Coolgardie, as we still have substantial in-ground resources that may be viable depending on what the gold price does.
A new drill program has recently started at Empress North and will continue through to Christmas to further define this significant discovery, while gridding and soil sampling is being extended at Sopokomil.
We are also conducting ongoing negotiations with various parties who may wish to rent our Coolgardie plant to treat their own ore.
Much of the year has been spent reviewing projects offered by others. Few met the high standard we have demanded and those that did we attempted to acquire. Unfortunately, we have not yet been successful.
In addition to reviewing other company's advanced projects, we continue to look at our own or farm-in grass roots projects.
Since the end of the financial year, the sale of our Sandstone treatment plant brought to an end the era which saw us start our gold mining history at Montague, with a modest production of about 10,000oz in our first year. We regard ourselves as most fortunate to have found a ready buyer for this fourteen year old plant, although the sale was not without some sadness. However, we remain in a free-carried joint venture in the surrounding tenements and have the option to buy back into the plant if exploration is successful.
The Company has working capital in the order of $12m, representing just under 30 cents per share and I believe the year 2000 will bring forth renewed success in our exploration and/or acquisitions trial.
For additional information, click here.
Kagara Zinc is aiming to commence a Bankable Feasibility Study on its Mount Garnet Zinc Project in North Queensland as soon as it finalises its $5.25 million Initial Public Offering - expected to close on 16 December.
The Perth-based company, was founded in 1981 and floated Forrestania Gold on the ASX in 1987. LionOre Mining acquired Forrestania in 1997.
Kagara is re-launching itself as "Australia's only pure zinc company", with the main asset being the right to earn up to a 75% interest in the Mt Garnet and King Vol zinc deposits and Walsh River Exploration Projects in the Herberton Mineral Field of North Queensland from Perilya Mines NL., by spending $4.5 million.
The Mount Garnet deposit, located 105 kilometres south-west of Cairns, has a total mineable open pit and underground resource of 2.4 million tonnes @ 6.79% Zn.
TEXAS SILVER PROJECT
For details, click here.
Last night MIM won Australia's top mining industry environmental award for its method of rehabilitating the Oaky Creek and Newlands coal mines.
CONSOLIDATED FINANCIAL STATEMENTS - TO 30 SEPTEMBER, 1999
MANAGEMENT DISCUSSION
New Guinea Gold Corporation management are evaluating the business / property development and cash flow generating opportunities available to the company. Several avenues / directions for NGG's future growth were explored during the reporting period, including continued discussions with possible joint venture partners.
An attractive longer-term, cash flow generating possibility being considered by NGG is the mining / processing of the higher-grade Imwauna gold resource via vat / heap leach, "toll" milling at Placer Dome's Misima mine or direct sale of ore to Misima Mines. Metallurgical test work is required and samples will be collected so this can be initiated.
Due to the adverse market conditions and the lack of interest by the investment community in the resource sector, specifically gold, the company has been unable to attract capital to further exploration activities at the highly prospective Feni and Normanby gold projects in Papua New Guinea.
The continuing weak gold market and the company's limited available capital requires that the projects remain on "care and maintenance" for the immediate future. NGG presently owns 25 % of each property and is earning up to 70%.
At the AGM, Chairman Bob Bryan said that the company is "determined to force a re-rating of Pan Australian by channeling all of our energy into realizing our goal of becoming a leading miner".
The Chairman said that recent studies by management of the Puthep Project, in Thailand,indicated that the project could produce up to 30,000 tonnes of LME grade copper per annum, "larger than any copper heap leach operation in Australia".
Resolute is considering buying back 51.7 million convertible preference shares in a bid to restore confidence in its share price. Chief executive Michael carrick says fears of the dilutionary impact of the preference shares, and the company's ongoing exposure to cash-strapped nickel miner Preston resources, are the 2 factors most impacting on Resolute's share price.
Zimplats is hoping to complete the purchase of BHP's stake in the Hartley Platinum mine by the end of January. Zimplats will pay $3 million for BHP's 67% stake, along with its 61.3% equity in the Mhondoro exploration project in Zimbabwe.
Anglo has already received acceptances representing almost 25% of the issued capital of Acacia.
"Dairi Joint Venture - North Sumatra, Indonesia
The Board of Directors of International Annax Ventures Inc (the "Company") is pleased to announce that its drilling program has been completed on the Dairi zinc-lead project in Sumatra, Indonesia with a total of eight holes drilled for an aggregate 1,353m. Drilling has been carried out under the direction of Cominco Limited.
Drilling results up to Hole SOP18D have previously been reported. More recently, holes SOP19D and SOP20D were drilled on the south-western Dang Takkas UTEM anomaly. The Dang Takkas anomaly is an echelon to the main sedex horizon where prior drilling intersected massive sulphide mineralization. Holes 19D and 20D did not intersect sulphide mineralization.
Hole SOP21D was drilled on the main sedex-hosting UTEM conductor, 250m south of SOP18D which intersected 16.5m of sedex-type massive sulphides grading 31 percent combined zinc and lead. Hole 21D intersected a conductive carbonaceous shale zone with associated strong faulting but no massive sulphide. There is a marked change in character to the UTEM conductor at about 200m south of hole SOP18D which is interpreted as being due to faulting.
A heliborne EM survey on the Dairi property was completed at the end of October and data processing is currently being completed." For additional information click here.
Lynas has raised $1.55 million to fast track the Mt Weld Rare Earths Project. The funds are also likely to be used to extend the life of the Company's gold operations at Paraburdoo beyond June 2001.
A total of 6.95 million shares were placed with clients of SHAW Stockbroking and D&D Tolhurst at a price of 13 cents / share. In addition, a sale of 5 million Trustee Securities at 13 cents / share occurred.
1999 ANNUAL REPORT - HIGHLIGHTS
8 metres grading 0.69% HM
8 metres grading 0.65% HM
8 metres grading 0.51% HM
For complete details of the 1999 Annual Report, click here.
Following Inco Limited's declaration of force majeure on certain electrolytic nickel products normally produced at the company's Manitoba Nickel Division, the nickel price has risen to US368.2 cents/lb.
According to AME Mineral Economics, a strong recovery in economic growth in western Europe, along with similar growth rates in North America, will drive up demand for nickel next year and in 2001.
At the AGM, Pima's Chairman said that the companies objective has now narrowed "to become a profitable and growing producer of Magnesium metal and alloys". The chairman said that with an indicative net operating cash flow from the Magnesium Metal project of US$100 million /year, the company is now investigating it's options to separate their gold and base metal exploration projects into a separate entity.
There are rumours that North Ltd is poised to make a takeover offer for Portman.
Preston has denied it is insolvent, but says it has no idea when it will complete a critical $75 million capital raising and restructure.
EXCERPTS - CHAIRMAN'S ADDRESS AT THE COMPANY'S 13 TH
ANNUAL GENERAL MEETING 25-11-99
The Company had a record year with Sales revenue doubling to $89.5m and the operating profit before abnormals almost trebling to $21.3m. The resultant net profit after tax was a record $13.6m. Earnings per share of 6.5 cents was not a record, but was a considerable improvement on the achievements over the past two years.
Undoubtedly, the major achievement in 1998/1999 was the successful commissioning of the Gold Ridge mine. The mine delivered a total of 105,179 ounces in the first 10.5 months of operations at an average cash mine operating cost of A$259 or approximately US$170 per ounce. The volume of ounces delivered exceeded forecasts by 20%, whilst the cash cost per ounce was lower than forecast. Also, contained gold in the 2million tons of ore treated during the period exceeded expectations by 5%.
The Yandan mine also performed well with 44,290 ounces of gold delivered at a cash mine cost of A$329 or approximately US$216 per ounce. Deliveries exceeded forecasts by 17,500 ounces, a tribute to the Yandan Mining Team. The mine closed in April 1999 after nearly six years of profitable and safe operations.
The relocation of the Yandan CIP processing plant and related infrastructure to its original location at Wirralie was completed on budget and on time and the plant was commissioned in July 1999.
The Timbarra Heap Leach mine commenced operations in May and produced 3,461 ounces of gold prior to year's end. This was well below forecast. The cause of the shortfall was major delays in completion of construction because of incessant rain.
The combination of capital cost overruns, further capital costs and the low gold price led to the Board decision to put Timbarra on "care and maintenance". By closing out hedging contracts covering approximately two years production from the mine an abnormal profit of A$10 million was generated. At the same time, Timbarra's capitalised expenditure was written down by a similar amount which was booked as an abnormal loss, balancing out the abnormal profit.
No doubt this action has had a negative effect on the Company's share price. However, the Board's view was that it was in the interests of Shareholders to take the hedging profit up front rather than as operating profits over several years. This was indeed a sound decision since the subsequent improvement in the gold price would have dissipated the hedging profit.
The exploration results during the year under review have been outstanding with 746,000 ounces of ore reserves delineated at less than $5 per ounce. This is up from 390,000 delineated in the previous year. Since the last annual report, the Company's mineral resources increased to 3.8 million ounces and ore reserves increased to 2.0 million ounces despite depletion due to production and the use of a lower gold price for reserve estimation.
There is no question our share price is disappointing. The current market valuation of the Company is approximately A$90 million. This represents a valuation of about A$24 per ounce on mineral resources and about A$45 per ounce on ore reserves.
To read the complete address, click here.
Ross has also been exploring the possibilities for a merger partner to increase its size and attract the attention of large global investment houses. Managing director and chief executive officer Dr Bertus de Graaf said..."I think as a company you always look at corporate moves (and) we have to find a good fit before we act,"...
Austindo has announced a resource estimate for the Cibaliung high-grade epithermal gold vein system, located 150 km south-west of Jakarta, Indonesia. Gold mineralisation at Cibaliung is hosted within a system of epithermal, quartz and quartz-adularia veins that have been traced on surface for a distance of 1.4 km.
High-grade mineralisation occurs in two shoot-like structures ( Cikoneng and Cibitung), and Austindo has announced that the Total Inferred Resource is 993,000 tonnes @ 9.78 g/t Au & 57.4 g/t Ag. ( 312,230 oz of Au and 1.83 million oz of Ag).
There are rumours that AGL has withdrawn from bidding for SA's $6 billion power privatisation program.
BHP has signed a letter of intent with Yamana Resources over the Elvira property, located some 150 km east of Antofagasta, Chile. A 4-hole reconnaissance drilling campaign earlier this year encountered trace amounts of copper within a zone of disseminated pyrite.
Climax has raised US$133.5 million for development of the Dinkidi copper-gold mine (resources of 121mt containing 3.8 million ounces of Au and 417,000 tonnes of copper) in The Philippines. It is expected work will comence in the first quarterof 2000, with development taking 3 years - building a 2.7km decline.
The Australian subsidiary of Phillips Petroleum and Epic have entered into an alliance to conduct market development activities to commercialise gas from the Timor Sea throughout Australia. This alliance will see Phillips and Epic work together over the next 12 months to optimise the development plans for onshore pipelines from Darwin, and firm up potential markets in the NT, Qld and the southeastern states.
Phillips President Stephen Brand said the alliance is a significant step in the development of Bayu-Undan, "Epic's existing pipeline assets in Queensland and South Australia are strategically located to assist with shipping Timor Sea gas to key markets in the eastern states and helping to establish a more robust and integrated national gas pipeline network".
Gympie has flagged the possibility of splitting its gold and coal operations within 2 years. Gympie is expecting a net profit of $8 million this financial year, and $10 million in the next year.
A bonus options issue also has been announced to fund continuing expansion - shareholders will receive 1 option for every 5 shares held on 22 December, at a strike price of 80 cents exercisable by 30 June 2001.
Lion yesterday announced that its 76%-owned subsidiary, Indophil Resources, had completed a successful drilling program in The Philippines.
Michelago has entered into agreements to purchase from Resource Capital Australia Pty Ltd (RCA) its right to acquire 50% of E4fax technology from Spinifex Computing Pty Limited (Spinifex).
E4fax is a software application concept aimed at the unified messaging market. E4fax, being developed by Spinifex, provides for fax transmissions to be managed under Internet Protocol.
The Managing Director of North Limited, Mr. Malcolm Broomhead, announced with deep regret the deaths of four people at the company’s mine at Northparkes in Western New South Wales.
The deaths occurred when there was a blast of air in the underground following sudden caving in the ore body.
“Our thoughts are with the families and friends of the men who were killed,” Mr. Broomhead said. “This is a tragic situation for all in North Limited and for the Parkes community.”
The mine’s rescue team and local emergency services were mobilised immediately following the accident about 3 p.m. today.
The accident occurred during a maintenance shutdown which meant that more people were working underground.
The Northparkes Mine, near Parkes, uses the block cave system of mining which means that the ore body progressively moves to the bottom of the mine where the ore is drawn. The air gap between the caved rock and the back was compressed by the fall causing an air blast through the mine.
Tony Radford's attempt to retain control of Otter has been rejected by the New Zealand Stock Exchange's Market Surveillance Panel.
Earlier this month, Mid-East (owns 19.87% of Otter) announced a takeover bid for up to 51% of Otter
Union has negotiated a $2 million Convertible Note facility to provide funding for Union's share of the first stage of the feasibility study of the Mehdiabad Zinc Project in Iran, and for future expansion in the Internet technology industry.
Shareholders have approved the proposed merger with Pechiney and algroup.
Subject to regulatory approval, the proposed merger should be completed in early 2000. The combined Alcan, Pechiney and algroup conglomerate will dominate the world Aluminium market, with annual revenue of about US$22 billion.
Jim Lewis, President Non-Ferrous and Industrial Materials, has announced his intention to retire from BHP in July next year.
Cluff's share price jumped 21% to 7.3 cents after Karry packer's Consolidated Press Holdings formalised its investment in Cluff. CPH will pay $200,000 for an option to acquire a 51% stake in the ruby project in NSW for $5 million, and $100,000 for 15% of Cluff's total capital.
Correction re Resource Statement.
In yesterday's announcement, the resource figures quoted were incorrect and should be - 158.9 million tonnes @ 1.07% Ni and 0.09% Co or 324.8 million tonnes at 0.83%Ni and 0.06%Co.
We apologise for any inconvenience caused.
Canadian Noranda Pacific has agreed to take 1 million shares in Buka at 50 cents each - to help develop the Lady Loretta zinc mine in Qld. Drilling is continuing.
Cambrian has linked with accountancy software business Softbridge.
At its AGM, General Gold defended its involvement in the re-opening of the Mt Todd gold mine in the NT. GG believes radical changes to the operating plan could make the large but low-grade mine yield an economic return from production of 750,000 ounces over an initial 3.5 year period - with cash costs under $400/oz.
Heron, in a statement about the strategic alliance between Anaconda Nickel and Centaur Mining, said,"The rationalisation of the Eastern Goldfields nickel laterite industry has taken a further step forward towards a position of world excellence...".
Heron is now the only independent holder of a major nickel laterite resource in the region - 159 million tonnes @ 1.07% Ni and 0.09% Co or 324.8 million tonnes at 0.83%Ni and 0.06%Co.
Initial drill results from the Santa Deeps prospect (abandoned Santa open-pit) in WA are quite encouraging, with the best result at 8 m @ 14 g/t Au, and 2.5 m @ 6.4 g/t Au. The drill holes are over a 200 m strike length and have intersected mineralisation between 220 m and 300 m below the open pit.
Sun will begin drilling the Cadart 1 well in the PRA 436 permit, New Caledonia this Thursday. The 1,500 m deep well is targeted at a three way dip closed fault block compartment in the large Gouro Anticline.
West Oil has reached agreement with AEC International, a subsidiary of Alberta Energy Company, to drill the Puffin-5 well in AC/P22 in the Timor Sea in March next year. AEC will earn 60% and become the operator of AC/P22 by drilling Puffin-5.
Puffin-5 will be drilled on the Puffin-1 Updip prospect which has potential recoverable reserves of 75 million barrels. AC/P22 also contains the Puffin 2 Field, Puffin South and the new Sea-Eagle Prospect, which have been recently identified by IKODA and West Oil from the Onnia 3D seismic survey, and have combined potential recoverable reserves in excess of 100 million barrels.
Woodside has reported that the WA-1-P joint venturers (Woodside (45.9%), Apache Energy Limited (31.5%) and Santos (22.56%)) have been awarded a production licence for the Legendre oil fields. The production licence, WA-20-L, is within Exploration Permit No WA-1-P, located on the North West Shelf about 100km north of Dampier. The licence area contains the Legendre North and Legendre South oil fields. Oil production (40,000 barrels/day) is expected to commence by mid-2001. The fields contain an estimated probable recoverable reserves of 40.4 million barrels
Adelaide has resumed exploration at its Warramboo iron project (Eyre Peninsula in SA) following an increase in demand for pelletised magnetite concentrates.
FR has acquired an operating diamond field in South Africa's Kimberley district. The Vishoek property had a mineable resource of 12 million tonnes of alluvial gravel. Stones recovered average 2 carats and have sold at more than US$600/carat.
Gindalbie has increased its gold reserve inventory by 385,000 ounces through acquiring the South Murchison project. The Oroject, costing $2.5 million, includes 53 tenements and applications covering 671 sq.km. and 4 established gold resource areas. Gindalbie says the 4 areas can be mined by open pit methods and expects the first round of exploration to be finished by early 2000.
GEM has rejected a $20 million takeover bid from Croesus (1-for-1 share swap or 30 cents/share) as 'unsolicited and opportunistic'.
Petroz advises that its wholly-owned subsidiary, Petroz (Timor Sea)P/L has received a claim on behalf of between the Lines P/L stating that a royalty agreement terminated on 26 January 1994 is still in force. The allegation is that Petroz and santos (subsidiary Santos (ZOCA 91-12)) are liable to pay BTL a royalty equivalent to 12.5% of the wellhead value of 9.702% of the petroleum produced from the ZOCA 91-12 Productio Sharing Contract.
Petroz' legal advisors advice is that Petroz is not obliged to pay this royalty and consequently has commenced proceedings in the Queensland Supreme Court for a declaration that Petroz is not required to pay any royalty or other monies to BTL.
Reefton has acquired a 6000 sq.km. exploration area in Namibia. The Erongo tenement includes known gold, copper and tin targets, including the Spitzkoppe tin-tungsten-tantalite province, which has a 100km strike length and is up to 15km wide.
Stuart is looking to expand its Cooper Basin oil and gas interests with a bid for the second round of exploration blocks being released by the South Australian Gov't.(former Santos JV areas). Licences will be granted by January 2000.
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| All Ords | 3076.7 |
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Dow Jones | 11,003.89 |
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| All Resources |
1325.1 |
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S&P 500 | 1422.00 |
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| All Mining | 723.7 |
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Nasdaq | 3369.25* |
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| All Gold | 992.5 |
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FTSE 100 | 6482.30 |
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| Energy | 1398.3 |
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Nikkei | 18,570.8 |
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| All Industrials | 5318.6 |
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Gold - spot |
US$294.50 |
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| A$ = US63.92c |
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Silver - spot |
US$5.15 |
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| A$ = 67.93 yen |
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Platinum - spot | US$426.00 |
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| A$ = 0.621Euro |
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Bridge CRB Index | 202.45 |
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| US 30-Year Bond |
6.161% | -0.005 | Crude Oil (NYMEX) | US$26.14 |
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Austpac revealed at their AGM that they are well advanced with obtaining the necessary funding for their Indian mineral sands venture. Chairman Alf Paton said,
"One group is presently undertaking due diligence, though at this time we are neither in a position to elaborate on the likely nature of any future arrangement (or) the identity of the interested parties. We are progressing the negotiations and will advise shareholders and the market as soon as we reach a final binding agreement"
Oil production at the Stuart shale oil project's $250 million first stage demonstration plant in Qld moved a step closer yesterday with the operators moving to raise $30 million for working capital. CPM will issue 1.92 million notes at $7.80 and SPP will issue 4.55 million notes at $3.30/note.
Croesus and Gindalbie have confirmed the extent of the mineralised corridor to the north of the Magnum mineralisation (the Magnum prospect is located in the Great Sandy Desert, WA.) with recently completed diamond drilling. This drilling was a follow up of recent AC drilling anomalies (12m @ 0.458ppm gold and 829ppm copper). Best intersections included 4 m @ 1.44% Cu and 5.5 g/t Au, (includes 1 metre @ 4.4 % Cu) from 354 metres.
Exco has announced a significantly higher grade copper zone at its E1-North prospect from the Mt Margaret copper/gold project. Drilling at the Mount Margaret prospect, near the Ernest Henry Mine in Queensland, has intersected the highest copper grades yet encountered at the project and points to a new style of mineralisation for the region.
Results from RC drilling announced today include 42 m @ 1.56% copper from 40 metres, including 20 m @ 2.28% copper from 44 metres. This hole also intersected a 70-m zone of mineralisation from 140 metres down hole. Results have been received for the first 40 metres of this second zone where the average grade is 1.16% copper and 0.11g/t gold. The remaining 30-metre interval was diamond cored and contains visible copper mineralisation.
Lynas has secured the production future of its Paraburdoo gold treatment operation in WA after reaching agreement with its JV partners to acquire sole rights to explore for and mine any oxide gold deposits within the 20 km2 JV area.
The agreement also gives Lynas rights to mine and treat ore from two key areas outside the J V area - the high-grade Peake gold deposit (21,500 ounces)and the promising Waugh prospect - as well as the right to treat all medium and low-grade stockpiles at Paraburdoo after completion of treatment of high-grade ore in August 2001.
Engineering group Minproc intends to merge with New Zealand gold miner Gold and Resources Development. GRD plans to issue 1 convertible redeemablw preference share plus 14c cash for every 2 Minproc shares, and 2c for each unlisted Minproc option. GRD already owns 35% of Minproc.
Petroz advises that it has entered into an agreement to sell its Surat Basin interests (non core assets) to Mosaic Oil for $3.25 million; the sale is expected to result in a net gain for Petroz of about $200,000.
Heavy trading in Pima shares has prompted a stock exchange query. The company has responded to the query saying that the directors "believe the recent change in the share price ...is a belated reaction to the announcements the Company has made over the past two months".
Pima has reported that the company's 80% owned subsidiary SAMAG Ltd is in discussions with a number of major resource companies who may become significant shareholders. At the same time, there are also ongoing discussions with several groups regarding sales off-take agreements.
Alliance Gold Mines NL have appointed Minasco Australia to seek interested parties to put forward proposals for participation in, or outright purchase of the Maldon Goldfields and Creswick Gold Project.
The Projects are located in the Central Victorian Goldfields, within 2 hours drive, north by northwest of Melbourne, Victoria and include:
For complete details, click here.
Anaconda and Centaur have announced a strategic alliance to expand Centaur's Cawse nickel mine. Anaconda, in which Anglo American holds a 23% interest, will take a half share in Centaur's Cawse operation and fund the stage 2 expansion study.
Centaur also plans to list on the US Nasdaq index in about 2 weeks.
AWE has acquired the Australian assets of Britain's Premier Oil plc - the deal, worth about $18 million, will see Premier with a 24% stake in AWE. Premier holds exploration and production rights in the Carnarvon and Perth Basins off WA and in the Bass Basin.
Barramundi has entered into an Agreement with Kidston , over 2 of the 5 Exploration licences, being EPM 10676 and EPM 10780, which comprise part of Barramundi's Wandoo Project in North Queensland.
Employees at BHP's iron ore operations in Port Hedland have rejected BHP's offer of individual contracts, the Australian Workers Union says.
Henry Walker has been awarded a $150 million contract for CIM's Stratford Coal mine.
Croesus has reported new RC drilling results from the Fort William deposit at Binduli, 10 km south west of Kalgoorlie. This drilling has been completed to follow up earlier good intercepts. Results from the latest phase of drilling include 25m @ 12.87g/t Au, 27m @ 5.5g/t Au, and 11m @ 3.89g/t Au.
The mineralisation intersected is quite shallow (mostly <80m) and occurs as an east-dipping lens that is interpreted to occupy a dilatational site adjacent to a sheared porphyry contact.
Centaur has been looking at plans to develop a series of underground mines at the Mt Pleasant operations in WA. The 5 year plan will see an increase in gold production to 250,000 ounces per year, with the average cash cost below $300/ounce.
Centaur also plans to list on the US Nasdaq index in about 2 weeks.
ERA has declared a special dividend of 31 cents per share to be paid from retained earnings. The dividend will be fully franked at 36 per cent with a record date of 2 December 1999 to be paid on 16 December 1999.
FURTHER DRILL RESULTS FROM KEMPFIELD SILVER PROJECT
GCR recorded positive results, including the identification of a second zone of high grade silver-lead-zinc mineralisation at the McCarron Zone, from the fifth drilling programme at its 100%-owned Kempfield silver project near Blayney, NSW. Kempfield hosts significant silver, lead, zinc and barite resources along a 3 km strike length in Silurian Volcanics.
The fifth drilling programme consisted of 6 reverse circulation (RC) holes for a total of 698m. The programme involved drilling holes numbered GKF-73 to GKF-77 inclusive and deepening hole GKF-32 from 76 metres depth below surface. All holes were drilled on an azimuth of 110 degrees and a declination of 55 degrees, with the exception of holes GKF 73, 75 and 76, drilled at a declination of 60 degrees.
The aim of the fifth drilling programme was to further test the lead-zinc sulphides intersected beneath the high grade silver oxide zone delineated in the previous programme. To date there have been only 10 holes drilled into sulphides at the McCarron Zone.
The drilling established a second high grade lead-zinc zone, with an intersection of 14m grading over 10% combined lead-zinc plus 100 g/t silver. The additional tonnage will be calculated in due course.
The programme only tested the mineralised horizon, to a vertical depth of 100m, in the southern 300m of the McCarron Zone. Mineralisation remains open to the north and at depth.
The programme provided further evidence that there is significant untested basemetal potential at depth in the McCarron Zone which warrants further drill testing.
A concurrent directorship of state-owned South Australian gas utility, TeraGas Trader, has led to the resignation of Novus' founding chairman John Fitzgerald.
Rio Tinto has bought 15.5 million of its own shares from its UK-based parent, Rio Tinto Plc., and cancelled them.
CAIL announced plans to retrench 84 workers at its Mt Thorley coal operations in NSW in a bid to keep the venture viable. The move should help it achieve cost savings of up to $20 million.
Shares in Joseph Gutnick's Centaur rose almost 9% yesterday ahead of a major announcement today. Centaur says Mr Gutnick, Anglo American and Anaconda Nickel would make an announcement ahead of its AGM. Recent speculation has focused on Anaconda taking a stake in Centaur's stage-2 expansion of ots Cawse laterite nickel-cobalt mine in WA.
Croesus confirmed that they have begun buying Gilt-Edged Mining (GEM) shares, with JB Were & Son standing in the market and purchasing shares in GEM in the ordinary course of trading at 30 cents per share.
LionOre announces further positive drilling results from the Thunderbox gold discovery, located on its Wildara nickel/gold exploration project situated in the Northeastern Goldfields of Western Australia. The project is a joint venture in which LionOre holds a 60% interest with Dalrymple Resources NL holding a 40% interest.
The RC drilling further confirmed that Zone C is a large mineralised system in which the wide oxide widths continue down-dip into the primary zone where the mineralisation envelope has been intersected over downhole widths of 25 to 90 metres. Notwithstanding the fact that infill drilling is still in the early stages, the evidence indicates that true widths would equate to approximately 70 per cent of the downhole widths. Best intersections were 83 metres @ 3.24 g/t gold from 113 metres including 28 metres @ 5.34 gold from 158 metres.
Preliminary leach tests on representative primary sulphide material by AMMTEC Met Labs in Perth demonstrated that 95% of the gold leaches within 24 hours.
At the AGM, Joseph Gutnick says sentiment towards gold is improving as the bear market comes to an end.
Gympie has recorded an unaudited group net profit of $3 million for the first 4 months of this financial year; the share price rose 3c to 42c.
MIM has warned that geological problems will delay an increase in production - by about 3-4 months - at its Oaky North coking coal mine in Qld. Production is planned to increase from 5.6 mtpy to 7 mtpy.
St Francis has signed an exploration and option to purchase agreement with Spinifex covering St Francis' Coolgardie nickel interests, including a number of tenements as well as the Nepean Nickel Mine
The agreement allows for 3 by one year exploration periods after which not less than $600,000 must be expended on exploration. Spinifex may then exercise an exclusive option to purchase all St Francis's rights to mine for the consideration of $1 million and a Royalty of up to $4 million payable at the rate of $2.00 per tonne of nickel ore milled.
The agreement does not cover the Norris Gold Plant or any other gold tenements.
South Africa's Anglo listed on the ASX yesterday. The listing is part of a big drive to be a global company.
The discovery of additional diamond deposits will increase the life of the Argyle mine - deep drilling to the south of the main AK1 diamond pipe had given "significant confidence" for expansion.
Qld State Government's Energex has reported a net profit of $61.1 million for 1998/99, down from $126.3 million in 1997/98.
Renewable energy company Pacific hydro has announced a renounceable rights issue of $55.7 million - at 95 cents each in a 1-for-1 issue, a discount of about 25% on the current price.
Petroz advises that the Baru-5 well, located in the Korinci-Baru PSC in Central Indonesia spudded on 13 November. The well will be drilled to a total depth of 516m and will take up to 6 weeks to drill. The well will investigate gas-bearing sands in a similar geological formation to gas zones in the Segat, Seng and bentu Fields located in the adjoining Bentu PSC.
The Qld Gov't has backed a $1 billion expansion of Tarong Energy's coal-fired power station near Kingaroy and construction of 2 new gas-fired power generators at Wivenhoe, west of Brisbane. Approval of the gas-fired units has been hailed as a victory for cleaner electricity.
The North West Shelf Project is a step away from securing a multi billion dollar deal to supply LNG to taiwan. The partners have signed a Memorandum of Understanding for $10 billion worth of gas for Taiwan over a 20-year period. The deal will be sealed early next year if the customer, Tuntex Gas, wins a tender to supply a new power station being built by Taiwan's state electricity utility Taipower.
Beach has exercised its right to acquire a 22% interest in the Kenmore-21 oil well (470 barrels/day) in the Bodalla Block of the Cooper-Eromanga basins, increasing its oil production. Beach is also expected to further expand in the region.
According to Surbiton Associates, Australia's gold production increased 2% over the June quarter to 75.5 tonnes in the September quarter.
Tanganyika has acquired 7000km2 of the Tanzanian coastline (for mineral sands) and has found highly promising indications that it may have discovered the country's first deposits of titanium minerals.
The Whicher Range-4 well remedial stimulation programme was completed this week, with a further 4* days of gas flow and running of wireline production logs.
Production logs show that gas production from the reservoir in the Whicher Range-4 well is from three zones within the interval 3,960 metres to 4,175 metres. These zones produced a final stabilised clean up gas flow of 3.08 million cubic feet per day at a flowing tubing pressure of 880 pounds per square inch on a 24/64th inch choke.
The well has been suspended as a future commercial production well.
As announced on the 1st of October, 1999, Amity is proceeding with marketing studies for gas from Whicher Range-4 and design of the Whicher Range-5 well.
Industry leaders are forecasting a strong future for Australian coal producers, with the world market for coal (both steaming and coking) expected to increase during the next year.
Billiton enters into an alliance with Giants Reef
to target large base metal orebodies at Tennant Creek
Billiton to purchase $1 million worth of shares in Giants Reef
Giants Reef Mining NL today announced an agreement with Billiton Exploration Australia Pty Ltd, whereby Billiton will take a substantial equity position in Giants Reef and provide funds for a significant exploration program to search for Olympic Dam/Ernest Henry style base-metal orebodies in the untested broader Tennant Creek Province.
Giants Reef’s Managing Director, Mr Brice Mutton said the agreement with Billiton, which could see a total of $13 million spent over the next five years, is the third agreement Giants Reef has signed with a major company to explore the Tennant Creek area.
"Over the past 10 years, Giants Reef has accumulated an extensive ground position in the Tennant Creek Province, predicated on the potential for significant discoveries of major base metal systems as well as typical Tennant Creek high grade gold-copper deposits.
"The alliance with Billiton, along with current JV partnerships with BHP and Normandy, has not only endorsed this strategy but now allows Giants Reef to pursue opportunities that up until now been beyond our limited resources to fully explore.
"In total, $20 million could be spent by our Joint Venture partners over the next three to five years, giving us the best shot we’ve had for a major discovery," he said.
Mr Mutton said that under the terms of the agreement exploration activity would be managed by Giants Reef, with Billiton to manage development of any major deposits discovered.
For details , click here.
Majestic is about to commence a bulk sampling program at its Pniel Estates diamond property near Kimberley in South Africa. Majestic has secured the diamond rights in return for a flat 12.5% production royalty including an ongoing fee of 13,000 Rand/month. Diamondiferous gravels have already been identified.
The Department of Mineral Resources is to undertake a new, 4 week, airborne geophysical survey for minerals north of Dubbo. The survey, to be conducted by Tesla Airborne Geoscience Pty Ltd, will collect approximately 31,000 line kilometres of data at a cost of $150,000. The aircraft will fly at a height of 60 metres, with a line spacing of 250 metres. "The purpose of this survey is to map to the northern extension of the prospective rocks for gold and copper mineralisation that occur in the Dubbo - Wellington - Hill End area' Minerals Minister Eddie Obeid explained. Following processing, the data will be released in February 2000.
Higher oil prices have boosted Boral subsidiary OCA' September Quarter operating profit 112%.
OCA posted a net profit of $5.9 million in the year to 30 June, down 55% on the previous year.
Perseverance says it has alreadt spent $400,000 in legal fees over a compensation claim lodged by a group of residents near its Fosterville gold mine in Vic. The gross amount of the residents' claim has not been stated exactly but is said to be of the order of $500,000 to $1 million plus expenses and legal costs.
Petroz advises that Bert Harris retired as a director at the conclusion of the AGM held yesterday. Roger North will assume the role of Chairman of the Board pending the appointment of new directors.
HIGHLIGHTS - SEPTEMBER QUARTERLY REPORT
For details of the September Quarterly Report, click here.
Triako has intersected 10g/t Au over a composite length of 8m in an RC drill hole targeting an extensive arsenic anomaly, some 2 km north of the Mineral Hill mine. Further drilling is planned shortly.
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| All Ords | 3010.2 |
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Dow Jones | 10,769.32 |
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| All Resources |
1265.4 |
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S&P 500 | 1396.06 |
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| All Mining | 718.0 |
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Nasdaq | 3221.15* |
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| All Gold | 1012.7 |
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FTSE 100 | 6511.60 |
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| Energy | 1353.9 |
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Nikkei | 18,258.5 |
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| All Industrials | 5228.0 |
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Gold - spot |
US$290.60 |
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| A$ = US64.37c |
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Silver - spot |
US$5.08 |
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| A$ = 67.72 yen |
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Platinum - spot | US$440.00 |
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| A$ = 0.624 Euro |
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Bridge CRB Index | 205.63 |
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| US 30-Year Bond |
6.024% | -0.056 | Crude Oil (NYMEX) | US$24.77 |
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Plans to incraese production at the Escondida copper mine in Chile have increased in cost to US$1.37 billion (was US$1.1 billion). Management believes it can maintain its cash costs at historic lows of US43c/lb.
BHP is anticipating substantial cost savings after offering staff at its Pilbara iron ore operations the choice to swap from an industrial award to individual contracts, in the face of a union backlash. BHP says the workplace agreement deal exceeds the award conditions and includes improved superannuation, sick leave and salary.
Billiton, through subsidiary QNI, has agreed to take an 11.8% strategic stake in Comet and jointly develop its Ravensthorpe nickel project in WA - in a deal which could see production commence by late 2002. Billiton (through QNI) will pay 92.5 cents a share for its stake and will invest a further $36 million for a direct 40% interest in Ravensthorpe, should a $10 million stage one study prove successful.
The Comet/QNI plan is to buiold a pressure acid leach (PAL) 'front end' plant at Ravensthorpe at an estimated cost of $700 million, which is expected to produce 35,000 tonnes of nickel and 1300 tonnes of cobalt /year for at least 20 years.
QNI will also double the annual production capacity of its Yabulu nickel refinery in Qld to 65,000 tonnes of nickel and 3000 tonnes of cobalt at a cost of $200 million to cater for the concentrate from Ravensthorpe which it has agreed to take on a take-or-pay basis.
Exodus has doubled the Mikado gold deposit resource in WA to 146,000 ounces and increased the grade to 3.93 g/t Au. Exodus says its proximity to infrastructurein the Laverton area should guarantee an early return to shareholders.
Exodus also announced it is to amalgamate its Reynolds Range Project in the Northern Territory with Normandy/North Flinders' adjoining Conston Project, establishing a joint venture over the highly prospective Trans-Tanami Lineament. Under the terms of the renegotiated joint venture, Exodus can earn a 60% interest in both the Reynolds Range and Coniston Projects by spending a further $750,000 for a total of $1.5 million by August 2004. On reaching a 60% interest, Normandy/North Flinders may elect to increase its interest to 60% by expending the next $1.5 million or, if this election is not made, a 3% gross royalty will apply.
Finders has acquired a 10% stake in CEPO Systems Pty Ltd by making a payment of $250,000 and issuing of 8 million ordinary fully paid shares. Finders has the first right of refusal to subscribe for any additional shares offered by CEPO. CEPO is an Internet based business-to-business service provider of electronic commerce solutions to facilitate the purchase of liquor and other related products by licenced liquor establishments throughout Australia.
HIGHLIGHTS - SEPTEMBER QUARTERLY REPORT
The Company continued to make major progress, further consolidating its strong exploration and corporate position.
BILLY BOY DRILLING ADVANCED
MINERAL LEASE GRANTED OVER EDNA BERYL DEPOSIT
PROCESSING OPTIONS AND DEVELOPMENT STRATEGIES ADVANCED
NEW EXPLORATION AREAS AND TARGETS DEVELOPED
For details of the September Quarterly Report, click here.
Managing Director of Gilt-Edged Mining, Don Boyer has recommended that shareholders take no action re the takeover offer from Croesus until the Part A statement has been reviewed.
Shares in Goldstream rose yesterday (up 10c to 86c) after the company announced a base metals exploration JV in Tanzania with Anglo. The agreement covers an untouched but prospective area totalling 23,000 km2.
Grange has announced a pro-rata 1:2 Bonus Issue of options (exercisable at 80 cents on or before 31 December 2001) to holders of ordinary shares.
Grange has also announced an on-market share buy-back of up to 10% of the Company's issued capital.
Investmet company Metals Ex has proposed a merger with its 50.3% subsidiary, Tiger Investment. MEX has been reducing its dependence on nickel royalties.
MIM has delivered a bullish outlook for base metals, forecasting continued improvements in its operating and financial performance. MIM says eps for 1999-2000 will be between 7c and 8c, with capital expenditure on major projects declining.
MIM forecast copper prices to rise from an average US69c/lb in 1998/99 to US77c in 1999-2000 and US83c in 2000-01. Lead prices are forecast to increase to US26c/lb in 2000-2001 from US25c, while zinc is expected to increase from US48c/lb to US56c/lb in 2000-01.
QUARTERLY REPORT - FOR THE THREE MONTHS ENDING 30 SEPTEMBER 1999
| HIGHLIGHTS
Puthep Project
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For details of the September Quarterly report, click here.
HIGHLIGHTS - SEPTEMBER QUARTERLY REPORT
Acacia has formally advised shareholders to accept an $832 million takeover offer (about A$3.30/share) from Anglo - 3.5 shares for every 100 Acacia shares.
The gold price jumped US$5.90 to US$297.50 on rumours that the Bank of England will reduce the amount of gold to be sold at auction on 25 November.
Pacmin expects an early mine development for its Chariot prospect in the NT. Pacmin has just announced more encouraging drilling results from the deposit.
Petroz expected approvals for the $1.4 billion Bayu-Undan liquid projects (8.3% equity) before the end of the year.
Former exploration manager Alistair Haydock failed to gain a seat on the board.
HIGHLIGHTS FOR THE SEPTEMBERQUARTER
Anglo says it will have full control of Anaconda within 2 years. It currently has a 23% stake. Anaconda chief executive Andrew Forrest said yesterday : "The company is not for sale. If Anglo wants to put it into play, others will be interested, not the least of which is management".
The feasibility study at Marikana is progressing well with completion expected in January 2000.
A scoping study released in July concluded the feasibility study should consider output of 1.4Mtpa to produce 160,000 oz/a platinum group metals.
Aquarius will utilise dragline mining at Marikana as opposed to conventional shovel and truck methods. The Managing Director of Aquarius, Mr Keith Liddell, said open pit mining costs would be halved per bank cubic metre of waste. "Platinum reefs have the same geological consistency and dips as coal seams, which use the dragline mining methods. Considering that platinum ore is far more valuable than coal per tonne, the savings for Aquarius will be substantial," Mr Liddell said. "We will now be able to work a 100 metre deep open pit at Marikana compared to previous estimates of 30 metres. While we will still be going underground later on in the project, ore from those areas will only represent about 30% of our reserves. By using the dragline we not only reduce mining costs, but also substantially increase our mineable reserves by increasing the mining recovery from the orebody."
Aurora has scaled back its exploration staff at the Mount Muro gold mine in Indonesia - about 85 mostly field staff have been laid off.
Natural gas infrastructure company Envestra has almost completed the first stage (a pipeline from Berri to Mildura) of its $30 million Mildura natural gas project in Vic. Commissioning is expected in the next few days.
The King George diamond JV project, in the Northern Kimberley, Western Australia, has discovered 3 new kimberlite pipes within tenement E80/1592. A bulk sample will soon be processed. Additional exploration has also given indications of a possible alluvial deposit within the exploration licence.
A small bulk sample program has also recently been completed on Anomaly A23, previously determined to be diamond bearing from drilling in 1998. A total of 72 diamonds with a total weight of 4.04 carats was recovered.
The Cadwell -1 well, currently in progress in permit TP7 in the Carnarvon Basin in WA, has recorded high gas readings between 1150 and 1450 m, with hydrocarbon fluorescence between 1230 - 1320 m. While all indications are that a hydrocarbon column has been intersected in the Mungaroo Formation, wireline logs are currently being run to confirm the nature of the find.
Joint venture interests are Pan Pacific Petroleum (4.16%), Apache Corporation (39.66%), Santos Ltd (43.71%) and Mobil Corporation (12.47%).
Union has announced that the Ministry of Mines and Metals in Tehran has signed the Foundation Agreement for the Mehdiabad Zn/Pb Project in Central Iran. This gives formal Government approval for the conduct of a feasibility study, mining, processing and sale of zinc and associated minerals from the Mehdiabad Deposit. The deposit currently has a resource of 96.6 million tonnes @ 10.1% Zn, 2.5% Pb and 50 g/t Ag (at 6% Zn cutoff).
Croesus has made a $20 million takeover bid for GEM - 30 cents cash for each GEM share, or a 1-for-1 share swap. GEM's share price jumped 41% to 29 cents; Croesus' share price closed at 29.5 cents, down 3.5 cents. The bid is conditional upon 50.1% acceptances and there being no adverse change to GEM's JV agreement over the East Kundana gold project (310,000 ounces @ 5.7 g/t Au) near Kalgoorlie in WA.
The nickel price rose to a 2-year high last Friday, mainly due to continuing labour disputes at Inco's Manitoba nickel refinery.
Woodside has commenced production from the floating production, storage and offloading facility, the Northern Endeavour. The Northern Endeavour is located 550 km west north west of Darwin, and 160 km south of the Island of Timor, in offshore Production Licence AC/L5. The production facility is located in 390 m of water, halfway between the Laminaria and Corallina oil fields, with production sourced from both fields.
Beach lost its latest appeal to recover losses suatained almost 10 years ago irelating to an acquisition. Beach will reserve a decision on whether to appeal.
Cluff continues to recover diamonds from its Monte Christo mine in NSW - a further 181 diamonds weighing 22.8 carats has been recovered.
Equinox has commenced discussions with several large mining companies about developing the Norrbotten iron oxide copper-gold deposit in Sweden.
Finders says the early granting of a prospective licence for diamonds in Madhya Pradesh state (Raipur project) was expected following the re-election of the Indian Government.
According to a report by the New York-based Commodity Futures Trading, short contracts held by hedge funds and other traders are at their lowest number since mid-March.
The latest speculation is that gold bulls could again be unleashed by the third tranche of the UK's gold sell-off on 29 November. If demand is strong for the 25 tonnes, the reasoning goes, the gold price could gain on that confidence.
1999 ANNUAL REPORT - LETTER FROM THE CHAIRMAN
While Grenfell has completed a year of steady exploration activity yielding a wide range of encouraging results, our achievements have been overshadowed by the world wide stagnation of grass roots mineral exploration activities. The recent recovery of the gold price and continued growth in basemetals markets have allowed us to maintain a positive outlook in spite of the testing times facing our industry.
Grenfell's year in exploration has seen solid progress on the Gawler Craton and the establishment of a strong operating position in one of the world's great base metal provinces in India. The progress made by our small exploration team during the year just endedhas been commendable and is outlined in the following " Review of Operations ". While our results have been encouraging and progress toward discovery has been satisfying, the state of the minerals industry worldwide is a continuing cause for concern.
Expenditure cuts through the global exploration industry have been devastating in their magnitude and extent. Leading international explorers have, in most cases, severely rationalised their exploration operations and advertised a preference for "Strategic Alliances" with "Junior" exploration companies. This has been largely due to the worldwide pessimism about the state of minerals markets.
Grenfell's Board of Directors has monitored this situation closely and, in continuing to do so, is considering a number of strategies to preserve our established and hard earned status in the minerals industry. Our principal conclusions at present are:
In view of the above, the Board has formulated a plan to ensure that the company remains in a healthy financial state and stays strategically placed to benefit from the coming resurgence in exploration activity.
The plan includes;
While we are cognisant of the difficult environment prevailing in our industry, we are confident that Grenfell is well placed to prosper and grow in that industry and believe that, as a Board, we stand prepared to deliver healthy returns for shareholders by maintaining our efforts toward discovery of significant base metals and gold ore bodies.
The coming year presents major challenges to us but we remain confident that the business and technical skills of our small, efficient team will rise to those challenges and deliver growth for the company.
For details of the 1999 Annual Report, click here.
King has added 2 more exploration tenements to its diamond portfolio - King is paying $80,000 for the Mountain Valley and Paleroo Dam areas near Bingara in NSW.
According to broking firm CIBC World Markets, WA's 3 new lateritic nickel projects (Murrin Murrin, Cawse and Preston's Bulong) have incurred capital overruns of more than $260 million and that figure is likely to rise.
Paget says the claim over a disputed 1 million ounce gold deposit in Senegal (Sabodala deposit) had been put on hold - the board is considering the costs of the proceedings.
Southern Exploration Corporation, an associate company of Indophil Resources has completed an 1800m, 8 hole diamond drilling program at their Manat exploration project in Mindanao, Philippines, a JV with the Alcantara Group. Results are currently being evaluated. Drilling of their Labo Project is planned for January.
The known mineralised system at the Benagerie gold and base metals project in South Australia has ben extended a firther 15km. Work had significantly enhanced the prospect for discovery of a large orebody.
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| All Ords | 2919.8 |
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Dow Jones | 10,704.48 |
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| All Resources |
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Nasdaq | 3102.29* |
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Silver - spot |
US$5.11 |
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| A$ = 67.91 yen |
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Platinum - spot | US$414.00 |
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| A$ = 0.613 Euro |
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Bridge CRB Index | 203.02 |
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Ashanti produced 379,543 ounces of gold in the September quarter, at a cash cost of US$218/oz. Prior to abnormals, reported earnings were US$18 million. Ashanti now expects 1999 gold production will be in excess of 1.5 million ounces.
The development at Geita is on track, with completion expected in the third quarter, 2000. The total resource has increased to in excess of 12 million ounces.
HIGHLIGHTS - 1999 ANNUAL REPORT
For complete details of the 1999 Annual Report, click here.
Highlights - September Quarter
SOG has again denied rumours that it was a takeover target, but says rationalisation of the gold sector is inevitable. SOG says it expects to report strong profits and cash flows for 1999-2000, based on results to date and estimates for the rest of the year.
The Australian Research Council (ARC) has approved $470,000 worth of funding over the next 3 years. The funds will be used to support projects at the Centre for Ore Deposit Research, including research into Epithermal gold-silver deposits, Isotopic studies of fluid flow using the Mt Read Volcanics as a case study, and the establishment of a melt inclusion laboratory.
WMC chief executive Hugh Morgan says the possible reopening of the Kambalda nickel mine in WA is still under review and will be based on long-term expectations for nickel.
Anaconda will sell its utility assets to fund the rolling expansion of Stage 2 of its Murin Murrin nickel/cobalt laterite mine. The sale of the assets - power, acid, gas and water plants - could raise more than $300 million.
Centaur and Anaconda were both coy yesterday on speculation that Anaconda may take a stake in Centaur's Stage 2 expansion of its Cawse laterite nickel-cobalt mine in WA. Anaconda chief executive Andrew Forrest said... "Industry rationalisation is certain, whether it's today or in the next couple of years".
Highlights - September Quarter:
Highlands to raise its stake in World Class Ramu Nickel Project to 68.5%
Highlands Pacific Limited (ASX: HIG, POMSOX: HIG) today announced the execution of an agreement to purchase an additional 10% of the Ramu Nickel joint venture from Eastern Pacific Mines Limited (Eastern), taking its stake to 68.5%.
Highlands Managing Director, Mr Ian Holzberger said, "the purchase of Eastern’s stake is further evidence of our confidence in the project which is about to receive all PNG government approvals and permits. The agreement simplifies and rationalises the ownership structure, which in turn will assist us in attracting a major joint venture partner and putting in place the financing for a project the size of Ramu."
Subject to approvals, the agreement with Eastern provides for a deferred payment structure comprising cash and the issue of HIG shares. Payments will be made upon satisfaction of conditions precedent, availability of debt and equity funding for Ramu and commencement of nickel and cobalt production.
Highlands recently announced that the front end engineering and design phase of the project is being undertaken by the Kvaerner Metals/Baulderstone-Hornibrook Joint Venture. For additional information, click here.
Novus says it has received an unexpected bonus with a strong 3000 barrels of oil/day from a successful gas exploration well in Egypt. The oil flow in the Tut West-3X exploration well in western Egypt follows 25metres of oil pay, including a new reservoir zone, intersected last month in the same well.
Orogen, an energy and mining company controlled by the PNG Government, has more than US$500 million in cash and borrowing capacity to invest in the country. Potential investments include part of the US$3.5 billion gas pipeline from PNG to Qld, the US$838 million Ramu nickel project (Highlands Pacific), and BHP's PNG oil and gas assets.
Portman shareholders have approved the $200 million sale of the Burton coal mine in Qld to Germany's RAG Coal group.
Ranger says it has completed a debt refinancing program and restructure of its hedge book associated with the Damang gold mine in Ghana. The new debt facility has halved its total debt to US$40 million, repayable over 3.7 years with a final payment of US$2.5 million due on 30 June, 2003.
Rio's Diavik diamond mine in Canada's arctic tundra yesterday received environmental approval from the federal government, paving the way for production to begin in 2003.
Shell says low refining margins will likely force it to close its Clyde refinery in NSW after 2006.
St Francis has moved to acquire 100% of Bluefire Gas - specialists in motor vehicle gas conversion kits for Asia.
AGL has struck a $33million/year deal with National Power's Pelican Point power station in South Australia. AGL will supply natural gas to the new plant for 5 years and buy electricity from the plant to retail in SA.
Ashton has advised that the Cuango River Project in north east Angola has resumed production. This follows the return to site of all personnel who were evacuated last month, following military operations near the mine.
BHP's aspirations for a future float of its non-core Australian steel business is gathering momentum and appears the preferred alternative to any trade sale.
BHP has agreed to sell its engineering division to the Hatch Group of canada. The slae is expected to be effective as of 8 November and will se all 900 BHP Engineering employees and contractors transferred to Hatch.
The outlook for both precious and base metals next year is positive, says JB Were & Son commodities researcher Malcolm Southwood. He says gold is forecast to trade above a US$350 an ounce price range in the long-term and return to US$350 sooner rather than later.
The Reserve Bank of Australia has increased the cash rate by 25 basis points, to 5.0 per cent, following a decision at Tuesday's Board meeting.
DRILLING COMMENCED AT TEXAS SILVER PROJECT
Diamond core drilling has commenced at the Texas Silver Project. Approximately 500m of drilling is planned and an initial hole has been completed with a depth of 84 metres. Assays are pending.
Non core drilling is expected to commence about 11th November. Between 3000 and 4000m of drilling, mainly in shallow holes of less than 30 metres, is planned for this program.
Trenching by bulldozer and excavator has exposed the central part of the orebody. Assays are pending. The trenching and construction of drill access roads will continue throughout the remainder of 1999.
The Texas Silver Project (proposed open pit Twin Hills mine) is a heap leach silver mine which could generate a substantial cost flow to MACMIN within 18 months. The Project has a Probable Ore Reserve of 8.6 million ozs of silver within an Inferred Resource of 35 million ozs of silver. For details, click here.
1999 Annual Report - Chairman's Report
During the financial period under review, the Company successfully carried out its policy of operating joint ventures with the twin aims of conserving funds and maintaining exploration activities. A capital raising of approximately $1 210 000 net of cost by way of a placement and then a pro rata option issue to shareholders strengthened the Company's position. In the latter part of the period, in line with the above policy, negotiations with Billiton Plc, a major London-based resource company with a market capitalisation exceeding $US9 billion, resulted in an agreement between the two companies to form an alliance to explore for zinc and copper and associated minerals. The alliance, which requires shareholder approval, was concluded in August 1999 and is to be ratified by shareholders in October.
The Company perceives great advantages resulting from the Billiton alliance which will have an initial life of five years. Full details of the agreement were circulated to shareholders prior to the October shareholders' meeting and are summarised under the Corporate Activities section of this report. The most immediate result of the alliance will be the raising of an additional $750 000 of capital including Billiton's contribution of $250 000. It is expected that a second similar capital raising will occur in twelve months time. Concurrently Billiton has agreed to a separate joint venture with the Company whereby it will have the right to fund $1.7 million to earn a 70% interest in the Company's Mutooroo and Thackaringa tenements. Exploration work on these tenements commenced in September in anticipation of the necessary approvals by shareholders.
The Billiton alliance encompasses an area of 600 000 square kilometres stretching from the western side of the Gawler Craton in South Australia to the eastern side of the Curnamona Craton in western New South Wales. Exploration will target zinc and copper deposits, similar to Olympic Dam and Broken Hill, and the Company has already made application for three such targets.
The Company will be the initial operator of these exploration activities and will obtain the benefit of Billiton's expertise through the use of their proprietary electromagnetic interpretation software and the secondment of a senior field geologist, John Kilroe, who will assist in project generation and evaluation.
It is important to record that this alliance was only possible because of the high degree of technical skills evident within the Company's management and staff and the Board warmly congratulates all involved.
While the association with Billiton sees a stronger focus by the Company on base metals, the Company is also in a position to continue exploration for other minerals, including gold and mineral sands, outside of the alliance. During the financial period, encouraging gold intercepts were recorded on the Commonwealth Hill and Aurora Tank joint venture properties in the northern Gawler Craton, and the Caralue Bluff joint venture area in the southern Gawler Craton. All intercepts are open and show potential for further discoveries. In the Murray Basin, our mineral sands drilling at the St Arnaud, Donald, and particularly, Casterton licences has produced some exciting intersections. The Casterton area not only has encouraging widths and grades but also the mineral grain size is predominately medium to coarse sand - considerable coarser than almost all of the heavy mineral deposits outlined to date in the Murray Basin. This should provide enhanced metallurgical recoveries in the event of an economic discovery. Follow up work will continue in these areas.
Work, funded by our joint venture partner, on the Bibliando Dome in the Adelaide Geosyncline, disappointed in that the target anomaly proved to be at a much greater depth than anticipated. However, information from this project assisted in identifying further possible targets in the area.
The Company will continue to promote its policy to joint venture properties wherever possible. In the meantime Minotaur is very favourably placed to continue conceptual early stage exploration, as well as examining more advanced projects which, without the backing of a major resource company, may have been beyond its resources.
For details of the 1999 Annual Report, click here.
QCT profits are "under pressure" because of slumping coal prices, managing director Chris Rawlings said at yesterday's AGM. Costs are improving but QCT was unable to predict the value of its sales or likely profits until coal prices are finalised with the Japanese buyers.
Ranger will focus on further fine-tuning its Damang gold mine in Ghana, despite rumours that it is at an advanced stage re discussing takeover and merger opportunities.
Leigh Clifford will replace Leon Davis (retiring) as the next chief executive - in April 2000.
NORTH GIPSY-1 - OIL FLOW AT 5,940 BARRELS PER DAY
Tap Oil N.L. ("Tap") advises that since the last announcement on 25 October 1999, a flow test has been conducted within the Brigadier sandstones over a 19 metre interval.
This test resulted in an oil flow at the rate of 5,940 barrels per day of 44.9 deg API oil on a 56/64 inch choke.
The test flow rate was restricted by surface equipment limitations. The oil was water free, and supported by pressure data, this indicates a substantial oil column down-dip from the test zone.
Forward Plan
The rig will now move off the North Gipsy-1 location and the Joint Venture will evaluate the data acquired in more detail with a view to quantifying reserves and moving towards an early development decision.
Tap Comment
The discovery of oil in this well has confirmed that substantial quantities of oil as well as gas, have migrated into the Jurassic/Triassic structures along this trend and thus provides considerable enthusiasm for future drilling.
North Gipsy-1 is expected to be developed as a commercial oil discovery. Such a development will likely lead to the commercialisation of all of the gas and liquids reserves discovered to date in the Gipsy/Rose/Lee area.
Further add-in oil would include the oil discovered in the Gipsy-1 well, the postulated oil column down-dip in the North Rankin sandstones in Gipsy North-1 and condensate of the rich gas tested from numerous reservoirs in this area.
Moreover, there is significant follow up drilling planned for the immediate area with numerous near term wells being planned.
The proximity to infrastructure at Varanus Island, only 15 kilometres away, will facilitate early and economic development of reserves in this area.
Tap is extremely well exposed to this new play concept with acreage coverage in TL/1,5and 6, TP/8 (12.22%), EP 399, EP 400 (50.00%), EP 395 (23.33%), EP 403 (100%), EP 397 (33.33%), EP 341 and EP 364 (55.00%).
Anglo has officially lodged its Part A offer document for Acacia - Anglo is offering 3.5 of its shares for every 100 Acacia shares.
HIGHLIGHTS OF THE SEPTEMBER QUARTER
Manso Nkwanta Project, Ghana
A prefeasibility study on the Abore prospect completed in September 1999 indicates that at a US$260 gold price a profitable heap leach mining operation processing 2,260,000 tonnes of oxide and transition ore from Abore North and 250,000 tonnes of ore from Asuadai, 5km to the south-west, could be established. The average grade of mineable material is estimated at 1.8g/t Au and gold recoveries over a 26 months period are expected to be 125,000oz. The project life is relatively short, but operating costs are expected to be low, with a stripping ratio of 1:1 and favourable metallurgy. There is significant upside potential from exploration targets on the project.
Mansounia, Guinea
Ashanti Guinee SA farmed into the Mansounia Research Permit area, which has been the centre for extensive artisanal gold mining activity over a number of years. Ashanti can earn a 60% interest by spending US$1,500,000 over four years.
Venture Capital Activities
To build a solid foundation for the future the Company is developing a venture capital business in parallel with its plans to develop the Abore North gold project. Funds expected to be generated from the gold project will be invested in the venture capital activities to promote the ongoing growth of the Company.
Its first investment, $1.57 million made in Plexus International Ltd in August and October, is valued at $4.47 million at the date of this report after Plexus successfully listed on 15 October. Plexus provides an efficient and cost effective means of facilitating property replacement for insurance claims by maintaining an extensive database of items, enabling the claims handler to assess the optimum price and place orders with suppliers electronically. The database also provides internet shopping via co-branded websites for clubs, organisations and companies which wish to enhance member, customer or staff loyalty through discount purchasing arrangements.
An investment in the Careers-r-us.net Ltd university student placement business was announced in September and in October the Company announced plans to invest in Treloar Group Limited, which is developing the Euroz stockbroking business, and North Star Resources Limited, which is acquiring an 88% interest in the Wet Dreams' surf accessories distribution and licencing business.
Corporate
$2.8 million was raised by issuing 20 million shares and options and a proposal to raise a further $1.4 million on similar terms was announced in September.
After changing from a no liability status to that of limited liability in July the Company is seeking shareholder approval at its forthcoming AGM to change its name to Shield Equities Limited, which better reflects its current activities.
PLANS FOR THE DECEMBER 1999 QUARTER
Environmental impact assessment studies and final geotechnical, hydrological and metallurgical testwork programs on the Abore gold project are planned to be completed during the December quarter. Application will be made for a mining licence at Abore and work towards producing a bankable feasibility study will be progressed. A study evaluating the availability of suitable second hand equipment for use at Abore is in progress.
The Company is continuing to investigate a number of investment opportunities. For details of the September Quarterly Report, click here.
Woodside and Energy Equity Corp have been named as the preferred proponents to provide electricity to the remote West Kimberley region in WA.
Apache is expected to be the lead contender for the assets Shell Australia put up for sale and which are expected to realise between $250-$300 million. Shell is selling its 28.57% stake in the Barrow Island JV and its 35.71% interest in the Thevenard Island consortium in the Carnarvon Basin in WA.
Gas distributor Envestra says it is confident of meeting its distribution forecast. Envestra anounced a first-half distribution to shareholders of 5.4 cents per security and 3.68 cents per new security issued on 24 September as part of its capital raising.
HIGHLIGHTS - SEPTEMBER QUARTER
EXPLORATION
CORPORATE
SIGNIFICANCE OF THE EAST KUNDANA RESULTS
The final step in the transformation of IMR into telecommunications is imminent - the company received its change of name status to FiberTel (FTL) on Friday.
Meekatharra has signed an agreement with Thiess Contractors for the joint development of the South Australian Steel and Energy pig iron project. Thiess will contribute up to US$10 million to fund feasibility studies. Any funding provided by Thiess can be converted to MKA shares at 90 cents per share by 31 December 2004.
Shares in SOG rose yesterday on rumours that South Africa's AngloGold is considering a takeover bid.
Troy commenced mining at their now 100% owned Bulchina deposit during the September 1999 quarter. The mine produced 1,951 ounces of gold at a cost of $256/ounce - the company expects improved performance once the commissioning phase is completed.
Union (previously Union Mining) has received approval from the Ministry of Mines and Metals in Iran for the Mehdiabad Joint Venture Agreement between Union Capital, Itok GmbH and the Government owned General Iranian Mining Company (GIMCO).
Under the terms of the joint venture agreement, Union and Itok will contribute US$5 million each to earn 25% on a per company basis in the project. After the two companies have spent a total of US$10 million, GIMCO can elect to contribute, or dilute down to a minimum 35%.
The Mehdiabad deposit currently has a discounted Indicated Resource (at a 6% Zn cutoff) of; 42.5 Million tonnes @10.1% Zn, 2.6% Pb and 73 g/t Ag.
Acclaim says it is working on a pre-feasibility study for the Langer Heinrich uranium deposit in Namibia, targeting a production start in March 2002. Acclaim's plan is to mine the high-grade core first to obtain a cash flow.
Hampton says Goldfields is increasing exploration at the Northlander gold project near Kalgoorlie in WA - Goldfields could now earn 51% by spending $1.75 million.
South African gold miner DRD has extended its takeover offer for Hargraves by 1 week.
QUARTERLY REPORT - FOR THE THREE MONTHS ENDED 30 SEPTEMBER 1999
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For details of the September Quarterly Report, click here.
Tests have confirmed lignite from the Salmon Gums deposit in WA can be gasified successfully, paving the way for a planned Esperance power project - to supply power to the Esperance and Goldfields regions.
HIGHLIGHTS - QUARTERLY REPORT TO 30 SEPTEMBER 1999
1999 ANUAL REPORT
LETTER FROM THE MANAGING DIRECTOR
The year 2000 should be a good year for MACMIN. In 1999 we responded positively to the general downturn in the mining industry. The directors have reduced costs substantially. Exploration and development activity is currently focusing on the most advanced project, at Texas in SE Queensland, where development of a silver ore reserve is in the planning stages. This project, subject to a feasibility study at present in progress, is projected to yield a net cash flow to the company of $14 million (with good potential for longer term cash flow) over three years from late 2000.
We are also investigating the possibility of generating a further cash flow by toll milling or heap/vat leaching high grade gold ore from the Normanby and Sinivit Projects, Papua New Guinea. Open pittable grades at Normanby are 10 g/t Au and at Sinivit 5 g/t Au. There is approximately $40 million worth of gold, (at A$400/oz) which could be recovered, provided suitable financing/milling arrangements can be concluded. Metallurgical testing and discussions with interested parties are in progress. If these discussions are successful, substantial additional net cash flow may be generated in the near to mid term. A mining lease is already in place at Sinivit and this project could be activated at short notice. Both projects also have good potential for longer term cash flows.............For complete details, click here.
The Ardlethan tin project in NSW looks like producing better-than-expected grades. Work on the feasibility study indicated that metallurgical recovery of tin should be about 80% (previously 70%).
Paladin has moved to 90% ownership of the Kayelekera uranium deposit in Malawi - and is planning a full review of the data base.
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| All Ords | 2885.1 |
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Dow Jones | 10,729.86 |
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| All Resources |
1191.2 |
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S&P 500 | 1362.93 |
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| All Mining | 682.6 |
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Nasdaq | 2966.43 |
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| All Gold | 996.7 |
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FTSE 100 | 6255.70 |
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| Energy | 1227.3 |
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Nikkei | 17,942.0 |
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| All Industrials | 5027.7 |
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Gold - spot |
US$298.20 |
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| A$ = US63.74c |
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Silver - spot |
US$5.19 |
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| A$ = 66.38yen |
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Platinum - spot | US$417.00 |
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| A$ = 0.606Euro |
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Bridge CRB Index | 201.52 |
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| US 30-Year Bond |
6.149% | -0.094 | Crude Oil (NYMEX) | US$21.75 |
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