![[Exploration Drilling]](DrillingRig.jpg)
Exploration News
August 2000
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Exploration News |
LATEST RESULTS FROM DAIRI ZINC/LEAD PROJECT, PLACEMENT
Herald's subsidiary International Annax Venture Inc. (IAX), reports as follows:
Assay results have now been received from hole SOP29D and hole SOP30D.
The hole 30 intercept was the thickest intercept so far recorded at the Sopokomil prospect's Anjing Hitam section, and the assays have confirmed the prediction of high grade zinc.
Hole SOP31D is now completed, and recorded intercepts approximately 60m up-dip from SOP30D. Massive sulphide occurs in the two horizons and assays of these intercepts are awaited.
The drill rig is currently on hole SOP32D, drilling down dip of hole SOP30D. It will then move to section 9600N.
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205.6 |
209.5 |
3.9 |
13.5% |
6.5% |
3g/t |
MMH |
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149.7 |
171.2 |
21.5 |
19.1% |
11.9% |
16g/t |
MMH |
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133.3 |
144.3 |
11.0 |
Assays awaited |
MMH |
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MMH = Main mineralised horizon
UMH = Upper mineralised horizon
In order to fund continued drilling on this exciting project, Herald has agreed to subscribe for a placement of 3,500,000 shares, each with a free attached warrant, at C$0.20 per share in IAX, at a cost of C$700,000. The placement is subject to acceptance by the Canadian Venture Exchange (CDNX).
At the completion of the above placement, Herald will own approximately 71% of the presently issued share capital of IAX. For additional data, including maps, click here.
Swedish subsidiary company, Alcaston Diamond Exploration AB, has acquired two additional exploration licences for diamonds in the Norbotten region of northern Sweden, bringing the company's total exploration holdings in the region to sixteen granted licences.
These licences cover a total area of 1.53 million hectares or approximately 3% of the Swedish landmass.
The two additional licences have been acquired from Geoforum Scandinavia AB by cash and an issue of shares in the Swedish subsidiary company, and include Geoforum's interpretations of exploration work carried out to date on the two licences.
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 30/08/2000
Country : New Zealand
Block Area: PML381012
or Prospect
Well Name : MB-7
or Location
Objective : Deviated development well primarily targeting Maui B D1.10L oil reservoir, with multiple secondary oil & gas potential. Deepened to allow access to F-Sand oil reservoir in addition to other objectives.
Current Status : * Ran 4(1/2)" completion.
* Current operation at 06:00 on August 31st, pre- paring to perforate and commence production from the F1.2 oil zone.
Block Area: PML381012
or Prospect
Well Name : MB-6
or Location
Objective : Development well primarily targeting Maui B D1.6 and D1.10 oil reservoirs.
Current Status : * Suspended well with stuck 4(1/2)" liner pending evaluation of side-track or completion options while operations proceed on MB-7.
* A decision will be made by Monday September 4th as to whether or not to drill a side-track of this well along similar lines to the now completed MB-7 side-track as per above.
Jubilee is continuing the intensive exploration of the Cosmos Deeps massive nickel sulphide deposit, with four diamond core drill rigs operating around the clock. This announcement provides an update of recent progress.
To the end of August, Jubilee has completed 60 holes (including both primary and sampling wedge holes) for a total of 21,121m. Recent work has mostly concentrated on infill drilling the central part of the deposit to enable geological interpretation of the mineralised zones to be undertaken, and to commence modelling and calculation of the Mineral Resource.
In addition, the Company has also been drill testing the prospective horizon further up-dip to the west. Earlier drilling in this area (JCD109, 110, 111) intersected a felsic porphyry intrusive which was previously interpreted to have terminated the mineralisation.
However, five recently drilled holes have intersected significant massive and breccia nickel sulphide mineralisation on the other (western) side of the felsic intrusive. These results demonstrate that the large widths of high grade mineralisation do continue up-dip to the west and, at this stage, the western mineralised zone remains open. Drill intercepts from these five holes are tabled below, and because of the shallow east-dipping orientation of the mineralised zone, these intercept widths are very close to being true widths.
HOLE NORTH EAST FROM TO WIDTH GRADE
No. (mN) (mE) (m) (m) (m) (% Ni)
JCD119 6944761 260683 630.1 632.25 2.15 12.7
JCD122 6944774 260685 635.9 638.25 2.35 12.8
JCD125 6944662 260674 561.95 569.65 7.70 6.92
JCD128 6944694 260672 574.6 595.0 20.4 8.94
JCD132 6944723 260677 594.05 604.1 10.05 12.6
* Northings and Eastings represent the coordinates of the
intersection point.
At this time, the Cosmos Deeps mineralisation remains open up-dip to the west, down-dip to the east, and along strike to the north and south. Consequently, drilling of the extensions to the Cosmos Deeps mineralisation will continue after the finalisation of the initial Mineral Resource calculation, and it is expected that further resource up-grades will be undertaken in the future.
First pass reconnaissance RAB drilling from one of two RAB traverses completed testing a new gold in soil anomaly delineated by earlier vacuum drilling, has returned encouraging results.
RAB drilling across Target 5H has intersected 8m @ 8.45g/t Au from 20m in BGB033 (including 4m @ 16g/t in the interval 20-24m). These are initial 4m composite values. Individual metre assay results are awaited. The intersection is hosted in a weakly foliated, strongly ferruginous zone in a felsic intrusive. Intersections in adjacent holes include 4m @ 397ppb Au from surface in hole BGB034 and 6m @ 162ppb Au from 24m (to end of hole) in BGB033. All holes are drilled at 60deg to the west.
Target 5H comprises a 400m long zone of gold (defined at the 50ppb Au contour and peaking at 79.3ppb Au) and arsenic anomalism, and is located just to the southeast of the Garden Well deposit (where we have previously delineated a resource of 29,200oz of gold). The results have been returned from an area of northwest striking transfer faults propagating out from the Chatterbox Shear Zone.
The depth of transported cover is less than 5m.
* Kincor has received the drill assay results from its Imweru Licence in the Geita Greenstone Belt of Tanzania;
* Two high-grade gold zones have been discovered. Their intersection in multiple drill traverses suggests grade continuity along strike and is considered highly encouraging;
* Numerous other target zones are highlighted for follow-up - 21 of Mincor's 57 drillholes intersected significant mineralisation.
Novus announces that sales of gas from its Wunut gas field in the Brantas PSC (Novus 50%) have doubled to 8 million cubic feet of gas per day (mmcfd) gross.
The Brantas operator, Lapindo, has reached agreement with the gas buyer, PGN, for additional gas sales, currently at a rate of approximately 4 mmcfd. These are in addition to the existing ca 4 mmcfd, which have been on-stream and sold since January 1999. Depending upon market demand, it is possible that further increases could be forthcoming.
The current arrangements extend until January 2001 after which Novus is optimistic that another, longer term, gas sales agreement will be signed.
Maintop No.02, a gas exploration well situated approximately 625 metres north-east of Maintop No.01, latitude 25 deg. 40 min. 26.62 sec. south, longitude 148 deg. 22 min. 30.01 sec. east, was spudded at 20:00 hours on August 09, 2000. 245mm surface casing was at 207 metres R.T. 178mm intermediate casing was set at 1405.5 metres R.T.
A total depth of 2122 metres R.T. was reached at 23:30 hours, on August 25, 2000. The well was plugged and suspended.
Drilling Activity Update:
Weekly Drilling Summary :
QUEENSLAND
Roti West 1 - has been cased and suspended as a future Permian gas producer. As reported earlier, th exploration well flowed gas at 132,250 cubic metres per day (4.7 million cubic feet per day) with associated 55 kilolitres (345 barrels) of 61deg API condensate per day from the Permian aged Epsilon Formation over the interval 2295m to 2310m. The test was conducted through a 13mm (0.5") surface choke.
The well reached a total depth of 2545m with 12m progress for the week.
Sarah 1 - Drilling ahead. Current depth is 1609m, with 757m progress the week.
Windigo 2 - Drilling ahead. Current depth and progress for the week is 650m. The well spudded on 30/08/2000.
Kananda 1 - Drilling ahead. Current depth and progress for the week is 919m. The well spudded on 29/08/2000.
Maintop 2 - Maintop 2 has been plugged and abandoned.
SOUTH AUSTRALIA
Big Lake 67 - Drilling ahead. Current depth is 2577m, with 779m progress for the week.
Meranji 23 - Drilling ahead. Current depth is 2928m, with 1530m progress for the week.
Moomba 119DW - ulling out of hole to run logs. Current measured depth is 2313m, with 1178m progress for the week.
Moomba 123 - Drilling ahead. Current depth and progress for the week is 2109m. The well spudded on 26/08/00.
Operator, Apache Energy Ltd ("Apache") advised Chamois 1 participants that the operator at 0600 hours Thursday, 31 August 2000 had completed running the RDT assessment programme to clarify potential hydrocarbon zones of interest encountered to date.
Interpretation of the results this morning has revealed a 10 to 15 metre hydrocarbon column of Stag type oil in the D.Caddaense Sand Member of the Athol Formation above 900 metres (RT). However, the accumulation is highly restricted because of problems with cross fault seal leakage at the western end of the structure. The indicated volume (to be calculated by the operator) is therefore small and as such the zone does not warrant testing.
FINANCIAL RESULTS
YEAR ENDED 30 JUNE 2000
FINANCIAL
* Total Shareholder Return of 37 per cent for the year
* Net Earnings of $261 million (74 cents per share) - up 375 per cent
* Cash Flow from Operations of $640 million ($1.93 per share) - up 25 per cent
OPERATIONAL
* Discovery of Pohokura - largest exploration success in Fletcher Challenge Energy's history
* Production of 49 mmboe
* ECNZ gas sales contract validity upheld
STRATEGIC
* Decision by Fletcher Challenge Board to dismantle the targeted share structure
* Agreement, subject to Petroz NL shareholder approval, to acquire a minimum 33.7 per cent interest in Petroz NL - enhancing Fletcher
Challenge Energy's regional E&P strategy
* Initial Public Offering of Capstone Turbine Corporation investment (in which we hold 11 per cent)
* Initiation of the "Creating our Company" culture change project
Second Quarter Activities Report
HIGHLIGHTS
PRESSURE OXIDATION
The plant continued to operate well during the quarter, with total concentrate throughput some 35% above design capacity. Overall plant availability during this period was 86.5%, as the brick linings of the autoclave and flash vessel were inspected by the supplier in May and other routine maintenance was carried out. The linings were found to be in excellent condition at this inspection.
Gold recovery in the first half of the quarter was in excess of 90%, but subsequently has lowered to approximately 80%. This lower recovery is due to the treatment of previously stockpiled concentrate material, which is quite low in sulphide sulphur and gold grade.
A third thickener was installed in the circuit towards the end of June. This additional thickening stage has virtually eliminated a small solubilised gold loss identified in the overflow solution from the CCD thickeners going to neutralisation. This circuit change now enables the neutralisation solids to be leached in the CIL circuit together with the autoclaved concentrate.
ANTIMONY TRIOXIDE PROCESS
Piloting work has continued for the last quarter while confirming materials of construction for the main plant. Test work to finalise filtration and thickener design has also been completed during this period. Procurement for long lead time plant items has commenced.
The Environmental Impact Statement for the construction of the plant at Hillgrove has been finalised, ready for determination of the Development Application by Local Government during September.
The LMB price for antimony metal (which is the raw material for the majority of Western antimony trioxide production) has recently had a significant increase in price on the London Metal Exchange, rising from US$1,150/tonne to US$1,800/tonne. This increase is reportedly due to a tightening of export controls by the Chinese Government.
MINE DEVELOPMENT
Development of the Metz Decline has continued according to plan, with some 338 metres of decline being completed during the period. Having a total planned length to 9 Level horizon of some 480 metres, this initial phase of the decline will be completed early in the next quarter, followed by level development on the 8 and 9 level horizons.
Meanwhile, development of 7 level has continued on the Syndicate Lode and the initial 7 level Black Lode stopes were commenced, giving three levels now in the stoping phase in this mine.
Mining activity has lately commenced at the new Brackins Spur area, with initial on lode development on the one level horizon being commenced. It is anticipated to commence decline development to 3 level immediately upon completion of the decline activity at Metz.
Further on lode development work has been carried out in the Eleanora Mine from 9 level adit, aimed at accessing ore blocks in the upper part of the mine. Refurbishment of the Garibaldi Hoisting Shaft and winder has been completed and a stage pumping installation installed to enable final dewatering to 11 level.
The Premier of Queensland, the Hon Peter Beattie MLA, on Wednesday, 30 August officially opened the George Fisher and Enterprise mines, marking substantial completion of MIM's $1 billion investment programme at Mount Isa and Townsville.
The investment programme comprised:
* $270 million to develop one of the world's largest zinc-lead-silver deposits at George Fisher, 22 kilometres north of Mount Isa near the existing Hilton mine. George Fisher is expected to become the major zinc-lead-silver ore source for Mount Isa. Trial mining is well under way, and the project is expected to be commissioned in October.
* $370 million development of the Enterprise mine, Mount Isa's new high grade copper ore source which reached commercial production on 1 July last. The mine extends to a depth of 1800 metres and incorporates a new ore handling system which will enable production to reach 3.5 million tonnes of ore a year over the next three years. A refrigeration plant and paste fill plant being constructed on the surface remain to be completed this financial year.
* $243 million expansion and upgrade of the copper smelter to process the outputs of both the Mount Isa mine and MIM's 51% owned Ernest Henry copper-gold mine near Cloncurry. Smelter capacity has been expanded to more than 250 000 tonnes of copper anode a year, with record production of 222 000 tonnes in 1999/2000. An additional $96 million has been spent on gas handling equipment to divert waste copper smelter gas to WMC Fertilizers' sulphuric acid plant to provide feed for fertiliser manufacture.
* $61 million expansion and upgrade of the copper refinery in Townsville to a capacity of 270 000 tonnes a year to enable it to continue refining the increasing total output of the Mount Isa smelter.
Majestic Resources NL has recovered a monster gem quality diamond from the Pniel Estate in South Africa, potentially the biggest found by an Australian company from an overseas operation.
The Perth company said that a 30 carat diamond had been discovered on its Pniel diamond project near Kimberley.
The diamond, already dubbed the Star of Pniel, is typical of the high value alluvial diamonds found in the Kimberley region.
The "Star" was found during Majestic's final round of evaluation sampling while it develops the Pniel project, which is due to start full operations by the end of the year with a projected production of 15,000 carats of gem diamonds annually.
Resources and Reserves attributable to Normandy increased for the tenth consecutive year - to 53.8 million ounces and 21.8 million ounces respectively.
Reserves at Normandy-managed operations were estimated using a gold price of $450 per ounce (similar to the past three years).
Importantly, the initial inclusion of a Reserve for Boddington Expansion (22 percent of the inventory), was derived from a $425 per ounce pit shell which excluded Inferred category material from the pit design.
Santos Ltd, as Operator for the South West Queensland Unit, announces a successful gas exploration well in the Queensland sector of the Cooper/Eromanga Basins.
The exploration well, Roti West 1, flowed gas at 132,250 cubic metres per day (4.7 million cubic feet per day) with 56 kilolitres (345 barrels) of 61deg API condensate per day from reservoir sands in the Permian Epsilon Formation over the interval 2295m - 2310m. The test was conducted through a 13mm (0.5 inch) surface choke and was conducted over only one of the multiple gas bearing reservoirs in the well.
Roti West 1 gas discovery follows the successful Wippo East 1 well which also discovered gas from multiple horizons in the Permian aged Toolachee, Epsilon & Patchawarra Formations.
Roti West 1 is located 30km east of the Ballera Gas Centre and some 10km south east of Wippo East 1.
The well will be cased and suspended as a future gas producer.
Portman Limited is on track to boost the capacity of its Koolyanobbing Iron Ore Project in Western Australia to 3.5 million tonnes per annum in 2001 after completing key infrastructure changes and posting a 65% increase in iron ore sales during the six months to June 30, 2000.
The excellent sales performance reflected strong market conditions and the introduction of a number of new customers - providing further impetus for the Perth-based Group's iron ore growth strategy, which aims to lift output to 8 million tonnes per annum over the next 5 years.
PROGRESS REPORT
* Drilling is currently in progress, or about to commence, on four PlatSearch projects - Centennial, Tara, Gilgai and Southern Cross.
* New joint venture signed for Southern Cross project
* Rudall and Thunderdome update.
* Substantial joint venture funding for 12 projects close to finalisation
Victoria Petroleum NL has been advised by Apache Energy Ltd, the Operator for the WA-261-P Joint Venture, that the Chamois-1 exploration well spudded at 1700 hours on 24th August 2000, and at 0600 hours 30 August 2000 WST a cement plug had been set over the lost circulation zone in preparation for wireline testing of the hydrocarbon shows observed during drilling. A decision on further evaluation by coring or testing, and continuing drilling to the intra-Mungaroo objective, will be based on the results of the pending wireline testing program.
The Chamois Prospect has been interpreted from 3D seismic to have potential to contain up to 29 million barrels of oil in multiple target Cretaceous, Jurassic and Triassic sands, if oil is present. Chamois-1 is interpreted to be on trend and updip to the Oryx-1 Triassic oil discovery 5 kilometres to the north of WA-261-P in the adjacent Apache Energy operated permit WA-209-P containing the 45 million barrel producing Stag Field 15 kilometres to the east.
Well Name: Chamois-1
Basin: Offshore Carnarvon Basin
Permit: WA-261-P
Location: Latitude 20deg 22' 35.80"S
Longitude 116deg 01' 20.20"E
Proposed Total Depth: 1529m
Reservoir Targets: Sandstones of the Lower Cretaceous
M.Australis, Jurassic Athol and Triassic
Mungaroo Formation.
Time of Reporting: 0600 hrs WST
Current Well Depth: 1356 metres
Hydrocarbon Indications:
Hydrocarbon shows were observed while drilling over the interval 772 - 965 metres, and several potential hydrocarbon zones have been identified by the MWD logs.
Operations last period:
Set cement plug at 1311-1231m to cure losses. Pull out of hole and prepare for wireline testing (RDT) program.
Operations next 24 hours:
Carry out wireline testing program. Forward operations will be based on the results of the wireline testing.
Victoria Petroleum NL considers the prospects for oil and gas exploration in WA-261-P are encouraging in view of the hydrocarbon discoveries in the immediate area and the prolific production from the Carnarvon Basin in general, Australia's premier petroleum province.
Preliminary Final Report
OVERVIEW
A full year profit after tax of $26.3 million with no abnormal items is announced for 1999/2000. This is an increase of 22% on the equivalent profit after tax achieved in 1998/1999. Earnings per share in 1999/2000 rose by 74% to 16.0 cents compared with 9.2 cents in the previous year. The Directors have declared an increased dividend of 5 cents per share, fully franked (4 cents in 1998/1999) for shareholders of record on 27 September, 2000. This dividend will be mailed on 25 October, 2000.
During the year, Goldfields has pursued a strategy of rationalisation centred on its Kundana and Paddington operations north of Kalgoorlie in Western Australia. In July 1999, a mining tenement immediately to the south of the Kundana mine lease was purchased from Homestake Mining Ltd. The Moonbeam open pit has since been established on that tenement. In May, 2000 Goldfields successfully completed a bid for Gilt-Edged Mining NL, a junior gold exploration company which had reported a resource of 938,000 ounces of gold in the East Kundana Joint Venture's tenements to the south and contiguous with the Kundana mine leases. Drilling has since identified the high grade Raleigh deposit with characteristics similar to the Strzelecki deposit which is the current main source of high-grade ore to the Kundana processing plant. A reserve of 111,000 ounces has already been identified at Raleigh on ground held 100% by Goldfields. The mineralisation has been traced a further 280 metres south on the East Kundana JV tenements with thick high-grade intercepts reported. The deposit remains open to the south and at depth. The confidence in defining a +500,000 ounce resource at Raleigh has been enhanced by the recently reported drilling results. Goldfields was successful in its recent tender for the 49% of the Mungari West Joint Venture, which includes the White Foil deposit with 915,000 ounces in resource. Discussions are underway with our JV partner, Mines & Resources Australia NL, aimed at an early development of White Foil.
North of Paddington, further drilling on the Aphrodite prospect has increased inferred resources to approximately 900,000 ounces. However, the depth and refractory nature of this orebody means it is not yet a viable ore source for Paddington. Further drilling is in progress aimed at increasing the size of this resource.
Exploration at the Henty Mine in Tasmania was also successful during the year. Underground drilling into the Mount Julia inferred resource area (178,000 ounces) has extended the previous resource envelope at least 150 metres to the north and provided intercepts of greater width and higher grades than obtained from earlier surface drilling.
On 28 June, 2000 Goldfields Kalgoorlie Limited (GKL) shareholders voted in favour of a selective capital reduction of the minority holdings. GKL was delisted on 9 August and is now a wholly owned subsidiary of Goldfields, giving Goldfields a clean corporate structure for the first time.
Preliminary Final Report
Pasminco recorded a profit after tax and abnormal items of $23.4 million for the 2000 year, an increase of $31.7 million from 1999's result, which was an $8.3 million loss. The result included an abnormal loss of $11.6 million relating to the impact of the change in Australia's corporate tax rate from 36% to 30% on the Group's carried forward tax losses. There were no abnormal items in 1999.
Despite the return to profit Directors consider it more prudent to apply cash flow to debt reduction, and have decided therefore not to declare a final dividend in respect of the 2000 year.
Higher production and sales volumes were achieved, including record production levels at the Company's Hobart, Clarksville and Port Pirie smelters, and costs were lower overall. However, this was partly offset by lower sales premiums and higher financing costs.
Results benefited significantly from higher zinc prices and the stronger Australian dollar/Dutch guilder exchange rate, offset by lower lead prices. The Group also benefited from tax credits arising from start-up of the Century mine. The average realised Australian/US dollar exchange rate was virtually unchanged year on year.
PRELIMINARY RESULT - PROFIT UP BY 338%
Tap Oil NL has announced its preliminary results for the year ended 30 June 2000 revealing a net profit after tax and abnormal items of $8 million, 338% up on the previous year.
This profit result was achieved on revenues of $23.3 million, up 42% on last year, largely as a result of better than forecast oil prices and oil and gas sales. The current year's result included a gain of $1.7 million as a result of changes to the tax rate compared to an exploration write off of $2.6 million in the previous year due to exploration write-offs.
BALANCE SHEET - ZERO NET DEBT
The result also showed Tap's balance sheet to be in good shape with zero net debt at year-end. In particular, the Company has some $5.5 million cash on hand in excess of its borrowings at year-end.
NEW DEVELOPMENTS - MORE PRODUCTION TO BE ON LINE SOON
Tap has a number of new oil developments in progress including Gipsy, North Gipsy and the Simpson Oil Fields. These developments are expected to be on production early next year and will materially increase current liquids production rates and hence will position the Company for a strong profit next year also. Further, a development decision is due to be made on the Woollybutt Oil Field early next year.
DISCOVERIES - LINDA SHOWING PROMISE
Tap has had an extremely aggressive drilling programme this year with 22 wells drilled. This level of activity rates the Company as one of the most active in the sector and has delivered a number of meaningful discoveries, the most recent being Linda which is looking extremely promising at this stage.
Discoveries during the year also included North Gipsy and Simpson, which as stated above are planned to be on production in early 2001 and gas discoveries Corvus and Prometheus.
OIL AND GAS RESERVES - UP 100% SINCE LISTING
The aggressive drilling programme has resulted in an increase in barrels equivalent reserves net of production by 40% an last year and 100% since listing in September 1996.
Goldfields Limited and Anaconda Nickel Limited have announced that agreement has been reached on a Regional Development Alliance between the two companies in the Yilgarn Craton of Western Australia.
Under this agreement, Anaconda has agreed to grant to Goldfields the rights to explore and mine for precious metals on tenements controlled by Anaconda. Similarly, Goldfields has agreed to grant to Anaconda the rights to explore and mine for base metals on tenements controlled by Goldfields.
BACKGROUND
Ashton has been exploring in Mauritania since 1995 and was the first explorer to be granted diamond exploration licences in the country. Together with its joint venture partner, Ashton now controls mineral licences totalling 180,000 square kilometres. Mauritania has a stable political and social environment, and the Mauritanian government is very supportive of mineral exploration.
Ashton's exploration in Mauritania is conducted under a joint venture agreement with Dia Met Minerals Limited. Ashton owns 100% interest in all mineral licences and Dia Met has an option to acquire up to a 49% interest through sole funding of $US10.0 million in exploration expenditure. Ashton is operator and manager of the joint venture.
DISCOVERY
An airborne geophysical survey was conducted over a number of the licences in the first quarter of this year. The drilling of priority geophysical targets commenced in late May and was completed in July.
A vertical reverse circulation drill hole was located at target MAQ-1 intersected kimberlite at 50 metres depth after penetrating poorly consolidated sandy overburden and continued in kimberlite until drilling was suspended at 150 metres depth. Some samples from this hole were tested by Ashton's Perth laboratory in early August and returned encouraging results.
The 23 fragments in the +0.8mm fraction of sample A23025 are considered to he derived from at least 2 discrete diamonds, the largest of which consisted of 3 parts weighing in excess of 1.7 cts in aggregate.
The second series of samples confirm the presence of diamonds in the MAQ-1 kimberlite. The variability between the results is interpreted as a consequence of the inherent variability in diamond content associated with the complex geology of kimberlite pipes.
The results are considered very encouraging. These results are the first detailed analysis of a diamondiferous kimberlite in Mauritania and indicate that this pipe has a population of larger sized diamonds.
Geophysical data, together with drill hole information, suggests that MAQ-1 is a pipe-like volcanic intrusion of approximately 8 hectares in size. Additional definition drilling and larger scale samples will be required to accurately determine pipe dimensions, diamond grade and diamond value.
In response to these encouraging results, Ashton and joint venture partner Dia Met have decided to initiate additional drilling at MAQ-1. The drill is being remobilised to the site and the hole will be repeated in order to further substantiate the results from the first hole. Additional step-out holes will be drilled to obtain more information. Subsequent results will be reported as soon as they become available.
Ashton Mining Limited has announced that drilling at the Maqteir licence in northern Mauritania has intersected diamondiferous kimberlite. Processing of selected drill samples has recovered 78 diamonds and diamond fragments weighing 2.86 carats.
This is believed to be the first fully-documented diamondiferous kimberlite discovered in Mauritania. Although only early results, they form a strong basis on which to proceed to the next stage of the exploration and drilling program.
The Maqteir licence is held by Ashton in joint venture with Dia Met Minerals of Canada.
PEP 38719, TARANAKI BASIN, NEW ZEALAND
Bligh Oil & Minerals NL advises that the Rimu B-1 appraisal well is currently drilling ahead at a depth of 4040 metres. The proposed total depth of the well has been revised to 4600 metres. To this point, the well has encountered fairly complex structural geology, typical of thrust belt features, and has encountered several hydrocarbon show zones, in reservoir rock of highly variable quality.
The commercial significance of these show zones, and their position in the geological column, will not be known in more detail until electric logs are run at total depth.
The Rimu B-1 is being drilled 2.4 kilometres south-southeast of the Rimu A-1 discovery well, which tested 1600 barrels of oil per day and 5 million cubic feet of gas per day from perforations in the Tariki formation at a depth of 3607-3647 metres. The well is designed to test a subordinate fault block on the southern end of the Rimu feature, to gain additional information on the areal extent of the Tariki pay sands, and the possible height of the pay column. It is defined as a long range step-out or appraisal well, which will also provide valuable information with respect to the major Kauri structure, to the south.
Electrometals announces the signing of an agreement with Western Metals Limited for the supply of a cobalt and copper recovery circuit at the Mt Gordon copper project in Queensland.
The Mount Gordon project currently utilises a modern solvent extraction/electrowinning (SX-EW) plant to produce cathode copper from the ore mined at Mt Gordon. However the plant is not able to recover the significant cobalt values which are now being lost into the tailings. Electrometals has designed an innovative circuit combining the EMEW technology with an ion exchange resin technology developed by IBC Advanced Technologies Inc in Salt Lake City, Utah. This circuit promises to recover the cobalt, as well as some copper and nickel (separately from the cobalt) in an efficient manner. At current cobalt prices, the capital costs of the project would be recovered in less than 18 months. Given that Mt Gordon is planned to continue in operation for more than 5 years, this represents an excellent rate of return.
For further information, click here
In reference to an article in Fiji media on the activities of Emperor Mines Limited's Fiji subsidiary, Emperor Gold Mining Company Ltd. The article makes certain allegations which should be clarified.
Two of the four sections, Philip Shaft and Decline which are the operation's lowest grade production sections, are currently performing less than plan, however these fluctuations are within normal levels experienced at the mine.
Planning indicates that these areas are expected to return positive results in the near term. Strong cash flows from the other two sections, Smith Shaft and R1, are providing the majority of the necessary funds to withstand this expected short-term variability.
If the Philip and Decline sections however do not return positive results in the short term, production from these sections will be suspended, and consequently job losses will regrettably be avoidable.
Historically during these periods of fluctuation, the company arranges short term financing, enabling non-performing sections to maintain full production until they return to their planned economic results.
Due to events related to the recent political activity in Fiji, the company's ability to source this short term financing has been made more difficult. Therefore, Emperor has instituted cost reduction initiatives, which will assist in maintaining full production.
On the 14th of July Croesus Mining NL announced that it had encountered significant gold yields at its "Giles Prospect" near Davyhurst. This mineralisation has been interpreted to sit on a major structure that can be traced for over 8 kilometres to the north of the prospect and on the 4th of August the Company reported additional high grade results at shallow depth from further reverse circulation (RC) drilling at Giles Prospect that has extended the mineralisation zone north and south. Of particular significance was an intercept of 19m @ 17.4 g/t that extends the high-grade zone a further 50 metres north than previously known.
In addition Croesus also reported in their August announcement that they had encountered extensive gold anomalism from rotary air blast (RAB) drilling in the Mulline area that is located 5 kilometres to the north of Giles Prospect. This area has returned substantial near surface and bedrock gold results from two separate zones and follow up RC is planned.
Both the Giles and Mulline prospects are situated on tenements where Greater Pacific hold a "Royalty Deed" that entitles it to a 6 % right for all production exceeding 100,000 ounces of gold.
UPDATE - DRILLING PROGRAM
GIPPSLAND
Lakes Oil advises that it has called for tenders to drill two exploration wells in PEP 157, onshore Gippsland Basin (formerly PEP 137), hopefully before Christmas. The wells are to be named "Trifon No. 1" and "Gangell No. 1". The proposed Trifon No. 1 well is located approximately 1.6 kilometres south of North Seaspray No. 3 which flowed gas to surface when drilled by Lakes Oil earlier this year. The Trifon Prospect is a "deeper" play than North Seaspray No. 3 and has resulted from a geological assessment of the three previous North Seaspray wells which has recently been undertaken by the Company.
The proposed Gangell No. 1 well, which will be drilled further south towards the coast, is a separate structure and is located approximately 2.5 kilometres from North Seaspray No. 3. This well also results from our re-interpretation of the data gathered from the wells previously drilled in the nearby vicinity.
The proposed wells are expected to cost approximately $1m each. Preliminary discussions have taken place with several major companies to ascertain whether they are interested in participating in the wells by sharing the costs. Discussions are continuing and no decision has yet been made as to the percentage interests which may be available, or indeed if a farm-out will eventually take place at all.
Both of the wells will test what Lakes Oil believes are large alluvial fans located at a depth of approximately 1,500 metres. Should these fans contain hydrocarbons, they have the potential to be of major significance to Lakes Oil and will represent a major breakthrough in energy supply for Victoria. As previously advised, the pipelines carrying both oil and gas from the offshore Bass Strait fields to the processing plant at Longford traverse or are close to both the Trifon and Gangell structures.
UNITED STATES
Lakes Oil also wishes to advise that it has entered into discussions with Victoria Petroleum N.L. whereby Lakes Oil may earn a 20% interest in Victoria’s "Eagle" prospect located in California, USA.
The Eagle Prospect is seismically interpreted to have the potential to contain up to 40 million barrels of oil and 88 billion cubic feet of gas, if oil and gas are present. The Eagle Prospect is considered to be relatively low risk, as a well drilled during the mid 1980’s on the southern edge of the Eagle Prospect flowed oil and gas at a cumulative rate of up to 325 barrels of oil and one million cubic feet of gas per day. The well planned for the Eagle Prospect will be offsetting this initial well where the discovery was made.
The Eagle well is scheduled for drilling during December 2000, following farmout.
SOUTH AUSTRALIA
Lakes Oil will also have an approximate 10% interest in an Otway Basin well named "McNamara Deep" which is scheduled to be drilled by Origin Energy during January/February 2001 in PEL 72, South Australia. The location of this well is close to Katnook infrastructure and will be awaited with interest. The maximum target size of the prospect is of the order of 115 BCF of gas, should gas be present.
In all, Lakes Oil expects to participate in the drilling of 4 wells between November 2000 and February 2001. For additional information, click here.
Mineral Commodities Ltd announces that settlement of the sale of the company's 49 per cent interest in the Mungari West Joint Venture (White Foil) to the Goldfields Limited Group has been finalized.
ASHMORE DIAMOND PROJECT
The company advises that the new heavy media separation (HMS) plant built by Bateman Limited in South Africa has arrived on site at Ashmore. Erection of the new plant and modifications to the existing washing circuit will take approximately 3 weeks to complete.
The plant is capable of increasing throughput to 15 tonnes of concentrate per hour to the HMS and the plant will run on a double shift basis. The maximum screen size has been increased from 10mm to 25mm allowing the capacity to recover larger diamonds than previously possible.
Earthmoving equipment has been on site for 3 weeks and the excavation of 68,000 tonnes of kimberlite from Ashmore 1, 2 and 4 pipes is on schedule for completion in late September. Material is currently being stockpiled for processing.
Near surface kimberlite extracted in 1999 has been passed through the existing plant and both reject material from the HMS and oversize from the trommel have been stockpiled for reprocessing through the new plant for further diamond recovery and audit. The objective for the 2000 field season is to examine kimberlite at the deeper levels, 25-30m from surface. Material processed to date has included heavily contaminated near surface ore blocks and some less contaminated material at deeper levels.
EXPLORATION
DRILLING PROGRAM
Drilling commenced this week with the first target being the Banksia gravity/EM Anomaly, some 3km south of the Ashmore Pipes. The rig will then move to the Seppelt Project area.
The total program is 4,000 metres of reverse circulation (RC) drilling and is expected to take 4 weeks to complete. Drill samples will be transported to Perth for processing and observation. Results will be reported as they become available.
Victoria Petroleum NL has been advised by Apache Energy Ltd, the Operator for the WA-261-P Joint Venture, that the Chamois-1 exploration well spudded at 1700 hours on 24th March 2000, and at 0600 hours 29 August 2000 WST is attempting to cure circulation losses at 1,356 metres.
The Chamois Prospect has been interpreted from 3D seismic to have potential to contain up to 29 million barrels of oil in multiple target Cretaceous, Jurassic and Triassic sands, if oil is present. Chamois-1 is interpreted to be on trend and updip to the Oryx-1 Triassic oil discovery 5 kilometres to the north of WA-261-P in the adjacent Apache Energy operated permit WA-209-P containing the 45 million barrel producing Stag Field 15 kilometres to the east.
Chamois-1 is programmed for a Total Depth of 1,529 metres, and is expected to take 6 days to drill from spud.
Operator, Apache Energy Ltd advised Chamois 1 participants that Chamois 1 at 0600 hours Tuesday, 29 August 2000 was at 1,356 metres (RT) and current activity is attempting to cure large circulation losses before resuming normal drilling and logging operations.
The Mungaroo Formation target has yet to be penetrated by the drilling. Analysis of the MWD logs late yesterday suggest zones of hydrocarbon interest are present in Jurassic Formation sands that warrant assessment by the RDT logging tool. If the RDT tool results are positive consideration would be given to sidetracking to core and to run liner and testing.
Woodside Petroleum Ltd, Operator of the WA-5-L Joint Venture, reports that the Castor-1 exploration well located in the Carnarvon Basin was spudded at 1900 hrs WST on 24 August 2000. On 29 August 2000 the operation was pulling out of hole to run casing. The hole depth was 2362 metres.
The Sedco 702 drill rig is drilling the well. The location is approximately 2.5 kilometres north of the Dixon Field. Water depth at the location is 89 metres and planned total depth is 3661 metres.
BHP has announced it had agreed to acquire a 4.95 per cent interest in the Genesis Field in the deep water Gulf of Mexico from Petrofina Delaware Inc, a subsidiary of TotalFinaElf S A.
BHP's share of gross recoverable reserves is estimated to be 6.7 million barrels of oil equivalent (boe). Further, under the terms of the agreement, BHP is entitled to net operating revenue from its equity interest from 1 January 2000. The Company's share of production is expected to average 3 000/boe per day for the first few years.
Genesis is located in Green Canyon Blocks 160, 161 and 205, approximately 137km (85 miles) from the Louisiana coast. Water depth at the platform is 790m (2600ft). Other joint venture participants in the field are Chevron (56.67% and operator) and Exxon Mobil (38.38%).
BHP has announced further results from the Atlantis 2 appraisal well confirming a major oil accumulation with a multi-hundred million barrel resource potential.
Atlantis 2, located in the Atwater Foldbelt ultra deepwater area of the Gulf of Mexico, encountered further oil bearing sands with net pay in excess of 61m (200ft). The oil zone, together with the oil-bearing sands reported in July this year, gives a total net pay of over 153m. (500ft).
INFORMATION UPDATE
TEUTONIC BORE PROJECT
* The Pre-Feasibility study into treating surface resources at TeutonicBore to produce copper, zinc, silver and gold is progressing well withpreliminary metallurgical flotation and Activox leach tests completed.Excellent recoveries of base and precious metals in concentrate productionand base metals in the Activox leach heach have been achieved. Thepreliminary operating cost and revenue balance is positive, with thecapital costs currently being assessed. A detailed analysis withrecommendations is nearing completion and should be available within 10days.
* Exploration air-core drilling south of the Teutonic Bore mine commencedlate in June 2000, delayed by un-seasonal wet weather. A total of 14,500metres were completed in 179 holes. A number of zones of anomalous goldand base metal mineralisation were intersected, below transportedoverburden, in areas of no or limited previous drilling. Follow upsampling is currently being completed to determine the significance ofthese results. Data is currently being reviewed and further results areawaited, prior to further drilling.
* Pilbara have been approached by a major mining company regarding apossible joint venture into base metal exploration on the Teutonic Boreproject. Pilbara will continue discussions.
* The above progress is in line with Pilbara's stated objectives to develop the surface resources at Teutonic Bore and to discover further economic base and precious metal mineralisation within Pilbara's projectarea.
The Chamois Prospect, a NW tilted upthrown fault block structure on the western side of a prominent NE trending regional fault, is being tested by a 1,529 metre deep well. Target reservoirs are the Lower Cretaceous M Australis Sandstone, specific sand members of the Lower Jurassic Athol Sandstone, and the middle Triassic, S Quadrifidus Sandstone of the Mungaroo Formation. Target reserves are up to 29 million barrels of oil recoverable in the Athol and Mungaroo objectives. From the 3D seismic a small hydrocarbon accumulation (gas?) is probable in the M Australis, but at this stage a potential resource estimate has not been made by the Operator. The Chamois Prospect is a look-a-like to the Oryx Prospect oil discovery made recently by Apache on the same regional fault structures some 10 kilometres to the northeast in WA-209-P.
The Chamois-1 exploration well spudded at 1700 hours on 24th March 2000, and at 0600 hours 28 August 2000 WST is drilling ahead at 1,033 metres.
The Chamois Prospect has been interpreted from 3D seismic to have potential to contain up to 29 million barrels of oil in multiple target Cretaceous, Jurassic and Triassic sands, if oil is present. Chamois-1 is interpreted to be on trend and updip to the Oryx-1 Triassic oil discovery 5 kilometres to the north of WA-261-P in the adjacent Apache Energy operated permit WA-209-P containing the 45 million barrel producing Stag Field 15 kilometres to the east.
Chamois-1 is programmed for a Total Depth of 1,529 metres, and is expected to take 6 days to drill from spud.
Well Name: Chamois-1
Basin: Offshore Carnarvon Basin
Permit: WA-261-P
Location: Latitude 20 deg 22 feet 35.80 inch S
Longitude 116 deg 01 feet 20.20 inch E
Proposed Total Depth: 1529m
Reservoir Targets: Sandstones of the Lower Cretaceous M.Australis, Jurassic Athol and Triassic Mungaroo Formation.
Time of Reporting: 0600 hrs WST
Current Well Depth: 1033.5 metres.
Hydrocarbon Indications: Hydrocarbon fluorescence has been observed over the M Australis and Jurassic Athol Formation targets, over the interval 772 - 965 metres.
Details are:
772.0 to 810.0m in SILTY CLAYSTONE and SILTSTONE: 10% to 45% dull to moderately bright yellowish green patchy to rarely pinpoint direct fluorescence, slow to moderate blooming cut, moderate white to pale green solvent fluorescence, moderately thick, moderately bright bluish yellow residual ring.
810.0 to 840.Om in GREENSAND and SANDSTONE: 5% to 10% dull greenish yellow pinpoint direct fluorescence, very slow bleeding cut, moderate translucent bluish white solvent fluorescence, very thin, moderately bright greenish white residual ring.
840.0 to 885.Om in SILTY CLAYSTONE: Trace to 5% moderately bright pinpoint to occasionally patchy greenish yellow direct fluorescence, very weak, slow blooming cut, dull translucent pale green solvent fluorescence, thin moderately bright greenish white residual ring.
885.0 to 900.0m in SANDSTONE (Trace to 20%): moderately bright to bright patchy to pinpoint yellowish white direct fluorescence, slow blooming cut, moderately bright bluish white solvent fluorescence, thin bright yellowish white residual ring.
900.0 to 965.0m in CALCAREOUS SILTSTONE, SILTY CLAYSTONE and minor SANDSTONE: Trace to 25%: moderately dull yellowish white to greenish yellow direct fluorescence, very slow, very weak bleeding cut, moderately dull translucent bluish white solvent fluorescence, moderately bright greenish yellow residual ring.
Note: Trace shows below 945.0 mRT are probably cavings.
Operations last period: Drill to 732m. Run and cement 244mm casing to
732m. Drill ahead in 216mm hole to 1033m.
Operations next 24 hours: Drill 216mm hole towards objective intra-Mungaroo sands at approximately 1479 metres. Victoria Petroleum NL considers the prospects for oil and gas exploration in WA-261-P are encouraging in view of the hydrocarbon discoveries in the immediate area and the prolific production from the Carnarvon Basin in general, Australia's premier petroleum province.
The price of Nickel is set to increase after ongoing labour problems for Falconbridge and falling inventories, despite possible record global production levels this year.
Early this month, 1260 workers at Falconbridge's Ontario Mine began a strike for higher pay and better working conditions and negotiations are still underway to resolve the dispute.
Last week, stocks fell to their lowest in 9 years to below 14,000 tonnes and on Friday, the price closed at $8375 a tonne for three month delivery. Production for 2000 is expected to increase to an all time record of 1.2 million tonnes and stainless steel, Nickel's main use, has been growing at an average of 5 per cent a year for the past 30 years.
Australia's nickel mining has risen 15 per cent annually since 1992 and will be further boosted by commencement of small sulphide mines in WA and the recovery of WMC's production.
Golden Star Resources Ltd, announces that it has signed a letter of intent with Barnato Exploration Limited and Western Areas Limited to acquire a 90% interest in the Prestea gold project in Ghana by purchasing a 90% interest in Barnex Prestea Limited. The Prestea property is located immediately south of the Bogoso mine, in which Golden Star acquired a 70% interest in September 1999.
Dioro wishes to advise that it has made an announcement toAustralian Stock Exchange Limited (ASX) on 15 August 2000 in respect of a claim over a portion of its Mungarri East joint venture tenements. The announcement is set out in the annexures to this Supplementary Prospectus and the full text is set out in this Supplementary Prospectus for the information of shareholders. The announcement made is as follows:
"Dioro has been informed that Goldfields Exploration Pty Ltd asserts claims both in its own name and in the name of Gilt Edge Mining NL over a portion of tenements the subject of the Mines and Resources Australia Pty Ltd and Dioro Joint Venture in the Lake Kopai Region to the south of Kundana.
Dioro emphasises that the asserted tenement claim does not extend to the Joint Venture Frog's Leg target located on mining lease 15/688, a granted tenement held by this Joint Venture.
The claims made by Goldfields Exploration are in relation to a portion of Mining Lease applications 15/1187-1188 applied for by Mines and Resources and Dioro.
Dioro has requested Mines and Resources Australia Pty Ltd to confirm the validity of the Joint Venture Tenements in the light of the asserted claims and is awaiting a reply from Mines and Resources.
CIRCUMPACIFIC ENERGY CORPORATION - LAMBERT GAS WELL, ALBERTA, CANADA
PROGRESS REPORT NO. 3
(Drillsearch Energy NL owns 55% of Circumpacific Energy Corporation.
Circumpacific is listed on CDNX Listing Code: CER)
Drillsearch Energy NL advises progress by its Canadian subsidiary, Circumpacific Energy Corporation, in drilling of the Lambert well, Alberta, Canada.
WELL NAME:
TLM Oiltech Lambert 5-4-52-22 W5M.
AREA LOCATION:
Lambert approximately 180 km west of Edmonton, Calgary, Canada
REPORT:
The operator, Talisman Energy Inc, reported at 4.00 pm, 24th August, 2000, (AEST), that the well had reached a depth of 3,275 metres. After surveys the well was drilling ahead.
Progress since the last report on 15th August, 2000, totalled 1,111 metres. The well was still ahead of the proposed drilling schedule and it is proposed that intermediate casing be set at around 3,700 metres.
PROPOSED TOTAL WELL DEPTH:
4,799 metres. Anticipating to terminate in the Cambrian system.
Giants Reef commenced an 18 month drilling programme on the 8th of August 2000 to test in the order of 24 geological and geophysical targets. Three targets have been drilled with one hole in each to date, namely Troy Shallows, Macedon and Thrace. The Company advises that very encouraging mineralisation was found at two of the three prospects drilled.
Percussion/diamond hole THRD002, drilled to test the Thrace magnetic anomaly, intersected a mineralised zone containing hematite, carbonate, chalchopyrite, quartz and chlorite. This zone contains an 11 metre interval assaying 16.5 grams gold per tonne commencing at a depth of 254 metres, including 2 metres at 90 grams per tonne. Five metres averaging 1.26% copper commencing at a depth of 253 metres was also intersected.
Geophysical data suggests that this intersection is adjacent to a larger and untested magnetic ironstone body. A down-hole magnetic survey will be carried out in a couplef of weeks to pin-point the main target for subsequent drilling.
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For further information, click here
Henry Walker Eltin (HWE) and BHP Iron Ore announced they have agreed to the terms to allow extension of the mining contract for BHP's Yandi mine, 120 km north of Newman, in Western Australia.
The companies described the 28 month extension as a "win-win" outcome that will deliver further cost savings and productivity improvements at the Yandi mining operations.
The agreement follows a six month process of negotiations and benchmarking by BHP and HWE to identify opportunities for cost reduction and efficiency gains at the mine. The revised arrangements will result in mining and processing rates that will see the Yandi operation remain globally competitive.
Operator, Apache Energy Ltd advised Chamois 1 participants that the Ron Tappmeyer arrived on location early Thursday and at 1700 hours WST Chamois 1 was spudded. At 0600 hours Friday, 25 August 2000 Chamois 1 was at 353 metres and preparing to run 340mm casing.
The Chamois Prospect, a NW tilted upthrown fault block structure on the western side of a prominent NE trending regional fault, will be tested by a 1,529 metre deep well. Target reservoirs are the Lower Cretaceous M Australis Sandstone, specific sand members of the Lower Jurassic Athol Sandstone, and the middle Triassic S Quadrifidus Sandstone of the Mungaroo Formation. Target reserves are up to 28.6 million barrels of oil recoverable in the Athol and Mungaroo objectives. From the 3D seismic a small hydrocarbon accumulation (gas?) is probable in the M Australis, but at this stage a potential resource estimate has not been made by the Operator. The Chamois Prospect is a look-a-like to the Oryx Prospect oil discovery made recently by Apache on the same regional fault structures some 10 kilometres to the northeast in WA-209-P.
2000 Preliminary Final Report
The Company has announced that for the year ended 30 June 2000 the Company made an operating profit after tax and abnormal items of $6.142 million and generated cash from operations of $2.583 million.
The Mineral Hill Mine in NSW produced 32,179 ounces of gold and 785 tonnes of copper in concentrates with a unit cash cost of gold production at $264/ounce after copper credits. Total resources at the Mineral Hill Mine are currently 915,600 tonnes at 4.1g/t gold and 0.4% copper containing 121,000 ounces of gold and 3,660 tonnes of copper. A new decline has now commenced into the high grade Ashes deposit and drilling and development continue to extend the mine resources.
Highlights
Victoria Petroleum has been advised by Apache Energy Ltd, the Operator for the WA-261-P Joint Venture, that the Chamois-1 exploration well spudded at 1700 hours on 24th March 2000, and at 0600 hours 25 August 2000 WST is preparing to run 13(3/8)" surface casing at 353 metres.
The Chamois Prospect has been interpreted from 3D seismic to have potential to contain up to 29 million barrels of oil in multiple target Cretaceous, Jurassic and Triassic sands, if oil is present. Chamois-1 is interpreted to be on trend and updip to the Oryx-1 Triassic oil discovery 5 kilometres to the north of WA-261-P in the adjacent Apache Energy operated permit WA-209-P containing the 45 million barrel producing Stag Field 15 kilometres to the east.
Chamois-1 is programmed for a Total Depth of 1,529 metres, and is expected to take 6 days to drill.
Positive results from exploration drilling and pre feasibility studies have led to a decision to complete a final feasibility study aimed at commencing mining and treatment operations at the Davyhurst Gold project located 120km north west of Kalgoorlie.
Mineral resource estimates and mining studies for the Giles, Golden Eagle and Lights of Israel deposits at Davyhurst indicate that 157,000 ounces of gold can be produced at a cash cost of $260 per ounce. This is projected to generate a $34 million operating surplus in the first year of production at Davyhurst.
Reverse Circulation drilling at the Golden Eagle deposit has intersected the main ore shoot 100m along strike from the previous known position. Intercepts of 8m @ 9.32g/t and 11m @ 2.49g/t gold confirm the good continuity and grade of this ore system.
This down plunge extension offers excellent scope for profitable mine development via underground methods from the base of the proposed open pit. RC drilling is currently underway at Golden Eagle.
The Golden Eagle deposit has a diluted Indicated resource of 743,000 tonnes @ 2.9g/t gold (68,800 ounces). Infill and stepout drilling has produced the following excellent results:
GERC 127 8m @ 9.32 g/t gold from 139m
GERC 128 11m @ 2.49 g/t gold from 138m
GERC 129 5m @ 14.01 g/t gold from 61m
GERC 130 14m @ 7.67 g/t gold from 102m
RAB drilling at Mulline, six kilometres north of the Giles deposit, has intersected significant gold mineralisation along the interpreted extension of the Giles shear.
Hole MERB 182 reported 9m @ 27.2g/t gold from 37m in weathered basalt. RAB lines 100m to the north and south of this hole also reported anomalous results above 1g/t gold. RC and further RAB drilling has commenced to test the potential of this area for a Giles style deposit.
The RAB drilling also identified significant laterite mineralisation at surface with grades up to 1.85g/t gold reported from a depth of 1m providing good potential for the delineation of a substantial laterite gold resource.
Golden Valley Mines NL advises that it has now received the remaining results (holes GTO13b and GTO14) from its recent drilling programme carried out on the Tumpangpitu Prospect, forming part of the Bukit Hijau Joint Venture, Indonesia.
The 6 month work programme completed in conjunction with and funded by Placer Dome Inc culminated in the drilling of 10 holes for a total of 2,134.9m. Encouraging results were obtained from 5 holes, including the most recently completed holes, GTO13b and GTO14.
Holes GT010, GT012 and GT014 are contained within a mineralized horizon, to date varying in thickness from 10 to approximately 50m, and interpreted to be up to 1,000m long. The indicated area of mineralisation has the potential for a substantial oxide resource down to 150m to 200m below surface. There is potential for additional oxide resources around GT011, which has an interpreted strike length of approx 500m, and also around GT005 (65.0m @ 2.22g/t Au, 14.5g/t Ag) which was drilled last year.
Maintop No 02, a Gas Exploration Well, situated approximately 625 metres north-east of Maintop No 01, latitude 25deg 40min 26.62sec south, longitude 148deg 22min 30.01 sec east, was spudded at 20:00 hours on August 09, 2000 245mm surface casing was at 207 metre RT, 178mm intermediate casing was set at 1405.5 metres RT at 06:00 hours today the rig was air/mist drilling ahead at 1715 metres RT in the 156mm hole section. Progress for the week was 607 metres.
1. DRILLING OPERATIONS
1.1 ONSHORE UK: SALTFLEETBY-5 (ROC: 100%)
Since ROC released its last Drilling Activity Update to ASX (18 August 2000) the Saltfleetby-5 well has drilled 284 metres (37 metres true vertical depth (TVD)) through the main Westphalian gas reservoir to a depth of 2,725 metres (2,304 metres TVD) where 5 inch liner is being set prior to drilling ahead into the targeted Namurian section, the top of which is expected at 2,785 metres (2,308 metres TVD).
If warranted, a 300 metre horizontal section will be drilled within the Namurian in order to evaluate the gas potential of this sequence which had some gas shows in Saltfleetby-3, albeit associated with apparently high (log-derived) water saturations. If, the Namurian, which has never been tested at Saltfleetby, is water-bearing the well will be completed as a gas producer in the main Westphalian reservoir.
A comparison of the main Westphalian gas reservoir in the currently drilling Saltfleetby-5 and its equivalent in Saltfleetby-3, approximately 400 metres to the southeast, indicates comparable reservoir quality, gross reservoir thickness and net gas pay.
1.2 UK NORTH SEA: THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)
Since the last Drilling Activity Update the Kyle 29/2C-13 appraisal well (also known as the Kyle Northeast well) has drilled to a depth of 3,155 metres (2,114 metres TVDSS) in the upper part of the Chalk, after recovering 5.2 metres of core near the top of that formation.
1.3 EAST GOBI BASIN, MONGOLIA: IRWES-1 (ROC: 100%)
Irwes-1 started drilling on Wednesday 23 August at a location approximately 28 kms southwest of the railhead at Zuunbayan where ROC's field support and oil storage facilities are located. The well, which will take approximately two to three weeks to drill, will test a prospect with an areal extent of 5 sq km/1,200 acres and a robust vertical closure of 200 metres/650 feet.
Irwes-1 will test parts of the Mesozoic sequence which have never before been drilled within defined closure in the East Gobi Basin. In fact, for all practical purposes, Irwes-1 can be regarded as the first modern exploration well to be drilled in Southern Mongolia and, as such, it is considered to be a high risk wildcat well.
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 24/08/2000
QUEENSLAND
WELL: Challum 17 DW1/DW2
TYPE: SWQ Unit Gas Development
LOCATION: PL 59, Aquitaine B Block, 1.5km SE of Challum 16, 0.7km NNE of Challum 8, and 20km W of the Ballera Gas Centre.
STATUS AT 24/08/200 0600 HOURS: Challum 17DW1/DW2 has been cased and suspended as a future Permian gas producer. The Lower Lateral section (DW2) reached a total measured depth of 3017m, with 197m progress for the week. The Upper Lateral section (DW1) reached a total measured depth of 3052m, with no progress for the week. The rig was released on 22/08/00.
Challum 17DW is designed as a high angle well with two sub-horizontal lateral wellbores designed to drain separate reservoirs in the Permian age Toolachee Formation. Challum 17 DW2 is designated the lower lateral wellbore while Challum 17 DW1 is designated the upper lateral wellbore.
PLANNED TOTAL DEPTH: DW1 3029m MD
DW2 3052m MD
WELL: Roti West 1
TYPE: SWQ Unit Gas Development
LOCATION: ATP 259, Naccowlah Block, 2.3km W of Roti 1, 4.1km NE of Windigo 1 and 30km E of the Ballera Gas Centre.
STATUS AT 24/08/2000 0600 HOURS: Conducting drill stem testing operations. The well reached a total depth of 2533m, with 18m progress for the week. An extra 18m of production rathole was drilled during the week.
PLANNED TOTAL DEPTH: 2576m
WELL: Sarah 1
TYPE: Gas Exploration
LOCATION: ATP 259, Total 66 Block, 7km WNW of Epsilon 6, 7km N of Moon 1, and some 115km SW of the Ballera Gas Centre.
STATUS AT 24/08/2000 0600 HOURS: Drilling ahead. Current depth and progress for the week is 852m. The well spudded on 23/8/00.
PLANNED TOTAL DEPTH: 2478m
WELL: Maintop 2
TYPE: Gas Appraisal
LOCATION: ATP 337P, Denison Trough, QLD, 0.625km SW of Maintop 1 and some 140km N of Roma.
STATUS AT 24/08/2000 0600 HOURS: Airmist drilling ahead at 1715m with 607m progress for the week. Four Flow Tests have been conducted over the Riverstone Sandstone and Reids Dome through a 9.525mm (3/8") surface choke. Flow Test 1 (1406m-1548m) failed to flow gas, Flow Test 2 (1406m-1605m) flowed gas at 1897 cubic meters per day (67000 cubic feet per day), Flow Test 3 (1406m-1653m) flowed gas at 1700 cubic meters per day (60000 cubic feet per day) and Flow Test 4 (1406m-1710m) flowed gas at 1614 cubic meters per day (57000 cubic feet per day).
PLANNED TOTAL DEPTH: 2083m
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 24/08/2000
SOUTH AUSTRALIA
WELL: Moomba 117DW
TYPE: Oil Development
LOCATION: PPL 7, Moomba Block, 0.1 km N of Moomba 24, 0.8km NNE of Moomba 24, 0.8km NNE of Moomba 104, and some 6km S of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Moomba 117DW has been cased and suspended as a future Jurassic age Hutton Sandstone oil producer.
The well reached a total measured depth of 2388m, with no progress for the week. The rig was released on 18/08/2000 and moved to Moomba 119DW, a PPL 7 high angle oil exploration well.
Moomba 117DW is a high angle oil development well designed to drain reserves from the Jurassic aged Hutton Sandstone oil pool, recently discovered by Moomba 104 oil exploration well.
PLANNED TOTAL DEPTH: 2414m
WELL: Moomba 119DW
TYPE: Oil Exploration
LOCATION: PPL7, Moomba Block, 0.17km WNW of Moomba 2, 0.96km SSW of Moomba 41, and some 7.5km SSE of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Drilling ahead. Current measured depth and progress for the week is 1135m. The well spudded on 21/08/00.
Moomba 119DW is a high angle oil exploration well targeting the Jurassic aged Hutton Sandstone.
PLANNED TOTAL DEPTH: 2324m
WELL: Moomba 122
TYPE: Gas Development
LOCATION: PPL 7, Moomba Block, 0.9km ESE of Moomba 110, 1.2km
NE of Moomba 110, 1.2km NE of Moomba 50, and
approx 12km N of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Rigging down. Moomba 122 has been cased and suspended as a future Permian gas producer. The well reached a total depth of 2641m, with 629m progress for the week. The rig was released on 23/8/00, and will move to Moomba 123, a PPL 7 gas development well.
PLANNED TOTAL DEPTH: 2646m
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 24/08/2000
SOUTH AUSTRALIA
WELL: Big Lake 67
TYPE: Gas Development
LOCATION: PPL 11, Moomba Block, 0.2km NNW of Big Lake 5, 0.7km NE of Big Lake 52, and 17km SE of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Drilling ahead. Current depth and progress for the week is 1798m. The well spudded on 18/08/2000.
PLANNED TOTAL DEPTH: 2968m
WELL: Meranji 22
TYPE: Gas Development
LOCATION: PPL 35, Merrimelia-Innamincka Block, 0.4km ESE of Meranji 1, 0.6km SW of Meranji 17, and some 30km NNW of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Meranji 22 has been cased and suspended as a future Permian gas producer. The well reached a total depth of 3021m, with no progress for the week. The rig was released on 17/08/2000 and moved to Meranji 23, a PPL 35 gas development well.
PLANNED TOTAL DEPTH: 3010m
WELL: Meranji 23
TYPE: Gas Development
LOCATION: PPL 35, Merrimelia-Innamincka Block, 0.51km NW of Meranji 18, 0.6km NNE of Meranji 15, and some 30km NNW of the Moomba Gas Plant.
STATUS AT 24/08/2000 0600 HOURS: Drilling ahead. Current depth and progress for the week is 1398m. The well spudded on 20/08/2000.
PLANNED TOTAL DEPTH: 2969m
Tap Oil N.L. provides the following update on the Carolina-1 exploration well which spudded on 19 August 2000.
LOCATION
The well is located in EP 403, 33 kilometres northeast of Varanus Island at latitude 20(deg)27'31.50"S and longitude 115(deg)50'27.88"E.
PROGRESS
The well has completed drilling to total depth of 1,674 metres. Significant hydrocarbon shows were encountered and the well was plugged and abandoned as a dry hole.
TAP COMMENT
Although Carolina-1 and the previously drilled Clementine-1 were unsuccessful, these were the first modern wells drilled in the EP 403 permit. A major Cretaceous channel system was confirmed by the drilling of these two wells and further work will now be carried out to assess the relevance of this to other prospects and leads in the permit.
Aquila Resources Limited announces results from the recent shallow reverse circulation drilling ("RC") program at the company's Enterprise Project. Significantly, RC drilling has identified a new zone of high grade mineralization which has been identified over a strike length of 100 metres and is open at depth and to the South.
The recently completed drilling program establishes the initial phase of exploration to test previously identified gold mineralised zones. A total of 3,242 metres of RC drilling was completed testing various structural targets within the Enterprise Project.
The drill results are very encouraging, confirming that significant shallow zones of gold mineralization are present along strike and down dip from the known mineralised zones.
AGREEMENT SIGNED
Further to our Australian Stock Exchange release of 26 July, 2000, Amity Oil NL is pleased to announce that the Thrace Joint Venture Agreement has now been signed by its subsidiary, Amity Oil and Turkish Petroleum A0.
JOINT VENTURE DRILLING PROGRAMME
Two wells are scheduled to test two separate four way dip closures, 15 kilometres apart, both with seismic amplitude anomalies indicative of the presence of gas.
Both prospects are rated highly, due to the combination of structural integrity, amplitude anomalies and the close proximity of gasfields producing from the same formation, at similar depths, in comparable structures.
Read access and site preparation for the first well, Gocerler-1, is in progress and the well is anticipated to spud on or about 10 September. Proposed total depth is 1900 metres, with a trouble-free drilling time of 18 days.
The second well, Velimese-1, will follow immediately after an anticipated 10 day rig move.
NEWSLETTER - AUGUST 2000
HIGHLIGHTS:
For full details, click here
DRILLING & PRODUCTION TESTING REPORT
FOR THE WEEK ENDING 23/08/2000
Country : New Zealand
Block Area: PML 381012
or Prospect
Well Name : MB-7
or Location
Objective : Deviated development well primarily targeting Maui B D1.10L oil reservoir, with multiple secondary oil & gas potential.
Current Status : * Drilled in 6" hole from 3572m to 3765m.
* Set 4(1/2)" liner at 3765m.
* Current operation @ 0600 hrs 24th August, preparing to run 4(1/2)" completion.
Country : New Zealand
Block Area: PML381012
or Prospect
Well Name : MB-6
or Location
Objective : Horizontal development well in the Maui B D1.10 oil reservoir.
Current Status : * Suspended well with stuck 4(1/2)" liner.
* The Joint Venture is considering whether to proceed with further MB-6 drilling following the compeltion of MB-7.
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 23/08/2000
Country : Canada
Block Area: Riverbend
Well Name : 6-21-36-9 W4M
Objective : A Development well testing Viking Gas
Current Status : * Spud 15/08/2000
* Cased for Viking gas
* Rig Released: 18/08/2000
Block Area: Battle River Well Name : A14-15-47-25 W3M
Objective : A Development well testing Sparky Oil
Current Status : * Spud: 15/08/2000
* Cased for Sparky Oil
* Rig Released: 17/08/2000
Block Area: Silverdale
Well Name : A7-26-48-26 W3M
Objective : A Development well testing Sparky Oil
Current Status : * Spud: 19/08/2000
* Run abandonment plugs
* Rig Released: 21/08/2000
Block Area: Riverbend
Well Name : 6-27-36-9 W4M
Objective : A Development well testing Colony Gas
Current Status : * Spud: 18/08/2000
* Cased for Colony Gas
* Rig Released: 21/08/2000
Block Area: Castor
Well Name : 10B-15-37-14 W4M Objective : An Exploration well testing Detrital Gas
Current Status : * Spud: 21/08/2000
* Prepare to run logs
Block Area: Banshaw
Well Name : 10-33-41-22 W4M
Objective : An Development well testing Basal Belly River Gas
Current Status : * Spud: 21/08/2000
* Drilling ahead
Herald Resources Limited announces that it has entered into an agreement with Diadem Resources Ltd of Canada, and Pt Andriant Trading & Engineering of Indonesia on a granted Contract of Work (CoW), and two initialled applications for CoW's on Belitung Island. These projects, which contain the old Kelapa Kampit hard rock tin mine, adjoin Herald's existing Batu Besi project area, where Herald is also exploring for base metals in its own right. A total area of approximately 119,500 Ha is involved.
For further information, click here
Quarterly Activities Report for qtr ended 31/07/00
Lion has been listed for 3 years. During this time the investment strategy for the company (14 investments made) and the expectations of the resource market (3 years of weakness) have proceeded to plan. Lion is now almost fully invested and ideally positioned to benefit from the slow upward turn for small mining companies that is in progress.
The one exception to plan is the 25% discount of share price to portfolio valuation (NTA), which must and will be addressed.
Lion anticipates strong growth from 6 or more potential new mines and excitement from active drilling in 14 separate projects.
EAGM North Mara gold resource increased by 0.5m oz to 4.1m oz
CSM 2 new manganese discoveries at Woodie Woodie
Austminex $5m new investment by Lion - company plans to reopen Benambra zinc-copper mine in Victoria
Gold exploration Drilling successes for MPI, Indophil, Spinifex and Gallery which may all lead to significant new resources
Sedimentary 0.4m oz gold resource announced at Cracow: potential mine
Preliminary Final Report
MINERAL RESOURCE AND ORE RESERVES(1) UPDATE
* Newcrest Mining has completed its annual review of Mineral Resources and Ore Reserves with significant increases delineated i both categories compared with the previous statement calculated at 30 June 1999.
- Gold Mineral Resources have increased by 20% to 33 Moz in situ.
- Gold Ore Reserves have increased by 58% to 11.4 Moz in situ.
* The major increase in resources were at the Telfer Surface Extension Project, the Telfer underground and the Boddington Gold Mine Expansion.
* The significant increase in the reserve position is attributable to the Ridgeway Project and the Boddington Expansion project.
(1) Mineral Resource and Ore Reserves are reported in accordance with the September 1999 edition of the Joint Ore Reserves Committee Code. Ore Reserves are a sub-set of Mineral Resources. External audit and internal audits are conducted on resource and reserves estimates on completion of the estimation process. Further detail will be provided within the forthcoming Annual Report
Timbercorp Limited announces a further important expansion of agribusiness investment focus with an entry into the almond industry.
Timbercorp expects to establish some 4,000 hectares (10,000 acres) of almond orchards in Victoria over the next five years under a joint arrangement. Almonds Australia Pty Ltd, a 75% owned subsidiary of Timbercorp, will manage the projects. The balance of 25% is owned by Almond Investments Australia Pty Ltd, whose associated company, Almond Orchards Australia Limited successfully raised funds to establish a 500 acre almond project in Robinvale, Victoria in respect of the financial year ended 30 June 2000.
Woodside Energy, operator of the North West Shelf Venture, has welcomed the announcement on greenhouse policy made Wednesday, 23 August by Senator Minchin.
The Liquefied Natural Gas (LNG) industry is one of Australia's largest export earners and is aiming to capture new sales contracts in Asia, which could see the industry treble in size over the next ten years.
The Directors of Crest Magnesium NL advise that K-UTEC of Germany have produced synthetic carnalite from magnesite taken from the Crest orebody at Tasmania. Approximately 50 Kg of synthetic carnalite has been produced.
The synthetic carnalite is being transported to UTI/VAMI who will then convert the carnalite to magnesium metal.
Mineral Commodities recently indicated its intention to conduct exploration activities in the Mount Read Volcanics unit in Tasmania's highly prospective west coast region, in reference to the farm-in agreement on EL19/99 (Miners Ridge) the tenement holder is Maiden Meadows Pastoral Company Pty Ltd, a private company based in Tasmania.
As part of this farm-in agreement, our company will be conducting a diamond drilling programme commencing in October/November subject to drill rig availability and regulatory approvals.
Following a period of torrential rain on Sunday 20 August 2000, a series of landslides have occurred in the Kutubu area of the Southern Highlands Province of Papua New Guinea.
The landslides blocked the access road between Moro and the Kutubu oil field and a fly-over of the area also revealed that a further landslide had occurred approximately 5 kilometers north-west of the Agogo processing facility. This slide has covered approximately 100 metres of the Moran Oil Field flow line with between 1 to 1.5 metres of soil and vegetation. The oil wells that are serviced by the flow line were remotely shut-in as soon as the slide was detected and have since been manually shut-in when access to the sites became possible. Pressure and flow measurement data indicates that there has been no loss of oil into the environment.
Following a period of heavy rainfall in the PNG Highlands, several landslides have been reported in the Kutubu and Moran oil field areas.
One of these landslides has affected the production flowline between the Moran oil field and the Agogo treatment facilities, covering approximately 100 metres of the line and moving around 500 metres of the pipe. This has resulted in a precautionary shut in of production from the Moran field, as inspection of the line takes place.
Visual inspection and pressure information indicates that no breaches of the line have taken place. Planning for short and long term repairs to the line has commenced, along with mobilisation of personnel and equipment to affect repairs as soon as possible. Further review of the landslip and pipeline is necessary prior to estimating the time required to restore production from the Moran field.
Prior to the shut in, Moran Extended Well Test had been performing well, with production rates from Moran 4 averaging over 13,500 BOPD.
Production operations at Kutubu and Gobe are continuing as normal and have not been affected by landslide activity.
Rand Mining NL announce further high grade gold intersections from diamond and RC drilling on the southern extension of the Raleigh deposit.
HIGHLIGHTS
7 metres @ 16.1 gt 8 metres @ 14.3 gt
4 metres @ 33.5 gt 8 metres @ 16 gt
3 metres @ 33.5 gt 3 metres @ 15.8 gt
* High-grade intersections such as 1.82m at 52.9g/t gold, 1.24m 167.0g/t and 0.85m at 207g/t gold demonstrate the continuity and increased width of the Raleigh deposit. An ongoing diamond drilling program has confirmed that the laminated high-grade quartz vein continues below the 90 metres level of previously reported RC drilling to at least 240 metres below surface (see long section figure) and remains open at depth and along strike for up to 2.2km to the southern boundary of the tenement.
* These new drill results also extend the surface strike length of the Raleigh vein to a total of 640 metres, 280 metres of which lies on the East Kundana Joint Venture tenements where Goldfields can earn a 51% interest from Rand Mining NL and Tribune Resources NL. RAB and RC drilling is in progress to extend the Strzelecki structure, which hosts the Raleigh deposit.
* The eleven diamond drill intercepts announced today range from 0.39 metre to 1.82 metres (representing an average vein true width of 0.9 to 1 metre) and in grade from 20.9 to 207.0g/t gold. This is a significant increase on the average true width of 0.31 metre for the previously announced northern resource portion of Raleigh (300,000 tones grading 18.2g/t gold for 176,000 contained ounces) and 0.34 metre currently mined at the Goldfields Ltd 100% owned Strzelecki underground operation on the same structure 2.5 kilometres to the north. The Strzelecki Main Vein, from which 365,000 ounces of gold has been produced up to 30 June 2000, has remaining resources of 283,000 ounces and is still open at depth below 644 metres.
Climax Mining is farming-out two of its properties in central-west New South Wales and one in South Australia. The NSW properties, at Wyanga and Taroona, are strategically located within a highly productive Ordovician metallogenic province. The province includes several operating mines and undeveloped deposits that have multimillion ounce gold reserves or resources. The South Australian property, at Wiawera, is favourably located within an under-explored terrain that has potential for iron formation hosted-gold deposits and diamonds.
Ashton Mining Limited has released the latest results from the deep drilling program at the Argyle diamond mine which provides further evidence of the significant potential of the underground resource earlier identified at Argyle.
Diamond Hole DH319, drilled in the Central Vent area of the AK1 pipe, returned a high-grade intersection of lamproite grading 4.7 carats per tonne over a distance of 392 metres. Additionally, this hole confirmed that the Central Vent is bigger than initially modelled.
Bligh Oil & Minerals NL advises that the Rimu B-1 appraisal well is currently drilling ahead at a depth of 3,770 metres. The proposed total depth of the well has been revised from 3,750 to 4,100 metres.
The Rimu B-1 well is being drilled 2.4 kilometres south-southeast of the Rimu A-1 discovery well, which tested 1,600 barrels of oil and 5 million cubic feet a day of gas perforations in the Tariki formation, at a depth of 3,607-47 metres. The well is designed to test a subordinate fault block on the Rimu structure, to gain additional information on the areal extent of the Tariki sands, and the possible height of the pay column on the feature. It is defined as a long range step-out, or appraisal well.
Icon Oil NL announces that it has successfully acquired working interests in the Bayou Choctaw area near Baton Rouge in Louisiana from Bayou Choctaw Inc and Warren Operating Company Inc ranging from 17% to 80%. The settlement of the Purchase and Sale Agreement places Icon on the path of becoming a significant oil and gas producer, with ‘bankable’ oil reserves in the United States estimated to be worth more than $AUD 30 million net to Icon over a six year period.
The value of additional reserves indicated, but unproven exceed $AUD 500 million. Icon’s current share of production is a mere 25 BOPD but this will increase dramatically as the production drilling programme gets under way. Icon has now invested in excess of $AUD 2.5 million in this venture which was negotiated when oil and gas prices were at all time low levels in 1998.
For further information, click here
Kings Minerals NL announces encouraging progress after recent exploration in the new Offshore South African Concession 3b where a highly prospective area has been established at a depth of 12 meters. On the 14th, 15th and 16th of August a total of 164 only, 20kg bags of gravel were recovered. Processing of these bags at Port Nolloth recovered a total of 22 diamonds for 13.61 carats of which 5 stones weighed 2.13, 2.17, 1.68, 1.57 and 1.29 carats each. All large stones are of high gemstone quality and should attract very good prices.
Five weeks after the listing of Australian copper producer Matrix Metals Limited the Company advises it has commenced ore production from the reopened Dobbyn pit at the Mt Cuthbert operation. The Company also reports a host of other production and development activities are underway.
Ore from the Dobbyn pit was delivered to the newly constructed leach pad last week and leaching of the first additional copper production is scheduled for next week.
Preparations are well under way for the opening up of two other new pits at the Mt Cuthbert site scheduled progressively to the end of October.
In the aftermath of the Kyoto Summit on greenhouse gas emissions, the timing is especially appropriate for Queensland Gas Company to be undertaking a project that, if successful, will see strong and sustainable growth in the supply of a new source of "clean" energy to Queensland. Coalbed methane (CBM) will provide this energy and it is QGCs principal goal to be among the leaders in this emerging industry.
The May 2000 release of the Queensland Government's Energy Policy gives an impetus to QGC, through its requirement that by 2005 a total of 13% of all electricity sold by retailers in Queensland must be generated from natural gas; and CBM is just another form of natural gas.
CBM occurs within coal, but in other respects is the same as natural gas. We at QGC believe CBM can be produced in sufficient volumes to see it become, for many consumers, a viable yet "greenhouse friendly" alternative to the burning of coal - and this can be achieved without mining the coal. The coal remains in place, perhaps to be mined by future generations when techniques have been perfected, that will see it converted to power, without causing excessive pollution. CBM has been produced and used as part of the natural gas supply in the United States for some twenty years. While it is true that early exploration efforts in the United States were boosted by significant tax incentives, this is not the case today. Modern drilling and completion techniques have improved production to such an extent that CBM now makes up approximately 7% of the United States' total natural gas production. In Australia the CBM industry is still in its infancy but there is potential for rapid growth in CBM here. Two of QGCs Founders, Bob Bell and Dick Groves, recognised its potential in Queensland and were rewarded with the discovery of the Peat Field in 1995. This gas field has proved to be commercial and is being developed by Oil Company of Australia to fulfil the first long-term CBM supply contract in Australia.
For further details, click here
Tap Oil provides the following clarification on its announcement made on Tuesday morning, 22 August 2000.
We are advised that there has been some confusion as to the reservoir quality in the originally encountered 91 metre hydrocarbon column and the deepened section of the well below that column and advise as follows:
1. Linda-1 has intersected a hydrocarbon column of 91 metres between the depths of 2,659 and 2,750 metres. The reservoir quality over this entire 91 metre column is interpreted as being excellent. The top 53 metres was flow tested with excellent results as reported on 15 August 2000. A coring programme was carried out below the flow tested 53 metres to the bottom of the 91 metre column. Preliminary observations of the retrieved core indicate excellent reservoir quality (and hydrocarbon fluorescence) is present also in the bottom part of the 91 metre column.
2. The well was then deepened a further 100 metres below the originally encountered 91 metre column to 2,850 seeking additional sands. In this 100 metre interval, below the originally encountered 91 metre column, good oil shows were reported but good quality reservoir was not encountered.
Tap Oil provides the following update on the Linda-1 exploration well.
LOCATION
The well is located in TL/l, 17.5 kilometres north-east of Varanus Island at latitude 200degrees 32'54.13"S and longitude 115degrees 41'48.36"E.
PROGRESS
DEEPENED HOLE
Since the last announcement on 15 August 2000, the well was drilled ahead to 2,850 metres with the objective of determining if there are additional deeper hydrocarbon bearing sands. Good/excellent oil shows were encountered in this deepened section however, reservoir quality sands were not encountered. Unfortunately, on logging this section, the tools became stuck in the drillhole and current operations comprise of fishing for these tools.
CORE ANALYSIS
Special analysis of the core obtained from the upper sands in this well has commenced. Preliminary inspection of the core indicates good oil (and/or condensate?) fluorescence in the lower part of the originally intersected 91 metre column and excellent reservoir quality. The preliminary core analysis should be complete early next week.
FORWARD PROGRAMME
Because of the condition of the hole, evidenced by tools becoming stuck, and the lack of reservoir at the deeper level, on completing the fishing operations, this well will be finalised as a discovery well with another step out well being planned immediately.
TAP COMMENT
The Linda-1 well has been an excellent discovery being the first well drilled on a new play concept in the Biggada sandstones. Numerous follow up structures exist. The nature of the entire 91 metro hydrocarbon column is yet to be determined. Whilst a flow test of the upper 53 metres of the 91 metre column has flowed condensate rich gas, there is still evidence from log data, seismic and initial core observations of the possibility of an oil log. Core observations indicate that the reservoir is of high porosity and permeability with good fluorescence in the lower part of the intersected hydrocarbon column. Hence, whether this is entirely a condensate rich gas accumulation or a gas cap on an oil leg is still unknown.
Due to the absence of reservoir at the deeper level and engineering difficulties, this well will now be finalised as a discovery and the Linda-2 appraisal well will be drilled next. Linda-2 will have the objective of determining the down-dip extent of this discovery and acquiring pressure data and fluid samples to determine the nature entire hydrocarbon column as intersected in Linda-1. It will further evaluate the possible development of deeper reservoir sands prognosed at a down-dip location. Linda-2 is expected to be drilled within the next four weeks, as soon as regulatory approvals are acquired.
Queensland Gas, with a $12 million bank balance, plans to pump gas the environmentally friendly way eliminating any need for the upheaval of coal from the land. At the Company's Surat Basin wells, they estimate yielding 10 million cubic feet of methane gas per day by 2003.
The Company, which lists on Friday, has immediate access to CS Energy's planned pipeline to Santo's adjacent Scotia project and has budgeted $10 million on commencement of the project.
For company details, click here
Half Yearly Report
SUMMARY
Consolidated Rutile Limited profit for the first half of 2000 was $4.1 million - a reduction of $4.3 million on earnings for the equivalent period in 1999.
However, the Company is well placed to improve its performance in the second half of 2000.
The principal factor in profit reduction for the period under review was the cost of bringing the newly commissioned Yarraman dredge mine into full production.
Productivity is improving as the dredge reaches design throughput and moves into higher-grade ore reserves. Increased output is expected to meet a rising demand for the Company's major products in the six months to December 31.
Directors have declared a one cent interim dividend for the half year to June 30. The dividend - payable on November 10, 2000 - will be franked at the 34% rate.
Pan Australian announces that the Participation Agreement for the Puthep Copper Project has been executed with Padaeng Industry Public Company Limited of Thailand.
Under the Agreement, Pan Australian has the right to earn a 51% flow-through interest in the Puthep Project in north-east Thailand by completing a feasibility study to a bankable standard. In addition, there are options for Pan Australian to acquire a further 19% interest for a total of 70%.
Titan Resources NL reports continuing success with field trials of its BioHeap(TM) nickel sulphide heap leach process development.
Nickel recovery into solution has risen to 55 per cent as at August 18, 2000, improving from the previously reported figure of 31.6 per cent on 24 July, 2000. Recovery into solution is rising a approximately 5 per cent per week towards a target level of 70 per cent.
The kinetics of the oxidation and dissolution process are continuing at a rate in excess of 200 per cent of predictions with no slowing of this rate so far, even at current levels of recovery.
Rio Tinto has advised AKD that the drilling programme to test extensions of the Wonarah phosphate deposit has commenced.
Approximately 30 RC drillholes (1500m) are planned to test for nearer surface phosphate ore south of the Wonarah deposit. The holes will be drilled on a rough 2.5 x 5 km grid.
Geological mapping and rock chip sampling will also be undertaken and several discrete geophysical anomalies located away from the drill sites will also be field checked.
As the Company reported in its report for the quarter ended 30 June 2000, JSC Madneuli, a state owned Georgian corporation with a 50% interest in Quartzite Limited has made a number of claims against the Company and its activities in Georgia. The principal claims have been to the effect that:
* at the sole instigation of a Madneuli representative, Quartzite purported to issue a document which purported to guarantee the debts of Madneuli;
* BMO's representatives on the Quartzite Board were not validly appointed: and
* BMO's interest in Quartzite was not validly registered.
Madneuli's legal claims against the Company have been brought in the Bolnisi District Court. That Court has made orders which exclude BMO from the decision making process of Quartzite, and from giving directions on behalf of Quartzite. The effect of the orders is that BMO is currently excluded from control of Quartzite.
Based on its legal advice, the Company expects to be restored to operational control and to full legal confirmation of its 50% proprietary interest in Quartzite in the immediate future. The Company sought a halt to trading in its securities in the anticipation that the appeals against the Bolnisi District Court decisions would be successful by the close of business on Friday 18
August 2000, enabling the Company to make a more complete disclosure of events. Due to delays in the legal processes in Georgia, caused in part by northern hemisphere summer holidays in Georgia, these decisions by the Regional Court were not handed down on Friday. Rulings are expected imminently and will be announced as soon as the Company has received them.
Recent research has revealed that the gold price's fall was broken by local gold miners reducing hedging by almost 2 million ounces over the past six months. This represents cutbacks for the second quarter in a row, with hedging levels at 42.1 million ounces at the end of the June quarter, a decrease of 157,000 ounces.
Twelve of Australia's biggest producers significantly reduced hedging by 1.14 million ounces, including Normandy, WMC and Sons of Gwalia. Contracts for an extra 980,000 ounces were, however, created by nine other producers including Goldfields (340,000 ounces), Delta (205,000 ounces) and New Hampton Goldfields (167,000).
Mineral Commodities has applied for a tenement covering a 53 square kilometre region located between Roseberry and Hellyer as well as farming into a granted tenement EL19/99 located immediately south of Queenstown.
The terms of the farm-in with a privately owned company include a minimum expenditure commitment of $125,000 with a right to earn an 80 per cent interest in the tenement for an expenditure of $700,000.
As part of this commitment Mineral Commodities will shortly commence a drilling programme on the Harris Reward prospect area where host rocks are believed suitable for Mt Lyell style porphyry copper/gold mineralisation.
Tap Oil NL advises that the Carolina-1 exploration well spudded at 10.30 hours on 19 August 2000.
LOCATION
The well is located in EP 403, 33 kilometres northeast of Varanus Island at latitude 20deg27'31.50"S and longitude 115deg50'27.88"E.
PROGRESS
As at 6.00am today, the well has drilled ahead to 872 metres measured depth and will continue to drill ahead to the planned total depth of 1,684 metres measured depth.
TAP COMMENT
The Carolina prospect is an interpreted lower Cretaceous aged incised canyon on the eastern margin of the Barrow Sub-Basin underlying the Muderong Shale. This stratigraphic play is interpreted to be sealed laterally to the north and south by the Jurassic Dingo Claystone, and to the east by fault seal against the Flinders Fault. A seismic amplitude is coincident with the prospect. The Carolina-1 well will be drilled to test lower Cretaceous Mardie Greensand and Birdrong sandstones. The well is expected to take 5 days to reach its projected total depth of 1,684 metres measured depth. Should it be successful, mean reserves are estimated at 34 mmbbls.
FARMOUT
Apache has farmed into EP 403 to acquire a 65% equity from Tap leaving Tap with 35% interest. As a result of this farmin, Tap will not be required to contribute to the dry hole drilling cost of this well.
Dioro and Striker have entered into a joint venture whereby Striker can acquire an 80% interest in Dioro's Exploration Licences 80/882, 1580, 1581 and 1583 referred to as the Casuarina Project.
The licences cover an area of 710 square kilometres and are located to the east of the Striker's Ashmore Diamond Project in the North Kimberley Kimberlite Province.
The joint venture project area has reported an alluvial spread of diamonds and indicator minerals and regionally extends Striker's strategic holding in the North Kimberley Kimberlite Province.
The diamond discoveries by Striker over recent years and in particular the Ashmore Diamond Project together with other known diamond-bearing kimberlite within Striker's tenements, confirms the Province is amongst the most prospective and advanced diamond provinces in Australia.
The principal terms of the agreement are:-
DAIRI PROJECT NORTH SUMATRA
DRILLING UPDATE TO AUGUST 17, 2000
SOPOKOMIL ZINC-LEAD PROSPECT
Hole 29D on line 9800, and targeting the Main Ore Horizon (MOH) at 10200E, intersected intercalated massive sulphide and shales, typical of the Upper Ore Horizon (UOH), between 191.60 - 197.45m.
The MOH massive sulphide was intersected at 205.56 - 209.48m where it is truncated by a footwall fault. Two thin sulphide horizons occur beneath the fault but the hole eventually ended in massive carbonate footwall at 268.50m.
Hole SOP30D collared at 9700N, 5080E and targeting mineralisation at 5050E has intersected the UOH between 133.89 - 139.45m as intercalated sulphide and shale, while the MOH has been intersected between 149.80 - 171.20m. This is the thickest intersection obtained to date and is typical massive sulphide which appears to be high Zn grade.
This further 100m of strike extension is regarded as being highly significant in terms of adding to the resource in the Anjing Hitam sector. For additional information, click here.
The Company made the following announcement regarding:
* entering into of an Option Agreement to acquire the Annex Saxendrift Property, South Africa;
* entering into of an Option Agreement to acquire the Douglas Fel No Property, South Africa;
* decision to commence mining at its Pniel Estate Diamond Project, South Africa;
* securing of additional funding by way of a $6 million Convertible Note.
and advising on the negotiations to acquire the property known as Klipdam.
1. DRILLING OPERATIONS
1.1 SALTFLEETBY-5 (ROC: 100%)
The Saltfleetby-5 well has drilled into the top of the main Westphalian reservoir sands and casing has been run and cemented to a depth of 2,441 metres (2,267 metres TVD). After drilling through the main Westphalian reservoir, the well is scheduled to drill to a total depth of 3,200 metres including, if warranted, a 300 metre horizontal section designed to test the gas potential of the underlying Namurian which has not been tested to date.
1.2 THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)
The Kyle 29/2C-13 appraisal well (also known as the Kyle Northeast well) is at a depth of 9,202 ft in the top of the Chalk, the main reservoir target, and 9 5/8 inch casing has been run and cemented. Pipe Conveyed logging has been completed over the Palaeocene sands, immediately above the Chalk, and encouraging hydrocarbon indications were reported. The next operation will be to drill out of the 9(5/8) inch casing shoe, into the Chalk before taking a core of the potential Chalk reservoir.
A mining lease covering the Above heap leach gold project in Ghana has been granted to ShieldTel subsidiary, Abore Mining Company Limited ("AMC").
AMC, which is owned 90% ShieldTel and 10% by the Government of Ghana, is in the process of developing and financing the Abore project. Production from Abore is expected to be approximately 130,000 ounces over two years, with upside potential from existing sulphide resources and exploration targets on Abore and surrounding concessions. Mining is planned to commence in November, with gold production scheduled to commence in February 2001. For additional information, click here.
Tap Oil NL provides the following update on Clementine-1 exploration well spudded on 13 August 2000.
LOCATION
The well is located in EP 403, 35 kilometres northeast of Varanus Island at latitude 20deg 28'23.11"S and longitude 115deg 51'21.03"E.
PROGRESS
The Clementine-1 well has been drilled to a total depth of 1,434 metres measured depth.
No shows were encountered and the well will be plugged and abandoned as a dry hole.
TAP COMMENT
The Clementine prospect is a north-south trending tilted fault block that relied on closure on the southern flank from a southwest trending Lower Cretaceous canyon. It is interpreted by Tap that the lack of trapping of hydrocarbons is due to an inadequate sealing quality of this particular canyon.
FARMOUT
Apache has farmed into EP 403 to acquire a 65% equity from Tap leaving Tap with 35%. As a result of this farmin, Tap was not required to contribute to the dry hole drilling cost of this well or will be required to for the next well in the block namely, Carolina-1.
Tap Oil NL advises that it has entered into an agreement with a wholly owned subsidiary of Japan Energy Development Co Ltd ("JED") whereby JED's subsidiary will earn a 20% interest in EP 137 by contributing to the cost of the upcoming onshore three well appraisal programme.
JED is a large Japanese energy company having a primary focus on developing and commercialising gas fields.
The three well programme planned to commence on 1 October 2000 has been designed to determine the viability of commercial gas from the Mardie gas field. Specifically, the appraisal well programme comprises of three vertical wells engineered to measure gas flow rates and establish reservoir parameters from the Mardie Greensand reservoir.
BHP and Esso Australia Resources has begun delivery of Bass Strait gas to New South Wales customers via the Eastern Gas Pipeline.
NSW Premier Bob Carr opened the 795km Duke Energy International pipeline enabling Bass Strait gas to be delivered to regional and metropolitan centres in New South Wales and Victoria.
CLEAR BRANCH FIELD, JACKSON PARISH, NORTH LOUISIANA
Logging of the Cotton Valley zone in the Terry Ewing No.1 well between 11,940 and 12,002 feet has confirmed a net gas pay interval of 38 feet, bringing aggregate net pay in the well to 115 feet.
Logging indicates the Cotton Valley section to be forty two (42) feet structurally higher than the O'Quinn offset well with no apparent water level. The O'Quinn well recorded an initial production rate of 5 million cubic feet of gas per day without any stimulation. The Cotton Valley formation is likely to require fracture stimulation.
Gas sales contracts are being negotiated with SEGO at close to Henry Hub pricing approximating US$4.40 per thousand cubic feet. Pipeline planning is in progress. A completion rig will arrive on location early September for completion and testing of the well. The drilling rig has been released and is scheduled to return in two months to commence development drilling.
LAKE LONG FIELD, LAFOURCHE PARISH, SOUTH LOUISIANA
STATE LEASE 328 NO.6 WELL
Following an upsurge in energy prices, FAR has agreed to a proposal by Kriti Exploration Inc, the operator, to increase cash flow, add reserves and accelerate production, from long life wells in the Lake Long field.
The SL328 No.6 well currently produces 52 barrels of oil per day from the "F" Sand. There are five zones behind pipe and it is proposed to add the "C" Sand perforations thru tubing from 9,180 to 9,198 feet and commingle production with the "F" Sand. The "C" Sand has produced both oil and gas in a down-dip Amoco well.
NW SEGMENT PROSPECT
Drilling of the NW Segment Prospect at Lake Long is now scheduled for late October. The prospect will require the drilling of a deviated well to test thirteen Miocene zones, eleven of which are productive in a major field fault block immediately south and adjacent to the NW Segment Fault Block. The southern block has produced 25 million barrels of oil.
Plans call for the test well to be drilled from a barge rig to a true vertical depth of 12,000 feet. The prospect is supported by a modern grid of 3D seismic. A well drilled in 1949 intersected 15 feet of gas bearing sands at the 5,500-foot Sand interval which were not produced at the time due to low gas prices. The field is supported by existing infrastructure connected to Columbia Gas Pipeline System.
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 16/08/2000
Country : Canada
Block Area: St Albert
or Prospect
Well Name : 103/12-25-53-26 W4M
or Location
Objective : A Development well testing Basal Belly River / Glauconite Gas
Current Status : * Spud: 02/08/2000
* Cased for Belly River Gas
* Rig Released: 11/08/2000
Block Area: Veteran North
or Prospect
Well Name : 16-25-35-9 W4M
or Location
Objective : A Development well testing Viking Oil
Current Status : * Spud: 08/08/2000
* Cased for Viking Oil
* Rig Released: 11/08/2000
Block Area: Brownfield
or Prospect
Well Name : 6-21-38-14 W4M
or Location
Objective : A Development well testing Viking Gas
Current Status : * Spud: 08/08/2000
* Cased for Viking Gas
* Rig Released: 11/08/2000
Block Area: Neilburg South
or Prospect
Well Name : A8-8-45-25 W3M
or Location
Objective : An Exploration well testing Sparky Oil
Current Status : * Spud: 08/08/2000
* Ran abandonment plugs
* Rig Released: 13/08/2000
Block Area: St Albert
or Prospect
Well Name : 13-2-54-26 W4M
or Location
Objective : An Exploration well testing Belly River Gas
Current Status : * Spud: 12/08/2000
* Cased for Belly River Gas
* Rig Released: 15/08/2000
Block Area: Riverbend
or Prospect
Well Name : 6-21-36-9 W4M
or Location
Objective : A Development well testing Viking Gas
Current Status : * Spud: 15/08/2000
* Run surface casing
Block Area: Nelson Creek
or Prospect
Well Name : 2-8-36-12 W4M
or Location
Objective : A Development well testing Viking Gas
Current Status : * Spud: 12/08/2000
* Cased for Viking Oil
* Rig Released: 15/08/2000
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 16/08/2000
Country : New Zealand
Block Area: PML 381012
or Prospect
Well Name : MB-7
or Location
Objective : Deviated development well primarily targeting Maui B D1.10L oil reservoir, with multiple secondary oil & gas potential.
Current Status : * Drilled in 8(1/2) inch hole from 3322m to 3579m * Set 7 inch liner at 3572m
* Current operation @ 0600hrs 17th August, drilling out 7 inch liner shoe, and preparing to drill ahead in 6 inch hole.
Block Area: PML 381012
or Prospect
Well Name : MB-6
or Location
Objective : Horizontal development well in the Maui B D1.10 oil reservoir
Current Status : * Suspended well with stuck 4 1/2 inch liner pending evaluation of side-track or completion options while operations proceed on MB-7.
Molopo Australia NL announce the results of initial well testing from the LW-L2 and LW-L3 wells, in the Liulin Coalbed Methane Gas licence, Shanxi Province, China.
Results from both wells yielded excellent indications of permeabilities favourable for commercial CBM production.
The permeability estimated from initial production testing of Seam 8 the primary coalbed methane target, in the recently completed LW-L3 well is 30 millidarcies. The estimated permeability in the LW-L2 well is 8.5 millidarcies.
Fracture stimulation operations on the three recently drilled wells, and cavitation on the existing well HW-LIB, are expected to commence on August 25th, 2000. At the completion of the fraccing operations, the wells will be put on long-term production test.
Santos has announced that oil production from the Stag field located in the Carnarvon Basin has increased over the last ten days following recent field development activity. Over this period gross production exceeded 30,000 barrels of oil per day (bopd) on five occasions and achieved a maximum rate of 31,500 bopd.
This production rate represents an increase on the rate of 22,790 bopd (gross) achieved during the 2000 second quarter, which was also a record for the field.
The increase in production results from the drilling of Stag 21H and the sidetrack of Stag 15H.
Signs are appearing that Asia is once again strengthening, with gold jewellery in high demand in the region. Thailand is leading the way with a 69 per cent second quarter increase on last year's corresponding quarter.
Malaysia's demand for jewellery increased 22 per cent, with overall gold imports at 4 tonnes and Taiwan was up 13 per cent with imports at 34 tonnes; however, figures are still down on pre-crisis levels and with the present weaker stock market, have tailed off since June.
In contrast, the Thai baht's stability against the US dollar has seen demand for gold as a currency hedge decrease by 72 per cent; however, in Taiwan, a government issue of 80,000 gold coins celebrating the inauguration of President Chen Shui-bian helped increase investment to 10 tonnes, an increase of 67 per cent on last year.
Continuing strong markets include Greater China, namely Hong Kong and China, and globally, investment demand for gold in the first half of the year was 187.8 tonnes.
ACTIVITIES REPORT
FOR THE QUARTER ENDED 30 JUNE 2000
HIGHLIGHTS
* Ramu, Special Mining Lease issued.
* Kainantu, high-grade gold interesections continue.
RAMU PROJECT
(HIG 68.5% Interest)
PERMITTING
* All project approvals have been received.
* The Special Mining Lease (SML) was issued following the execution of the Mining Development Contract (MDC).
* The Ramu MDC features two significant provisions:
- The State guarantees fiscal stability for a period of 10 years after commercial production commences.
- The project is structured as mining & manufacturing operation, reducing the effective project tax rate from 35% to 27%.
JOINT VENTURE STRUCTURE
* Issue of SML triggers State's right to purchase 30% contributing equity in Ramu. Acquisition price will be 30% of project expenditure to date.
* Equity structure, should the State's exercise its option, will be Highlands Pacific 47.95%, Orogen 22.05%, State 25% and Landowners 5%.
EQUITY PARTICIPATION
* The process of securing an additional equity participant will now be stepped up, with a number of major mining companies showing interest.
ENGINEERING
* JV partners Kvaerner Metals and Baulderstone Hornibrook finalised outstanding components of Phase 1 A FEED program.
* Program finalised definition of process flow sheet, equipment lists, design parameters, process control philosophies and project implementation strategies.
KAINANTU JOINT VENTURE
(HIG 100%, NM&M earning 50%)
IRUMAFIMPA STRUCTURE
* Bonanza grades continue to be intersected:
- 5m @92.3 g/t gold
Incl. 2m @ 227.7 g/t gold
- 5m 12.7 g/t gold
Incl. 2m @ 25.3 g/t gold
* 2,060m of a planned 6,000m diamond drill program completed.
* Drilling confirms mineralisation is continuous over strike and depth.
* Mineralisation remains open in all directions.
The National Executive Council has endorsed the 'Project Document', which includes the Mining Development Contract, the Special Mining Lease and the Memorandum of Agreement, for the Ramu Nickel/Cobalt project in the Madang Province.
Announcing the decision Wednesday 17 August, Prime Minister Sir Mekere Morauta said Cabinet's approval paved the way for the developers, Ramu Nickel Ltd and Orogen Minerals, to finalise all necessary project requirements.
Sir Mekere said Ramu would be the first resources project to receive a guarantee of stability under the Government's new fiscal stability policy announced in Parliament recently.
Australian International Carbon Ltd advises that it has ceased its activated carbon business. The company will quit its leased premises at Muchea, Western Australia on August 31, 2000 and has negotiated the sale of its plant and equipment at that site.
Australian Worldwide Exploration Limited announces on behalf of its 95% owned subsidiary Omega Oil NL that the Ladbroke Grove gas field is now in full production, selling gas to the nearby Ladbroke Grove Power Station.
In July the Ladbroke Grove gas field sold approximately 587 terrajoules of gas (18.9 TJ/day) to the power station as it approached full operation. This gas production performance exceeded budget forecasts by 28%.
QUARTERLY EXPLORATION ACTIVITIES REPORT TO 30 JUNE 2000
EXPLORATION:
Kimberlite stockpiled at BK16 in Botswana for processing.
Processing plant installed at BK16.
Agreement with Kimberley Diamond Company for further exploration at Ellendale.
Completion of detailed agreement with Misima Mines Limited for development of Woodlark Island gold deposit.
INDUSTRIAL:
Finalisation of purchase of majority interest in Recom Engineering.
Purchase of Allmakes Compressors in NSW.
CORPORATE:
Share buy-back continues from operational cashflow.
Anzoil, as Operator of the Hanoi Basin Production Sharing Contract in North Vietnam, announces that the permit has been formally extended for two years.
This gives the Joint Venture of Anzoil and Maurel & Prom continued tenure over the PSC until July 2002, during which time the Joint Venture is obliged to drill one well. The renewal was also accompanied by a 70% relinquishment of the remaining PSC area. All of the crucial oil and gas prospects both onshore and offshore have been retained.
Ausdrill Ltd and Henry Walker Eltin Group Ltd jointly announce that African Mining Services has concluded the year ended June 30, 2000 with work in hand estimated at US$340.0M, 4% higher than the corresponding figure of US$325M as at 31 December 1999.
The increase in the order book is attributable to:
* a 13 month extension at AMS's contract at the Damang gold mine, estimated value US$25.0M.
* An increase in required volumes at the Geita gold mine in Tanzania, which has seen the initial value of work increase from US$116.0M to an estimated US$200.0M.
Ausdrill and Henry Walker Eltin are optimistic about the prospects for ongoing growth in contract mining in Africa, and of securing new business on the continent over the medium term.
A previously unknown layer of higher grade gravels has been located at the Monte Christo diamond mine at Bingara, NSW. The layer is half to two metres thick where exposed, and was found by excavating below a "false bottom" of basement like clays. These newly discovered gravels are several metres below a diamond bearing possible volcanic ash layer reported previously. The gravels dip into the hill at about ten degrees, and mining will continue in that direction.
380 tonnes of screened gravels have yielded 798 gem quality diamonds weighing a total of 98.3 carats. The grade was 26 carats per hundred tonnes, much higher than obtained previously at the mine. The largest stone recovered was a 1.1 carat white, together with another two stones of about one carat in weight.
Mincor Resources NL announces that the drilling programme at its Geita Gold Project (Imweru Prospecting Licence, Mincor earning 100%) in the Lake Victoria Goldfields of Tanzania has been successfully completed.
Mincor completed 1751m of reverse air blast (RAB) drilling, 696m of air core and 484m of reverse circulation (RC) drilling. A total of 57 holes were drilled. The drilling method was varied to obtain optimal performance in varying ground conditions and to best test each target. The total number of metres drilled equates, in cost terms, to approximately 4000m of RAB as was budgeted.
The drill holes were targeted on areas of known surface gold mineralisation where these were highlighted by geological, conceptual and ground magnetic studies.
Sipa announces that the Company has been notified by Outokumpu Zinc Australia Limited that they are commencing a Feasibility Study on the Sulphur Springs Zinc-Copper deposit within Sipa's Panorama Project in the Pilbara Region of Western Australia.
The Feasibility Study is budgeted at $3.9 million and is planned in two stages:
* STAGE 1: costing $1.4 million is due for completion by 3l March 200l; and
* STAGE 2: costing $2.5 million is due for completion by 7 December 2001. (we have been informed that Stage 2 is contingent on the success of Stage 1)
HIGHLIGHTS
ASHBURTON GOLD PROJECTS
* The Mount Olympus Goldmine at Paraburdoo produced Sipa 14,184 ounces of gold for the Quarter at a Year to Date cash cost of A$238/ounce.
* Sipa paid off the Mount Olympus Goldmine development loan in June 2000 and the Company is entirely debt free.
* The Paraburdoo Gold Project should contribute some A$15 million free cash flow to Sipa over the next 18 months.
* Newcrest, as Managers of the Limerick Hill and Ashburton (Regional) Joint Ventures, have completed an RC drilling program at three prospects near Mount Olympus and a RAB/Aircore program at several targets in the Regional Joint Venture. Results are awaited.
SIPA - GAIA JOINT VENTURE
* The Sipa - Gaia - Rio Tinto Exploration Venture is progressing well with targets being generated in several states.
* Four major project areas have so far emerged and tenement applications have been made over some 6,500 square kilometres in WA and Northeast Queensland.
Significantly increased oil production and sales, higher oil prices, and a profit of A$104.2 million (after tax) from the divestment of 10% of the Greater Sunrise gas and condensate fields, enabled Woodside to achieve a record consolidated operating profit of A$436.5 million after income tax for the first half of 2000.
Dioro has been informed that Goldfields Exploration Pty Ltd asserts claims both in its own name and in the name of Gilt Edge Mining NL over a portion of tenements the subject of the Mines and Resources Australia Pty Ltd and Dioro Joint Venture in the Lake Kopai Region to the south of Kundana.
Dioro emphasises that the asserted tenement claim does not extend to the Joint Ventures Frog's Leg target located on mining lease 15/688, a granted tenement held by this Joint Venture.
The claims made by Goldfields Exploration are in relation to a portion of Mining Lease applications 15/1187-1188 applied for by Mines and Resources and Dioro.
Dioro has requested Mines and Resources Australia Pty Ltd to confirm the validity of the Joint Venture Tenements in the light of the asserted claims and is awaiting a reply from Mines and Resources.
It is premature to determine whether:
(a) the asserted claims have any basis at law;
(b) the asserted claims are material in relation to the affairs of Dioro.
Drillsearch Energy NL advises progress by its Canadian subsidiary, Circumpacific Energy Corporation, in drilling of the Lambert well, Alberta, Canada.
WELL NAME:
TLM Oiltech Lambert 5-4-52-22 W5M
AREA LOCATION:
Lambert approximately 180 km west of Edmonton, Calgary, Canada
REPORT:
The operator, Talisman Energy Inc, reported that at 4.00 pm 14th August, 2000. (AEST), it had Completed the air drilling phase of the well to a depth of 2.164 metres. The well had been reamed out and was preparing to drill ahead using conventional mud based drilling.
Progress since the last report on 9th August, 2000, totalled 1,164 metres and the well was ahead of schedule.
PROPOSED TOTAL WELL DEPTH:
4,799 metres. Anticipating to terminate in the Cambrian system.
FULL YEAR RESULTS
1999 / 2000 FINANCIAL YEAR
* Earnings before interest and tax increased to $46.3 million.
* Profit after tax increased by 58.9 per cent to $34.7 million post abnormals.
* Profit after tax increased by 2.7 per cent to $22.4 million pre abnormals.
* An 8.0 cent fully franked final dividend declared, increasing the total dividend to 49.0 cents, which included a special dividend of 31 cents fully franked paid in December 1999.
* Sales revenue increased by 5.1 per cent to $181.8 million.
* Total sales of material of 4,514 tonnes U(3)O(8).
* Three new sales contracts negotiated.
* Ranger production (drummed) of 4,144 tonnes U(3)O(8).
Fletcher Challenge Energy has further strengthened its position as a major regional exploration and production company with the signing of an agreement with the Brisbane based Australian listed oil and gas explorer, Petroz NL.
Under the agreement Fletcher Challenge Energy will be given an option to acquire shares, take a further placement and underwrite a 3:5 rights issue to acquire a minimum 33.7% shareholding in Petroz for an estimated cost of approximately NZ$80 million.
Petroz advises that, following completion of remedial work on the Elang-2 and Kakatua North-1 wells, total production from the Elang, Kakatua and Kakatua North Oil Fields is approximately 20,000 barrels of oil per day (BOPD).
Problems were experienced in Elang-2 and Kakatua North-1 with the control umbilicals between the wellheads and the Floating Production Storage and Offloading vessel (FPSO). The wells were shut-in for approximately 5 and 3 months respectively.
As reported in Petroz' ASX Announcement of 6 March 2000, a sidetrack well was successfully drilled from the Elang-1 well resulting in a substantial increase in production rate.
Original Recoverable 2P Reserves have been assessed by Petroz to be 21.5 million barrels (MMbbl), an increase of 5.8 MMbbl. As of 30 June 2000, the fields have produced 16.3 MMbbl. Remaining 2P reserves are forecast to be 5.2 MMbbl (Petroz share 0.8 MMbbl), with production expected to continue into the first half of 2002.
Fourth Quarter Activities Report
OVERVIEW
BAYU-UNDAN PROJECT
* Detailed engineering design work is on schedule
* All major contracts for production facilities will be awarded by August
* Gas marketing progress
ELANG/KATUA/KAKATUA NORTH OIL FIELDS
* Production 27% higher than previous quarter
* Remedial work on Elang-2 and Kakatua North-1
EXPLORATION
* Two Carnarvon Basin and one Italian exploration wells scheduled for Sept Quarter.
FINANCE & CORPORATE
* CBA Facility of $31.0m in place.
* Cash balance of $ 5.7m and zero debt as at 30 June 2000
* Revenue totalled $ 20.4m
* Divestment of UK exploration blocks for $340,000
* Share placement agreement reached with Fletcher Challenge Energy
Sedimentary Holdings NL advises that the joint venture with Newcrest Mining Limited at Cracow in Queensland, has agreed to a budget for 2000/01 of $5.3m.
The budget incorporates a program of some 35,000 metres of drilling along the Klondyke–Roses Pride and White Hope–Golden Plateau–Golden Mile lines of lode, and completion of the pre-feasibility study for the Royal Shoot. The program is seeking further high-grade shoots to complement the recently announced 390,000 ounce inferred resource delineated at the Royal Shoot.
Early drilling is expected to focus on encouraging indications around Klondyke North and at Roses Pride. The program will include both discovery and delineation drilling.
For further information, click here
Tap Oil NL provides the following update on the Linda-1 exploration well.
LOCATION
The well is located in TL/1, 17.5 kilometres north-east of Varanus Island at latitude 20 deg 32 feet 54.13 inches S and longitude 115 deg 41 feet 48.36 inches E.
PROGRESS
Since the last announcement on 10 August 2000, the upper 53 metres of the Biggada sandstone reservoir has been further appraised with a maximum flow rate test as detailed herein.
Following completion of the testing of this upper zone, the well bore was determined to be in good condition, and the forward programme was modified as a result the well was drilled ahead to a depth of 2,755 metres measured depth (i.e. the bottom of the 91 metre column), by full coring without the drilling of a second sidetrack hole as originally proposed. This coring has now been completed and the core has been sent for laboratory analysis. An attempt was made to run wireline tools to take fluid samples and acquire pressure data over the entire Biggada reservoir. However, due to difficulties in running the wireline into the hole it was considered necessary to first ream
the hole with a drilling assembly. This will now be done, and the opportunity will be taken to deepen the hole to investigate the possibility of a deeper sandstone reservoir.
HIGH RATE FLOW TEST
Since the last report the flow test of the upper part of the Biggada reservoir was opened up for high rate flow test. As the well cleaned up, the flow rate and condensate yield increased. A maximum flow of 31.5 mmcfg/d was recorded on a 72/64 inch choke and a well head pressure of 1,329 psia. This was associated with a condensate flow of 1,470 bbls/day, which equates to a condensate yield of 46.7 bbls/mmcf.
FORWARD PROGRAMME
Following completion of a VSP (vertical seismic profile) survey to enable the well data to be tied to the seismic interpretation, it is planned that the well will be drilled ahead to investigate the possibility of a deeper sandstone reservoir interval. Following this, another attempt at acquiring pressure data and fluid samples will be undertaken. The core analysis should be available within a few days.
Woodside Petroleum Ltd, Operator of the WA-33-P Joint Venture, reports that on 15 August the Brecknock South-1 exploration well was at a depth of 2995 metres and the present operation is drilling the 8(1/2) inch hole section.
The location is approximately 390 kilometres north-north-west of Broome.
Robert T Boyd, President and CEO of Ashton Mining of Canada Inc (AMCI) reports microdiamond results from the second sample collected from kimberlite K252 on the Buffalo Hills property in Alberta during March 2000. As reported on July 19, 2000, analysis of the initial 65.5 kg sample returned 101 microdiamonds and five macrodiamonds.
The second sample was recovered from one vertical and one inclined core hole and weighed 41.6 kg. It contained 34 microdiamonds and three macrodiamonds. A microdiamond is a stone greater than 0.1 mm and less than 0.5 mm in all dimensions while a macrodiamond is greater than 0.5 mm in at least one dimension. One of the macrodiamonds from this sample exceeds 0.5 mm in two dimensions. All diamonds were recovered by caustic dissolution at the AMCI laboratory in North Vancouver.
Australian Worldwide Exploration Limited has completed the sale of three of its non-core exploration interests in the onshore Perth Basin, Western Australia for a consideration of A$1.23 million to Ausam Resources NL. The consideration comprised A$0.75 million in cash with the balance in Ausam shares.
AWE, through its wholly owned subsidiaries, sold the following interests to Ausam:
PERMIT AWE EQUITY (%)
EP 321 25.00
EP 407 25.00
EP 414 29.745
In unrelated transactions, AWE has also agreed to assign its interests in EP 359 and EP 325 in the Carnarvon Basin, Western Australia to Victoria Petroleum NL for a nominal consideration, and has received government approval for the relinquishment of EP 323.
Bligh Oil & Minerals NL advises that the Rimu B-1 appraisal well has been drilled to a depth of 3,560 metres. The current operation is running wireline logs prior to a decision to drill deeper.
The Rimu B-1 well is being drilled 2.4 kilometres south-southeast of the Rimu A-1 discovery well, which tested 1,600 barrels of oil and 5 million cubic feet a day of gas perforations in the Tariki formation, at a depth of 3,607-47 metres. The well is designed to test a subordinate fault block on the Rimu structure, to gain additional information on the areal extent of the Tariki sands, and the possible height of the pay column on the feature. It is defined as a long range step-out, or appraisal well. It is anticipated that the well will be drilled to a depth of 3,750 metres and that drilling will take approximately 24 days.
The Terry Ewing No 1 well intersected the deeper Cotton Valley zone between 11,940 and 12,002 feet. The gross interval of 62 feet contained good gas shows. The well will be logged tomorrow to determine the net pay over this interval.
The Cotton Valley section was intersected forty (40) feet structurally higher than the O'Quinn offset well with a better drilling break and stronger gas shows suggesting better porosity. The O'Quinn well recorded an initial production rate of 5 million cubic feet of gas per day without any stimulation.
Earlier logging of the well confirmed a number of gas pays higher in the wellbore within the Hosston Sands.
Fourth Quarter Activities
HIGHLIGHTS
ARDLETHAN TIN PROJECT
There was major progress on the Ardlethan Tin Project, including:-
* a further 85 hole drilling programme has defined increased resources, grade and extensions of the Yithan ore body;
* a significant portion of the resources have now been classified as proved and probable reserves;
* a mining plan has been developed to optimise revenue, cash flow and profits over the first three years of operations;
* it is now estimated that a positive cash flow of about $10 million will be generated over the first three years of full operations (compared with $6 million previously estimated), before interest and tax;
* proposals have been received from three smelters to treat tin concentrate from the Ardlethan project. Tin price in Australian dollars has risen since the Feasibility Study;
* financing discussions are well advanced with several groups;
* the final Environmental Impact Statement has been lodged and support is expected from statutory bodies and the local community; and
* work has been proceeding rapidly on pilot plant test work, water studies and other technical aspects of the project.
In summary, negotiations are progressing well with all the key groups for developing the Ardlethan Tin Project. The target is to achieve full operations within the next twelve months.
CORPORATE
The Company had cash on hand of $592,676 at 30 June 2000, which is sufficient to progress the next stages of seeking approvals,commencing design and test work, which are planned for the next quarter.
Contact Energy has announced the sale of power plant from its decommissioned Stratford power station to a US-based buyer for around $23 million.
Federation Resources NL advise that the following announcement has been released on the Canadian Venture Exchange by it's subsidiary Vanteck (VRB) Technology Corp.
* New Tripartite agreement with TSI/Eskom and Highveld Steel and Vanadium Corporation
* First large scale VRB installation for Africa - Largest VRB installation outside of Japan
* 250 kW - 520 kW hour VRB-UPS to be installed for ESKOM in Cape Town, South Africa
RESULTS FOR THE YEAR TO 30 JUNE 2000
MAIN FEATURES
* Total revenue up 31% to $1106.9 million from $847.8 million
* EBITDA up 39% to $126.5 million from $91.0 million
* Earnings before interest and tax up 16% to $52.5 million from $45.1 million
* Profit before tax of $39.2 million up 12% from 1999 profit before tax and abnormal items of $35.1 million
* Profit to shareholders of $26.4 million up 18% from $22.4 million
* Final dividend of 5.25 cents fully franked compared with 5.0 cents per share fully franked in 1999
* Total dividend up 5% to 10.5 cents per share fully franked compared with 9.75 cents per share fully franked in 1999
* Work on hand up 3% to year-end record of $1785 million
Placer Dome Inc. reports a continued strong operating performance in the second quarter of 2000, bringing first-half production to 1.5 million ounces of gold at record-low cash and total costs of $156/oz and $225/oz respectively, down from costs of $166/oz and $236/oz respectively in the year earlier period. The Corporation's share of gold production in the second quarter was 715,000 ounces at cash and total costs of $163/oz and $230/oz respectively, compared to 1999 second quarter production of 821,000 ounces of gold at cash and total costs of $168/oz and $237/oz.
Tap Oil NL provides the following update on Lotte-1 exploration well which spudded on 4 August 2000.
LOCATION
The well is located in EP 363, 30 kilometres north-east of Varanus Island at latitude 20 deg 31'03.00"S and longitude 115 deg 49'40.30"E.
PROGRESS
The Lotte-1 well has been drilled to a total depth of 2,226 metres measured depth.
No significant hydrocarbon shows were encountered and the well was plugged and abandoned as a dry hole.
TAP COMMENT
The Lotte-1 well was drilled to intersect three target zones.
* Lower Cretaceous sandstones - minor oil shows were recorded in M.australis sandstones at a depth of 960 metres to 965 metres measured depth.
* Athol Formation - minor oil shows were also recorded in finegrained sandstones at a depth of 1,440 to 1,455 metres measured depth.
* North Rankin/Triassic - no shows were recorded.
The lack of trapping of hydrocarbons is interpreted by Tap to result from inadequate scaling across the bounding fault to the structure.
However, the presence of minor oil shows indicates that hydrocarbons have migrated through the structure towards the shelfal areas to the east where Tap also has permit interests.
This result does not in Tap's opinion, downgrade the potential for this play type elsewhere in the area.
Tap Oil NL advises that the Clementine-1 exploration well spudded at 09.00 hours on 13 August 2000.
LOCATION
The well is located in EP 403, 35 kilometres northeast of Varanus Island at latitude 20deg 28'22.95"S and longitude 115deg 51'20.89"E.
PROGRESS
As at 6.00am today, the well has drilled ahead to 427 metres measured depth and will continue to drill ahead to the planned total depth of 1,434 metres measured depth.
TAP COMMENT
PLAY TYPE
The Clementine prospect is a north-south trending tilted fault block with closure on the southern flank interpreted to be controlled by a southwest trending Base Cretaceous canyon. The Clementine-1 well will be drilled to test Jurassic aged Athol and Triassic Mungaroo sandstones. The well is expected to take 5 days to reach its projected total depth of 1,434 metres measured depth. Should it be successful, mean reserves are estimated at 17 mmbbls with an upside of 47 mmbbls.
FARMOUT
Apache has farmed into EP 403 to acquire a 65% equity from Tap leaving Tap with 35%. As a result of this farmin, Tap will not be required to contribute to the dry hole drilling cost of this well or the next well in the block namely, Carolina-1.
The Australian Gold Council is releasing June quarter gold production levels from Australian mines on its website and results indicate an increase in production and a reduction in cash costs by producers, on the March quarter.
For details, click here
HIGHLIGHTS FOR THE QUARTER
Gindalbie Gold NL has announced that the Company had commissioned a bankable feasibility study into the development of the Minjar Project and that Macquarie Bank Ltd has agreed, subject to the finalisation of formal documentation, to provide up to $1M in credit approved finance to assist with the financing of the study.
The study is expected to be completed within 6 months and will include the selection of a suitable gold treatment plant for purchase and relocation to site.
Australian Worldwide Exploration Limited announces that a Declaration of Commerciality has been made for its 15%-owned Las Bases and Estancia el Colorado gas fields in the CNQ-16A block, Neuquen Basin, Argentina.
The Operator of CNQ-16A, Chevron San Jorge, has made the Declaration to the Argentine Government's Secretary of Energy and requested an Exploitation Concession be granted to allow gas production from the area.
The Declaration of Commerciality is the first of several steps that need to be undertaken prior to achieving first gas production, currently planned for mid 2002.
Cooper Basin blocks released in South Australia for new exploration offer strong prospects for shallow oil discoveries, according to Beach Petroleum NL.
The Reefton Gold Project optimisation study continues to progress positively with the first round of infill drilling complete.
Phase 1 drilling covered the Globe-Progress Pit, General Gordon area and Souvenir, all of which are on the same line of strike. Best intersections were:
GLOBE-PROGRESS GENERAL GORDON SOUVENIR
6m @ 10.18g/t 24m @ 5.01 g/t 5m @ 2.13g/t
3m @ 27.34g/t 11m @ 5.34g/t 3m @ 6.71 g/t
7m @ 2.63g/t 7m @ 2.97g/t 20m @ 2.28g/t
24m @ 2.6g/t
The Phase 2 drilling program currently underway will better define the more promising mineralised zones in Globe and General Gordon. Additional drilling will be undertaken at Souvenir to follow up the success of Phase 1.
Souvenir, which is located adjacent to the planned pits, would have less pre-strip requirement than Globe. This would assist to minimise initial capital requirements of the project.
The Directors of Pima Mining NL announce that its 80% owned subsidiary SAMAG Limited, has signed a Mining Native Title Agreement (MINTA) with the Kuyani People Incorporated, Native Title claimants.
The agreement covers the proposed mining of magnesite from the Mt Hutton mine and includes the construction of a haul road from the mine site to the Telford rail siding at Leigh Creek.
It also includes provisions for employment opportunities, administration payments, environmental protection, local business opportunities and a once only, up-front, payment in-lieu of ongoing royalty payments.
DRILLING OPERATIONS
SALTFLEETBY-5 (ROC: 100%)
As of 4pm on 10 August (UK time) the Saltfleetby-5 well was drilling ahead in 8(1/2) inch hole at a depth of 2,352 metres (2,235 metres TVD) in the Westphalian Coal Measures. Subject to continuing satisfactory progress, the well is expected to have penetrated the Namurian target by early September.
THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)
As of 7am on 10 August (UK time) the Kyle 29/2C-13 appraisal well (otherwise known as the Kyle Northeast well) had drilled the 12(1/4) inch hole to a depth of 9,202 ft and had intersected the top of Chalk, the main reservoir target. Formation tops drilled were found to be close to the seismic predictions.
Some hydrocarbon shows were encountered in Palaeocene sands immediately above the Chalk and some mud losses were recorded in the Chalk. The rig is currently circulating and conditioning the hole before preparing to pull out to run Pipe Conveyed Logs. 9(5/8) inch casing will then be run and cemented at a high angle (73 deg) into the top of the Chalk.
Logging, running and cementing the casing is expected to take 7-8 days. After setting the 9(5/8) inch casing drilling will continue, taking a core of Chalk soon after drilling out of the 9(5/8) inch shoe.
SUMMARY
* Geological interpretation continued on the Ben Hur/King of Creation, Perseverance and Windsor Well/Kismet tenements
* Company invests in BMS Solutions Pty Ltd
CORPORATE
The Board of West Australian Metals NL announced on 13 March 2000 that the Company had entered into an agreement to acquire up to 40% of the issued capital of BMS Solutions Pty Ltd for a total cost of $1,500,000. That agreement provides for a staged acquisition of BMS. An initial subscription of $500,000 acquires 13.33% of BMS and two further subscriptions of $500,000 each will acquire a further 26.67%, subject to BMS achieving certain revenue and market expansion targets.
The Company has obtained an Option to acquire the Chandler Potash / Alumina project located 45km north of Merredin in Western Australia.
The project comprises two granted Mining Leases 77/22 (360 ha) and 77/77 (25 ha) plus Exploration Licence Application 77/326 (150sqkm).
The Chandler Project hosts a major resource of alunite clay suitable for the production of sulphates of potash and alumina. The ore occurs from surface to a depth of approximately six metres in the bed of Lake Chandler. It is easily mined with no over burden. The current resource estimate is 4.7 million tonnes grading 6.1% potassium oxide and 27.0% alumina. It is believed that the resource base can be considerably enhanced with further exploration. For the proposed development scenario, the current resource is adequate for over twenty years production.
The Directors of Energy Equity Corporation Ltd (EEC) provide the following update:
1. SENGKANG GAS AND POWER PROJECT, INDONESIA
Agreement has been reached with PLN (the Indonesian Electricity Authority) to extend the Interim Power Purchase Agreement from 31 July 2000 to 30 September 2000. The parties have continued to negotiate in good faith and EEC is confident an acceptable outcome will be reached during this Interim period.
The Project Lenders have also agreed to extend their Interim Agreement to 30 September 2000 to accommodate the negotiating period with PLN under its Interim Agreement.
2. EXTRAORDINARY GENERAL MEETING (EGM)
Further to our advice of a proposed EGM on 7 September 2000, Shareholders are advised that this meeting has been deferred to October 2000 in order to incorporate the audited accounts to 30 June 2000 which the Company wishes to conclude during the month of August.
The High Court has ruled that Contact Energy cannot appeal a recent arbitration award made substantially in Fletcher Challenge Energy's favour.
Fletcher Challenge Energy purchases gas from Contact for on-sale to the Taranaki Combined Cycle Station in Stratford. As a result of power outages the station was unable to take gas during certain periods in August 1998 to July 1999. Contact Energy argued that Fletcher Challenge Energy was still obliged to pay for the gas under the terms of their agreement whether they used it or not. The arbitrator ruled that the outages at the power station constituted force majeure, relieving Fletcher Challenge Energy of its purchase obligations.
Glengarry Resources announce that a drill program, designed to test high grade gold mineralisation at the Sandpiper deeps, is scheduled to commence on 10 August 2000. This program will comprise two (2) RC holes for a total of about 650 metres.
The Sandpiper deposit is located within the Larranganni Project in the Western Australian Tanami region. The Project is a joint venture between Glengarry Resources NL and Tanami Gold NL with Glengarry as manager and operator. Both companies are contributing to the budgeted work program.
Previous drilling at Sandpiper has returned intersections up to 59 metres @ 5.5 g/t Au from 170m (150m vertical). There has been little follow up drilling around the high grade intersection and a recent interpretation by the joint venture partners indicates the potential to outline further mineralisation at depth. The planned drilling will probe the deeps from 150 to 250 metres vertical. Results are expected by the end September 2000.
A 3000 metre geochemical RAB/air core drill program is currently in progress around the Finch prospect located 5km south of Sandpiper and 30km north of AngloGold's Coyote Au deposit. This program is designed to provide further detail on widespread anomalous Au and alteration, under cover, that was indicated from previous wide spaced drilling this year. Results are expected by mid September 2000.
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 10/08/2000
QUEENSLAND
WELL: Stokes 9
TYPE: SWQ Unit Gas Development
LOCATION: PL 84, Total 66 Block, 0.8km S of Stokes 1, 1.8km NW of Stokes South 1 and 130km SW of the Ballera Gas Centre.
STATUS AT 10/08/2000 0600 HOURS: Conducting short wiper trip prior to drilling ahead. Current depth and progress for the week is 2255m. The well spudded on 4/8/00.
PLANNED TOTAL DEPTH: 2638m
WELL: Challum 17DW1
TYPE: SWQ Unit Gas Development
LOCATION: PL 59, Aquitaine B Block, 1.5km SE of Challum 16, 0.7km NNE of Challum 8, and 20km W of the Ballera Gas Centre.
STATUS AT 10/08/2000 0600 HOURS: Drilling ahead in the upper lateral (DW1). Current measured depth is 2803m, with 106m progress for the week. Challum 17DW is designed as a high angle well with two sub-horizontal lateral wellbores designed to drain separate reservoirs in the Permian age Toolachee Formation. Challum 17 DW2 is designated the lower lateral wellbore while Challum 17DW1 is designated the upper lateral wellbore.
PLANNED TOTAL DEPTH: DW1 3029m MD
WELL: Roti West 1
TYPE: SWQ Unit Gas Development
LOCATION: APT 259, Naccowlah Block, 2.3km W of Roti 1, 4.1km NE of Windigo 1 and 30km E of the Ballera Gas Centre.
STATUS AT 10/08/2000 0600 HOURS: Drilling ahead. Current depth and progress for the week is 1488m. The well spudded on 3/8/00.
PLANNED TOTAL DEPTH: 2576m
WELL: Merivale 10
TYPE: Gas Development
LOCATION: PL 44, Denison Trough, 690m SSE of Merivale 8, 680m SW of Merivale 5, and some 140km N of the township of Roma.
STATUS AT 10/08/2000 0600 HOURS: Merivale 10 has been suspended as a future gas producer from the Early Permian Reids Dome Beds. An open hold flow test over the interval 1674m to 2103m flowed gas at a rate of 2294 cubic metres per day (81000) cubic feet per day) through a 9.5mm (3/8") surface choke. The well reached a total depth of 2300m with no progress for the week. The rig was released on 3/8/00, and moved to Maintop 2, an ATP 337P gas appraisal well.
PLANNED TOTAL DEPTH: 2300m
WELL: Maintop 2
TYPE: Gas Appraisal
LOCATION: ATP 337P, Denison Trough, QLD, 0.625km SW of Maintop 1 and some 140km N of Roma.
STATUS AT 10/08/2000 0600 HOURS: Drilling ahead. Current depth and progress for the week is 140m. The well spudded on 9/8/00.
PLANNED TOTAL DEPTH: 2083m
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 10/08/2000
SOUTH AUSTRALIA
WELL: Meranji 22
TYPE: Gas Development
LOCATION: PPL 35, Merrimelia-Innamincka Block, 0.4km ESE of Meranji 1, 0.6km SW of Meranji 17, and some 30km NNW of the Moomba Gas Plant.
STATUS AT 10/08/2000 0600 HOURS: Running in hole with new bit to drill ahead. Current depth is 2771m, with 1826m progress for the week.
PLANNED TOTAL DEPTH: 3010m
WELL: Moomba 115
TYPE: Gas Development
LOCATION: PPL 7, Moomba Block, 1.1km N of Moomba 90, 1.0km NW of Moomba 90, 1.0km NW of Moomba 6, and approx 1km NNW of the Moomba Gas Plant.
STATUS AT 10/08/2000 0600 HOURS: Moomba 115 has been cased and suspended as a future Permian gas producer. The well reached a total depth of 2633m, with 128m progress for the week. The rig was released on 6/8/00 and is moving to Moomba 122, a PPL 7 gas development well.
PLANNED TOTAL DEPTH: 2637m
WELL: Moomba 117DW
TYPE: Oil Development
LOCATION: PPL 7, Moomba Block, 0.1km N of Moomba 24, 0.8 km NNE of Moomba 104, and some 6km S of the Moomba Gas Plant.
STATUS AT 10/08/2000 0600 HOURS: Directionally drilling ahead. Current measured depth and progress for the week is 1739m. The well spudded on 4/8/00. Moomba 117DW is a high angle oil development well designed to drain reserves from the Jurrasic aged Hutton Sandstone oil pool, recently discovered by Moomba 104 oil exploration well.
PLANNED TOTAL DEPTH: 2414m
Merivale No 10, a gas appraisal well situated approximately 690 metres south-south-east of Merivale No 8, latitude 25 deg 33 min 38.85 sec south, longitude 148 deg 20 min 13.68 sec east, was spudded at 23:30 hours on July 10, 2000. Surface casing was set at 250.1 metres RT. Intermediate casing was set at 1672.4 metres RT. A total depth of 2,300 metres RT was reached at 12:30 hours on August 1, 2000. The well was suspended as a future gas producer. The rig was released at 10:00 hours, on August 3, 2000. Progress for the week was nil metres.
The World Gold Council has predicted gold prices to rise modestly by the years end due to steady demand and reduced speculator interest. This years physical demand is on track with 1999's when a full-year record was set, sparked by a buying frenzy leading up to the new millenium.
Declining speculator interest - a contributing force in Golds reduced value, central bank sales increasing significantly, and the traditional Asian and Indian consumer purchases of gold leading up the holiday season in the second half of the year, all point toward an optimistic few months ahead for gold prices.
The Company announces that Asarco Exploration Inc has fulfilled the necessary expenditure requirement pursuant to the Re-organisation Agreement executed between Yamarna and Asarco in January 1999 and has now earned a Participating Interest of 70% in the Yamarna Project. As at 30 June 2000 Asarco had expended in excess of $3 million on exploration and development directly attributable to the Yamarna Project leaving Yamarna Goldfields Limited with a current 30% direct interest.
As announced in the Company's recent quarterly report consultants are presently undertaking an upgraded resource estimation for the project which will include a re-estimation of the Attila resource. The outcome of this work will in part determine the direction of further exploration in the short to medium term.
Half Yearly Report
* Eastern Aluminium Limited and its controlled entities own a 10% interest in the Portland aluminium smelter. Attached is a summary of financial performance for the half year to 30 June 2000.
* The company achieved a net profit after income tax of $8,066,000 in the first half of 2000 compared with the 1999 first half profit of $3,765,000 and the 1999 full year profit of $13,086,000.
This result reflects a combination of a higher aluminium price and lower A$:US$ exchange rate partially offset by higher operating costs and slightly lower production and sales.
* The company's share of production in the 2000 first half was 17,139 tonnes, which was slightly lower than the 17,223 tonnes produced in the comparative 1999 period. Accordingly, sales were also slightly lower at 17,074 tonnes (17,209 tonnes previously).
* Sales revenue was $10,878,000 or 33% higher than in first half 1999. This increase was due to a significant increase in US dollar selling prices, combined with a weaker Australian dollar exchange rate.
* The company sold its aluminium at an average price of US$1,622 per tonne, compared with US$1,295 in the prior comparative period.
* The market average Australian dollar exchange rate in the first half of 2000 was approximately A$:US$0.61 compared with approximately A$:US$0.64 in the corresponding period of 1999. After allowance for matured historical hedging contracts, the company realised an average Australian dollar exchange rate of A$:US$0.63 in the first half of 2000 compared with A$:US$0.67 in the first half of 1999. No new hedging has been undertaken in 2000.
* Costs were higher in the first half of 2000 compared with the same period last year due to the following factors:
- higher electricity and alumina costs, mainly due to the operation of contractual metal price and exchange rate links; and
- increased corporate costs associated with takeover bids made for the company, together with provisions for employee redundancy as a result thereof.
* Subsequent to Eastern becoming a controlled entity of Alcoa of Australia Limited ("Alcoa") on 3 May 2000, Mr R J Fynmore and Mr G A Austin retired as directors of the company. At Alcoa's request, the Board appointed Mr B M Baltzell, Mr R P Huber and Ms S E In't Veld as Directors. Mr Baltzell was also appointed as Chairman and Managing Director of Eastern.
* As at 9 August 2000, Alcoa had an 81% shareholding in Eastern. Alcoa has recently advised shareholders that in light of the level of acceptances received by Alcoa under its takeover bid and the resulting limited number of Eastern shareholders, that it intends, following the close of the offer on 15 September 2000, to seek to procure the delisting of Eastern from the Australian Stock Exchange. Following such delisting, Eastern shares would cease to be able to be traded on the ASX.
* As previewed by the Chairman at the company's annual general meeting on 5 May 2000, the Board has reviewed dividend policy having regard to Alcoa's takeover bid and has determined not to declare an interim dividend in respect of the half year to 30 June 2000.
* The Board re-iterates its previous recommendation that remaining shareholders should accept Alcoa's offer of $1.60 cash per Eastern share.
FLETCHER CHALLENGE ENERGY
DRILLING SUMMARY REPORT (CONTINUED)
FOR THE WEEK ENDING 09/08/2000
Country : Canada
Block Area: Hatton
or Prospect
Well Name : 4-19-15-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 04/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 06/08/2000.
Block Area: Hatton
or Prospect
Well Name : 12-19-15-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 03/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 04/08/2000.
Block Area: Hatton
or Prospect
Well Name : 12-4-15-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 07/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 08/08/2000.
Block Area: Veteran North
or Prospect
Well Name : 16-25-35-9 W4M
or Location
Objective : A Development well testing Viking Oil.
Current Status : * Spud: 08/08/2000.
* Prepare to run casing.
Block Area: Riverbend
or Prospect
Well Name : 7-28-36-9 W4M
or Location
Objective : A Development Well testing Colony/Viking Gas.
Current Status : * Spud: 02/08/2000.
* Cased for Colony/Viking Gas.
* Rig Released: 05/08/2000.
Block Area: Marsden West
or Prospect
Well Name : 7-36-44-1 W4M
or Location
Objective : An Exploration Well testing Sparky Oil.
Current Status : * Spud: 02/08/2000.
* Cased for Sparky Oil.
* Rig Released: 05/08/2000.
Block Area: Brownfield
or Prospect
Well Name : 6-21-38-14 W4M
or Location
Objective : A Development well testing Viking Gas.
Current Status : * Spud: 08/08/2000.
* Run and cement surface casing.
Block Area: Marsden
or Prospect
Well Name : 85-8-45-27 W3M
or Location
Objective : An Exploration well testing Sparky Oil.
Current Status : * Spud: 05/08/2000.
* Cased for Sparky Oil.
* Rig Released 07/08/2000.
FLETCHER CHALLENGE ENERGY
DRILLING SUMMARY REPORT (CONTINUED)
FOR THE WEEK ENDING 09/08/2000
Country : New Zealand
Block Area: PML381012
or Prospect
Well Name : MB-7
or Location
Objective : Deviated development well primarily targeting the Maui B D1.10L oil reservoir with multiple secondary objectives.
Current Status : * Drilled in 8(1/2)" hole from 2689m to 3322m.
* Current operation @ 0600hrs 10th August, drilling
ahead at 3409m.
* Plan to set 7" liner at 3580m.
Block Area: PML381012
or Prospect
Well Name : MB-6
or Location
Objective : Horizontal development well in the Maui B D 1.10 oil reservoir.
Current Status : * Suspended well with stuck 4(1/2)" liner pending evaluation of side-track or completion options while operations proceed on MB-7.
FLETCHER CHALLENGE ENERGY
DRILLING SUMMARY REPORT (CONTINUED)
FOR THE WEEK ENDING 09/08/2000
Country : Canada
Block Area: Hatton
or Prospect
Well Name : 4-30-15-27-W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 02/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 03/08/2000.
Block Area: Hatton
or Prospect
Well Name : 14-15-15-26 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 01/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 02/08/2000.
Block Area: St Albert
or Prospect
Well Name : 103/12-25-53-26 W4M
or Location
Objective : A Development well testing Basal Belly River/ Glauconite Gas.
Current Status : * Spud: 02/08/2000.
* Cut Core#1. Drill ahead to TD.
Block Area: Veteran North
or Prospect
Well Name : 14-25-35-9 W4M
or Location
Objective : A Development well testing Viking Oil.
Current Status : * Spud: 05/08/2000.
* Cased for Viking Oil.
* Rig Released: 08/08/2000.
Block Area: Hatton
or Prospect
Well Name : 11-31-18-28 W3M
or Location
Objective : A Development well testing Milk River Gas.
Current Status : * Spud: 04/08/2000.
* Cased for Milk River Gas.
* Rig Released: 05/08/2000.
Block Area: Hatton
or Prospect
Well Name : 7-23-18-28 W3M
or Location
Objective : A Development well testing Milk River Gas.
Current Status : * Spud: 03/08/2000.
* Cased for Milk River Gas.
* Rig Released: 04/08/2000.
Block Area: Hatton
or Prospect
Well Name : 10-8-18-29 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 05/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 07/08/2000.
Block Area: Hatton
or Prospect
Well Name : 4-8-18-28 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 03/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 04/08/2000.
Block Area: Hatton
or Prospect
Well Name : 12-4-15-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas.
Current Status : * Spud: 07/08/2000.
* Cased for MR/MH Gas.
* Rig Released: 08/08/2000.
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 09/08/2000
Country : Canada
Block Area: Galahad
or Prospect
Well Name : 14-26-40-15 W4M
or Location
Objective : An Exploration well testing Basal Quartz Gas
Current Status : * Spud: 27 Jul 00.
* Cased for Viking Gas
* Rig Released: 02 Aug 00.
Block Area: Hatton
or Prospect
Well Name : 14-16-15-26 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 01 Aug 00
* Cased for MR/MH Gas
* Rig Released: 02 Aug 00
Block Area: Hatton
or Prospect
Well Name : 10-25-17-29 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 31 Jul 00
* Cased for MR/MH Gas
* Rig Released: 01 Aug 00
Block Area: Hatton
or Prospect
Well Name : 4-32-17-28 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 01 Aug 00
* Cased for MR/MH Gas
* Rig Released: 02 Aug 00
Block Area: Hatton
or Prospect
Well Name : 10-8-16-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 02 Aug 00
* Cased for Milk River gas
* Rig Released: 03 Aug 00
Block Area: Hatton
or Prospect
Well Name : 2-8-18-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 01 Aug 00
* Cased for Milk River gas
* Rig Released: 02 Aug 00
Block Area: Hatton
or Prospect
Well Name : 2-8-18-28 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 02 Aug 00
* Cased for MR/MH Gas
* Rig Released: 03 Aug 00
Block Area: Hatton
or Prospect
Well Name : 4-32-17-28 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 01 Aug 00
* Cased for MR/MH Gas
* Rig Released: 02 Aug 00
DAIRI PROJECT, NORTH SUMATRA
DRILLING UPDATE TO AUGUST 8, 2000
ON SOPOKOMIL ZINC-LEAD PROSPECT
Assay results from hole SOP27D, on section 9900N are now to hand.
The main ore horizon (MOH) was intersected between 210.34m and 225.23m for 14.9m, grading
14.35% Zn, 6.07% Pb and 5.6 g/t Ag. An upper ore horizon (UOH) was intersected between 194.6m
and 197.67m for 3.1m, assaying 4.33% Zn, 1.77% Pb and 4.5 g/t Ag.
Hole SOP28D drilled on the same section (9900N) but down dip of SOP27D failed to deliver any
significant mineralised intercept.
For further information, click here
Mosaic Oil NL has served a sole risk notice in PL 119 (Downlands) for the drilling of the Downlands East Prospect. The well location is situated within 300 meters from a pipeline connection point where a T junction has already been installed. The gas potential of the prospect is between 3.6 and 6.7 BCF recoverable.
Oil Company of Australia Limited on behalf of the PL44 Joint Venture advises that:
Maintop No 02 a gas exploration well situated approximately 625 metres noth-east of Maintop no 01, Latitude 25 deg, 40 min, 26.62 sec south, longitude 148 deg, 22 min, 30.01 sec east, was spudded at 20:00 hours on August 09, 2000. At 06:00 hours today the rig was drilling ahead in the 311 mm surface hole section. Progress for the week was 140 metres.
The primary targets of the well are the staircase, Moorooloo, Riverstone and Reids Dome Sandstones. The secondary target is the Lower Aldebaran Sandstone.
Sipa announces that the Company has been notified by Outokumpu Zinc Australia Limited that they are commencing a Feasibility Study on the Sulphur Springs Zinc-Copper deposit within Sipa's Panorama Project in the Pilbara Region of Western Australia.
The Feasibility Study is budgeted at $3.9 million and is planned in two stages:
* STAGE 1: costing $1.4 million is due for completion by 3l March 200l; and
* STAGE 2: costing $2.5 million is due for completion by 7 December 2001. (we have been informed that Stage 2 is contingent on the success of Stage 1)
Sipa's agreement with OZA is such that OZA may earn a 60% interest in the Panorama Project by providing Sipa with a completed bankable-standard Feasibility Study by 7 June 2002.
Tap Oil NL provides the following update on the Linda-1 exploration well.
LOCATION
The well is located in TL/1, 17.5 kilometres north-east of Varanus Island at latitude 20deg 32'54.13"S and longitude 115deg 41'48.36"E.
PROGRESS
As previously reported a sidetrack hole was drilled into the upper 53 metres of the 91 metre thick Biggada sandstone reservoir for open hole testing.
The well was opened for testing of this zone at 06.09 hours on 9 August 2000.
As at 4.00 pm an 9 August, the well was flowing gas at a rate of 15.3 mmcf/day and 507 bbls/day of 48 API gravity condensate on a 1/2 inch choke, with a flowing pressure of 3,036 psi.
FORWARD PROGRAMME
It is planned the well will be shut in overnight for pressure buildup analysis and reopened on 10 August for determination of maximum flow rate. These data will enable reservoir parameters and potential deliverability to be determined.
On completion of this test it is planned that this sidetrack hole will be cemented and a second sidetrack hole drilled to enable further evaluation of the formation.
TAP COMMENT
As previously reported, the small diameter of the sidetrack hole limited the options for conventional testing of the well, and therefore to evaluate the nature and extent of the discovery, a two stage approach is being undertaken.
The first stage is now complete which confirms that the upper part of the Biggada reservoir contains gas and condensate. However the lower part of the reservoir which has a different MWD log response to that above cannot be analysed by flow testing. In order to fully evaluate the entire 91 metres of intersected Biggada reservoir, a second sidetracked hole will be drilled through the entire Biggada sandstone reservoir. Core will be obtained over the entire section. Fluid samples and pressure readings will also be taken over the entire reservoir to establish the fluid type and extent of the discovery. From this data the type and extent of the resource can be more fully evaluated. This second stage of the programme will be conducted over the next week.
Basin Minerals Limited formerly Craton Resources NL advises that Inferred Resources for the Douglas Project Area have been increased from 12.7 million tonnes of concentrate to 20.8 million tonnes of concentrate containing 11.31 million tonnes of ilmenite (inc leucoxene), 1.26 million tonnes of rutile and 1.62 million tonnes of zircon. The Douglas Project Area is now a major mineral sands field of global significance.
Peabody Resources plan to sell their Australian coal assets by the end of the year to capitalise on resurging interest in the sector. The world's biggest coal miner fuels 9 per cent of the US supply of electricity each year, and its five NSW and Queensland mines annually produces around 20 million tonnes of coking and thermal coal.
Peabody's Australian assets incorporate:
Anglo American, who aim to expand their Australian coal portfolio, will be contested for the Peabody interests by Japanese steel makers, Nippon Steel, Mitsubishi and Misui who all have direct interests in the Moura, Warkworth and Bengalla mines, with other companies interested in bulding their Australian coal portfolios including Wesfarmers and Rio Tinto and Germany's RAG Coal group.
Drillsearch Energy NL advises progress by its Canadian subsidiary, Circumpacific Energy Corporation, in drilling of the Lambert well, Alberta, Canada.
WELL NAME:
TLM Oiltech Lambert 5-4-52-22 W5M.
AREA LOCATION:
Lambert approximately 180 km west of Edmonton, Calgary, Canada
REPORT:
The operator, Talisman Energy Inc, reported that at 4.00 pm 8th August 2000, (AEST), after setting surface casing and blow our preventers, the well was drilling ahead with an air drill at 1,000 metres KB (Kelly Bush).
PROPOSED TOTAL WELL DEPTH:
4,799 metres. Anticipating to terminate in the Cambrian system.
Activities for the quarter ended 30 June 2000.
BATCHELOR MAGNESIUM PROJECT
Rum Jungle District - Northern Territory
(Mt Grace subsidiary Savanna Mineral Resources Pty Ltd 100%)
The Company has completed an update of the resource estimate of the Winchester magnesite deposit near Batchelor. Approximately 75% of the 16.6 million tonne deposit is now classified as an Indicated Resource. (See Table 1). The increased confidence in the database will afford the opportunity to plan for future mining efficiencies. This resource is sufficient for over 60 years production at the projected rate of 50,000 tpa of magnesium metal. The potential to increase this resource through further exploration is considered excellent. Such exploration may be undertaken at a future time.
Commercial production has been declared for the Enterprise copper mine at Mount Isa from 1 July 2000.
Located beneath existing workings, Enterprise is the new copper ore source for MIM's Mount Isa operation.
Commercial production signifies that consistent operating performance is now being achieved, and brings to an end the capitalisation of the development costs of the Enterprise integrated ore handling system, including internal shaft, conveyor and mine development.
Fourth Quarter Activities Report
PRODUCTION SUMMARIES BY OPERATION:
COPPER
MOUNT ISA
The benefits of MIM's investment programme and operational improvements were reflected in a record annual copper smelter production of over 222,000 tonnes, 40% ahead of the previous year.
Anode output increased to almost 60,000 tonnes for the quarter, 5% higher than for the previous June quarter and the highest quarterly output recorded from Mount Isa. Monthly anode and refined copper output exceeded 21,000 tonnes during May, the highest recorded monthly output for both the expanded smelter and refinery operations. The improved smelter performance and lower concentrate stocks led to a reduction in copper in other products compared with the previous June quarter.
Copper smelter performance improved as seasonal air quality control (AQC) interruptions reduced. AQC is generally lower during the June and September quarters. Little benefit in reduced AQC was gained from gas collection, as delays in WMC Fertilizers' Phosphate Hill project caused their acid plant to be off-line during most of the quarter due to full acid tanks. Total copper output for the year rose by 7% compared with the previous year.
An improved mill performance lifted ore treated 12% ahead of the previous June quarter. This combined with higher copper grades, as the proportion of Enterprise mine ore rose, increased concentrate output by 22% compared with the previous June quarter.
Performance targets for the new Enterprise copper mine automated ore handling system were achieved during the quarter and commercial production was declared from 1st July. Annual ore output from Enterprise mine will increase to approximately 3.5 million tonnes over the next three years as additional stopes are brought on line. Approximately $312 million had been committed on the project by the end of the June quarter.
ALUMBRERA (MIM 50%)
Scheduled lower copper and gold grades of ore mined and processed, lower gold recovery and lower mill availability, as maintenance issues were addressed during plant shutdowns, kept metal output below that of the previous June quarter.
Although ahead of the March quarter, mill throughput remained below target due to shutdowns for maintenance aimed at improving the plant's reliability. Following this, mill utilisation improved in June lifting production. An increased proportion of harder ore also affected mill throughput rates though the proportion declined late in the quarter. Concentrate, copper and gold output increased month by month through the quarter.
Further plant improvements will be completed during the September quarter.
ERNEST HENRY (MIM 51%)
As a result of a strong mill performance throughput was 14% ahead of the previous June quarter and was the highest quarterly throughput achieved by the operation. Copper in concentrate output was marginally below that for the previous June quarter. The scheduled lower average copper grade for the quarter was offset by improved recovery rates compared with the previous June quarter which had been adversely affected by the presence of near surface weathered ore. Improved gold recovery combined with increased throughput lifted gold in concentrate by 30% compared with the previous June quarter.
ZINC-LEAD-SILVER
MOUNT ISA
Mill throughput and metal output were in line with the previous June quarter. Lower lead and zinc grades of ore mined and processed were offset by improved metallurgical recoveries resulting from upgrades to the processing plant circuit made earlier in the year as part of the George Fisher project.
Output of ore from the Isa lead mine continued to be constrained by high maintenance activity as life extension refurbishment work progressed.
The George Fisher project construction was 83% complete by the end of the quarter and the project remains within budget and on schedule for commissioning during September/October 2000. Approximately $178 million had been committed on the project by the end of the June quarter. Refurbishment of the Mount Isa lead smelter commenced in early July and is scheduled to be completed in early August.
McARTHUR RIVER (MIM 70%)
Strong mine and mill performances continued. Mill throughput and zinc in concentrate output achieved for the quarter were the highest recorded by the operation. Zinc in concentrate production increased as mill throughput increased, despite the processing of lower grade ore from the 3 and 4 orebodies.
The higher zinc grade of concentrate produced increased product value. The lower lead recovery compared with the previous June quarter is consistent with a focus on improving higher value zinc recovery and concentrate grade.
EUROPE
At Northfleet, total lead output was in line with the previous June quarter. As forecast, refinery performance continued to be constrained by the low availability of lead bullion supplies from Mount Isa and Avonmouth.
At Avonmouth, low furnace utilisation continued to adversely affect refined zinc output which was below that for the previous June quarter. Utilisation was limited by the forecast planned shutdown during April to repair refractory brickwork, and high maintenance requirements of peripheral plant.
At Duisburg, refined zinc output was in line with that for the previous June quarter. Refurbishment of one of the three refinery columns during the quarter limited refined zinc output.
COAL
OAKY CREEK (MIM 75%)
A strong June quarter performance capped an outstanding production year for Oaky Creek. Annual output from the No 1 mine was the highest in the mine's history.
An outstanding performance from the Oaky North longwall helped lift washed coal output 13% ahead of the previous June quarter. Oaky North ROM coal output for April (over 772,000 tonnes) was the highest recorded monthly output by an Australian longwall operation.
A longwall panel change for the Oaky North longwall commenced during June. The longwall recommenced production in early July.
NEWLANDS-COLLINSVILLE-ABBOT POINT (MIM 75%)
While Newlands and Collinsville coal output increased compared with the March quarter, output continued to be managed in response to the weak market. Tonnages from both operations were below those for the previous June quarter. The market outlook has improved and production levels were increased towards the end of the quarter in line with increased sales anticipated during the September quarter.
Coal exports through Abbot Point (100% basis) totalled 2.54 million tonnes for the quarter.
GOLD
RAVENSWOOD (MIM 50.1%)
A stronger mill throughput combined with higher gold grade of ore mined and processed and improved gold recovery increased gold output to a quarterly record, 16% ahead of the previous June quarter resulting in the mine's highest annual gold production. Screening and stockpiling of oversize run-of-mine ore from the mill feed resulted in improved throughput rates.
The primary exploration focus of the company in years 2000/2001 will remain the development of a silver mine at Twin Hills within the Texas Silver Project, however, the company has advanced exploration projects for both gold and copper in Papua New Guinea and gold in Tasmania. Considerable funds have already been expended on these projects by Macmin or joint venture partners, and in the opinion of the directors, they represent a valuable asset for the company. Every effort will be made to retain these projects.
The Board believes that it is not possible for Macmin to internally finance substantial further exploration and pre-development on these projects in the light of the present market conditions. Accordingly, joint venture discussions have been held with several companies, but to date no agreement has been reached. The combination of low gold price, relatively negative perception of Papua New Guinea (by others) and much smaller exploration budgets for major mining companies have proved insurmountable to date. The Board is not hopeful of attracting suitable joint venture partners in the near term.
At present we believe the best approach is a public float of the Papua New Guinea and Tasmanian projects into two or more companies which would then apply for listing on the ASX. Macmin would retain a significant shareholding in all companies. The Papua New Guinea float or floats would also apply for listing on the POMSOX (PNG Exchange), would concentrate on developing a cash flow from Normanby and Sinivit, and exploration of world class targets such as Crater Mountain and the copper projects in New Britain.
The Board is investigating this strategy and Shareholders will be advised further in due course.
For further information, click here
Petroz advises that, following completion of remedial work on the Elang-2 and Kakatua North-1 wells, total production from the Elang, Kakatua and Kakatua North Oil Fields is approximately 20,000 barrels of oil per day (BOPD).
Problems were experienced in Elang-2 and Kakatua North-1 with the control umbilicals between the wellheads and the Floating Production Storage and Offloading vessel (FPSO). The wells were shut-in for approximately 5 and 3 months respectively.
Preliminary Final Report
OVERVIEW
FINANCIALS:
* Sales revenue for the year was $71.7 million - up 37%.
* Magnesia sales volumes for the year were 175,337 tonnes - up 42.9%.
* Magnesite sales volumes for the year were 47,819 tonnes - up
113.3%.
* Operating loss for the year was $3.0 million down from a loss of
$4.9 million.
* Abnormal item reflecting FX hedge book provision was $14.8 million (1999 nil).
* QMAG debt facility reduced by $2 million to $44.1 million.
* QMC corporate facility of $15 million repaid in full.
* October 1999 Rights Issue raising of $35.7 million.
* Cash balance of $14.6 million after contributions to AMC of some
$15.4 million.
MAJOR EVENTS DURING THE YEAR:
STANWELL MAGNESIUM PROJECT:
* Magnesium metal produced from AM process.
* Feasibility Study completed:
- Confirmation of AMC's economic and technical attributes.
- Project capital costs estimated at A$1.13 billion.
- Confirmation of AMC's potential as a world-class, low cost
producer.
- Demonstration of significant underlying value in AMC.
* AMC ownership optimised under QMC.
* Environmental approvals received.
* Funding finalisation and commercialisation decision targeted for
around 3rd quarter 2000.
MAGNESIA OPERATIONS:
* Record sales and production volumes.
* Ten year sales contract for magnesite confirmed.
* New lease area KG(3) approved ensuring greater mining flexibility.
* KG(2) mining operations commenced in high yielding ore.
* AMC feasibility incorporates a major magnesite supply arrangement
with AMC.
CORPORATE/OTHER:
* Dr Roland Williams appointed Chairman of QMC; Mr Rod Sharp appointed CEO of AMC.
* Establishment of Advisory Committee to assist AMC commercialisation.
* Flamemag - piloting completed - progression to Feasibility Study Phase.
Beach Petroleum NL announces that its bid for Block C02000-C, offered in the latest round of Cooper Basin gazettals, has been successful. Beach has been offered the block with its 50% joint
venturer, Magellan Petroleum (Southern) Pty Limited.
The block is located on the northeastern flank of the SA sector of the Cooper Basin just north of Santos' Keleary and Telopea oil fields.
Giants Reef Mining Limited, as a continuous disclosing entity, advises that it has commenced a major drilling programme targetting a minimum of 24 anomalies with high grade gold and gold-copper potential, within its 100% owned tenements in the Tennant Creek goldfield.
The drilling is planned to continue for the next 18 months, except for normal field and Christmas breaks.
For further information, click here
Kidston Gold Mines Limited announces the completion of a study into the grade variability of Eldridge ore and its effect on the mine's reserves and gold production estimates.
The study, which was referred to in the company's second quarter report, has resulted in a significant reduction in the company's ore reserves and consequent gold production for the remaining mine life.
The revised geological model was established for the Eldridge ore body taking into account operational experience to date and a reconciliation between the previous model and actual grades achieved during mining.
After taking into account depletion through mining, approximately 120,000 ounces of gold has been deleted from the reserve principally as a result of lower expected grade.
Preliminary Result 30/06/00/1:2 Entitlement Issue
HIGHLIGHTS
* $10.0m loss after tax and abnormals for the year ended 30 June 2000 including $5.1m of assets, stock and future tax benefits writeoffs.
* A 1 for 2 entitlement issue to raise $7.2m for expansion of aims and the acquisition of a telecommunications contracting business.
* Net tangible assets of 64 cents per share before the entitlement issue
* Forecasting profit for 2001 of $6.3M after tax being an earnings per share of 5.5 cents.
Bligh Oil & Minerals NL advises that the Rimu B-1 appraisal well is currently drilling ahead at a depth of 2,882 metres.
The Rimu B-1 well is being drilled 2.4 kilometres south-southeast of the Rimu A-1 discovery well, which tested 1,600 barrels of oil and 5 million cubic feet a day of gas perforations in the Tariki formation, at a depth of 3,607-47 metres. The well is designed to test a subordinate fault block on the Rimu structure, to gain additional information on the areal extent of the Tariki sands, and the possible height of the pay column on the feature. It is defined as a long range step-out, or appraisal well. It is anticipated that the well will be drilled to a depth of 3,750 metres and that drilling will take approximately 24 days.
BULK SAMPLING PLANT ON SITE
Significant field operations commenced on the company's Bow River tenements during July with the mobilisation, set-up and commissioning of the mobile Heavy Media Separation (HMS) Mk II plant on site. The plant used in bulk sampling processing for the separation of diamonds from alluvial gravels arrived on site on July 17th. An initial density bead test was undertaken on the 26th July which indicated that the heavy media cyclone was achieving good separation and a full bead test was carried out on the 28th July. A 100% recovery was achieved on the 3.30 and 3.53 g/cm(3) density beads (the density of diamonds =3.5 g/cm(3)).
A number of sites identified by geophysical work and detailed ground mapping carded out by Conquest's Farmin and Joint Venture partner Astro Mining NL will be bulk sampled. It is anticipated that this sampling will be commencing in early September and with approximately twenty-one samples totalling 1500 tonnes currently planned.
In addition, geological mapping has been carried out over a 20km length of the Bow River gravels with an additional 30km of mapping to be completed by the end of September. Significantly, new areas of high terrace gravels have been located on both sides of the Bow River. Those had not been previously identified and will be targeted for sampling.
Further geophysical work involving a detailed helicopter borne magnetic and electro-magnetic (EM) survey is currently being undertaken to assess the technique for assistance in sample site selection.
Drillsearch Energy N.L. advises that its Canadian subsidiary, Circumpacific Energy Corporation, has commenced drilling of the deep Devonian gas well previously announced.
Some details of the well are as follows:
Well Name: TLM Oiltech Lambert 5-4-52-22 W5M.
Spud Date: 1st August, 2000
Operator: Talisman Energy Inc., Calgary ("Talisman")
Area Location: Lambert approximately 180 km. west of Edmonton in the Rocky Mountains foot hills.
Objective:
The primary objective of the Lambert well is to test the Leduc Formation ("Leduc") forming part of the Devonian system. The well is targeting a 3D seismic defined anomaly which is similar to and off setting the 1-3-52-22 W5 Leduc well drilled by Talisman in late 1998 and which has produced 15 billion cubic feet of raw gas in 22 months at rates of up to 30 million cubic feet per day. The Lambert well has other significant multi zone objectives.
Total Well Depth: 4,799 metres anticipating to terminate in the Cambrian system.
Drilling Time: Anticipated to be approximately 100 days from spud date.
MT GARNET INFILL DRILLING UPDATE
Kagara Zinc Ltd announces the results of the last drill holes completed at the Mt Garnet deposit in Northern Queensland.
The details of holes completed are contained in Table 1 and some of the more significant assays are listed below:
GTD 77 27.7 metres @ 8.83% Zn from 130 metres
GTR 62 12.0 metres @ 7.54% Zn from 105 metres
GTR 63 75.0 metres @ 6.70% Zn from 80 metres
GTR 64 76.0 metres @ 4.26% Zn from 123 metres
Horizontal widths of all intersections approximate 60% of drilled widths except for GTR 63 and GTR 64 which approximate 40%. GTR 64 was terminated in 7% zinc mineralisation, due to rig capacity.
As previously announced infill drilling has now been completed and ore resource compilation has now commenced. It is anticipated that a new resource statement will be available in 4-6 weeks.
Molopo Australia NL, has announced that it has successfully completed the drilling of the LW-L3 well. Coal seam 8, the primary coalbed methane target, was intersected at 661m and measured 8m thick. During open-hole testing, LW-L3 flowed water to the surface at an average of 10.1 litres per minute, which is indicative of a highly permeable interval.
With the successful drilling of LW-L3, this concludes the drilling phase of the pilot production programme. Encouragingly, all three new wells flowed gas to the surface following the intersection of seam 8 prior to stimulation. These wells flared gas with 30-50 cm flames until they were extinguished when the wells were cased.
Over the next 4-6 weeks, the three new wells will be fracture stimulated along with a fourth well, HW-LIB, which will be stimulated by fracture or cavity completion.
Together these four wells will comprise Molopo's pilot production test which, on completion of fraccing operations, will run for 3-6 months to enable a preliminary assessment of the long-term production potential and reserves at Liulin.
JUNE 2000 QUARTERLY UPDATE
HIGHLIGHTS
* Nine well drilling programme announced
* Net operating cashflow from production of $1.16 million
* Oil stock held with value of $1.5 million
Australian Worldwide Exploration Limited announces its second-half 2000 exploration drilling campaign started on August 4, 2000 with the spudding of Lotte-1 in Exploration Permit No 363, in the Carnarvon Basin, Western Australia.
As at August 8 the well had progressed to a depth of 1265 metres. Current operations are preparing to drill ahead after setting 9(5/8) inch casing.
AWE holds a 16% interest in EP 363. The Operator of the drilling activities, Apache Energy, has prognosed drilling to 2,400 metres over approximately 10 days to test Cretaceous, Jurassic and Triassic aged objectives.
The prospect is a tilted fault block similar in style to other successful fields in the basin, and has been mapped on good quality 1999 vintage 3D seismic data.
Half Yearly Report
HIGHLIGHTS
* Nickel and alumina generate big profit increases
* Copper Uranium now producing at rated capacity, 200,000 tonnes a year copper
* Fertilizer ready for 80% production as planned from August to December 2000
* Sales higher for copper (77%), uranium (70%), nickel (40%), alumina (8%)
* Unit costs substantially lower for nickel, alumina, copper
* Capital expenditure down 64.7% to $243.3 million
* $247.8 million of debt repaid
* 5% share buy back. 2.7% purchased ($219.6 million) as at 8 August.
Woodside Petroleum Ltd, Operator of the WA-33-P Joint Venture, reports that the Brecknock South-1 exploration well located in the Browse Basin spudded on 3 August 2000 at 1430 hrs (WST). At 0600 hours (WST) on 8 August the well was at a depth of 2191 metres and the present operation is running blow-out preventers and preparing to drill the 8(1/2) inch hole section.
The Sedco 703 rig is drilling the well. The location is approximately 390 kilometres south-east of Broome. Water depth at the location is 423.7 metres.
AKD has entered into an agreement with Canadian diamond explorer Black Swan Resources Ltd to develop a prospective alluvial diamond area called "Abaete" located in the State of Minas Gerais in Brazil.
The Abaete area has had a long history of alluvial diamond mining by local artisanal miners. In 1994, a 16 carat pink stone recovered from Abaete was reported to have sold for US$500,000. About 18 months ago, a spectacular 79 carat rough pink diamond was found upstream from the Abaete property by local miners operating a dredge in the Abaete River. According to Black Swan, this stone was independently valued by WWW Diamonds International of London, at between US$8 and $14 million.
Tap Oil NL advises that the Lotte-1 exploration well spudded at 10.00 hours on 4 August 2000.
LOCATION
The well is located in EP 363, 30 kilometres north-east of Varanus Island at latitude 20deg 31'03.00"S and longitude 115deg 49'40.30"E.
PROGRESS
As at 6.00am Monday, 7 August the well had reached a depth of 1,265 metres measured depth and will be drilled to the planned total depth of 2,408 metres measured depth.
FORWARD PROGRAMME
The Lotte prospect is designed to test a tilted fault block along the eastern margin of the Carnarvon Basin. The Lotte-1 well will be drilled as a deviated well down the bounding fault, to test objectives at the Lower Cretaceous Mardie Greensand, Middle Jurassic Athol Formation, Lower Jurassic North Rankin Formation and Triassic Mungaroo Formation level.
The well is expected to take 7 days to reach its projected total depth of 2,408 metres measured depth. Should it be successful, mean recoverable reserves are estimated at 17 mmbbls.
During the past three years, Bligh Oil has been pursuing a policy of high risk, high reward exploration in Tunisia, Papua New Guinea and New Zealand. While several prospective plays were drilled, only two of these - Stanley #1 on PPL 157 in Papua New Guinea and Rimu A-1 on PEP 38719 in New Zealand - yielded commercially significant discoveries. Two others - Huinga #1 on PEP 38716 in New Zealand, an
the Chott Fejaj #3 well on the Fejaj permit in Tunisia - failed to reach their primary objectives, and are to be deepened during the next eighteen months.
This program involved substantial expenditures which have reduced the Company's working capital position, to levels at which the Company must re-finance its efforts and the investment strategy is being modified including:
* a reduction in the Company's exposure in the high risk high reward frontier areas such as Papua New Guinea and Tunisia. This has been achieved through a combination of sale and farmout,
* a re-entry into the lower risk arena of the Gulf Coast of the United States, through the acquisition of majority control and operatorship of the Bayou Choctaw project in Louisiana.
* a successful bid for the highly prospective Block 22/12, Beibu Gulf, Offshore People's Republic of China.
* increased emphasis on the prospective trend acreage which Bligh Oil controls in the Eastern Taranaki Basin in New Zealand.
To partially finance the program described herein, the Board has authorised the Rights Issue described in this prospectus and recognise the fact that Bligh Oil's share price is trading near all time lows. The issue is being made as attractive as possible to our existing shareholders, and to stage the calls for funds to match the pace of the Company's program.
Fourth Quarter Activities
EXPLORATION AND EVALUATION
No exploration and evaluation activities were carried out during the quarter under review.
During the quarter the company completed the acquisition of the Gabanintha Vanadium Project ("the Project"). The consideration for the acquisition was the allotment and issue of 18,900,000 shares and 9,496,000 31 October 2002 options exercisable at 20 cents each, together with a cash payment of $250,000.
CORPORATE MATTERS
During the quarter the company:
* Completed a placement of
* Continued to pursue and review potential investment opportunities.
TEXAS SILVER PROJECT, QUEENSLAND, RESOURCE UPGRADE
For full announcement, click here
Metex Resources NL advise that it has entered into an agreement with the drilling Company Grimwood Davies Pty Ltd, to undertake exploratory drilling programs for a total of $252,000.
Metex, will satisfy payment for these drilling services by the issue of 2.8 million fully paid ordinary shares in Metex coupled with 1.4 million free options to acquire ordinary shares exercisable at 20 cents on or before 30 June 2004. The terms and conditions of these securities will be the same as those for existing securities on issue. These issues will be subject to shareholder approval, which will be sought at the Annual General Meeting of Shareholders scheduled for October/November 2000. Application for listing of these securities on the ASX will follow the approval by shareholders.
Previous exploration completed by Metex successfully delineated anomalous gold results in RAB drillholes in the Goat Dam East area. The follow up to these results will provide an immediate focus for the additional drilling to be provided by these drilling funds.
At Laverton RC drilling on the new discovery 7AR at Red Flag (announced in the June 2000 Quarterly) has commenced. Meanwhile, the individual resamples reported from Dream/Brian's Patch have returned encouraging results from the single RAB drillhole traverse completed. The results include 5m @ 2.07g/t between 47-52m in BPRB015 and 3m @ 1.94g/t between 52-55m in BPRB017. RC drilling to test these results will follow immediately after the program at 7AR.
Fourth Quarter Activities
HIGHLIGHTS
* Grade control drilling identifies significant resource increase at RAV 8.
* Process Plant construction and Mining at RAV 8 on Target.
* Tectonic to manage Feasibility Study on Trilogy deposit following agreement being reached with Homestake Gold of Australia Limited.
Three African countries - Tanzania, Ghana and South Africa - showcased their combined mining mettle on Thursday, 3 August, 2000 at the official opening of the Geita Gold Mine in Tanzania, a joint venture between Ghanaian-based Ashanti Goldfields Limited and South African-based AngloGold Limited .
AuDAX, the holder of the right to acquire 80% for Hot Holdings Pty Ltd is pleased and relieved by the decision handed down by the Full Court of the Supreme Court of Western Australia in relation to the Bronzewing South ground.
The Court validated the original application by Hot Holdings Pty Ltd and found the Minister had acted in accordance with the law in making his decision.
There is accordingly no legal impediment to the grant of EL36/215 to Hot Holdings Pty Ltd.
The Court did however find that the recommendation of the Department of the Minister may be perceived to contain bias. It therefore quashed the Minister's original determination on the basis that "the recommendation is such as to give rise to a reasonable apprehension of bias".
Accordingly the Hot application is to be referred back to the Minister to be determined again according to law.
BRIEFING / PRESENTATION PAPER
Basin Minerals Ltd's commitment to the development of a major mineral sands industry in the Western Victorian Murray Basin, with first production expected by 2004, has received a substantial boost from an important joint government/industry mineral sands infrastructure planning study on the basin.
The Federal Government and three state governments on Thursday, August 3 released the study, which estimates the region currently hosts at least 60 million tonnes of heavy mineral sands products worth about $13 billion, a large part of which is on Basin Minerals' properties.
Over the past three years, Basin Minerals has spent over $4.2 million on exploration in the basin that has included over 5,000 holes totalling more than 200,000-metres of drilling.
1. DRILLING OPERATIONS
1.1 SALTFLEETBY-5 (ROC: 100%)
As of 6 pm on 3 August (UK time) the Saltfleetby-5 well had reached a depth of 1,909 metres (1,867 metres TVD) and was changing the bottom-hole assembly in preparation for directional drilling towards the reservoir sequence. The 3,200 metre well, including, if warranted, a 300 metre horizontal section, is designed to test the gas potential of the Namurian which underlies the field's main Westphalian reservoir and which has not been tested to date. Subject to continuing satisfactory progress, the well is expected to have penetrated the Namurian target by early September.
1.2 THE KYLE NORTHEAST APPRAISAL WELL (ROC: 12.5%)
As of 7 am on 3 August (UK time) the Kyle 29/2C-13 appraisal well (otherwise known as the Kyle Northeast well) was drilling ahead at 1,562 metres (1,359 metres TVD). The well is expected to have penetrated the two main reservoir objectives by mid August.
1.3 IRWES-1 WILDCAT EXPLORATION WELL, MONGOLIA (ROC: 100%)
Preparations are underway for the drilling of the Irwes-1 wildcat well in ROC's acreage in the Gobi Desert in Southern Mongolia. The well is expected to commence drilling on schedule in the latter part of August and it is anticipated that it will have penetrated the main potential reservoir objectives by early September.
ROC's second exploration wildcat in Mongolia, Temee-1, will be drilled immediately after Irwes-1 is completed.
2. PRODUCTION TESTING
2.1 KEDDINGTON-2 (ROC: 100%)
On 2 August, 2000, Keddington-2 started pumping oil with anticipated levels of associated gas. It is expected that oil production will stabilise over the next few days as the gas associated with the higher oil rates is regulated. The longer term potential of the Keddington-2 well cannot be assessed until a reliable production history has been established.
2.2 KYLE EXTENDED WELL TEST (EWT) (ROC: 12.5%)
This EWT continues to perform very satisfactorily. An expected increase in the gas-oil ratio has been stabilised by reducing the oil rate to around 10,000 BOPD to ensure that total gas and oil production from the EWT remains within the guidelines defined by the UK Department of Trade and Industry (DTI).
2.3 MONGOLIAN OPERATIONS
ROC's combined oil production from its three producing wells in the East Gobi Basin in southern Mongolia continues to average approximately 120 BOPD.
The fourth transhipment of export oil to China for calendar 2000 is in the process of being completed, subsequent to which ROC will have exported a total of 30,000 barrels of Mongolian oil to China since the current transhipment program commenced in June 2000. Subsequent to the current batch of oil being exported, ROC will have approximately 8,500 barrels of oil in storage at its field facility at Zuunbayan.
Croesus Mining NL has announced that Rotary Air Blast (RAB) drilling has reported extensive gold anomalism in the Mulline area which is located 5 kilometres north of the Giles prospect at Davyhurst. The Giles shear is interpreted to extend into the Mulline area.
Substantial near surface and bedrock gold results were returned from 2 separate zones and an initial 4,000 metres of followup reverse circulation (RC) drilling will commence as soon as possible, increasing the number of rigs on site at Davyhurst to four.
The drilling results from the Mulline area include:
MERB06 - 5m @ 1.15 g/t gold from 20m
MERB65 - 5m @ 4.21 g/t gold from 40m
MERB95 - 5m @ 3.21 g/t gold from 40m
MERB109 - 10m @ 0.90 g/t gold from surface
The potential for further discoveries in this area, similar to Giles is considered excellent.
The Company announces that the first shipment of concentrate from the Cosmos Nickel Project departed Esperance Thursday, 3 August for Canada. The shipment contained 8,800 wet (8,000 dry) tonnes at a grade of 16.26% nickel, exceeding the forecast of 5,500 tonnes at 15% nickel.
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 03/08/2000
QUEENSLAND
WELL: Stoke 8
TYPE: SWQ Unit Gas Development
LOCATION: PL 84, Total 66 Block, 1.9km NNW of Stokes 1, 1.5km SSE of Stokes 3 and 130km SW of the Ballera Gas Centre
STATUS AT 03/06/2000 0600 HOURS: Stockes 8 has been cased and suspended as a future Permian gas producer. The well reached a total depth of 2519m with 55m progress for the week. The rig was released on 01/08/2000
PLANNED TOTAL DEPTH: 2492m
WELL: Challum 17 DW1
TYPE: SWQ Unit Gas Development
LOCATION: PL 59, Aquitaine B Block, 1.5km SE of Challum 16,
0.7km NNE of Challum 8, and 20km W of the Ballera Gas
Centre.
STATUS AT 03/08/2000 0600 HOURS: Preparing to set whipstock for upper lateral (DW1). The current measured depth is 2697m, with 509m progress for the week.
Challum 170W is designed as a high angle well wit two sub-horizontal lateral wellbores designed t drain separate reservoirs in the Permian age Toolachee Formation. Challum 17 DW2 is designated the lower lateral wellbore while Challum 17 DW1 is designated the upper lateral wellbore.
PLANNED TOTAL DEPTH: DW 1 3029m MD
WELL: Wippo East 1
TYPE: SWQ Unit Gas Exploration
LOCATION: ATP 259, Naccowlah Block, 3.1km ESE of Wippo 1,
6.6km NNE of Wippo South 2, and some 30 km NE of the
Ballera Gas Centre.
STATUS AT 03/08/2000 0600 HOURS: Wippo East 1 has been cased and suspended as a Permian gas producer. The well reached a total depth of 2602m, with no progress for the week. A Drill Stem Test of the Permian Patchawarra Formation over the interval 2495m-2504m flowed gas to surface at a rate of 10,480 cubic meters per day (0.37 million cubic feet per day) through a 13mm surface choke. The rig was released on 31/7/2000, and is moving to Roti West 1, a gas exploration well in ATP 259P.
PLANNED TOTAL DEPTH: 2637m
WELL: Merrivale 10
TYPE: Gas Development
LOCATION: PL 44, Denison Trough, 690m SSE of Merivale 8,680m SW of Merivale 5, and some 140km N of the township of Roma.
STATUS AT 03/08/2000 0600 HOURS: Preparing to install wellhead. Merivale 10 reached a total depth of 2300m, with 626m progress for the week. The well is to be suspended as a future Permian gas producer. The rig is expected to be released, and will move to Maintop 2, a gas appraisal well in ATP 337P.
PLANNED TOTAL DEPTH: 2300m
OFFSHORE WESTERN AUSTRALIA
WELL: Stag 15H L2
TYPE: Oil Development
LOCATION: WA-15L, Barrow Basin, NW Shelf, Offshore WA, 25km
SW OF Wandoo, 64km NW of Dampier.
STATUS AT 03/08/2000 0600 HOURS: Stag 15H L2 has been cased as an oil producer and is being brought on line. The well reached a total measured depth of 3221m with 440m progress for the week. The rig was skidded to Stag II for workover operations on the 31/7/00.
PLANNED TOTAL DEPTH: 3400m
SANTOS LIMITED - SUMMARY OF DRILLING
WEEK ENDING 03/08/2000
SOUTH AUSTRALIA
WELL: Meranji 20
TYPE: Gas Development
LOCATION: PPL 35, Merrimelia-Innamincka Block, 0.5km ESE of Meranji 4, 0.6km NNE of Meranji 17, and some 30km NNW of the Moomba Gas Plant.
STATUS AT 03/08/2000 0600 HOURS: Meranji 20 has been cased and suspended as a future Permian Gas producer. The well reached a total depth of 2881m, with no progress for the week. The rig was released on 27/07/2000 and has moved to Meranji 22.
PLANNED TOTAL DEPTH: 3010m
WELL: Meranji 22
TYPE: Gas Development
LOCATION: PPL 35, Merrimelia-Innamincka Block, 0.4km ESE of Meranji 1, 0.6km SW of Meranji 17, and some 30km NNW of the Moomba Gas Plant.
STATUS AT 03/08/2000 0600 HOURS: Drilling ahead. The current depth and progress for the week is 954m. Meranji 22 was spudded on 30/07/2000.
PLANNED TOTAL DEPTH: 3010m
WELL: Moomba 115
TYPE: Gas Development
LOCATION: PPL 7, Moomba Block, 1.1km N of Moomba 90, 1.0km NW of Moomba 6, and approx 1km NNW of the Moomba Gas Plant.
STATUS AT 03/08/2000 0600 HOURS: Drilling ahead. The current depth is 2505m with 1585m progress for the week.
PLANNED TOTAL DEPTH: 2637m
WELL: Moomba 118 DW
TYPE: Oil Development
LOCATION: PPL 7, Moomba Block, 0.3km ENE of Moomba 104, 0.7km SSE of Moomba 24, and some 6km S of the Moomba Gas Plant.
STATUS AT 03/08/2000 0600 HOURS: Moomba 118 DW has been cased and suspended as a future Jurassic oil producer. The well reached a total measured depth of 2385m, with 210m progress for the week. The rig was released on 01/08/2000 and is moving to Moomba 117 DW.
Moomba 118 was a high angle oil development well designed to drain reserves from the Jurassic aged Hutton Sandstone oil pool, recently discovered by Moomba 104 oil exploration well.
PLANNED TOTAL DEPTH: 2414m
LETTER TO SHAREHOLDERS
Update on developments regarding the litigation commenced against Pasminco by claimants representing residents near our Cockle Creek and Port Pirie smelters.
The claimants allege emissions from our facilities have caused damage to property, impacted property values and in some cases adversely affected the health of residents. You can be assured that Pasminco has operated these facilities within the framework of government permits and licenses and will vigorously defend the claim.
There is no denying that there has been historic ground contamination surrounding these facilities, each of which has been in operation for more than 100 years. To address this, Pasminco continues to actively support remediation programs in the local communities of Port Pirie and Cockle Creek and invests significant capital in new technology to continue to reduce emission levels. The Pasminco Environment Report clearly outlines our approach to environmental management at Cockle Creek, Port Pirie and all of our other sites.
The initial action, which was filed in the Federal Court in Sydney under the Trade Practices Act, was subsequently dismissed as 'doomed to fail'. The claimants' solicitors promptly lodged a similar claim under common law in the Victorian Supreme Court. This action has been listed for a directions hearing on 11 August 2000 to set a timetable. Unfortunately, it may take many months to resolve even preliminary issues. For example, it is not clear that this action has satisfied the Victorian Supreme Court's requirements for the commencement of a class action.
As part of the Federal Court judgement, costs were awarded in Pasminco's favour against the individual claimants. We will retain to the Federal Court on 3 August to argue that it is more appropriate that their solicitors, rather than the individual claimants, pay those costs.
With both of these matters returning to court, the action can be expected to attract further media and community attention. Shareholders should also understand that the issue is unlikely to be resolved this year.
Half Yearly Report
RIO TINTO EARNINGS UP 33 PER CENT
* 2000 first-half net earnings of $677 million, up 33 per cent on the same period last year.
* Strong growth in demand boosted prices for most products.
* Continued strong cash flow from operations at more than $1.5 billion for the half year.
* Successful acquisition of the remaining public shares in Comalco.
* Offer to acquire North Limited.
* Interim dividend up 27 per cent in Australian dollar terms and 22 per cent in sterling terms.
The Directors advise that the Full Bench of the Supreme Court of Western Australia is expected to hand down its findings in relation to the Bronzewing dispute on Friday 4th August 2000 at 9.15am.
SECOND QUARTER HIGHLIGHTS
* Produced 3.0 million ounces of silver, a 42% increase as compared to the second quarter of 1999.
* Produced 35,849 ounces of gold, an 11% improvement over the first quarter of 2000.
* Cash costs at primary silver operations declined to $4.03 per ounce, 3.5% lower than the second quarter of 1999 and a 13% decline from the first quarter of 2000.
* Cash costs at primary gold operations were $316 per ounce compared to $278 per ounce in the second quarter of 1999. However, cash costs were $13 per ounce lower than the first quarter of 2000.
* Repurchased $7 million of the Company's 6% Convertible Subordinated Debentures due in 2002.
* Sold the Company's 20 percent net income royalty on Pan America Silver Crop's Quiruvilea silver mine in northern Peru for total consideration of $0.7 million, comprised of 140,000 common shares of Pan American, 100,000 share purchase warrants and $50,000.
* Completed the first phase of a major drilling program at Coeur's Rochester mine to delineate additional reserves and resources.
* Commenced the first phase of the year 2000 exploration drill and expansion program at Coeur Silver Valley.
DAVYHURST PROJECT
GOLD RESULTS FROM GILES PROSPECT
Croesus Mining NL announce that reverse circulation (RC) drilling has reported additional high-grade results from shallow depths at the Giles prospect.
These results further extend the mineralised zone to the north and south of Giles and initial resource calculations are being completed.
Feasibility studies have commenced towards the fast track development of Giles.
The level of drilling activity has increased at Davyhurst and three drilling rigs are now operating. RC and RAB drilling is continuing at Giles.
Of particular significance, is the intercept of 19m @ 17.4 g/t gold that extends the high-grade zone a further 50 metres north than previously known. Drilling further along strike continues. The existence of a possible parallel mineralised zone is also becoming evident.
The shallow and high-grade ore defined so far should provide for a very lost cost operation. The area is heavily weathered to 50 metres below surface and no groundwater has been encountered in the drilling.
The board of Dioro Exploration NL advise that the current drilling program at its 49% owned Frog's Leg project was completed on 31 July 2000. A total of 8,525 metres was drilled.
This target lies immediately south and adjacent to the Gilt-Edged Mining gold project. During January 3,190 metres of aircore drilling was completed. In early February a follow up program of 1,386 metres of aircore and 729 metres of reverse circulation drilling was completed. In late February 3 diamond holes were drilled and during March a 4,000 metre reverse circulation drilling program was completed. Significant intersections from this drilling are detailed below:
4m @ 81.18g/t, 2m @ 50.91g/t, 27m @ 34.29g/t, 10m @ 23.78g/t,
9m @ 10.68g/t, 30m @ 7.16g/t, 5m @ 27.83g/t, 6m @ 23.59g/t,
13m @ 7.14g/t, 5m @ 15.13g/t, 2m @ 30.86g/t, 1m @ 26.33g/t,
1m @ 31.0g/t, 7m @ 8.99g/t, 8m @ 17.11/t, 5m @ 15.14g/t,
3m @ 9.70g/t, 20m @ 7.51g/t and 18m @ 6.56g/t.
GROUP HIGHLIGHTS:
- Cash operating profit up 121% to R 49.7 million (US$7.4million)
- Gold production increase up 9 104 kg (292 698 oz)
- Gold revenue received up 5% to R 58 048/kg (US$263/oz)
- Cash operating cost decreased to R 52 590/kg (US$239/oz)
- Net capital expenditure of R 28.2 million (US$4.1 million)
SOUTH AFRICAN OPERATIONS:
- Cash operating profit up 80% to R 39.0 million (US$5.7 million)
- Gold production down 5% to 8 550 kg (274 887 oz)
- Cash operating cost of R 53 162/kg (US$241/oz)
- Net capital expenditure of R 21.3 million (US$3.1 million)
AUSTRALASIAN OPERATIONS:
- Cash operating profit of R 10.7 million (US$1.7 million)
- Gold production of 554 kg (17 811 oz)
- Cash operating cost of R43 764/kg (US$198/oz)
- Net capital expenditure of R 6.9 million (US$1.0 million)
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 02/08/2000
Country : Canada
Block Area: Disko Bay
or Prospect
Well Name : 7-3-49-7 W5M
or Location
Objective : An Exploration well testing Glauconite Gas
Current Status : * Spud: 23/07/2000
* Ran abandonment plugs
* Rig Released: 01/08/2000
Block Area: Hatton
or Prospect
Well Name : 4-14-14-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 26/07/2000
* Cased for MR/MH Gas
* Rig Released: 27/07/2000
Block Area: Hatton
or Prospect
Well Name : 4-23-17-28 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 26/07/2000
* Cased for MR/MH Gas
* Rig Released: 27/07/2000
Block Area: Hatton
or Prospect
Well Name : 12-17-17-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 25/07/200
* Cased for Milk River Gas
* Rig Released: 26/07/2000
Block Area: Hatton
or Prospect
Well Name : 4-13-17-27 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 26/07/2000
* Cased for Milk River Gas
* Rig Released: 27/07/2000
Block Area: Hatton
or Prospect
Well Name : 16-15-14-27 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 28/07/2000
* Cased for MR/MH Gas
* Rig Released: 29/07/2000
Block Area: Hatton
or Prospect
Well Name : 4-20-17-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 27/07/2000
* Cased for Milk River Gas
* Rig Released: 28/07/2000
Block Area : Galahad
or Prospect
Well Name : 14-26-40-15 W4M
or Location
Objective : An Exploration well testing Basal Quartz Gas
Current Status : * Spud: 27/07/2000
* Prepare to log
Block Area : Hatton
or Prospect
Well Name : 10-17-17-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 29/07/2000
* Cased for Milk River Gas
* Rig Released: 30/07/2000
Block Area : Hatton
or Prospect
Well Name : 2-20-17-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 28/07/2000
* Cased for Milk River Gas
* Rig Released: 29/07/2000
Block Area : Hatton
or Prospect
Well Name : 4-11-17-29 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 29/07/2000
* Cased for MR/MH Gas
* Rig Released: 30/07/2000
Block Area : Hatton
or Prospect
Well Name : 12-1-17-29 W3M
or Location
Objective : A Development well testing Milk River/Medicine Hat Gas
Current Status : * Spud: 28/07/2000
* Cased for MR/MH Gas
* Rig Released: 29/07/2000
Block Area : Hatton
or Prospect
Well Name : 2-8-17-28 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 27/07/2000
* Cased for MR Gas
* Rig Released: 28/07/2000
Block Area : Hatton
or Prospect
Well Name : 6-15-14-27 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 30/07/2000
* Cased for Milk River Gas
* Rig Released: 31/07/2000
Block Area : Hatton
or Prospect
Well Name : 16-16-14-27 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 29/07/2000
* Cased for Milk River Gas
* Rig Released: 30/07/2000
Block Area : Hatton
or Prospect
Well Name : 16-15-14-27 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 28/07/2000
* Cased for Milk River Gas
* Rig Released: 29/07/2000
Block Area : Hatton
or Prospect
Well Name : 10-17-17-26 W3M
or Location
Objective : A Development well testing Milk River Gas
Current Status : * Spud: 29/07/2000
* Cased for MR Gas
* Rig Released: 30/07/2000
Fletcher Challenge
Drilling & Production Testing Report
For the week ending 02/08/2000
Country : New Zealand
Block Area: PML381012
or Prospect
Well Name : MB-7
or Location
Objective : Horizontal development well in the Maui B D1.10 oil reservoir
Current Status : * Commenced sidetrack from 9 5/8" casing
* Drilled in 8 1/2" hole from 2570m to 2689m
* Current operation @ 0600hrs 3rd August,
drilling ahead at 2699m
Block Area: PML381012
or Prospect
Well Name : MB-6
or Location
Objective : Horizontal development well in the Maui B D1.10 oil reservoir
Current Status : * Suspended well with stuck 4 1/2" liner pending evaluation of sidetrack or completion options while operations proceed on MB-7
Merivale No 10, a gas appraisal well situated approximately 690 metres South-South-East of Merivale No 8, Latitude 25 deg. 33 min. 38.85 sec. South, Longitude 148 deg. 20 min. 13.68 sec. East, was spudded at 23:30 hours on July 10, 2000. Surface casing was set at 250.1 metres RT. Intermediate casing was set at 1672.4 metres RT. A total depth of 2,300 metres RT was reached at 12:30 hours on August 1, 2000. At 06:00 hours today the rig was being prepared to suspend the well. Progress for the week was 626 metres.
Progress Report
1. FUTURE MINING AT KENMARE MINE, SOUTH BLACKWATER
A number of unstable strata incidents have severely impacted longwall mining of the first C seam block at South Blackwater's Kenmare underground mine since its commencement in the first quarter of the 1999/2000 financial year. Extended delays and increased costs of removal of the longwall equipment have further impacted longwall mining in this seam. All longwall equipment has now been successfully recovered from the C seam.
A review of the performance of longwall mining in the first block creates uncertainty that the C seam at South Blackwater can be mined using longwall technology currently available to the company, at current coal prices.
2. AMORTISATION OF MINING RIGHTS AND COAL RESERVES AT JOINT VENTURE MINES
The amortisation rates applied to mining rights and coal reserves at the Central Queensland Coal Associates (CQCA) and Gregory Joint Venture mines have been reassessed following completion of the assessment of the coal resources and reserves of the Joint Ventures as at 30 June 2000. This reassessment of amortisation rates results in a reduction in amortisation expense by approximately $8 million per annum after tax, commencing in 1999/2000.
The Company announces the recovery of a further 369 diamonds weighing 37.70 carats from 310 tonnes mined from the Monte Christo Mine at Bingara, NSW. The stones were recovered from the poorly sorted gravel about two metres thick on the south western side of the pit. Mining is continuing in that direction. The average grade recovered was 12.2 carats per hundred tonnes, which is higher than the grades reported from recent excavations.
Tap Oil NL advises progress and interpretative results of the Linda-1 exploration well.
LOCATION
The well is located in TL/l, 17.5 kilometres north-east of Varanus Island at latitude 20 deg 32 feet 54.13 inches S and longitude 115 deg 41 feet 48.36 inches E.
PROGRESS
Since the last report the well has undergone stabilisation procedures to control overpressuring difficulties and to determine the depths at which circulation losses were occurring. As at 6.00 am Wednesday morning the well was stabilised, with minimal circulation losses.
FORWARD PROGRAMME
The hole is in good condition and preparations are being made to set a cement plug at the current total depth of 2,775 metres measured depth ("MD") of the well. A liner will be run to tag the cement plug thus cementing off all potential losses. The well will then be sidetracked into the Biggada sandstone and production tested.
Second Quarter Report
- Loss from continuing operations of $2.7 million ($0.01 per share),
compared to income from continuing operations of $0.8 million ($0.00
per share) in 1999. The loss from continuing operations included
primarily non-cash pre-tax foreign exchange charges of $7.8 million
compared to $17.4 million of pre-tax gains recorded in the 1999
second quarter.
- Net loss of $16.5 million ($0.06 per share) compared to net income
of $0.1 million ($0.00 per share) in the second quarter of 1999,
including losses of $13.9 million ($0.05 per share) and $0.7 million
($0.00 per share) in the 2000 and 1999 second quarters, respectively,
from the new discontinued sulfur operations.
- Cash flow from operations of $42.1 million, compared to $15.2
million in the second quarter of 1999, reflecting lower average total
cash costs, higher realized gold prices and changes in working
capital.
- Total attributable gold and equivalent production of 589,100
ounces, approximately 38,200 ounces less than in the second quarter
of 1999.
- Average total cash cost of $185 per ounce, $10 per ounce lower than
in the same quarter of 1999.
- A 71% increase in the amount of gold contained in mineralized
material at Veladero.
United Energy Limited has announced an 11.6% increase in profit after taxation and before abnormal items for the half-year ended 30 June 2000.
Operating profit after taxation and before abnormal items increased $3.8 million to $36.6 million over the previous corresponding period. United Energy also recorded an abnormal profit of $59.6 million, attributable to the sale of its retail electricity business to Pulse Energy. United Energy is a 25% shareholder in Pulse Energy. The group consolidated profit for the half-year after income tax and abnormals was $96.3 million.
The directors declared an interim dividend of 8.25 cents per Stapled Security, fully franked at 34%. Payment will be made on 1 September 2000 to Stapled Security holders registered at the record date of 18 August 2000. Directors indicated, subject to meeting forecast results for the full year, that they expect to maintain a total distribution of 17.25 cents per Stapled Security for the financial year ending 31 December 2000.
Another highlight of the period was an 11.5% increase in earnings per Stapled Security to 8.79 cents. Sales revenue also increased 15% over the previous corresponding period to $381.3 million.
Fourth Quarter Activities
* CORPORATE
Exploration expenditure for the quarter amounted to $31,762.
* GENERAL EXPLORATION
NEW PROJECTS - BASE METALS, GOLD
West Musgrave
AAR has acquired a significant interest in the West Musgrave Complex (Blackstone Region) - see map - of Western Australia. This acquisition follows on from the nickel exploration success recently announced by Western Mining Corporation east of the area of AAR's interest.
AAR and PayLODE Pty Ltd ("PayLODE") have by agreement made joint application for 5 ELA's totalling 957sqkm in the West Musgrave. In addition, AAR has joint ventured with PayLODE a further 2 ELA's totalling 400sqkm in the same area. Each party is entitled to a 50% interest and AAR is to sole fund the first $250,000 of exploration expenditure on each ELA.
All ELA's are located on the Bentley 1:250,000 scale geological series sheet SG 52-5. They are located over a series of magnetic anomalies associated with the flank of a positive gravity anomaly. The gravity anomaly is located approximately 50km north of Warburton. Both geophysical features are considered by PayLODE to be associated with mafic and ultramafic rocks of the Proterozoic Giles Complex. The area is covered by Tertiary and Quaternary sediments.
TASMANIA - GOLD
DENISON GOLDFIELD
The results of 1m splits of anomalous 4m composites >0.2g/t from the RC drilling program carried out at the East Denison prospect during the March quarter were received.
The March quarter program of 12 RC holes for 596m partially tested strike and depth extensions of a 1,250m mineralised zone defined by soil sampling and shallow auger geochemical sampling. Only 400m of the well-defined, continuous, fault-controlled NNE-SSW trending zone which dips shallowly at 15deg - 20deg easterly had previously been tested, albeit only partially, by first pass RC drilling carried out in the March 1998 quarter.
The mineralised intervals encountered in EDRC16, 17 and 18, drilled as down dip extensions to the east of previously drilled EDRC12 (20m @ 1.0 g/t, including 7m @ 2.4g/t Au) confirmed continuation of the flat lying mineralised structure. The most significant intersection of 6m @ 6.38g/t Au occurs in EDRC15, which is located 50m to the south and 60m to the east of EDRC12. A follow-up drilling program has been designed to further test this intersection as the mineralisation in EDRC15 remains open.
EASTERN GOLDFIELDS - GOLD
BULGA DOWNS JV
A RAB/Aircore drilling program partially tested three of five sand-covered targets within a large aeromagnetic low during the quarter. Twenty three holes for 694m were drilled on a variable 200 x 50m pattern. All holes were sampled at 4m intervals with samples submitted to ALS in Perth for aqua regia gold analysis (0.001
detection limit).
Banded iron formation, chert and mafic and ultramafic rocks below Quaternary sands and alluvium (up to 16m thick) were intersected. Although the first pass drilling has assisted in the interpretation of the aeromagnetic feature, no gold assays of significance were recorded. Further testing, however, is required before the full significance of the large aeromagnetic feature is determined.
KIMBERLEY REGION - BASE METALS, GOLD
KOONGIE PARK
No field work was carried out during the reporting period.
Fourth Quarter Activities
HIGHLIGHTS
MINERAL SANDS
* Imperial One Limited (Imperial) and BeMaX Resources NL (BeMaX) have signed a Share Sale Agreement by which BeMaX will acquire 100% ownership interest in Imperial Mining (Aust) NL. The acquisition will give BeMaX an additional 25% beneficial ownership in the BIP Joint Venture, which owns the Ginkgo heavy Mineral deposit and other strandline prospects in the Murray Basin. Imperial will receive 18.95M fully paid ordinary BeMaX shares and 1.95 million options. This represents 26.6% of the expanded BeMaX issued capital.
* Snowden Mining Industry Consultants independently estimate an Indicated Resource of 252 million tonnes @ 2.8% Heavy Minerals at 1.0% cut-off for the Ginkgo Deposit. Ginkgo is believed to be the largest contiguous Indicated Resource delineated to date in the Murray Basin.
* Following mineralogical testing by MD Mineral Technologies Pty Ltd, of a composite bulk sample from the Ginkgo Deposit, results indicate that the heavy mineral concentrate could be processed into marketable ilmenite, leucoxene, rutile and zircon products.
HIGHLIGHTS
BULONG OPERATIONS
* Successful repair of defective nozzles in the heater and flash circuits
* Improved gypsum control measures implemented
* Cobalt refinery modifications completed.
* Leach plant feed rates exceeded design soon after recommissioning of the plant after the major shutdown in May/June.
Bendigo Mining has now obtained significant further evidence in support of its Ribbon Repeat Theory by successfully intersecting a predicted new ribbon 6 kilometres to the north of the Swan Decline.
The Company previously intersected unmined ribbons under the Deborah and Sheepshead lines of reef and it has now confirmed by geological modelling and drilling an unmined ribbon 200 meters below previously mined workings on the New Chum line of reef.
Fourth Quarter Activities
SUMMARY
* As at 30 June 2000, the total Indicated and Inferred Mineral
Resource above a 0.75% Ni cut-off for Goongarrie-Ghost Rocks-Kalpini
and satellite nickel projects is:
182.1 million tonne at 1.07% Ni and 0.08% Co.
* The Indicated and Inferred Mineral Resource above a 0.50% Ni cut-off
for the Goongarrie-Ghost Rocks-Kalpini and satellite nickel projects
is 405 million tonne at 0.8% Ni and 0.06% Co. Fully diluted, the
Inferred Mineral Resource is 474 million tonne at 0.7% Ni and 0.05%
Co, with contained metal being 3.4 million tonne nickel and 0.3
million tonne cobalt.
* During the Quarter, Heron advanced its work towards the Cawse Stage
II Pre-feasibility Study:
* Resource Definition Reverse Circulation drilling continued at
Goongarrie, where 15,752m in 331 holes was completed (average depth
48m), with 7,674 samples submitted;
* A Confirmation Diamond Drilling program was completed, consisting
of 406m in 8 holes;
* Archaeological and ethnographic surveys were completed, and flora,
fauna, photogrammetry, tenement and hydrological surveys were
commenced; and
* Detailed metallurgical evaluation commenced at the Lakefield Oretest
metallurgical laboratory, Perth, with 6 bulk samples currently under
test (very good leaching results to date).
Subject to the Pre-feasibility Study which is currently being
finalised by Centaur, it is apparent that all of Heron's ore
entitlement to Cawse Stage II could be sourced from Goongarrie South
alone. This has favourable implications in respect of centralisation
of Heron infrastructure, and ability for Heron to deal in its other
nickel laterite resources.
Fourth Quarter Activities
No additional fieldwork was undertaken on the BHP Mineral Sands Joint
Venture tenements during the June quarter.
EL5473 was relinquished in March 2000 as no significant HM
discoveries were made by drilling 367 holes (12,635m) in 1999.
In the South Pooncarie area (Exploration Licence 5474, Figure 2), no
further regional exploration was carried out as activities were
concentrated on the Ginkgo Deposit in that area. However, several
promising prospects remain to be followed-up by further drilling.
These include:
1. Snapper with 18m @ 6.2% HM.
2. Crayfish with intersections of 34m @ 2.2% HM and 16m @ 3.3% HM.
3. Gallipoli with intersections of 35m @ 2.2% HM and 24m @ 3.3% HM.
4. Laburnum with 22m @ 2.0% HM.
Drill hole density on Snapper, Crayfish, Gallipoli and Laburnum is
currently insufficient to define resources but each prospect has
considerable potential. Further work is planned in the future.
GURINA JOINT VENTURE - EL4428, VICTORIA - 614SQKM
(IMPERIAL MINING NL 50% AND OPERATOR, PROBO MINING PTY LIMITED 50%)
Arrangements were made for a regional follow-up drilling program of
coarse grained strandline-style heavy mineral intersections
previously reported by CRA. At the closed of drilling in mid July, no
shoreline sediments and no significant HM intersections had been
encountered.
Fourth Quarter Activities
HIGHLIGHTS
* Successful fundraising of $1.35 million and completion of indirect investment in ViewInternet.com Pte Ltd.
* An EM geophysical survey over the Fields Find igneous complex identifies bedrock conductors prospective for platinum/palladium and copper/nickel mineralisation. Three EM anomalies selected for RC and diamond drill testing for Lac de Isles style platinum/palladium mineralisation.
Fourth Quarter Activities Report
HIGHLIGHTS OF THE QUARTER'S ACTIVITIES
* Whilst continuing the development phase of the Quest 29 project,
1,120 ounces of gold were produced during the Quarter from the
treatment of ore from the dump leach pads.
* VOD Pty Ltd completed installation and commenced trials of an
interactive Video on Demand service at two Sydney apartment blocks
with its first customers trialling the service in July.
* Visual Networks entered into a Teaming Agreement with Australia's
third largest telecommunications carrier, AAPT Ltd to pursue a number
of Corporate and Government business opportunities.
* Insight Technologies launched its newly developed software
products, the Intellego Suite and XMLMATE and continues to
experience significant revenue growth.
* Insight Technologies formed a strategic partnership with the HCL
group, one of Asia's premier systems integrators, for HCL to
distribute Insight's products and solutions in the Malaysian, Indian
and Singapore markets.
* The company is also continuing to evaluate further acquisition and
investment opportunities in the resource and non-resource sectors.
* Development funding provided to its investee companies is enabling
them to take advantage of significant new business opportunities.
* Intention to restructure the company's mining and technology
businesses into separately listed vehicles within the next half year.
* Ongoing focus by the company towards expanding the company's
existing gold production and gold resource inventory at the Quest 29
and Tom's Gully projects in the Northern Territory.
* Strong financial position with cash and marketable securities of in
excess of $5 million.
QUARTERLY EXPLORATION ACTIVITIES REPORT
TO 30 JUNE 2000
EXPLORATION:
INDUSTRIAL:
CORPORATE:
Fourth Quarter Activities
HIGHLIGHTS
GAWLER CRATON
MINNIPA GOLD PROJECT
* A drilling program still in progress on the Barns Gold Prospect resulted in the completion of 23 reverse circulation holes totalling 2329 metres in the north-eastern sector of the extensive geochemical anomaly.
* Drilling to date defined a 100 metre wide mineralised corridor over a 300 metre strike. This corridor is open to both the north and south as well as at depth.
* Within the corridor 11 holes drilled to date contain long intersections of strongly anomalous gold containing sporadically distributed intervals between 1 and 16 metres in length exceeding 1g/t gold.
* Examples include 21 metres at 0.75g/t including 1 metre at 5.5g/t, and 16 metres at 1.05g/t.
* These results confirm that there is potential at Barns for altered granite hosted bulk dimension gold mineralisation.
* Exploration to date has been directed at only a limited sector of the extensive geochemical anomaly.
* Ongoing exploration has the objective of locating zones of higher grade gold mineralisation.
WARRAMBOO IRON PROJECT
* Analyses of drill samples from Murphy Target showed 41 metres at 24.2% iron and an additional 53 metres at 21.6% iron.
* These iron grades are demonstrative of a recoverable magnetite content in the order of 30% comparable to the grade of a number of North American iron ore mines where magnetite is produced.
* Promising results from early testwork provide encouragement that premium price magnetite pellets of DRI grade can be produced.
FINANCE
The Company has liquidity of $2.67 million comprising cash and term deposits of $1.93 million and interest bearing investments of $0.74 million.
GIRAFFE ONLINE LTD
During the previous quarter the Company announced it had entered into a joint venture with Giraffe Online Ltd to provide working capital to further develop that group's New Media Web Site.
AuDAX is earning a 30% interest in the organisation by providing $1.5 million over a six-month period with an option to increase its interest to 45% at the rate of $100,000 per percentage point above the initial 30%.
Giraffe Online Ltd has in keeping with its programme and budget, launched a vertical portal web site named "bluemanna.com.au" aimed at Australian internet users who are interested in pursuing an active outdoor lifestyle. The first channel on this portal covers a wide range of activities including camping, 4WD, trekking, climbing, diving, fishing, cycling etc.
Over forty contributors working under the control of Editor Robert Taylor, who was previously Chief of Staff at The West Australian newspaper are providing quality content to maintain this exceptional site.
Bluemanna was launched in Sydney on April 28th as a content only site and the e-commerce capacity is to be added on schedule during August.
UNIQUE VISITORS TO THE SITE IN JUNE, ONLY THE SECOND MONTH OF OPERATION, WAS THREE TIMES THE ANTICIPATED NUMBER.
The quality of the site construction, the content and the overall concept of the business model designed by Giraffe have attracted the attention of many of the country's major media and internet players and Giraffe is confident of forming a strategic alliance with one of these in the near future.
The launch of the site and a strategic alliance with a significant player are in keeping with Giraffe Online Ltd's proposed expansion into broadband content and commerce.
MILLROSE
No fieldwork was carried out on Millrose during the quarter due to the continuation of the wet conditions which have restricted access to the prospect.
Mines and Resources Australia Pty Ltd advised that a short aircore drilling programme is proposed for the September Quarter.
BRONZEWING SOUTH
During the quarter the Company continued its battle for the ground immediately south of and adjacent to the operating Bronzewing Goldmine.
The matter which has been in progress for almost 8 years returned to the Full Bench of the Supreme Court on 23 May 2000 and a decision on that hearing is imminent.
As previously reported, the appellants Mark Creasy and Oresearch NL are appealing the decision of the Minister for Mines to grant the title to Hot Holdings Pty Ltd following its ballot win and subsequent recommendation for approval by the Mining Warden.
The Directors remain confident, despite the continued litigation, that Hot and hence AuDAX will be rewarded with a title to this much sought after exploration acreage within the near future.
Fourth Quarter Activities Report
HIGHLIGHTS
Three very important events occurred in the June quarter with respect to the Zeehan Nickel Project.
Firstly, joint venture partner Rio Tinto Exploration Pty Limited elected to convert their 10% interest to a 2% NSR, thereby conferring 100% of the project on Allegiance.
Secondly, in response to the continuing encouraging drilling results, the Board decided to complete a Pre-feasibility study on the Avebury deposits. It is due for completion by end December 2000 at an estimated cost of $1M.
And thirdly, the company made a placement of shares and options to raise $1,729,852 to enable the above programme to be implemented with financial comfort.
HIGHLIGHTS
EQUITY RAISING BY ACCLAIM URANIUM NL
A meeting of shareholders on the 14th April approved the raising of A$2.8 million, which has now been successfully completed.
These funds were raised to:
(a) strengthen the financial position of the company, allowing it to take advantage of investment opportunities as they arise, including investment in non-mining activities, and
(b) provide working capital for the conduct of the company's current and future activities. This will include funding the Definitive Feasibility Study for the Langer Heinrich Uranium Project and the Australian expenditure commitments.
LANGER HEINRICH URANIUM PROJECT
FINANCE
The Industrial Development Corporation of the Republic of South Africa has offered to cover 25% of third party costs associated with the Definitive Feasibility Study. For Stage 1, Resource and Reserve drilling, this is estimated to be A$200,000 and is in addition to the A$400,000 loan already approved by the Mineral Development Fund of Namibia. In return the IDC will have the right to purchase a 25% equity interest in the Langer Heinrich Project at completion of the Definitive Feasibility Study. Negotiations are protracted and drilling is not expected to commence for some months.
FIELD OPERATIONS
* Low-level radiometric baseline survey over the entire MDRL No. 2236.
* Collection of environmental baseline data for weather, flora and ground water.
* Location of proposed Stage 1 (Feasibility Study) drill-hole sites.
* Experimental radiometric logging on site and at the Pelindaba test-site, South Africa.
Fourth Quarter Activities
HIGHLIGHTS:
* EL MOLINO JV PERU
North Limited has released preliminary results of a drilling programme over Cu-Au targets at AKD's El Molino project in Peru.
* SEPPELT RANGE DIAMOND JV - KIMBERLEY REGION, WA
Rio Tinto has commenced on-ground exploration activities over diamond targets at Seppelt Range.
* WONARAH PHOSPHATE JV - TENNANT CREEK, NT
Rio Tinto has indicated that exploration activities including 1500m of RC drilling will commence in late July/August.
* ECHUNGA DIAMOND JV - ADELAIDE HILLS, SA
AKD has joint ventured out its Echunga diamond project in South Australia to Flinders Diamonds Limited.
* CORPORATE
The Company has changed its name to "AKD Limited" to reflect the Company's diversified asset base.
HIGHLIGHTS
* Exploration fieldwork commenced during the quarter on two projects in conjunction with Amplats.
* Due diligence has commenced on a small project that would see cash flow to the company from gold production.
* Review of several grassroots exploration projects in various locations within Australia.
* Re-modelling of the Copper Hills technical data results prior to a potential new programme of exploration.
* Company name changed to Australian Platinum Mines Limited.
Fourth Quarter Activities
HIGHLIGHTS
Eloise
* Production commenced at Eloise West;
* Tailings Dam cell number 3 well advanced;
* Exploration drilling intersects 40m wide mineralised zone 20m west of Eloise West.
The last quarter was a quiet one for the company's drilling activity. However, significant progress was made on rationalising our large exploration portfolio and accelerating appraisal and development activities on the "sweet spots" adjacent to existing markets for our products.
Management is still focussed on optimising the company's production operations and commercialising its substantial static gas resources. The pleasing production performance at Beharra Springs and Ladbroke Grove and the progress on the commercialisation of the Bassgas project are tangible results of this effort.
The second half will see a return to drilling activities. In Q3 we will drill the Lotte-1 well in EP 363 (AWE 16%) and in Q4, five wells are anticipated in the Perth and Carnarvon basins.
The company will seek to continue an active drilling campaign in the most prospective areas close to existing markets and infrastructure. It is also our intention to try and expose shareholders to a "company-maker" project every six to twelve months to provide upside potential to shareholders, while still operating within our means and being mindful of conserving cash resources for future growth opportunities.
QUARTERLY REPORT TO SHAREHOLDERS FOR THE PERIOD ENDED 30 JUNE 2000
HIGHLIGHTS
* Amity to drill two attractive gas targets in onshore Turkey in joint venture with the Turkish Petroleum Corporation. Drilling is anticipated to start in September.
* The Whicher Range-5 well to be drilled underbalanced and fracture stimulation will use a non-water based fluid.
Review of Financial Year 1999-2000
Major drilling campaign is underway in still largely unexplored northern margins of the Cooper Basin failed to live up to expectations, with the Taipan-1 and Canterbury-1 wells disappointingly dry. However, renewed thrust along the southern flanks of the Cooper is expected to commence shortly, starting with two development wells at Kenmore at some time during this first quarter of 2000-2001.
After this, the Company plans to drill within the South Australian-based Cooper blocks - Sellicks, Maslins and Henley, previously held by Santos Ltd. Several attractive prospects have also been delineated in our Otway Basin tenements and we aim to drill at least two wells in western Victoria in early 2001. Naturally, the timing of this programme will be subject to such things as resolution of Native Title issues and timetables set by operators and joint venture parties.
The Company is now in a position to direct its focus entirely on oil and gas. The recent placement and rights issue have provided sufficient funds to implement the extensive drilling programme.
QUARTERLY HIGHLIGHTS
* Gold production averages 8,545 ounces per month for the quarter.
* Quarterly gold production, a new record of 25,635 ounces.
* Cash operating costs of US$143 per ounce in the June quarter.
* Heap leach quarterly stacked tonnage was 413,367 tonnes at 2.76 g/t Au head grade.
Fourth Quarter Activities
HIGHLIGHTS
* Cobra has acquired an interest in the Internet based mining information and services portal - Mining e-Trade
* Cobra has been joined by the Singapore based construction and property giant Low Keng Huat (LKH) as shareholders of the Internet Service Provider and telecommunications carrier Global Dial. The LKH association has facilitated the possible entry of Global Dial into the Chinese and Singaporean telecommunications markets. Global has expanded its domestic service for Perth into the Sydney and Melbourne markets.
* A draft of the Chrysoprase Plan of Operations has been prepared. A mining schedule has been prepared and quotes for the mining and processing are being evaluated. A schedule of the projected rehabilitation costs which is used for calculating the Environmental Security to be lodged with the Mines Department has been prepared. A detailed evaluation of the chrysoprase market is also in progress.
* Negotiations with traditional landowners of the company's Musgrave Range tenements for access are well advanced.
* Cobra has changed its status and name to Cobra Resources Ltd.
* Company establishes a web site - www.cobraltd.com
Fourth Quarter Activities
Production for the June 2000 Quarter was lower than the FY99 comparable period, primarily as a consequence of the decision to reduce production at Charbon and Ivanhoe Collieries to meet market requirements.
When compared with the previous year, the lower annual production also reflects the one-off Charbon highwall mining campaign conducted in the middle Of FY99.
Centennial's final quarter sales were affected by the timing of certain export shipments which have slipped into the next quarter.
Second Quarter Activities
HIGHLIGHTS
* 531 Carats of ruby and 330 carats sapphire produced
* 1,748 Diamonds produced from Monte Christo Mine
* Tunnel enters diamond bearing crater rocks
* Share Purchase Scheme raises $1.8 million
The Company announces the recovery of a further 1,094 diamonds weighing 114.05 carats from 1,192 tonnes mined from the Monte Christo Mine at Bingara, NSW. The stones were recovered from the poorly sorted gravel about two metres thick on the south western side of the pit. Mining is continuing in that direction. The average grade recovered was 9.6 carats per hundred tonnes.
210 tonnes of the overlying overburden sands were also processed, yielding 30 stones weighing 3.6 carats.
Second Quarter Activities Report
OPERATIONS
STRATFORD MINE (100%)
The current quarter results show a number of changes from those of the March quarter. The major ones being:
* Deliveries of coking coal to the Japanese Steel Mills reverting to close to previous levels after the price reductions became effective on 1 April 2000.
* Changes to the specifications of thermal coal produced by Stratford for the domestic market resulting in significantly higher yields.
* Commencement of deliveries of thermal coal to Delta Electricity and Macquarie Generation under the terms of the contracts secured during 1999.
* The mining contractor, Henry Walker Eltin, reconfiguring the Main Pit to achieve increased productivity.
REPORT FOR THE QUARTER ENDING 30 JUNE, 2000
KEY ACTIVITIES
* Options issue raises $1.43 million.
* 380 tonnes of typical sulphide ore mined from Browns sample pit and transported to Adelaide. Actual values again exceed the resource model.
* Major flotation prototype programme nearing completion.
* Ausmelt potscale smelting testwork completed.
Fourth Quarter Activities
PHILIPPINES
DIDIPIO FTAA
DIDIPIO PROJECT - GOLD, COPPER
CLIMAX INTEREST: 92%
OPERATOR: CLIMAX MINING LTD
DINKIDI DEVELOPMENT
During the quarter under review, negotiations continued with the bankers to the project and resolution was achieved on the major issues that remained outstanding ahead of final application for credit approval.
Meetings were held with the preferred joint venture partners, in both Seoul and in London with the European multilateral funding group, to resolve a number of key features including overrun support, working capital provision, contingency issues and dilution arrangements. These meetings were successful and it was agreed to proceed with the remaining stage of the negotiations.
Additional to the financing initiative, the other area of significant activity during the quarter has been the ongoing negotiations with a major Australian engineering group. The tendering process for the underground development resulted in a very strong expression of interest from an Australian engineering Company. The expression of interest has now crystallised into offers to undertake all aspects of the development; both underground and at surface.
The underground work encompasses the development of the 2.4 kilometres long decline, to be developed by conventional drill and blast methods, and a 6.6 kilometres long drainage tunnel to be developed using a tunnel boring machine. The underground work also includes the development of the draw points, ore passes, crusher chamber and the undercut for the block cave. It is currently proposed that this aspect of the project will be undertaken by means of a "partnering" style of contract whereby Climax and the engineering group will share both the benefits and the costs, equally either side of an agreed target price for the work.
Fourth Quarter Activities Report
Continental's major asset continues to be its shareholding in Consolidated African Mines Limited. The Company advises that Randgold Resources Limited, in which CAM has a significant shareholding has recently announced the sale of an effective 40% of the Morila gold mining project in Mali to AngloGold for US$132 million in cash, valuing the Morila project at US$330 million.
The Board of Continental understands that CAM/JCI is aggressively pursuing the sale of Western Areas Limited in order to facilitate a more adequate return on equity for stakeholders.
Continental also understands that the Board of CAM is consulting with Randgold & Exploration Company Limited, the major shareholder in RRL, the potential to distribute the proceeds of the Morila sale.
Fourth Quarter Activities Report
1. CORPORATE
During the quarter the Board of Directors of the company advised that it was (a) considering a consolidation of capital by reducing the number of securities on issue, and (b) was seeking business opportunities in the high technology related field in order to enhance shareholder value.
On 21 June 2000, the company announced, that consistent with this new initiative, it had taken up 5,000,000 ordinary shares together with 5,000,000 attaching options in Bambuu Ltd (Bambuu) at an issue price of A$0.25 per share. The options are exercisable at A$0.20 on or before 31 March 2002. Cue's shareholding is currently approximately 17.45% of the issued capital of Bambuu and Cue is the largest single shareholder.
2. PRODUCTION
Cue's oil production revenue received during the quarter from the SE Gobe oil field in PNG was US$937,862 and equated to 34,121 barrels. During the quarter 20,000 barrels of oil were sold forward at an average of US$28.47 per barrel. Production revenue received, after hedging payments in the quarter was US$868,917.
CARNARVON BASIN (WESTERN AUSTRALIA)
EP 395
(CARNARVON 11.61%)
This permit is located offshore approximately 26km to the southeast of the Harriet Field, and 22km from the Varanus Island oil and gas production facility.
Apache drilled the Boyd-1 well to a total depth of 673 mRT on 3 January 2000. The hole was then logged, sidewall cores taken and finally plugged and abandoned.
Sidewall cores taken recorded oil shows of between 40% and 100% fluorescence. These oil shows may have implications for the possibilities of an updip oil accumulation at a location approximately 2km to the east. This will require further evaluation by the EP 395 Joint Venture.
HIGHLIGHTS
* Heads of Agreement has been executed with Barminco Pty Ltd in respect of the Kookynie Gold Project.
* Excellent shallow gold grades, up to 28m @ 4.1g/t from 2m depth, were intersected at four prospects at Kookynie in the first drilling programme.
* Field investigations are in progress on three diamond projects.
The directors of Defiance Mining NL present the quarterly report for the period ending 30 June 2000.
HIGHLIGHTS
Mathinna Joint Venture
* An indicated and inferred resource of 212,000 tonnes at 5.5g/t gold for 37,800ozs has been calculated at the New Golden Gate mine at Mathinna.
* Defiance has notified joint venture partner, Connemarra Gold that they have incurred expenditure in excess of $1.0 million and therefore have earned 50% equity in the joint venture.
* Barminco is currently assessing development options at Mathinna.
Fourth Quarter Activities Report
HIGHLIGHTS
NATURAL GAS
* At the end of the quarter Drillsearch was in the process of finalising the acquisition of a large natural gas property at Talbot Lake, Northern Alberta, Canada. The property is classed as a development and exploration property with proven gas reserves, minor production and significant exploration up side.
* Drillsearch anticipates that gas production will increase during the coming three (3) quarters as a result of development drilling at Talbot Lake.
* Circumpacific Energy Corporation ("Circumpacific") continued preparation with Talisman Energy Inc. to drill a high impact deep multi zone gas well at Lambert in west central Alberta, Canada. Drilling will commence on 3rd August, 2000 and if successful this well has the capacity to add 10 to 20 BCF of proved producing reserves to the Drillsearch group.
* Drillsearch's total net revenue from gas operations was only $15,373 (last quarter $16,404) but with development and production operations at Talbot Lake commencing, this revenue will be adjusted upwards during the September and coming quarters.
CRUDE OIL
Australia
* Drillsearch has entered an in principle agreement with a major Australian company to acquire oil production and interests in exploration tenements located in Queensland. This will lift Drillsearch's Australian sales to close to A.$3 million per annum. Documentation for that contract is being prepared.
Canada
* Circumpacific's Canadian oil sales volumes averaged 277 BOEPD during the quarter (Last quarter: 266 BOEPD).
* Circumpacific's Canadian oil equivalent net sales revenues for the quarter ended 30th June, 2000, were A.$760,896 (Last quarter: A.$689,701).
* As a result of its regional data review programme in the north and central Alberta region, Circumpacific acquired additional 100% owned exploration lands. Assessment of a number seismic anomalies on these lands indicates that they carry attractive drilling targets and data review is continuing.
REPORT ON ACTIVITIES FOR THE QUARTER ENDED 30TH JUNE 2000
HIGHLIGHTS
* Pressure oxidation test work confirms Sappes gold production process
* Zarmitan pre-feasibility study confirms viability of project in Uzbekistan
* Share placement raises A$1.74 million
* Gold production performance improves at Suzdal
Fourth Quarter Activities Report
HIGHLIGHTS
EXPLORATION PROJECTS
* Ghana
A 455,000 ounce gold resource has been estimated for the Homasi Main Zone. Diamond drilling of this Main Zone will commence in August.
* South West Yilgarn Project
A major gold mineralised structure is indicated by the definition of continuous bedrock gold anomalism over at least 11 kilometres strike at Bullock Pool. Deeper reverse circulation drilling to begin testing anomalous areas will commence this quarter.
A regional ground holding totalling over 9,000 square kilometres has
been established.
* Gawler Joint Venture
An airborne electromagnetic survey was flown over the area of the magnetic anomaly at Yumbarra. Results are pending. Ground exploration is expected to be underway this quarter.
DEVELOPMENT PROJECTS
* Decision made to withdraw from the farm in agreement with Western Metals Limited on the Hellyer Tailings project.
CORPORATE
* Cash balance at end of June $21.9 million.
Fourth Quarter Activities Report
HIGHLIGHTS
Production achieved during this quarter GOLD EQUIV 20,405 OZ
GOLD 19,582 OZ
SILVER 45,800 OZ
Average Cash Production Cost this Quarter* AUD 375/OZ
Average Cash Production Cost 12 Months to AUD 317/OZ
30 June 2000 *
* Cash Cost per oz of Gold Equivalent
The cash cost of refined production for this quarter was AUD 375/oz of gold equivalent and for the twelve months to 30 June 2000 was AUD 317/oz of gold equivalent. These costs include all mine site cash costs, royalties, PNG mining levy, dispatch and refining expenses in PNG Kina. The cash costs have been calculated by converting the Kina costs for each month into AUD at the average of the opening and closing rate for each month.
June Quarter cash costs were reduced relative to March Quarter cash costs (AUD 428/oz). Following a full review of operations during the quarter, strategies are in place to further reduce cash costs in the coming year.
Fourth Quarter Activities Report
HIGHLIGHTS
* Final results from air-core drilling programs indicate twenty one positive targets at Upper Beta Creek;
* Test marketing program of gemstone collection underway in USA.
This report summarises the Company's activities for the 3 months ended 30 June 2000.
HIGHLIGHTS
* Record gold production at the Dalgaranga project for the fifth consecutive quarter of 38,082 ounces (Equigold share 19,079 ounces) at a cash cost of $250 per ounce. This production was 62% higher than the previous highest quarterly production of 23,570 ounces.
* At Equigold's average gold delivery price of $500 per ounce for the quarter the Dalgaranga project generated a cash surplus of $12.67 million of which Equigold's share was $6.35 million.
* Positive mining reconciliation to reserve at Western Queen for the quarter of 4,527 ounces (19%).
* Preliminary independent resource/mineability studies at Mt Rawdon in Queensland following recent drilling indicate potential to increase mineable gold ounces by in excess of 30%.
* Further drilling at Mt Rawdon continues to gain potentially economically significant results.
* Development of the Mt Rawdon project proceeding on schedule and within budget. First gold production forecast for late December 2000. No drawdown on the project loan facility of $22.5 million was required during the quarter.
* Drilling on the Bassawa permit in Cote D'Ivoire is confirming the presence of low-moderate grade gold mineralisation with downhole widths up to 32 metres. The area was previously undrilled.
HIGHLIGHTS
OPERATIONS
MINERAL PARK - ARIZONA USA (100%)
Mineral Park produced 612 metric tonnes (1.350 million pounds) of cathode copper for the Quarter. On 1 June 2000 the Company announced the signing of a conditional agreement by Equatorial Mining North America Inc for the sale of Mineral Park to Silver Eagle Resources Ltd. It is anticipated that the completion of the sale will occur early in the fourth quarter of the year.
TONOPAH - NEVADA, USA (100%)
Construction of the Tonopah Copper Project was substantially completed during the Quarter, although testing and commissioning as required by the EPC contract have yet to be performed as a result of delays experienced in respect of the construction of the Project. Cathode copper production for the Quarter was 1,582 metric tonnes (or 3.487 million pounds).
Production forecasts for the year to 30 June 2001 are lower than originally forecast mainly due to construction delays and to the fact that the PLS grade is expected to be lower than that per the Feasibility Study. It is now expected that full production will be achieved by third quarter 2001.
CONSTRUCTION PROJECT
EL TESORO - REGION II, CHILE (39%)
Construction of the El Tesoro Project continued during the Quarter, with construction progress amounting to 39.1% as at 30 June 2000. Total cumulative Project expenditure as at 30 June 2000 was US$105.40 million, with expenditure of US$45.06 million incurred during the quarter. Construction and start-up is projected to be completed by mid 2001.
CORPORATE
At the Annual General Meeting of the Company held on 28 April 2000, shareholders were advised that delays in completion and production at Tonopah have resulted in a significant increase in working capital requirements and will inevitably affect the future funding requirements of the Company. This has resulted in the Company being required to fund its short term cash flow requirements by means of the issue of preference shares with an subscription value of US$l0 million by Equatorial Mining North America Inc to AMP Nominees Pty Limited (a wholly owned subsidiary of the major shareholder AMP Life Ltd). The proceeds of the issue were received on 26 July 2000. The Company will require further funding and is in the process of assessing those requirements.
Fourth Quarter Activities
HIGHLIGHTS
* Exodus enters biotechnology field through Multiple Sclerosis Project at Murdoch University.
* Laverton Joint Venture with Delta executed, exploration to commence soon.
* Large mineralised system with drill values up to 24g/t gold outlined on Exodus-Metex-Delta Joint Venture at Laverton.
Fourth Quarter Activities
HIGHLIGHTS
- Listing of Vanteck VRB Technology Corp on the Canadian Stock Exchange (CDNX) on 28th July, 2000.
- Acquisition of 50% of SLE (Australia) Pty Ltd by issuing 100,000 Federation Resources NL ordinary shares. Commercial contract signed on 21 June, 2000 by SLE (Australia) Pty Ltd.
- Sale of ownership interest in Publicdebate.com.au Pty Ltd for the consideration of 12 million ordinary shares to New Holland Mining NL and $80,000 cash. Total value of approximately $440,000.
- Takeover offer to Pinnacle shareholders and option holders.
- Underwriting of options expiring 31 August, 2000 to William Noall Limited, ensuring further injection of $860,100 into the Company.
- Notice of Meeting was lodged with the ASX and despatched to shareholders on 26 July, 2000 for meeting to be held 23 August, 2000 to consider resolution to change the Company name to "Federation Group Limited" the type of company to a company limited by shares, the adoption of a new constitution and ratification of previous placements.
- Placement to William Noall Limited, raising $230,000.
- First Licence fee paid to Pinnacle VRB Limited for continent of Africa.
Fourth Quarter Activities
ACTIVITIES FOR QUARTER
1. RESTRUCTURE OF QUARRYING ACTIVITIES
During the quarter the Fraser Range group sold their building stone quarry assets on the Southern Hills Pastoral Station in Western Australia. The assets sold consisted of the Southern Hills Station Pastoral Lease together with the mining tenements and associated plant and equipment located thereon.
At the same time the Directors decided to re-open the Mungari quarry which had been closed down late in 1999.
Mungari was re-opened to satisfy the growing demand for its grey granite - particularly from Singapore.
2. PROPOSED EQUITY RAISING
On 11 July 2000 Directors announced that they intended to seek shareholder approval in General Meeting for the following issues of securities:-
I. SHARE PLACEMENT
Up to 60 million fully paid ordinary shares at 2.5 cents per share with a free attaching option exercisable on or before 31 December 2005 at an exercise price of $0.10 each.
II. RIGHTS ISSUE OF OPTIONS TO SHAREHOLDERS
Up to 85,533,274 options at 2.5 cents each exercisable on or before 31 December 2005 at an exercise price of $0.10 each. The basis of entitlement to be one option for every two ordinary fully paid shares held following completion of the Share Placement in I above.
III. OPTIONS PLACEMENT
Up to 25,000,000 options at 2.5 cents each exercisable on or before 31 December 2005 at an exercise price of $0.10 each.
The issues are expected to raise up to $1,776,333.18 with the funds to be used for working capital purposes and to take advantage of investment opportunities as and when they arise.
Fourth Quarter Activities
AUSTRALON ACQUISITION
Gawler Gold is investigating a variety of investment opportunities in the "hi-tech" related arena. On 10 April 2000, the Company executed a Heads of Agreement
pursuant to which Gawler would acquire a 100 percent interest in a Melbourne-based technology company named Australon Enterprises Pty Ltd ("Australon"), subject to the satisfactory completion of various matters, including the presentation of an acceptable independent expert report, incorporating a valuation of both Gawler and Australon, and the prior approval of the Shareholders.
The Gawler Gold shares have remained suspended since that time pending on-going technical and legal due diligence with respect to Australon. Should the outcome of these investigations be satisfactory, the proposed acquisition will be submitted to the Gawler Shareholders for approval.
EXPLORATION ACTIVITIES
* DINGO RANGE GOLD PROJECT - WESTERN AUSTRALIA GOLD
E 37/0204, 0273, 0321, 0328, 0329, 0446, 0483, 0489, 0567;
M 37/0108, 0517, 0518, 0519, 0520
(GAWLER GOLD: 50 PERCENT; JULIA CORPORATION LIMITED, MANAGER: 50
PERCENT)
The second major Dingo Range Joint Venture exploration program commenced in April 2000. The program, with a total estimated expenditure of $1.0 million over a twelve month period to be funded by the partners pro-rata to equity, is designed to further evaluate the gold resource at the Boundary Prospect and to investigate geochemical and geophysical targets associated with structural complexities located within the project area.
BOUNDARY PROSPECT
Drill testing for lateral and depth extensions of the Boundary gold resource is continuing. During the reporting period, 14 RC holes (aggregate 2,207 metres), including 3 holes with diamond cored extensions (aggregate 354 metres), were completed. The most recent drilling examined gold distributions within the eastern Banded Iron Formation (BIF) units and another BIF unit located on the western margin of the central resource mineralisation.
For further information, click here
Fourth Quarter Activities
HIGHLIGHTS
* MENZIES NICKEL PROJECT: OFFERS RECEIVED FROM LEADING NICKEL LATERITE INDUSTRY EXPLORERS/PRODUCERS. MORE EXPLORATION PLANNED.
* EZYIMAGE LIMITED: DUE DILIGENCE COMPLETED, FIRST COMMERCIAL WEBSITE
NEARS COMPLETION. IPO PLANNED FOR 2000.
* REFER To OUR WEBSITE FOR MORE DETAILS; www.goldenstate.com.au.
Fourth Quarter Activities
HIGHLIGHTS
* LARRANGANNI PROJECT (TANAMI GRANITES WA)
Regional RAB/air core drilling around the Finch area, located 25 km north of Anglo's Coyote discovery, has intersected wide-spread alteration with anomalous zones of up to 5 metres @ 220 ppb Au. The structural setting and anomalous geochemistry over an area of some 20 sqkm makes this a priority target area for further drilling.
* BALWINA JOINT VENTURE (TANAMI GRANITES WA)
R C drilling at the Camel prospect, located 40 km WSW of Coyote, has intersected up to 50 metres @ 0.4 g/t Au within a 7 km long structure that is anomalous in Au and As.
* CHARTERS TOWERS PROJECT (QLD)
Soil sampling at the Water Bore North prospect, located 6 km north west of Charters Towers, has outlined an anomalous zone with a strike length of over 1.2 km. Soil values returned up to 190 ppb Au whilst rock chips assayed up to 6.0 g/t Au.
* HARVEST HOME JOINT VENTURE QLD)
MPI Gold Ltd are currently drilling a 6000 metre air core program at the Harvest Home prospect located 30 km south east of the high grade Vera/Nancy gold mine. Previous reconnaissance drilling by MPI returned up to 5 metres @ 2.6 g/t Au from this area. No results from the current drilling have been received to date.
* THEIL WELL SALE (WA)
The Theil Well property, located 60 km north west of Kalgoorlie, has been sold to Centaur Mining and Exploration Ltd for a cash sum of $150,000.
Fourth Quarter Activities
HIGHLIGHTS COWRA - NEW SOUTH WALES
* Work during the quarter has confirmed the potential for gold-skarn style mineralisation at the Nasdaq and Little Point prospects. The prospects are located within a 16 square kilometre area identified by stream geochemical sampling that also includes the Fox Tank, Fox Tank South and Yards anomalies.
* Ground magnetic and soil sampling geochemical results continue to provide encouragement at Nasdaq. Mapping and rock chip sampling has identified skarn or calc-silicate hosted replacement style copper-gold mineralisation over an area of up to 1.25 x 2.50 kilometres, this represents a large area of potentially productive host rocks. Soil sampling has confirmed copper-gold-bismuth target zones that warrant drill testing. Rock chip samples returned up to 0.80 g/t gold, 0.17% copper, 0.22% zinc and anomalous arsenic and bismuth.
* At Little Point sampling has identified skarn or calc-silicate hosted replacement style copper-gold mineralisation located in several pods within skarns over a semi continuous zone of up to 900 metres in length.
GIDGEE PROJECT - WESTERN AUSTRALIA
* The company completed 4040 metres of drilling during the quarter. Rotary airblast drilling (RAB) continued at numerous prospects whilst reverse circulation drilling tested significant mineralisation identified in previous (RAB) drilling at the Transit and Legendre prospects.
* At Twopees, RAB drilling has confirmed a broad anomalous gold trend that extends for at least one kilometre. Results included 30 metres @ 0.12g/t gold reported from drillhole GRB739.
* At Transit, shallow rotary airblast drilling results reported previously have confirmed gold mineralisation over a strike length of 200 metres, including 10 metres @ 3.20 g/t. Drilling during the quarter tested the zone on 50 metre centres over a length of 200 metres. Eight holes totalling 1,025 metres penetrated down to a maximum vertical depth of 100 metres. All holes successfully intersected the trend outlined by the previous RAB drilling. Drilling intersected narrow (1-6 metres) shallow westerly dipping quartz veins, however hole CRC 002 intersected quartz veinlets and minor sulphides over a 40 metre zone.
Second Quarter Activities Report
HIGHLIGHTS
EXPLORATION
* Life of oxide reserves at Furtei has now been extended, by recent
drilling and mine development, by 16 months from original Feasibility
Study.
* Re-estimation of the Stratabound resource using 0.5g/t cut-off has
added 100,000oz making this 304,000oz gold. This mineralisation
remains open to North, South and East.
* Redefinition of the resources at Osilo, at the request of GMS
management as part of mine planning and verified by SRK Consulting UK
Ltd, now show 1.66Mt @ 7.02g/t gold at a 3g/t cut-off.
* Regional exploration at Siliqua, Illorai and the Eastern Paleozoics
has returned positive indications. Additional exploration and
drilling as required is planned.
* Stream sediment samples from the Posada-Asinara suture zone in
north-east Sardinia have been sent for sampling in the platinum group
metals evaluation process.
* GMS personnel reported very positively on their visit to the gold
exploration and production properties of Navan Mining (10.07% owned
by GMS and now listed on the Official List in London).
FURTEI MINE
* Production from oxides produced 6,983oz of gold for quarter.
* Average realised gold price received US$289/oz, which compares with
average cash operating costs of US$191/oz.
* Go-ahead given for the construction of the sulphide circuit and
mining of sulphide ores started.
* Test-work on bacterial extraction advanced from bench scale
laboratory tests in South Africa to small scale heap leach trials on
site. South African test work continues.
OSILO TRIAL MINE
* Land acquisitions near completion and final approvals from the
competent authorities expected in late August.
* Rod Jacobs, formerly of Coeur d'Alene in New Zealand, appointed
Osilo Project Manager.
* Independent consultants report recommends mining methods and mine
designs.
CORPORATE
* Annual General Meeting confirmed Homestake strategic alliance and
appointment of new directors. A visit by Homestake's exploration team
is scheduled for early August 2000.
* Acquisition of 6,500,000 ordinary shares in Navan Mining. This
strategic stake has been the subject of a number of inquiries from
third parties following a successful road show conducted by the
company. A leading London broker has recently issued a "strong buy"
recommendation for Navan shares.
* Group Treasury, including cash on hand, marketable securities,
grants received and applied for, and State-backed low interest loan
offered and net of bank debt repayable in 2000 exceeds A$14 million.
*More than 1,300 people attended the open day at Furtei. This, and the
locally produced video, has greatly improved the understanding among
Sardinians of what Gold Mines of Sardinia is accomplishing on their
island. Sardinian domestic public relations have been and remain a
high priority. Fortunately there have been no further repercussions
of the bombing incident and a recent independent review of security
shows this to have been aberrational in nature.
* With the help of SG Securities and the Banco di Sassari in Cagliari
trading facilities have been put in place whereby it is possible for
local residents to buy and sell GMS shares. It is hoped that this
will encourage greater Sardinian shareholding.
Fourth Quarter Activities
HIGHLIGHTS
REVIEW OF OPERATIONS
EXPLORATION AND EVALUATION
No exploration and evaluation activities were carried out during the
quarter under review.
During the quarter the company completed the acquisition of the
Gabanintha Vanadium Project ("the Project"). The consideration for
the acquisition was the allotment and issue of 18,900,000 shares and
9,496,000 31 October 2002 options exercisable at 20 cents each,
together with a cash payment of $250,000.
CORPORATE MATTERS
During the quarter the company:
* Completed a placement of
* 60,000,000 shares, together with one free attaching option for
every two shares subscribed for and issued at an issue price of 4
cents per share and option package, raising an amount of $2,400,000
(before expenses of the issue); and
* Shares and options for the acquisition of the Gabanintha Vanadium
Project, as described above.
* Continued to pursue and review potential investment opportunities.
Fourth Quarter Activities
HIGHLIGHTS
NEWBRAIN TECHNOLOGIES PTY LTD
As previously announced during the quarter, the company entered into an agreement to purchase a 35% interest in Newbrain Technologies Pty Limited.
Concurrent with software development, the company is pursuing a number of strategic alliances with major participants in these sectors. Negotiations are progressing well and the company hopes to be able to announce progress in this area during the current quarter.
SOUTH AUSTRALIA
Five reverse circulation drill holes (totalling 680 metres) were drilled to investigate a range of ironstone-copper-gold targets in the Peela/Ealbara area within EL 2510 approximately 25 kilometres northeast of Tarcoola.
Four of the holes encountered the high level Ealbara volcanic suite comprising rhyolite to rhyodacite overlying a thick basalt sequence. Two of these intersected approximately 120 metres of pervasively (hematite, carbonate, pyrite) altered magnetic (oxidised) basaltic rock with weakly elevated copper (800ppm), lead (1,700ppm) and low level gold anomalism (140ppb). Similar, but less well developed alteration was observed in the other two holes. While no significant mineralisation was encountered in this initial reconnaissance drilling, the rocks and their associated alteration strongly support the conceptual basis for magmatic associated FE-oxide-Cu-Au deposits and the results are viewed as encouraging.
The fifth hole further tested the geochemically anomalous, zoned magnetic feature at MB. Assay results were again encouraging, with strongly elevated As (76ppm), Cu (130ppm), Pb (150ppm), Ni (79ppm), Fe (24.3%), Mn (500ppm), V (340ppm) and P (1,200ppm) supporting the multi-element nature of the surface geochemistry.
For full report, click here
Fourth Quarter Activities
HIGHLIGHTS
* Sapphire production at Subera above planned levels;
* Sapphire production at Warrandah continues to increase above planned levels;
* Australian Sapphire Joint Venture (50% GTN) continues to obtain good exploration results and expects the new Weean mine on stream during December quarter;
* Additional exploration ground under negotiation in NSW and Tasmania;
* Strong rough sapphire markets enable significant price increases to be achieved.
* Tohono copper project evaluation suspended due to an environmental permitting issue. Discussions underway with Phelps Dodge concerning extension to transaction closing date.
Fourth Quarter Activities
REVIEW OF ACTIVITIES
SUMMARY
Development of the E-Commerce ventures continued during the quarter with Dark Horizon and Videcom both passing significant benchmarks.
QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2000
HIGHLIGHTS
* The Company listed on the Australian Stock Exchange on 17th May after raising $4 million through the issue of 20 million 20 cent shares. In addition, approximately 12.3 million shares were issued "in specie" to shareholders of Stuart Petroleum NL on a 1 for 5 basis as consideration for the divestiture of Stuart's minerals assets into the Company. Just over 3.6 million shares had been traded up to the end of the quarter.
* Drilling on the Coburn mineral sand project commenced in early July with 131 holes completed to date. The drilling has indicated extensive mineralised zones above the 5 metre, 35 metre and 50 metre strand lines, with considerably better grades in some basal strand zones than in previous scout drilling.
* Two nickel sulphide exploration projects have been acquired since listing, following a study of the regional geological controls of the new WMC West Musgrave nickel discovery. Both projects lie on a major northerly trending discontinuity known as the Mundrabilla Fault, which runs from the north coast to the south coast of Australia, through the West Musgrave prospect and Argyle diamond mine.
* A two hole drilling programme at the Mount Gunson copper project did not reveal significant mineralisation. Further drilling is planned later this year following a review from the results of the first two holes.
QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2000
HIGHLIGHTS
* Group Consolidated Profit - For the 12 months to June 30, 2000, unaudited profit before interest, depreciation, amortisation and income tax increased by 12% to $13.42 million (1999 $11.94 million).
Interest costs were down $1.01 million from the previous year to $0.09 million while amortisation and depreciation charges were up $2.85 million to $7.24 million. Unaudited profit before tax was $6.09 million (1999 $6.45 million). Income tax payable in respect of the 1999/2000 year will be substantially mitigated by the recoupment of prior years' tax losses.
At July 31, 2000, Haoma has no bank debt and has cash funds on deposit of $2.5 million.
For the Quarter to June 30, 2000 profit before tax was $1.98 million (1999 $1.62 million) after interest of $nil (1999 $0.18 million) and depreciation and amortisation of $3.19 million (1999 $1.02 million).
* Nolan's Joint Venture Gold Production (50.1% MIM/49.9% Haoma) - Production for the Quarter ended June 30, 2000 was 42,100 ounces (including 2,482 ounces of heap leach gold). Gold production for the same quarter in the previous year was 36,381 ounces (including 1,980 ounces of heap leach gold). Haoma's 49.9% share was 21,008 ounces (1999: 18,154 ounces).
* Nolan's Cost Per Gold Ounce Produced - In the 3 months to June 30, 2000 Haoma produced 21,008 ounces of gold at a cost per ounce produced of $217 (including $8 per ounce sustaining capital). The 1999/2000 full year cost per gold ounce produced was $268 (including $10 per ounce sustaining capital). The 1999/2000 budgeted cost per ounce produced was $271 (including $14 per ounce sustaining capital). The 2000/2001 budgeted cost per ounce is $337 (including $39 per ounce sustaining capital).
* Pilbara, WA - Haoma / Stockdale Prospecting Pty Ltd (a De Beers company) Joint Venture - Fieldwork commenced in May with follow-up and reconnaissance stream sampling over Pilbara Joint Venture tenements. Preliminary results from two areas in the Hillside Joint Venture tenements have found kimberlitic type spinel. Full results are pending. The Pilbara Joint Venture has been extended to cover twenty-one tenements in the Nullagine and North Shaw regions.
* Bamboo Creek, WA - During the Quarter test work continued at Bamboo Creek using the Elazac Process on low grade Bamboo Creek ore. It is anticipated that production of gold will commence in the September Quarter.
ACTIVITIES REPORT
FOR THE QUARTER ENDED 30 JUNE 2000
HIGHLIGHTS
* Ramu, Special Mining Lease issued.
* Kainantu, high-grade gold interesections continue.
RAMU PROJECT
(HIG 68.5% Interest)
PERMITTING
* All project approvals have been received.
* The Special Mining Lease (SML) was issued following the execution of the Mining Development Contract (MDC).
* The Ramu MDC features two significant provisions:
- The State guarantees fiscal stability for a period of 10 years after commercial production commences.
- The project is structured as mining & manufacturing operation, reducing the effective project tax rate from 35% to 27%.
JOINT VENTURE STRUCTURE
* Issue of SML triggers State's right to purchase 30% contributing equity in Ramu. Acquisition price will be 30% of project expenditure to date.
* Equity structure, should the State's exercise its option, will be Highlands Pacific 47.95%, Orogen 22.05%, State 25% and Landowners 5%.
EQUITY PARTICIPATION
* The process of securing an additional equity participant will now be stepped up, with a number of major mining companies showing interest.
ENGINEERING
* JV partners Kvaerner Metals and Baulderstone Hornibrook finalised outstanding components of Phase 1 A FEED program.
* Program finalised definition of process flow sheet, equipment lists, design parameters, process control philosophies and project implementation strategies.
KAINANTU JOINT VENTURE
(HIG 100%, NM&M earning 50%)
IRUMAFIMPA STRUCTURE
* Bonanza grades continue to be intersected:
- 5m @92.3 g/t gold
Incl. 2m @ 227.7 g/t gold
- 5m 12.7 g/t gold
Incl. 2m @ 25.3 g/t gold
* 2,060m of a planned 6,000m diamond drill program completed.
* Drilling confirms mineralisation is continuous over strike and depth.
* Mineralisation remains open in all directions.
OPERATING PERFORMANCE
Horizon's only investment is its 25% interest in the Loy Yang Power partnership ("LYP"). LYP's key operating results for the period are shown in the table below:
3 MONTHS TO 3 MONTHS TO
30 JUN '00 30 JUN '99
Generation revenue $120.2 m $113.0 m
Other revenue $11.1 m $16.1 m
Total revenue $131.3 m $129.1 m
Available Capacity Factor ("ACF")(1) 95.6% 93.8%
Capacity Factor ("CF")(2) 94.8% 90.4%
Generation Sent-Out 3,734 GWh 3,554 GWh
(1) ACF represents the proportion of nameplate plant capacity which was available to meet demand over the period.
(2) CF represents the proportion of nameplate plant capacity which was actually utilised over the period.
The key observations to be noted are:
* LYP's total revenue for the June 2000 quarter of $131.3 million was 1.7% higher than the previous corresponding period. Generation revenue increased 6.4% compared to the corresponding period, reflecting both increased generation sent out and higher electricity prices. However, the increased generation revenue was offset by a reduction in other revenue, in part due to reduced coal sale to the Loy Yang B power station from mid-May.
* Whilst LYP's generation revenue for the June 2000 quarter had benefited from exposure to substantially higher pool prices (refer Electricity Markets Development below), a high proportion of LYP's generation revenue for the quarter was committed to vesting contracts and hedge contracts which essentially fixed the electricity sales price LYP received regardless of prevailing pool prices.
* LYP continues to achieve very high levels of ACF and CF, both indicating LYP is operating in line with world's best practice. The gap between ACF and CF reduced compared to the previous corresponding period reflecting increased plant utilisation and therefore greater electricity sales.
Fourth Quarter Activities
HIGHLIGHTS
The bankable feasibility study to produce EMD will be complete in August 2000. Pilot plant testwork during the final phase of the study has consistently produced high quality EMD.
Feasibility results show that HiTec Energy's EMD project has a number of competitive advantages that should lead to it being the lowest cost producer in the world.
International marketing results during the quarter conclusively demonstrate that the market for high quality EMD - which is growing at 10% per annum - is currently in shortfall.
HiTec Energy is the only company in the world primarily dedicated to the production of EMD - Electrolytic Manganese Dioxide.
The phrase Electrofuel(TM) for Portable Energy(TM) (trademarks pending) describes HiTec's unique and important position in the world's consumer markets.
EMD can best be described as the "electrofuel" that gives portable batteries their power.
It is the primary component of alkaline batteries that are used to power devices such as CD Players, digital cameras, mobile phones, etc.
Batteries are an important consumer market - over 60 billion alkaline batteries were consumed worldwide in 1999. The overall market for EMD is growing at 10% or more per annum and there is a worldwide shortage of high qualtiy EMD which HiTec will produce.
Construction of EMD plant is planned for commencement in March 2001.The process flowsheet is sufficiently flexible to allow a number of construction alternatives.
Fourth Quarter Activities
1. COBALT PROJECT (AUSTRALIA)
THACKARINGA
Results from a composite drill hole sample of ore grade material are expected soon from EMR Microwave Technology Corporation, the Canadian firm undertaking testwork using microwave technology.
Heritage has 33% equity in Broken Hill Cobalt Ltd (formerly Thackeringa Mining Company Ltd), the holder of the Thackaringa Cobalt Project. Heritage may, by cash payments or further share issues, increase its equity in Broken Hill Cobalt in stages up to 100%.
Broken Hill Cobalt holds 2 mining leases and has an option to purchase a surrounding exploration licence for $A100,000 by 31 May 2001 from Western Metals Copper Ltd.
The present resource of 10.6M tonnes at 01% cobalt lies within 100m of the surface, including 5M tonnes at 0.14% cobalt. The property has potential for a much larger resource which could support a long life, large tonnage, low cost operation,
2. GOLD PROJECTS (NEW ZEALAND)
ONEMANA
At the end of the first term of the Onemana permit Heritage made application for a reduced area to cover the main zones of interest.
Landowner negotiations for access to the reduced area were progressed during the quarter.
WAIHI NORTH
The Department of Conservation approved the work programme for the Waihi North permit, which extends north from the Waihi gold mine boundary to the former Golden Cross mine.
Areas of hydrothermal alteration and gold mineralisation, confirmed by geochemical sampling and mapping, may represent the upper levels of hydrothermal systems within the permit.
KARANGAHAKE
The Department of Conservation approved the work program for the Rahu permit and an application was made to extend the Talisman permit after a 50% reduction in area. The relinquished portion of the Talisman permit was applied for as a new exploration permit called Dominion Knoll, which also included some prospective zones outside the original permit area.
During the quarter work commenced on improvements to access in the old Talisman mine workings.
OTUREHUA (CENTRAL OTAGO REGION)
Results of previous exploration were reviewed to assist planning of the current programme. The permit includes an area of old mine workings on a prominent shear zone, about 40km northwest of the Macraes gold mine.
Fourth Quarter Activities
KANOWNA TECHNOLOGY LIMITED & DIAMOND RIVER CORPORATION LIMITED
KANOWNA TECHNOLOGY LTD
SPOT-ON TECHNOLOGY
On July 4th, Spot-On Technology signed a $25 million contract with
USA based laser tool manufacturer CHECKPOINT Professional. This
contract is for the supply of Inclinometers, a product designed,
developed and protected by Spot-On Technology.
The contract is based on a minimum purchase of 500,000 Inclinometers
during a 3-year period and is due to commence in September 2000. The
CHECKPOINT Professional contract has been defined for the tool sector
only and Spot-On Technology will continue to develop other supply
opportunities in sectors such as Mining, Automotive, Aviation &
Transport.
SPOT-ON LASER & TOOL
Spot-On Laser & Tool has continued to expand its sales force
nationally with the latest additions being Regional Sales Managers in
Adelaide, Melbourne and Brisbane. The recent Interbuild trade show
(held at the Melbourne Exhibition Centre) demonstrated a customer
enquiry response greater than expected.
DIAMOND RIVER CORPORATION LTD
Diamond River Corporation has continued to develop its import and
wholesale strategy and will continue to visit off shore product
vendors, engage and secure marketing rights for building and
construction tools for the Australian industry.
A large percentage of the existing Diamond River Corporation dealers
are currently engaging into agreements with Spot-On Laser & Tool,
this will provide them with a larger range of product, combined with
a national sales marketing program.
CYRA-AUSTRALIA (3D GREEN LASER SCANNING)
Formed as a division of Diamond River Corporation Ltd, the
Cyra-Australia (3D Green Laser Scanner) has seen immediate
recognition as the most accurate scanning and measurement system
available. The Cyra-Australia (3D Green Laser Scanner) was recently
separated from Diamond River Corporation to allow the new image and
marketing program to commence.
Cyra-Australia has appointed a new national manager who will monitor
the day to day operation, including the co-ordination of marketing
agents. Cyra-Australia will continue to establish its presence both
here in Australia and New Zealand via a list of certified marketing
agents, whose sole direction will be to establish the rental program
for Cyra.
Fourth Quarter Activities
CHATREE GOLD PROJECT MINING LEASES GRANTED
KINGSGATE MOVES TO 100% OWNERSHIP OF CHATREE PROJECT DEBT FUNDING OF US$35M CAPITAL COST ARRANGED
CHATREE GOLD PROJECT THAILAND
1. GRANT OF MINING LEASES
The Thai Ministry of Industry granted the 4 mining leases covering the proposed Chatree Gold Mine in June. (ASX release 22 Jun 00). This development consent marked a watershed moment in the history of the project and for Kingsgate.
The leases are for a period of 20 years and are renewable.
2. KINGSGATE MOVES TO 100% OWNERSHIP OF CHATREE GOLD PROJECT
In June, agreement was reached with Kingsgate's Thai partner in the Chatree Project to purchase their remaining 10% equity in Akara Mining Ltd the 100% owner of the project. (ASX release 03 Jul 00).
The consideration for the purchase was the issue to Ban Pu Public Company Ltd of 560,000 fully paid Kingsgate shares and the extinguishment of amounts owing by Ban Pu to Akara.
The Kingsgate shares will be escrowed under a voluntary Restriction Agreement for 12 months.
Akara is licenced to be a foreign controlled gold mining company in Thailand.
Akara has been independent of its Thai shareholder for a number of years with its own Bangkok and field offices, staff and equipment so there will be no effect on its operations due to this development.
Fourth Quarter Activities
FIRST IN MAIL PTY LTD
Kanowna Lights has a 30% interest in First in Mail Pty Ltd ("Finmail").
Progress of Finmail to-date is summarised below:
* The systems were successfully installed in FINMAIL's Sydney
premises during March 2000.
* The Finmail messaging system was fully operational by the 4th April
and was successfully launched at the Now 2000 computer show.
* A marketing and PR campaign has been launched. Coverage has already
been obtained in major trade publications as well as consumer
magazines.
* Finmail has followed a strategy of providing software as well as a
backbone to support small, medium and large corporations, as
opposed to marketing to the end user.
* This strategy will allow these companies to utilise, market and
resell the Finmail system under a software and/or private label
agreement.
* The corporate reseller approach has already proven to be successful
for Finmail having signed its first major private label agreement
with Phoneware Limited, an Australian listed company. Phoneware
conducted extensive research on competitive products and other
messaging alternatives, before choosing Finmail to be their UM
provider.
* Finmail has since concluded deals with:
* Strathfield Car Radio
* MidLink Enterprise
* Stationary Depot
* Link Telecommunications
* Skill Master.
ARTHUR RIVER/BERYL HILL
The company advises a reverse circulation percussion drill programme
has commenced at the Arthur River Tantalum/niobium project in the
Gascoyne region of Western Australia.
A total of 53 holes for 2440 metres will be drilled in this first
stage.
The programme is designed to test a large zoned pegmatite along a 450
strike length where previous bulk sampling and drilling has indicated
high grade niobium and tantalum mineralisation.
The previous exploration was undertaken spasmodically between 1980
and 1994 and was of insufficient quality or quantity for resource
estimation.
Results from the programme are expected by mid to end August.
Kanowna Lights has the option to acquire up to a 100% interest in the
Arthur River/Beryl Hill project areas which cover a large portion of
the highly prospective Yinnetharra rare metal bearing pegmatite
complex.
PINNACLES NICKEL PROJECT (KANOWNA 95%)
No field work was carried out during the quarter.
KANOWNA LIGHTS GOLD PROSPECT (KANOWNA 100%)
No field work was carried out during the quarter.
GREAT WESTERN PROSPECT (KANOWNA 100%)
No field work was carried out during the quarter.
Fourth Quarter Activities
HIGHLIGHTS
Kings Minerals N.L.'s Director, Geologist Mr Michael Seed visited
South Africa during this Quarter, for the purpose of supervising the
Company's Offshore Exploration and Dimond Recovering Operations and
also to investigate and pursue other diamond related projects.
Michael Seed remained in South Africa for two months. During this
period he was able to fine tune our Offshore Diamond Exploration
Operations and spend time in assessing and inspecting other Onshore
Diamond Prospects. Mr Seed negotiated the increase of our Concession
areas with Transhex with the inclusion of Concession 3b. This
Concession lies 1km off Port Nolloth, our Vessels home port. He was
also able to re-negotiate the increase of our percentage production
of revenue on Concession 6a from 57% to 65%.
The Exploration Vessel was sidelined for the majority of the Quarter
due to the failure of the Jet Propulsion Gear. These problems have now
been recified and the Company reports the Exploration and Recover
Vessel is now in a fully operational mode, again awaiting favourable
sea conditions.
Early this Quarter the Company completed a fund raising placement of
1.55 million fully paid shares @ 6.5 cents to raise $100,750. These
funds are to be used for part payment of debt and for ongoing
Exploration and Administration.
Fourth Quarter Activities
CORPORATE
As announced to the Australian Stock Exchange Ltd on the 30th June 2000 the Company has entered into an agreement with Rivkin Discount Stockbroking Pty Limited and the shareholders of that company to acquire the whole of the shareholding in that company.
The agreement is subject to a number of conditions including:
Shareholders approving the acquisition of Rivkin Discount Stockbroking Pty Ltd by the Company in accordance with the Corporations Law and the Listing Rules of the ASX;
the Company becoming a Participating Organisation of the ASX and obtaining, pursuant to the Corporations Law, a dealer's licence to conduct a stockbroking business.
The date and location of the meeting of shareholders to consider the transaction will be advised in due course.
Shareholders will receive with the notice of the meeting seeking approval of the acquisition of Rivkin Discount Stockbroking Pty Limited an explanatory memorandum and an independent experts report on whether the proposed transaction is fair and reasonable to existing shareholders.
KURNALPI PROJECT TENEMENTS
Following the withdrawal of North Limited (North) from the Kurnalpi Joint Venture the company has been actively seeking substantial farm in partners that may wish to manage and explore the portfolio of Kurnalpi tenements. Several parties are presently completing their reviews and are expected to advise the company shortly.
The company has taken charge of its project data and has concurrently undertaken a complete technical review of its exploration tenements. This has facilitated the assessment and evaluation of the work carried out by North.
This, together with statutory reporting and tenement maintenance, comprised the sum total of exploration work during the quarter.
OTHER PROJECTS
No field work was carried out on the company's other projects during the quarter.
Fourth Quarter Activities
GIPPSLAND BASIN
* PEP 135 - Onshore, Victoria
(Lakes Oil Group, Operator: 100 percent interest)
There was no activity undertaken on this permit during the June 2000
quarter.
* PEP 136 - Onshore, Victoria
(Lakes Oil Group, Operator: 100 percent interest)
There was no activity undertaken on this permit during the June 2000
quarter.
* PEP 137 - Onshore, Victoria
(Lakes Oil Group, Operator: 100 percent interest; 5 percent royalty
applicable)
During the quarter under review, the North Seaspray-3 well was drilled to a total depth of 1,170 metres. Drilling of the well commenced on May 28th, and the rig was subsequently released on June 16th. As expected, formations were intersected slightly higher than at the nearby North Seaspray-1 well.
Gas flows were encountered whilst air drilling the pre-Latrobe Formation target sands and a flow test yielded a hydrocarbon flow measured at 150,000 cubic feet per day. At a depth of 1,155 metres, it became necessary to switch to mud drilling, and this continued to total depth, which was reached on June 16th.
After running wireline logs, a drill stem test was run over the interval from 1,100 to 1,170 metres. This flowed gas to surface at a rate of 20,000 cubic feet per day on a (1/4)" choke. The lesser flow is attributed to the back pressure provided by a mud column of over 300 metres produced from the over gauge hole. The well was subsequently plugged and suspended.
A review of the information obtained from the well and existing seismic data is continuing in order to assess the possibility of additional plays within the pre-Latrobe section in the general area.
* PEP 138 - Onshore, Victoria
(Lakes Oil Group, Operator: 100 percent interest; 5 percent royalty applicable)
The Yarram Seismic survey has confirmed the "Yarram" prospect closure at Latrobe Formation level. Work is continuing, aimed at assessing the potential of the pre-Latrobe Formation section.
For full report, click here
Second Quarter Activities
HIGHLIGHTS
DEVELOPMENT (EMILY ANN DEPOSIT - 100% OWNED)
* In April, the Company reached agreement with Inco Limited in
relation to a long term nickel off-take contract and financing for
the construction of a concentrate treatment plant at Emily Ann.
* Financial arrangements with a project financier for pre-production
mine development expenditure is nearing finalisation.
* Subsequent to quarter end, approval of the Notice of Intent (NOI)
for the Emily Ann concentrator and tailings dam has been received.
* Tenders related to initial surface construction works have been
assessed and preferred tenderers notified. The decline development
and initial stoping tenders were received during the quarter and are
under evaluation.
* A development decision is expected to be made during the September
quarter.
DEVELOPMENT (MAGGIE HAYS DEPOSIT - 31% OWNED)
* During the quarter, a successful in-fill drilling programme was
completed on the massive sulphide zone of the Maggie Hays resource.
Results are being incorporated into a re-estimation of the massive
sulphide zone resource and will form the basis for continued
optimisation and economic evaluation of the Maggie Hays deposit.
REGIONAL EXPLORATION
* Exploration during the quarter was primarily focussed on completing
the Maggie Hays massive sulphide zone in-fill drilling programme.
CORPORATE AND FINANCE
* $0.23 million remains to be sole funded by QNI in respect of
exploration in the Lake Johnston region (100% basis).
Fourth Quarter Activities Report
PRODUCTION
Mereenie and Palm Valley Natural Gas - The Company's share of natural
gas produced for sale from the two Amadeus Basin fields (Mereenie and
Palm Valley) during the quarter ended 30 June 2000 increased by 8.4
percent from the previous corresponding period.
The total amount of Amadeus Basin sales gas produced for sale for the
June 2000 quarter increased by 12.2 percent from the June 1999
quarter.
Mereenie Crude Oil/Condensate - The Company's share of crude oil and
condensate produced for sale from the Mereenie Field during the
quarter was 7,777 kilolitres. This equates to approximately 48,916
barrels or a daily average of 538 barrels. Total oil/condensate
produced for sale from the field was 139,761 barrels (1,536 barrels
per day), a decrease of 7.6 percent from the June 1999 quarter.
Fourth Quarter Activities Report
HIGHLIGHTS
MWAGI MAGI PROSPECTIVITY INCREASES
A review of exploration activity within and adjacent to the Mwagi
Magi project in Tanzania suggests that there is significant potential
for economic gold mineralisation within the licence boundaries.
FARM-OUT PROGRESSES
A number of major international gold mining companies have expressed
strong joint venture interest in the Tanzanian licences, and,
negotiations in progress are expected to result in substantial
farm-out deals during the next quarter.
Fourth Quarter Activities Report
HIGHLIGHTS
The Board of Directors was successfully restructured in May 2000 (see
"Corporate", below).
Michelago's wholly owned subsidiary, Inventory Management Systems Pty
Limited (IMS) has seen a pleasing improvement in orders, sales and
growth over the last month (see "Technology Investments", below).
Forecast gross revenue for the September quarter is in the range of
$350,000 to $500,000 compared with $32,000 in the June quarter.
CORPORATE
RESTRUCTURING OF THE BOARD OF DIRECTORS
On 26 May 2000, Mr Brian Currie was appointed Managing Director of
Michelago. Mr Currie's appointment coincided with the resignations
from the Board of founding Managing Director Mr Sam Lees, Ms Joan
Lees and Mr Peter Davison.
A meeting of the Company's shareholders will be held at 4.00 pm on 31
July 2000. The Notice of Meeting, Explanatory Statement and Proxy
Form were released on 29 June 2000.
The primary purposes of the meeting are for members to consider:
* A resolution proposing re-election of Mr Currie as a Director.
* A resolution authorising the Directors to issue, on certain
conditions, up to 40 million fully paid ordinary shares in order to
raise further working capital.
* A special resolution to amend the terms of the Michelago Share
Option Scheme (the Scheme), in order to allow the grant of options
under the Scheme without a minimum 20 cent exercise price.
Other resolutions for consideration of members are to approve a
number of previous shares issues and a special resolution to grant a
number of options under the Scheme to the Directors, Messrs Currie,
Horan and Dr Baker.
FOURTH QUARTER PRODUCTION REPORT 1999/00
FOR 3 MONTHS TO 30 JUNE 2000
* Strong June quarter copper production performances at Mount Isa,
Ernest Henry and Townsville - record quarterly and annual copper
smelter and refinery production.
* Outstanding June quarter performance from the Oaky North mine
increases coking coal production from Oaky Creek to its highest
annual level.
* McArthur River zinc-lead-silver and Ravenswood gold mines achieved
record quarterly and annual production.
* Mill maintenance and lower ore grades reduced copper and gold
production at Alumbrera.
* Mount Isa's new Enterprise copper mine entered commercial
production after achieving target performance levels, while the
George Fisher zinc-lead-silver mine is on target for commissioning
within budget in September/October.
Fourth Quarter Activities
HIGHLIGHTS
CORPORATE
* Majestic sells White Range Copper Assets to Matrix Metals for $5
million.
* $10 million rights issue and placement successfully completed.
DIAMOND PROJECTS - SOUTH AFRICA
* Pniel Estate bulk sampling continues to provide excellent results
from bulk sampling. A 16.36 carat white diamond valued at AU$51,333
was discovered on Pniel during the quarter.
* Official valuation of Pniel diamonds averaged an outstanding
AU$1,405 per carat.
* Majestic acquires the rights to purchase the Masons property at
Schutsekama.
* Majestic awards diamond recovery plant and mining contracts for a 2
million ton per annum operation at Schutsekama - to commence last
quarter of 2000.
* Further properties around Kimberley, South Africa under evaluation.
* Klipdam drilling program and evaluation reports completed -
negotiations to conclude in August.
ANGOLA
* Operating companies registered to form 0pala-Majestic partnership
(70% Majestic owned).
* Foreign Investment licence granted.
* Marketing licence anticipated next quarter.
PERSONNEL
* Robert Bell and Manfred Marx join the Majestic board.
* John Baillie joins as Financial Controller and Company Secretary.
* Keith Faulkner joins as Operations Manager to be resident in
Kimberley, South Africa.
Fourth Quarter Activities
HIGHLIGHTS
1. CORPORATE
Shareholder approval will be sought for several interdependent
proposals including:
A. BASE METAL SUBSIDIARY
Minotaur Gold NL (MNG) proposes to:
(1) Sell its base metal assets and its holding in Web Wombat Pty Ltd
to Minotaur Resources Ltd (MRL) for a consideration of 7,157,000
20 cent shares in MRL,
(2) Subscribe $1.37 million cash to MRL for a total consideration of
6,850,000 MRL shares. These 14,007,000 shares will then be
distributed to MNG shareholders, at no cost, on the basis of a 1
for 3 in specie distribution.
MNG optionholders may only participate in the distribution by
converting to shares. Under ASX Listing Rule 7.22.3, the exercise
price of the options not exercised reduces to 13.3 cents.
B. COLLOQUI PURCHASE
In the June quarter, MNG purchased a 20% interest in Colloqui Pty Ltd
for $200,000, and will seek shareholder approval to purchase the
remaining 80% for a consideration of $2.88 million to be satisfied by
the issue of 32 million fully paid shares at $0.09 per share and 32
million free attaching five year options.
The acquisition will give MNG access to a multi-point voice
communication over the Internet, with global potential.
C. FUNDING
A placement to raise $558,000 gross.
2. EXPLORATION
MOUNT WOODS JOINT VENTURE
Minotaur, Billiton Exploration Australia Pty Ltd, Normandy
Exploration, Sons of Gwalia and Mid East Minerals have reached
agreement in principle to form a joint venture over exploration
licences 2483, 2492, 2563 and 2597. The tenements are considered
prospective for large scale copper deposits with earlier exploration
intersecting major mineralized alteration systems (eg drill hole
EN43: 287 metres at 0.23% copper).
Minotaur will be the initial operator of the project which represents
the fourth joint venture between Minotaur and Billiton.
For full report, click here
QUARTERLY ACTIVITIES REPORT
JUNE 2000
HIGHLIGHTS
* Second and final milling campaign of the Granny Venn Ore
completed.
* A ground magnetic survey was undertaken and completed on the Cock
Robin and Oliver Twist Tenements.
* Two soil geochemistry programs are underway on the Oliver Twist and
Cock Robin tenements.
* Rehabilitation works undertaken on the Granny Venn Mine site.
QUARTERLY ACTIVITIES REPORT JUNE 2000
HIGHLIGHTS
* GARNETS
Following the successful application of our anti-skid coarse grade
garnet product on the "red" bus lanes in George Street, Sydney, this
program has been extended to York Street and will be rolled out to
other main roadways including Broadway. The Company has also
commenced marketing anti-skid products to other authorities in
Australia. This newly emerging market is regarded as potentially a
very large market segment but at this point is not yet quantified by
market studies.
* KAOLIN
The acquisition documents covering the Skardon River Kaolin assets
were executed on 29th June 2000. MSC has formed a special purpose
holding company, Queensland Kaolin Limited which is currently owned
30% by MSC and is project managed by MSC. QKL holds 100% of Skardon
River Kaolin Pty Limited which is the operating company. QKL arranged
an equity raising of $3.5 million during the quarter in order to
partly fund the acquisition of the assets, cover initial costs and a
technical geological review and drilling campaign as well as a
product development programme.
* SINOTEL
An underwriting agreement was entered into in July for the raising of
A$2.0 million seed capital in order to commence business operations.
An overall business development plan was established by JADE
Communications LLC, Seattle, USA for the exploitation of the Sinotel
contracts held in China. During the quarter Sinotel executed three
business development contracts which will form the basis of
implementing its China business program. The telecommunication
business revenue will be substantially designated in US dollars
collectible in Los Angeles, USA.
SUMMARY OF THE QUARTER
The following is a summary of the exploration and corporate activities of Masmindo Mining Corporation Ltd during the quarter ended 30th June 2000.
Exploration activities continued to be centred on mapping, rock chip sampling and trenching program's designed to identify future drill targets within a 2.5 kilometre radius of the Awak Mas gold deposit. (Masmindo interest 33.33%).
* Geological mapping in conjunction with rock outcrop and float rock sampling, has identified a broad area some 600 metres by 300 metres at the Rutuk Prospect, 700 metres south west of Awak Mas, containing significant mineralised rock outcrop and float material (up to 13.5 g/t Au-RTO13).
* Follow-up trenching and channel sampling on the anomalies at Rutuk has revealed zones of surface mineralisation. Particularly of interest were channel samples RTC010 with 22 metres at 3.26 g/t Au and RTCS001 with 38 metres at 2.65 g/t Au taken from the Loi Rutuk area.
As reported previously the Company announced on the 3rd of December 1999 that it had entered into a Heads of Agreement to take an undiluted 8.3% in Agricultural Trading Systems Pty Ltd (ATS). The payment to secure this initial interest was paid to ATS during the previous quarter.
Due to the fall in technology stocks in April Masmindo decided not to proceed with its option to invest $2.0 million for a further 20% of ATS. Masmindo is currently reviewing its investment in ATS.
Fourth Quarter Activities
Nexus Minerals NL has undergone a transformation during the June 2000
quarter with shareholders at general meeting on 23 June 2000
approving the following significant resolutions:
* The acquisition of a further 60% interest in diversified technology
company, MTIC Corporate Pty Ltd ("MTIC"), taking the company's
holding in MTIC to 80%;
* The change of status of the company from a no liability company to
one limited by shares;
* The change of name of the company to IPT Systems Limited;
* The adoption of a new constitution; and
* The change in nature and scale of activities of the company from
mining and exploration to an information technology company.
With the approval of the above resolutions, a subsequent share
placement that raised $915,250 before deducting costs, and after
meeting all ASX admission requirements, Nexus Minerals was reinstated
to the official list of the ASX on July 7, 2000.
To facilitate the transition of Nexus Minerals to a technology
company Mr V Nilkolaenko stood down as Managing Director of the
company on 12 July 2000, and was replaced by Mr Adrian Floate.
Fourth Quarter Activities
SUMMARY OF OPERATIONS
ADVANTAGE TELECOMMUNICATIONS LIMITED (ADVANTEL)
AdvanTel has advised that it has completed the construction of its
international switching facilities site in Hong Kong. The AdvanTel
infrastructure will be directly interconnected to other AdvanTel
wholly owned Points of Presence (POP) located in Shanghai and Los
Angeles and will be the core component of its value added voice and
data wholesale transmission business with joint venture partners in
both locations. The equipment is being tested and this testing
process will lead directly into the operational phase schedule to
commence in July 2000.
COCKATOO ISLAND PROJECT
During the quarter the final 14,361 wet metric tonnes of beneficiated
iron ore concentrate was produced and 97,530 wet metric tonnes of
produce was shipped from the Portman/Angang joint venture concentrate
project.
Construction of the mine and facilities for the 1.6 million tonne
remnant ore mine commenced following completion of concentrate
shipments in May 2000. The first shipment of premium grade sinter
fines to be sold to Asian customers is scheduled for early September
2000.
The company will receive royalty payments from the new project.
XANADU PROJECT
Newcrest Operations Limited, the project operator reported that two
RC percussion holes were drilled during the quarter. Both holes
intersected the south dipping Stynes alteration zone. Assay results
are awaited.
WYLOO PROJECT
Goldfields Exploration Pty Limited, the operator, reported that at
the Three Corner Bore prospect, follow-up sampling yielded further
anomalous results. Four samples taken over a 60 metre strike length
of a pyritic quartzite horizon returned values in excess of 1 g/t
gold with the highest value of 30.6 g/t gold. The mineralisation
appears to be stratabound in nature and localised between two
northeast striking faults. There is potential for a tabular body of
mineralisation.
SUNSHINE GOLD PROJECT PHILIPPINES
The Exploration Permit over the Sunshine project, located on the east
side of the Island of Mindanao, Philippines has been issued and the
company has commenced exploration drilling.
Stratigraphic drilling is in progress and to date about 300 metres of
diamond drilling has been completed. The holes have intersected the
anticipated alteration with silicification and quartz carbonate
stockworks and breccia zones mapped at surface. The diamond drill
core is being logged and cut with half core being submitted for gold
and silver assay.
The deposit is a significant high grade low sulphidation, epithermal
gold silver deposit. The bonanza style quartz vein stockworks are
worked by hand by small scale miners. This is the first time that the
deposit will be drill tested.
HIGHLIGHTS
MONEYGURU WEB SITE GROWING AND CORPORATE FINANCE ACTIVITIES IN PROFIT
NEWLAND TO SELL BULGARIAN FARM INTERESTS
NEWLAND TO APPLY FOR EUROPEAN LISTINGS
HIGHLIGHTS
* Eleven well drilling programme over next year
* Average oil price for June quarter NZ$51 per barrel
* Net operating cashflow from production of NZ$2.8 million
HIGHLIGHTS:
Highlights during the quarter are:
* New Royal 7 in PL 22 brought on stream at approximately 400 bopd.
* Gas supplied to Energex for use at Queensland Nitrates under a new
contract from the company's coal seam gas Dawson Valley (Moura)
project (PL 94).
* High gas flow rates from Challurn 16 DW, a SWQ Gas Unit development
well.
* A new round of appraisal/development drilling commenced in the
Denison Trough (Bowen Basin) areas.
* Successful dewatering programme in Dawson Valley (Moura) project
with wells coming on stream at gas rates above expectation.
* Infrastructure construction to bring the Peat coal seam gas field
(PL 101) into production on schedule.
* Heads of Agreement signed with Bass Petroleum Holdings NL for
farmin by that company in Surat Basin permits.
* Farmin Agreement signed with Queensland Gas Company on farmin to
ATP 525P.
* Completion of a 31,000 km aeromagnetic survey in ATP 564P.
* Proposed sale of a selection of Cooper/Eromanga assets.
* Vic/P35 permit in offshore Otway Basin cancelled.
* Commissioning gas commenced for Queensland Clean Fuels Project at
Bulwer Island.
HIGHLIGHTS
* Ladbroke Grove gas field (Omega 24.2857%) now in full production
and exceeding budget forecast
* Retention Licence granted (Omega 15.00%) over the Elevala and Ketu
gas and condensate fields in PNG
Highlights during the quarter are:
* Commissioning of the Ladbroke Grove Power Station was completed
during the 2nd quarter of 2000. The Ladbroke Grove Gas Plant was also
commissioned to supply gas under Long term contract to the gas fired
turbines. Gas production to the two turbines is anticipated to be up
to 24 TJ/day.
* Origin and co-venturers completed acquisition of the Balnaves 3D
Seismic Survey in PEL 32 during the 2nd quarter.
* Origin and co-venturers completed the 77 km Spring Creek 2D Seismic
Survey in PEP 101 during the quarter. This was followed by 2D seismic
recording of 23 km in PEP 152 and 21 km in PEL 66.
* Origin and Essential Petroleum Resources signed Farmin Agreements in
relation to farmins by Essential to earn 25% equity in both PEL 72
and VIC/099(1). Essential Petroleum Resources also now has the option
to farmin to earn 15% equity in PEL 57.
* Farmin Agreements were executed and registered whereby Essential
Petroleum Resources earns 50% equity in PEP 101 and 25% equity in PEP
152 (previously called PEP111).
* New Royal 7 in PL 22 brought on stream at approximately 400 bopd.
* Gas supplied to Queensland Nitrates under a new contract from the
company's coal seam gas Dawson Valley (Moura) project (PL 94).
* High gas flow rates from Challum 16 DW, a SWQ Gas Unit development
well.
* A new round of appraisal/development drilling commenced in the
Denison Trough (Bowen Basin) areas.
* Successful dewatering programme in Dawson Valley (Moura) project
with wells coming on stream at gas rates above expectation.
* Infrastructure construction to bring the Peat coal seam gas field
(PL 101) into production on schedule.
* Heads of Agreement signed with Bass Petroleum Holdings NL for farmin
by that company in Surat Basin permits.
* Farmin Agreement signed with Queensland Gas Company on farmin to ATP
525P.
* Completion of a 31,000 km aeromagnetic survey in ATP 564P.
* Proposed sale of a selection of Cooper/Eromanga assets.
HIGHLIGHTS
SEPON PROJECT - LAO PDR
* In July Oxiana received Lao PDR endorsement for the Sepon
transaction. Completion with Rio Tinto is now scheduled for Monday
31st July.
* As part of the Bankable Feasibility Study drilling for Resources
Confirmation and Mining Reserve Estimation is scheduled to commence
in early August.
EUROPE
* At HCM in Cyprus, volumes and costs continue to improve, along with
the copper price.
* The current phase of EMM exploration drilling was completed with
encouraging results especially at Tourounja prospect where an
extensive gold mineralised zone has been discovered.
CORPORATE
* Oxiana is proceeding to offer a new option to holders of those OXRO
Options which expired on 30 June 2000.
* At the EGM on 30 June 2000 resolutions were unanimously approved by
Shareholders enabling funding for the Sepon Bankable Feasibility
Study.
* During the quarter Oxiana shares were listed on the Frankfurt Stock
Exchange.
CORPORATE
During the fourth quarter Platgold's 100% subsidiary Startrack
Communications Limited ("Startrack") made substantial progress in the
installation of its satellite communications system and successful
transmissions of the first messages occurred.
RESOURCE ASSETS
RICHIE, WESTERN AUSTRALIA (PLATGOLD 100%)
The joint venture manager, Anaconda Nickel Limited, has identified a
low-grade resource on the Richie property. The resource is understood
to be sub economic but will be considered in the future for treatment
at an existing facility. Platgold retains rights to the gold
exploration.
ROTIFUNK, SIERRA LEONE (PLATGOLD 100%)
The Mining Lease documents is with the Government of Sierra Leone and
may be granted prior to the end of 2000. Platgold will defer work on
the property subject to Force Majeure provisions.
WESTERN LENNONVILLE, WESTERN AUSTRALIA (PLATGOLD 30%)
The managers of the West Lennonville Joint Venture report that no
fieldwork was done on the joint venture tenements during the quarter.
GERRY WELL, WESTERN AUSTRALIA (PLATGOLD 25%)
The joint venture manager has reported no fieldwork on the
properties.
HIGHLIGHTS
* Successful listing on the Australian Stock Exchange raising $4
million.
* Completion of the sale of Maud Creek oxide to Anglo Gold raising
$1.175m.
* Repayment of the $3.25 million loan to Access 1 Limited leaving the
Company entirely debt free.
* Exploration continued by WMC on the Yamarna Joint Venture.
HIGHLIGHTS
CORPORATE
* Pilbara Mines Ltd (Pilbara) increased its equity in RequestDSL Pty
Ltd (RequestDSL) from 80% to 95% for the consideration of $2.35
million. Pilbara's total investment in RequestDSL is now $2.85
million. Funds for this total investment were raised by placement of
Pilbara shares, post listing of Pilbara on the Australian Stock
Exchange (ASX) on 10 January 2000.
* Pilbara announced the intention to proceed with the Initial Public
Offering (IPO) and listing on the ASX of shares in RequestDSL (95%
Pilbara), to raise in the vicinity of $20 million, with a priority
allocation to Pilbara shareholders. Pilbara intends to retain its
current share equity in RequestDSL.
* RequestDSL was granted a Carrier Licence by the Australian
Communications Authority (ACA), which forms the basis for the ongoing
roll-out of the Digital Subscriber Line (DSL) network as planned.
* At the April 2000 General Meeting shareholders approved the "Change
of Status" of Pilbara to a company limited by shares, in line with
Pilbara's investment in RequestDSL, and hence as of 13 May 2000, the
Company is now Pilbara Mines Limited.
* The consolidated cash balance of Pilbara at 30 June 2000 was $5.40
million, and with no debt.
Fourth Quarter Activities
HIGHLIGHTS
* Official opening of the Windimurra Vanadium Mine - 8 May
2000
* Production ramp-up continues to build
* $4.3 million raised in new Entitlements Issue
For company information, click here
JUNE 2000 QUARTERLY UPDATE
HIGHLIGHTS
* Nine well drilling programme announced
* Net operating cashflow from production of $1.16 million
* Oil stock held with value of $1.5 million
Fourth Quarter Activities
OVERVIEW
During the quarter under review considerable time and effort was
devoted towards what became a much publicised contest for control of
the board of directors of the Company.
Subsequent to the end of the quarter a meeting of shareholders voted
to support a new board of directors and consequently an undertaking
to bring new opportunities to the Company.
The current board of directors now comprises; Bryan Frost, Richard
Revelins, Adi Trikarso with Mr Fehlberg and Mr Chng retiring as
directors prior to the shareholders meeting convened on 12 July 2000.
The new board has resolved to evaluate its existing interest in the
Ellendale diamond tenements and does not intend, at this point in
time, to acquire any additional diamond exploration tenements or
projects.
Subject to a proper evaluation of the Ellendale tenements it is the
board's intention to provide new opportunities for the consideration
of the Company's shareholders. At this point in time nothing specific
has been identified although a number of opportunities are under
consideration. The Company has a relatively tight capital structure
which makes it appealing from the perspective of new opportunities
and the board has already been approached by a number of investment
bankers and brokers who have submitted proposals in relation to
potential new activities. The board is hopeful that a proposal can be
submitted for the consideration of shareholders in the near future.
EXPLORATION ACTIVITIES
No new exploration activities were undertaken during the quarter
under review.
Fourth Quarter Activities
Oil and gas production was 23% higher than the March 2000 quarter,
due mainly to four wells being brought into production - Grand Isle
45 #2, Mustang Island 883s #1ST, Main Pass 90 #1, Main Pass 93 #1.
DRILLING
The Grand Isle 45 #2 and Mustang Island 883s #1ST wells which were
completed in the March quarter, were brought into production.
CORPORATE
On 13 April, 2000 the Company's wholly owned US subsidiary Petsec
Energy Inc ("PEI") filed a voluntary petition under Chapter II of the
US Bankruptcy Code (the "Bankruptcy Code") in the United States
Bankruptcy Court for the Western District of Louisiana, Opelousas
Division (the "Bankruptcy Court"). After filing the bankruptcy case,
PEI continued discussions with the holders of its US$100 million
9(1/2)% senior Subordinated Notes due 2007 (the "9(1/2)% Notes"). On
June 16, 2000 an agreement was reached between and among PEI, its
shareholder Petsec (USA) Inc ("PUSA" a wholly owned US subsidiary of
the Company), certain senior management of PEI, the Official
Committee of Unsecured Creditors in the bankruptcy case and certain
holders of the 9(1/2)% Notes to sell PEI or all of its assets, and
for an agreed distribution of the sale proceeds to the creditors,
PUSA, as the equity owner, and certain of PEI's senior management
team in the USA. The distribution to PUSA will be based on a
percentage of distributions received by the holders of the 9(1/2)%
Notes in connection with the sale of PEI and its assets, however the
actual receipt of the distribution is subject to contingencies in the
bankruptcy process. Substantially all of the proceeds from the sale
of PEI's assets will be distributed to the noteholders and other
creditors of PEI until these creditors are paid in full. On 30 June,
2000 PEI filed, with the Bankruptcy Court, a Plan of Reorganisation
which contemplates the sale of PEI or its assets and the agreed
distribution scheme.
EXPENDITURES
Production and Development Expenditure A$ 3,856,317
Exploration Expenditure A$ Nil
Total A$ 3,856,317
Fourth Quarter Activities
HIGHLIGHTS
* On 27 June 2000 the Company issued a prospectus for the pro-rata
issue of one option at a price of 2.5 cents per option for each share
held in the Company. This issue closed at 5.00pm on 28 July with
final acceptances currently being determined. The directors will
place any shortfall from the issue.
* The Company has continued to carry out due diligence on the
possible purchase of the Timbarra Gold Project in northern New South
Wales. If a purchase is proceeded with, this would provide the
Company with a second operating centre and almost immediate
production and cash flow.
* Total gold production at Fosterville was 3,572 ounces. Cash costs
of production at Fosterville in the June quarter were A$386 per
ounce, excluding costs associated with the Daley's Hill compensation
action.
* The EES process that is considering proposals for mining to the
north and south of the mining lease at Fosterville continued, with
the EES report expected to be compiled by October. A planning permit
from the City of Greater Bendigo was received to give the final
approvals to mine extensions to the O'Dwyer's deposits.
* A successful trial of 21,000 tonnes of low grade ROM ore was
carried out on the Robbin's Hill heap. The balance of the low grade
stockpile of 518,000 tonnes at 0.43 Au g/t will now be treated as ROM
ore.
* The next section of the Goulburn Valley Highway duplication, the
A$94M Murchison East deviation, to the north of the Nagambie mine
will require 0.15M cubic metres of Class 4 material and 1.5M cubic
metres of select fill, or approximately 4,000,000 tonnes of rock. The
material at the mine is suitable for both of these classes of rock.
This section of the highway is expected to go out to tender in
September 2000.
* Mr Wayne Kernaghan has been appointed to the position of Chairman
and has resigned as Company Secretary. Mr Martin Bouwmeester has been
appointed as the new Company Secretary. Messrs Willie McLucas and
Peter Wicks resigned as directors of the Company on 3 May 2000.
* A total of $713,563 was raised by the placement of 7,135,633
shares, equivalent to 15% of the issued capital of the Company on 2
June 2000. This issue was subsequently ratified by shareholders at a
general meeting held on 18 July 2000
Fourth Quarter Activities
HIGHLIGHTS
* Successful fundraising of $1.35 million and completion of indirect
investment in ViewInternet.com Pte Ltd.
* An EM geophysical survey over the Fields Find igneous complex
identifies bedrock conductors prospective for platinum/palladium and
copper/nickel mineralisation. Three EM anomalies selected for RC and
diamond drill testing for Lac de Isles style platinum/palladium
mineralisation.
Fourth Quarter Activities
HIGHLIGHTS
BROKEN HILL ACQUISITIONS
* Agreements reached on principal terms to acquire mining leases,
equipment and plant at Broken Hill.
* Opportunity for early cash flow from existing silver-lead-zinc open
cut resources and stockpiles.
* Significant potential for large tonnage resources in parallel lodes
and at depth beneath the central Broken Hill orebody.
ORANGE SOLUTIONS PTY LTD
* Agreement reached with Telstra for Orange Solutions to provide
Broadband Wireless applications to Telstra customers with focus on
wireless LAN.
* A further Nokia Distribution Agreement concluded that gives Orange
Solutions distribution rights to Nokia's xDSL products.
CORPORATE
* Change of status from NL to Ltd company.
* Corporate structure under review to maximise the value for
shareholders of the mineral and technology assets.
Fourth Quarter Activities
EAST KUNDANA JOINT VENTURE
At the East Kundana Joint Venture (EKJV) RC and diamond drilling
commenced on the ABC line between existing resources at Rubicon,
Pegasus and Hornet. RC drilling commenced on the southern extension
of Goldfields' prospect. Results are pending with the exception of
the second RC hole at Raleigh South returning 5m @ 10.9g/t Au. The
Raleigh laminated quartz vein was intersected in every section for
120m to the south and still going strong; visible gold is reported
from every section drilled to date.
EXPLORATION REPORT
Work this month concentrated on the East Kundana JV tenements with RC
and diamond drilling on the ABC line between the known limits of
mineralisation at Pegasus, Rubicon and Hornet, and RC drilling of the
southern strike extent of Raleigh. Most results from both programs
are pending however intersections of the Raleigh South vein contain
visible gold in holes up to 120m south of the previous limit of
mineralisation, including 5m @ 10.9g/t Au from 52m in hole SIRC002
40m south of the northern tenement boundary. It appears the strike of
the mineralisation near surface is now at least 120m and is open
south and down-plunge.
Fourth Quarter Activities
SUMMARY
Robust sales revenue topping $20 million - driven by Saltfleetby's
outperformance, high UK gas prices and first production from Kyle -
combined with an after tax, abnormal profit of at least $18 million
from the sale of non-core assets, deliver a record month and a
landmark quarter.
HIGHLIGHTS
June was ROC's best ever month for revenue, with sales revenue
hitting $9.1 million. This result is all the more noteworthy because
it was achieved subsequent to the 1 March 2000 sale of oil production
associated with the Welton Oil Field (the "Welton Sale"), which was
previously 100% owned by ROC.
Even without the Welton assets - which generated $5.7 million of
ROC's $25 million previous quarter's sales revenue - the Company was
still able to record $20.8 million sales revenue for the Quarter
under review.
ROC has been able to set a new monthly sales revenue record and
maintain its robust quarterly sales revenue performance because of a
number of factors including the successful start-up of the Extended
Well Test ("EWT") at the Kyle Oil Field in the North Sea and
unseasonably strong gas prices in the UK.
The other important factor which has driven ROC's revenue performance
this Quarter is the Saltfleetby Gas Field which stayed on production
plateau rates throughout the Quarter despite the expectation that
natural field decline would occur before the end of the previous
quarter.
The Welton Sale allowed ROC to realise a minimum abnormal $18 million
after tax profit on the sale of non-core production assets, which
effectively had been held for only seven months. Importantly, the
sale was structured so that ROC continues to be exposed to the
benefits of strong oil prices over the next two years, subject to the
Welton Field meeting realistic production targets, due to the
provision for the payment to ROC of up to GBP5.2 million ($13.2
million at current exchange rates) as additional bonus payments.
The profit from the Welton Sale puts ROC on a trajectory that
suggests that it will outperform the 2000 profit forecast contained
in its mid-1999 Prospectus. Importantly, ROC's revenue performance
during the second quarter of 2000 suggests that, even without the
benefits of the Welton production and without reference to the profit
from the Welton Sale, the Company's 2000 after tax profit before
abnormals will still approach Prospectus forecast, providing that
Saltfleetby continues to outperform and UK gas prices remain strong.
ROC's acquisition of interests in the deep water Rio Muni Basin,
offshore Equatorial Guinea, and areas covering most of the deep water
plays offshore Mauritania, provides shareholders with the opportunity
to participate in the exploration of a regional hydrocarbon trend
that, during the last few years, has been identified as one of the
world's great exploration arenas.
On 18 July 2000 ROC announced that the Kyle Joint Venture had signed
a Heads of Agreement ("HOA") for a full, life-of-field, development
of the Kyle Oil Field in the North Sea via the nearby Curlew
Production Facility. This announcement partly reflects the Joint
Venture's satisfaction with the initial results of the Kyle EWT,
which commenced on 24 May 2000. The early EWT results also prompted
the Joint Venture to start drilling another appraisal well on the
Kyle Oil Field after the end of the Quarter.
ROC's high activity level since publicly listing and the tangible
progress it has made on many fronts, ranging from strong UK revenue
growth to the acquisition of high potential international exploration
acreage, ensures that the Company and its shareholders will be
exposed to a number of opportunities, any one of which could have a
significant and very positive impact upon the value of the Company.
Fourth Quarter Activities
ERONGO BASE METALS, GOLD, TANTALITE PROJECT (NAMIBIA)
The seven exploration licences collectively cover approximately 7,000
square kilometres of an important segment of an infracratonic rift
zone within the Southern African Copper Belt. The area has produced
gold, silver, copper, lead, zinc, tin and tantalite. A number of
structural breaks called auriferous megashears traverse the project
area and have particular associations with gold and tin-tantalite
mineralisation.
SKELETON COAST DIAMOND PROJECT - NAMIBIA
Notice of progress of the Environmental Contract has been received
from the Ministry of Environment and Tourism. Access to enable
drilling of the known diamond bearing terraces is expected within the
next few months
COOLGARDIE GOLD PROJECT - WESTERN AUSTRALIA
Work conducted on the Bonnievale JV during the second quarter of
2000 was limited to field checking and mapping. Additionally, a
programme of 2800 metres of RAB drilling was designed to test the
offset in the Powder Sill and the Kunananlling Shear Zone, both of
which occur in the north of the Bonnievale Project".
Also during the quarter Reefton entered an agreement with Goldfields
whereby they may earn a 90% interest in the Star of Fremantle
tenements (P16/1410-1412, P15/3037) (51% Reefton). The retained 10%
interest is free carried to mining feasibility.
KANOWNA WEST GOLD PROJECT - WESTERN AUSTRALIA
No work was reported during the quarter.
ONTEL COMMUNICATIONS PTY LTD
Ontel Communications Pty Lid ("Ontel") revenue stabilised during the
June 2000 quarter, finishing marginally higher than the March period.
Fourth Quarter Activities
As reported on July 25th 2000 the Company has continued to work
closely with Standard Bank London Limited on the Debt Restructuring
Agreement and to date progress has been made with regard to various
Russian assets of the Company.
The Board has also continued to review a number of potential projects
for the Company which will provide shareholder value in suitable
growth markets, when a decision has been reached a meeting will be
called to seek shareholder approval to progress the preferred
project.
In view of the ongoing negotiations and the current position of the
Company no exploration activities were carried out during the current
quarter.
Fourth Quarter Activities
HIGHLIGHTS
A summary of significant events for the quarter ended 30 June 2000 is
as follows:-
* Government recognises the significance and states its support for
SGC's gas project in the Western Sydney Budget Statement.
* Agreement reached for AGL to project manage the construction of the
pipeline to connect the Johndilo field to the AGL gas networks at
Camden.
* Application lodged for an Assessment Lease within PEL 2.
Fourth Quarter Activities
SUMMARY
* Revenue of $24.78 million for the quarter and $51.13 million for
the half year, up 9.3% on the corresponding half year in 1999.
* Total mine production of copper cathode was 7,129 tonnes for the
quarter and 15,348 tonnes for the half year, up 9.1% on the
corresponding half year in 1999.
* Attributable copper cathode sales of 5,581 tonnes for the quarter
and 12,292 tonnes for the half year, up 28% on the corresponding
half year in 1999.
* Total mine cash cost of production averaged US$0.41 cents per pound
of copper cathode for the June Quarter.
* Coal production of 407,000 tonnes for the quarter and 740,000 for
the half-year, up marginally on the corresponding half-year in 1999.
Coal sales of 401,000 tonnes for the quarter and 768,000 tonnes for
the half-year, up a corresponding margin on the previous period.
* Steady progress maintained on the expansion of production capacity
at Nifty to 25,000 tonnes per annum. Progressive commissioning of
new facilities between August and December is forecast to lift
copper production by 30% during the second half.
* Sale of 50% interest in the Tritton Copper Project for $9 million
completed.
Further information can be obtained from our website:
www.straits.com.au
Fourth Quarter Activities
(A) PETROLEUM
Samson Exploration NL holds a 19.7% interest in Kestrel Energy Inc
("Kestrel"), a US Nasdaq listed oil and gas company, which holds a
large land position of approximately 35,000 acres in the Green River
Basin in Wyoming USA, one of the most prolific gas producing regions
in the Rocky Mountains.
During the quarter, Kestrel announced that it had successfully
fractured the Second Frontier Formation in the GC#1 Well, Green
Canyon Project, with more than 225,000 pounds of high-strength
bauxite proppant. Management reports the initial flowback from the
well was excellent, with 43% of the stimulation liquids recovered in
the first 24 hours and strong gas flows in excess of 2MMCFD (million
cubic feet per day).
(B) MINERALS
1. EUNGELLA GOLD PROJECT
The Company previously made application for an exploration permit
over an area centred approximately 70 kilometres west of Mackay in
Queensland. The permit covers an area of approximately 310 sq km.
Grant of the permit is being delayed due to native title issues.
No field activity was undertaken during the quarter.
2. MURRIN MURRIN - WESTERN AUSTRALIA
(Samson 25%, Equinox Resources NL 75%, Manager)
No field activity was undertaken during the quarter.
(C) FINANCIAL
Cash at bank and on deposit as at 30 June 2000 amounted to $1.58
million, and the value of current investments in equities, valued at
the lower of cost market value, was $7.3 million.
Fourth Quarter Activities
EAST KUNDANA JOINT VENTURE
At the East Kundana Joint Venture (EKJV) RC and diamond drilling
commenced on the ABC line between existing resources at Rubicon,
Pegasus and Hornet. RC drilling commenced on the southern extension
of Goldfields' prospect. Results are pending with the exception of
the second RC hole at Raleigh South returning 5m @ 10.9 g/t Au. The
Releigh laminated quartz vein was intersected in every section for
120m to the south and still going strong; visible gold is reported
from every section drilled to date.
Exploration Report
Work this month concentrated on the East Kundana JV tenements with RC
and diamond drilling on the ABC line between the known limits of
mineralisation at Pegasus, Rubicon and Hornet, and RC drilling of the
southern strike extent of Raleigh. Most results from both programs
are pending however intersections of the Raleigh South vein contain
visible gold in holes up to 120m south of the previous limit of
mineralisation, including 5m @ 10.9 g/t Au from 52m in hole SIRC002
40m south of the northern tenement boundary. It appears the strike of
the mineralisation near surface is now at least 120m and is open south
and down-plunge.
Evaluation of previous exploration data north of the Kundana Mine
tenements has identified three immediate targets requiring follow-up
RC drilling: Cochranes, Wards and West Kundana. Further evaluation
will be completed early in July to allow the finalising of the RAB
drilling program, which will aim to identify further RC drilling
targets in this area.
Fourth Quarter Activities
HIGHLIGHTS OF THE JUNE 2000 QUARTER
MINERAL RESOURCES DIVISION:
Northwest Copper Exploration - Iran(Union 100%)
* Union's geologists have identified copper mineralisation at surface
during exploration of the Hazy Kandy area in NW Iran. A broad zone of
sub-economic to weakly economic grades of up to a maximum of 1.33% Cu
has been located. In addition, grades in excess of 2000ppm Cu (up to
4.36% Cu) have been returned over 150m from an area 700m away,
thought to be part of the same major system.
Mehdiabad Zinc Project - Iran (Union 25%)
* Union expects to commence diamond drilling at its Mehdiabad Zinc
Project in Central Iran in August 2000 to help establish the mining
reserves for the first 10 years and to extend the known resource. The
total drilling program is expected to cost in the vicinity of US$3
million and will take about one year to be completed. Work is
underway on the Pre-feasibility study due for completion in January
2001.
UtiliCorp United and United Energy Limited announces that their consortium has been successful in bidding for the 45 percent cornerstone shareholding in the Western Australian gas utility,
AlintaGas.
The Western Australian State Government named the UtiliCorp-United Energy consortium as the successful cornerstone investor, with a bid price of $319.5 million.
The remaining 55 per cent of the AlintaGas equity is intended to be sold through a public float. The Government has advised it plans to list the Company on the Australian Stock Exchange in October 2000.
Activities during the quarter have concentrated on attracting joint
venture partners. Field work has been reduced to conserve funds.
MT HOPE (South Australia)
(Werrie Gold 100%)
BHP Minerals have recognised the prospectivity of the Western Eyre
Peninsula (Mt Hope) project and have joined with Werrie Gold in a
joint venture to explore the area. BHP Minerals can earn up to 70%
interest in the project by spending $2.3 million with a minimum
expenditure of $150,000 before they can withdraw. BHP Minerals will
earn a 50% interest by spending $800,000.
BENAGERIE JOINT VENTURE
(Pasminco 70%, Werrie Gold option to acquire 30%)
No field activity was carried out during the quarter.
MT TERRIBLE PROJECT NSW
(Werrie Gold 100%)
A sale agreement was concluded with Bacome Pty Ltd during the quarter
whereby Bacome has the option to purchase EL3522 (Currabubula West)
and EL5610 (Currabubula East) for $50,000. The Hillside gold resource
is excluded from the agreement. Werrie Gold retains the right to earn
a 15% interest in any resource development or alternatively can elect
to receive a 3% net profits royalty.
Fourth Quarter Activities
SUMMARY
* Geological interpretation continued on the Ben Hur/King of
Creation, Perseverance and Windsor Well/Kismet tenements
* Company invests in BMS Solutions Pty Ltd
CORPORATE
The Board of West Australian Metals NL announced on 13 March 2000
that the Company had entered into an agreement to acquire up to 40%
of the issued capital of BMS Solutions Pty Ltd ("BMS") for a total
cost of $1,500,000. That agreement provides for a staged acquisition
of BMS. An initial subscription of $500,000 acquires 13.33% of BMS
and two further subscriptions of $500,000 each will acquire a further
26.67%, subject to BMS achieving certain revenue and market expansion
targets.
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