QUARTERLY ACTIVITIES REPORT to 30 June 2018

Transcription

1 ASX Announcement ASX Code: ARM Date: 30 July 2018 Aurora Minerals Assets Diversified Minerals Exploration via direct and indirect interests Project Acquisitions Project acquisition plan in progress Peninsula Mines Limited (ASX: PSM) 24.3% Graphite, Lithium, Gold, Silver and Base Metals Exploration in South Korea Predictive Discovery Limited (ASX: PDI) 27.4% Gold Exploration / Development in West Africa Nusantara Resources Limited Awak Mas Mine development in Sulawesi, Indonesia Western Australian Exploration JV 51.29% Camel Hills base metals, iron and gold exploration project Contact Details Principal & Registered Office Suite 2, Level 2 20 Kings Park Road West Perth, WA 6006 Geoff Laing- Managing Director Tel: Ken Banks Investor Relations Tel: Website QUARTERLY ACTIVITIES REPORT to 30 June 2018 Aurora Minerals Limited, ASX: ARM, ("Aurora" or "the Company") is in the process of identifying projects suitable for acquisition. In addition, it has exposure to exploration in South Korea (Peninsula Mines Limited), West Africa (Predictive Discovery Limited), Indonesia (Nusantara Resources Limited) and Western Australia. Highlights: Aurora Project Acquisition Plan Aurora has commenced a program to acquire a project(s) based on a strategy to unlock value through the application of smart ore sorting technology. Peninsula Mines Limited ( Peninsula ) Resource drilling commences, generating good graphite D4, D2 intersections at Eunha Graphite Project Key tenement granted over Gapyeong high-grade graphite project D3 Sulphide breccia intersected in diamond drilling at Python on Ubeong Project D6 Predictive Discovery Limited ( Predictive ) New Ferkessedougou North drilling results scratch the surface of P1, P4 a very large-scale target 20km extension to bedrock gold anomalies at Bira, RC drilling P2, P5, P6 planned Conversion of Funding Obligations on Bobosso Project P3 Nusantara Resources Limited ( Nusantara ) Nusantara announced a maiden Ore Reserve of 1.0Moz contained gold for Awak Mas Gold Project in Indonesia. N1 Corporate Geoff Laing was appointed as Managing Director post Quarterend A1 Aurora cash at bank ~$1.58M (parent) at end of Quarter Value of cash and investments as at 30 June 2018 ~$4.7M (~4c/share)

2 Aurora Minerals Projects (A New Approach) In addition to the diverse portfolio of projects Aurora Minerals currently has exposure to through investments in listed entities, the Company intends to acquire its own projects to unlock value through Smart Technology Well defined strategy to acquire project(s) New team with significant experience in smart technology Targeting opportunities that will be highly leveraged by sorting technology Advanced projects preferred with defined resources and established project metrics Targeting low-risk jurisdictions Precious and base metals preferred commodity space Smart Technology Sorting Sorting is a simple pre-concentration process that facilitates "upgrading" of ore, mineralised waste aggregate, etc. Commercial sorting applications (diamonds, uranium, tungsten) in mining for more than 25 years Significant improvements in sorting technology (sensors and data processing speed) broaden the potential Sorting will have a profound impact on the minerals and aggregate businesses in years to come There is considerable untapped potential to unlock value from non-viable resources, stockpiles and waste dumps using this proven technology. Page 2 of 14

3 Aurora Minerals Investment Assets Figure 1: Aurora and its associate companies conduct exploration across three continents Aurora's associate company investments and market valuations, as at 30 June 2018, are summarised in Table 1 below. Table 1: Aurora Minerals Group Investments Investment Code Type Number % Holding Unit Value Total Value Predictive Discovery Ltd PSI Shares - Listed 64,653, % $0.021 $1,357,727 Peninsula Mines Ltd PSM Shares - Listed 171,295, % $0.008 $1,370,362 Options - Unlisted (1.6c) 3,125, % $0.000 $0 One Asia Resources Ltd Shares - Unlisted 5,555, % $0.000 $0 Nusantara Resources Ltd NUS Shares - Listed 1,851, % $0.190 $351,852 NUSO Options - Listed (42.0c) 617, % $0.000 $0 TOTAL $3,079,941 Page 3 of 14

4 Peninsula Mines Limited (Aurora 24.3%) Through its wholly owned Korean subsidiary, Suyeon Mining Company Limited, Peninsula Mines Limited ( Peninsula ) targets strategic mineral resources in South Korea in order to develop supply for Korea s hightechnology industry. Figure 2: Location Plan of Peninsula s South Korean Projects Graphite and the SPI Concept Peninsula has commenced test work to produce high-purity, spherical graphite by non-fluoride methods. Independent Metallurgical Operations ( IMO ) has been appointed to manage the testing using graphite concentrate produced from Peninsula s own high-grade graphite projects - Eunha and Gapyeong. Peninsula intends to develop a state-of-the-art spherical graphite processing plant in Chungnam Province, with the aid of key Korean stakeholders. D8 Korean manufacturers are currently dependent on the Chinese supply chain for spherical graphite. Peninsula s spherical graphite will meet the specifications of Korean lithium-ion battery manufacturers, thereby ensuring Security of supply and Purity of concentrate by applying Peninsula s Innovation to value added graphite processing ( SPI ). D8 Page 4 of 14

5 Figure 3: Infographic depicting the stages of graphite processing D11 Peninsula is currently focussing on developing the two Korean high-grade graphite projects: 1. Eunha Four out of five initial drill holes at Eunha North have intersected thick, potentially high-grade graphite (see Figure 4 below.), including: EHD0001: 9.38m (6m TW) from 89.71m averaging >15% graphite (visual estimate) EHD0005: 12.82m (8m TW) from 66.18m averaging >15% graphite (visual estimate) D2 Assay results are awaited. Further drilling will then be planned to define a maiden Mineral Resource. Figure 4: Eunha Graphite Electromagnetic Anomalies, mapped outcrop, channel samples and resource drilling D2 D2, D4 Page 5 of 14

6 2. Gapyeong The key tenement has now been granted over the more than 1km strike length of high-grade graphitic sediments highlighted by electromagnetic surveys and averaging more than 16% total graphitic carbon ( TGC ). Channel sampling across the main graphite unit is complete and LECO assay results are awaited. Drilling access negotiations are under way. D3 Figure 5: Gapyeong granted tenure, electromagnetics, metallurgical sampling D3 3. Ubeong Zinc-Lead-Silver and Copper-Gold Project The Ubeong Project, located in the highly mineralised Taebaek Basin of eastern South Korea, consists of seven granted exploration tenements and multiple tenement applications covering more than 100km 2 and adjoining the operating Keumho Zinc-Lead-Silver Mine (see Figure 6, below). Limestone-skarn units have been historically mined at Chilbo and Ilweol. Peninsula has applied modern exploration techniques for the first time in this highly prospective area including surface rock chip and soil geochemistry, detailed magnetics and Induced Polarisation ( IP ) geophysics and has diamond drilled multiple high-grade zinc-lead-copper (+/- silver, gold) targets at Chilbo, as well as at new mineralisation discoveries, such as at Python, with further drilling planned. D1 Page 6 of 14

7 Figure 6: Ubeong Project TMI ground magnetics, TMI aeromagnetics, skarn-limestone and structural geology, tenements, granted and applied, and rock chip and soil sampling Post Quarter-end, Peninsula announced that the extended ground magnetics programme at Ilweol Prospect had highlighted new magnetic targets prospective for zinc and extended the strike length of the skarn target to 2km. Soil sampling was underway to define drill targets. D1 Historical adits were discovered at Ilweol and, following the granting of the Ilweol tenements, Peninsula obtained and translated the historical drilling reports. D7 High-grade zinc (Zn), lead (Pb) and copper (Cu) had been intersected including: ILW 77-1: 7.0m (3.5m true width, 14.58% Zn, 1.37% Pb, 2.12% Cu from 191.9m ILW 77-3: 2.1m (1.5m 18.66% Zn, 11.08% Pb, 3.21% Cu from 253.6m and 5.5m (4.0m 10.16% Zn, 1.61% Pb, 1.45% Cu from 263.6m ILW 76-3: 3.6m (2.5m 15.5% Zn, 1.48% Pb from 181.3m D7 Peninsula has planned diamond drilling to investigate the new magnetic targets and to verify historical drilling results. See Figure 7 below. D1 Page 7 of 14

8 Figure 7: Ilweol magnetic targets, skarn limestone and historical drilling D1 At Python Prospect, to the north east and along strike of the Chilbo historical mining area, UBD0005 intersected multiple zones of massive, breccia and disseminated sulphides in psammitic and pelitic sediments, including: 9.31m at 1.17% combined Zn and Pb (0.7% Zn and 0.47% Pb) from 54.14m, including 3.03% Zn, 2.53% Pb from 61.38m 1.1m at 2.12% Zn, including 4.69% Zn from 42.55m and 8.8% Zn from 82.05m. Further deeper drilling is planned to intersect the skarn unit interpreted to lie below UBD0005. Figure 8: UBD0005, 62m to 62.2m, sulphide breccia including galena, sphalerite and pyrite D6 Page 8 of 14

9 Predictive Discovery Limited (Aurora 27.4%) Predictive Discovery Limited is a gold exploration company focused on developing numerous gold projects located across the richly mineralised Birimian greenstone belts of Cote D Ivoire, Burkina Faso and Mali, West Africa. The projects are operated primarily through joint venture agreements. See Figure 9 below. Figure 9: Predictive Discovery Project Locations in West Africa 1. Bobosso Gold Project, Cote D Ivoire Predictive has successfully converted its funding obligations on the large Bobosso Gold Project, Cote D Ivoire, through a Memorandum of Understanding with Progress Minerals ( Progress ) and West African Ventures Investment LLC (WAVI). Paul Roberts, Predictive s Managing Director, said: This development is a natural outcome of Predictive s prospect generator strategy At Bobosso, following completion of two drill programs in the past year, we have concluded that this complex gold mineralised system is likely to require a very large investment in exploration and evaluation to have a chance of being developed. 2. Ferkessedougou Gold Project, Cote D Ivoire Predictive s joint venture with Toro Gold Limited, a UK based company, enables the exploration of Predictive s prime gold tenure in Cote D Ivoire, see Figure 11 below. Ferkessedougou North has been explored by means of soil grids over 17km of anomalous strike, trending north-north-east. Trenching and RC drilling followed which determined that sheared dyke-like granitic bodies are an important host to gold mineralisation. P4 Paul Roberts, Predictive s Managing Director, said: This first drill program on Ferkessedougou North has just scratched the surface of the permit s gold mineralisation potential. We have only drill tested a very small proportion of the goldin-soil geochemical anomaly, which is 17km long and several kilometres wide. Gold mineralisation is mostly associated with sheared granitic dykes; there are indications of many such dykes in the area but most of these Page 9 of 14

10 have not even been even located accurately on the ground, let alone drilled. This is clearly a large-scale target, potentially with numerous gold mineralised bodies. P1 Best RC drill intercepts include: FNRC016: 25m at 3.06g/t Au from 64m, including 13m at 5.35g/t Au. Hole topped in mineralisation. Last 4m averaged 13.78g/t Au FNRC003: 14m at 1.20g/t Au from 25m FNRC068: 9m at 1.47g/t Au from 39m and FNRC047: 2m at 5.44g/t Au from 45m P1 Figure 10: Predictive s JV tenure in Cote D Ivoire P1 3. Bira Gold Project, Burkina Faso Predictive has established a joint venture agreement with Progressive Minerals International Inc. ( Progress ) to develop PDI s gold tenure in north eastern Burkina Faso the Bongou District (see Figure 9, above). The joint venture enables Progress to earn a 70% interest in all permits within its area of influence (see Figure 11 below) in Eastern Burkina Faso by spending $US5 million on exploration. The Joint Venture s objective is to advance PDI s eastern Burkina Faso prospects as quickly as possible towards a scoping study on a multi-pit mining operation feeding a central mill. P2 Page 10 of 14

11 Figure 11: Predictive s renewed (red) and existing (grey) tenure in north eastern Burkina Faso operated under Progress Minerals area of influence Bira is located south west and along strike of the Samira Hill Gold Mine, located across the Niger border. Historical RC drilling by Anglo American had defined a 1km strike length of gold mineralisation in shears at Bira. During the Quarter, 5,129m of RC drilling was completed at Bira. Bottle roll tests on RC drill chip composites confirmed recoveries of at least 97%, suggesting conventional cyanide leaching methods could be applied. P5 Power auger drilling has now extended the strike length of the Bira geochemical gold anomaly by a further 20km to the south west, into PDI s Kalinga permit. The mineralisation is offset to the north and south by structures interpreted from ground magnetic surveys. 20,000m of RC drilling is planned to start in November- December 2018, after the rainy season, in order to verify the auger results. P2 Figure 12: Power Auger Results and new RC drill target locations SW of Bira, Burkina Faso Page 11 of 14

12 Nusantara Resources Ltd Nusantara Resources Limited (Nusantara) announced a maiden Ore Reserve of 1.0 million ounces contained gold for its Awak Mas Gold Project in Sulawesi, Indonesia. This ore reserve supports a long-life, low-cost gold operation. N1 Nusantara continues to grow its Resource inventory at Awak Mas, currently 2.0Moz at a 0.5g/t Au cut-off. This will form the basis of the ongoing Definitive Feasibility Study and potentially increase the Ore Reserve. N2 Table 2: Awak Mas Ore Reserve Estimates by Deposit N1 Western Australian Projects Limited exploration activities were undertaken during the Quarter and included project reviews, resulting in the surrender of the final Glenburgh tenure. New project generation is the Company s focus going forward. Corporate Aurora is pleased to appoint Geoff Laing as Managing Director to lead the company forward with a fresh strategy, focussing on acquisition of advanced projects with near term development potential. Aurora cash at bank ~$1.58M (parent) at end of Quarter. Value of cash and investments as at 30 June 2018 ~$4.7M (~4c/share). Geoff Laing Managing Director +61 (08) Page 12 of 14

13 Competent Persons Statement The information in this report that relates to the exploration results and Mineral Resources of Aurora, Peninsula and Predictive is summarised from publicly available reports as released to the ASX of the respective companies. The results are duly referenced in the text of this report and the source documents listed below. The exploration results reported herein relating to Predictive Discovery Limited are based on information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr Roberts is a full-time employee of that company and has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Roberts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Results for Peninsula Mines Limited is based on information compiled by Mr Daniel Noonan, a Member of the Australian Institute of Mining and Metallurgy. Mr Noonan is employed as a consultant. Mr Noonan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Noonan consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this report that relates to the Mineral Resource Estimation for Awak Mas Gold Project is based on, and fairly represents, information compiled by Mr Adrian Shepherd, Senior Geologist, (BSc), MAusIMM CP(Geo), for Cube Consulting Pty Ltd. Mr Shepherd is an employee of Cube Consulting Pty Ltd and is a Chartered Professional geologist and a current Member of the Australian Institute of Mining and Metallurgy (AusIMM No: ). All the information in this release based on information compiled prior to 1 December 2013 was produced under the reporting directions as set out in the 2004 ed. JORC code. All subsequent releases have been compiled under the guidelines for reporting as set down under the 2012ed. JORC code. The information summarised herein has not changed materially from the greater detail that was originally disclosed in earlier public releases and which has been duly referenced in this release. The Company confirms that it is not aware of any new information or data that materially affects the information included in this report. Page 13 of 14

14 APPENDIX 1 Western Australian Mineral Tenement Information (as at 30 June 2018): PROJECT TENEMENT PERCENT HOLDING TITLE HOLDER/APPLICANT JOINT VENTURE Camel Hills E09/ % Aurora Resources Pty Ltd JV with Peninsula Mines Ltd APPENDIX 2 List of Announcements to the Australian Securities Exchange which are referenced in this release: A1 Appointment of Managing Director, 2 July 2018 Peninsula Mines D1 New Magnetics Highlights High-Grade Zinc Targets at Ilweol, 3 July 2018 D2 Eunha North Drilling Graphite Intersections, 21 June 2018 D3 Key Tenement Granted Over Gapyeong Graphite Project, 12 June 2018 D4 Resource Drilling Commences at Eunha Graphite Project, 31 May 2018 D5 High Purity Graphite Concentrate Results Confirm Potential of High-Grade Gapyeong Project, 23 May 2018 D6 Sulphide Breccia with High Grade Zinc and Lead Intersected at Python on Ubeong Project, 21 May 2018 D7 Peninsula Identifies High-Grade Zinc Intersections at Ilweol on the Ubeong Project, 15 May 2018 D8 Peninsula Launches Testing Programme for Value Added Spherical Graphite Processing in Korea, 24 April 2018 D9 Very High Purity Graphite Concentrate Grades Obtained for Eunha Graphite Project, South Korea, 10 April 2018 D10 Peninsula Mines Limited Quarterly Report to 31 March 2018, 30 April 2018 D11 Peninsula Mines Limited Investor Presentation, 5 June 2018 Predictive Discovery P1 Assays Confirm and Expand New Gold Discovery in Cote D Ivoire, 26 June 2018 P2 20km of Bedrock Gold Anomalies at Bira, 20,000m of RC Drilling Planned, 19 June 2018 P3 Conversion of funding obligations on Bobosso Project, Cote D Ivoire, 12 June 2018 P4 Highly encouraging initial drill results at Ferkessedougou North, 29 May 2018 P5 Positive Bottle Roll Tests and Gold Geochemical Anomaly grows at Bira, 15 May 2018 P6 Strike Length of Bira Gold mineralized zone tripled, 26 April 2018 P7 Boundiali Potential Expands with Additional New Ground, 12 April 2018 Nusantara Resources N1 Nusantara Delivers Maiden 1.0 Million Ounce Gold Ore Reserve, 18 April 2018 N2 Indicated Resource Grows by a Further 0.2Moz, 8 May 2018 Page 14 of 14

15 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Appendix 5B +Rule 5.5 Mining exploration entity and oil and gas exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16 Name of entity AURORA MINERALS LIMITED ABN Quarter ended ( current quarter ) JUNE 2018 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation* (b) development (c) production (d) staff costs** Current quarter Year to date (12 months) (55) (1,321) (e) administration and corporate costs* (197) (1,065) 1.3 Dividends received (see note 3) 1.4 Interest received Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) Net cash from/(used in) operating activities** (218) (2,239) * The company s accounting policy allocates staff costs to activities and are accordingly included in items 1.2 (a) and 1.2 (e). ** All cash flows until 31 December 2017 include those of Predictive Discovery Limited, a controlled entity until 31 December Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (3) (5) + See chapter 19 for defined terms 1 September 2016 Page 1

16 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows Current quarter Year to date (12 months) (c) investments - (171) (d) other non-current assets Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) - 21 (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material)* - (2,922) 2.6 Net cash from / (used in) investing activities 346 (2,698) *Refers to cash held in Predictive Discovery Limited, a controlled entity until 31 December 2017 and deconsolidated at that date. 3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities - 3,067 - (329) - 2, Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 1,452 3,779 (218) (2,239) 346 (2,698) - 2,738 + See chapter 19 for defined terms 1 September 2016 Page 2

17 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period Current quarter Year to date (12 months) - - 1,580 1, Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter Previous quarter 5.1 Bank balances 548 1, Call deposits 1, Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)* 1,580 1, Payments to directors of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 6.1 and : Payment was for remuneration to directors Payments to related entities of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 7.1 and See chapter 19 for defined terms 1 September 2016 Page 3

18 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify) Total facility amount at quarter end Amount drawn at quarter end 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter 9.1 Exploration and evaluation Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs Other 9.7 Total estimated cash outflows* Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location Nature of interest Interest at beginning of quarter Interest at end of quarter 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced 10.2 Interests in mining tenements and petroleum tenements acquired or increased E52/1983 Western Australia Holder 100% 0% + See chapter 19 for defined terms 1 September 2016 Page 4

19 Compliance statement Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 30 July 2018 (Company secretary) Print name: Bruce Waddell Notes 1. The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. + See chapter 19 for defined terms 1 September 2016 Page 5