QUARTERLY REPORT PERIOD ENDED 30 JUNE 2013

Transcription

1 QUARTERLY REPORT PERIOD ENDED 30 JUNE QUARTERLY HIGHLIGHTS Namiquipa, Chihuahua Silver/Lead/Zinc exploration project CRIP survey to extend target definition at Namiquipa planned Espiritu Santo, Jalisco Gold/Silver exploration project Rock chip and soil geochemical surveys continue to enhance the Espiritu Santo Project Drill targets selected and permit applications submitted Corporate ASX Quotation achieved Joseph Conway appointed to board 2. MEXICO Figure 1: Santana Minerals Project Location Map

2 Namiquipa, Chihuahua (Santana Minerals Limited 100%) Figure 2: Location of Namiquipa The Namiquipa Silver Deposit is located adjacent to the village of El Terrero in Chihuahua, Mexico, 145 km westnorthwest of Chihuahua City. The deposit occurs as a lowsulphidation epithermal system transecting a suite of shallow dipping breccias and ignimbrites of andesitic and rhyolitic composition. Extensive silicification has occurred around a major north trending shear zone that is host to the epithermal veins. Drilling by Cerro Resources NL (Cerro), predecessor to Santana has delineated a 4.6 million tonne inferred resource grading 154 g/t silver equivalent (see CJO ASX release 24 Oct 2012). A contract has been signed with Zonge International Inc. to extend the existing Complex Resistivity Induced Polarization survey for 800 meters to the north and 2,000 meters to the south to fully cover the structural regime that is host to the known Namiquipa mineralization. This work is planned for completion by September 2013 and will assist in planning subsequent drilling programs. Espiritu Santo, Jalisco (Santana Minerals Limited 100%) Espiritu Santo is located 130 km west of Guadalajara and 50 km east of Puerto Vallarta. The project lies within a northwest corridor defined by numerous, predominantly gold/silver, low sulphidation mineralised occurrences which hosts several active exploration projects. Santana s concessions cover an area of 5,880 hectares, within the MascotaNavidad Mining District. The mineralization at Espiritu Santo consists of gold and silver with associated copper, as well as low levels of lead and zinc, occurring as low sulphidation quartzsulphide style Au + Cu epithermal veins. These vein systems are typically formed within structures overlying a buried intrusion. Depth of deposition and/or erosion is yet to be determined. [2]

3 Figure 3: Location of Espiritu Santo More than 22 mineralised veins have been identified in an area measuring 3km by 2km. As described in Santana s ASX release on 31 May 2013, work has focused on several of these vein systems utilizing surface sampling and geological mapping for the purpose of defining drill targets. Priority targets (Figure 4) are currently: Patas/Pipi (40 rock chip assays >0.5g/t Au); El Gringo/Arrizon veins and extensions (20 rock chip assays >0.5g/t Au); Santa Cecilia south extension (29 rock chip assays >0.5g/t Au); Plan Verde (8 rock chip assays >0.5g/t Au) and extension to Somberero Loco area; Agua Mala (10 rock chip assays >0.5g/t Au); the greater Carmela vein area (22 rock chip assays >0.5g/t Au). Rock Chip Assay Results A total of 1,109 rock chip samples have been collected from the project by Santana's geological team. Recent work, consisting of geological mapping and sampling, has concentrated on better defining the extent and tenor of the vein systems. This has also resulted in the discovery of extensions to these vein systems and discovery of new systems (Figure 4). [3]

4 Figure 4: Rock Chip and Principal Vein Systems of Espiritu Santo [4]

5 The southern extension of the Santa Cecilia Vein has produced strongly anomalous gold values over narrow multiple pulse laminar quartz veins with grades to 15.6g/t Au cutting a much larger zone of low grade quartz stockwork system. A duplicate sample returned an anomalous however much lower value of 3.05 g/t Au. Although many of the vein systems are narrow they often crosscut larger stockwork areas. Because of the poor exposures in many of these areas, only drilling will determine the extent of the mineralized systems. The May 31 release included detailed tables of anomalous gold/silver assays from these 22 vein structures. The lists contain samples that are greater than 0.3g/t AuEq and/or greater than 10g/t Ag. Soil Sampling Results The 80 mesh conventional soil grid has been expanded to cover an area of 3,000 by 2,500 meters. Samples are collected along grids spaced at 25m x 100m along eastsoil lines. Where eastwest anomalies are encountered more detailed samples are collected (25m x 50m). Currently the soil grid covers 12 mineralized structures where the geological mapping is almost complete (Figures 5 and 6). Several gold and silver anomalies were detected during the soil program that coincide with previously known mineralized structures some of which appear to be occasionally limited by geological faults or are covered by younger lithologies. The soil anomalies contain peak values of 1.61 g/t Au, g/t Ag and 348 g/t As; although other elements such as copper (Nunez, El Puma, Arrizon and El Gringo veins), lead (Plan Verde, El Gringo and El Tigre veins), mercury (Sombrerero Loco) and antimony (El Guason vein) are also present in the area. The soil grid is being expanded to the north by 10 additional eastwest sample lines for a distance of almost 1km prior to the rain season. This program will cover Carmela, Lourdes, Eugenia, Santa Cecilia and Arrizon veins. Drilling and Surface Disturbance All necessary permit applications were submitted to the relevant Mexican government authority; the Ministry of Environment and Natural Resources (SEMARNAT). Santana's environmental consultants are working closely with SEMARNAT striving to obtain regulatory approval to allow drilling and associated works at the conclusion of the seasonal monsoon rains. [5]

6 Figure 5: Au g/t in SOIL GRID. [6]

7 Figure 6: Ag g/t in SOIL GRID. [7]

8 3. AUSTRALIA As part of the rationalization of its Australian holdings Santana has entered into a share purchase agreement with Hammer Metals Limited (see ASX release 2 July 2013) whereby Hammer will acquire 100% of Santana s subsidiary Mt Dockerell Mining Pty Ltd, the holding company for Santana s Mt Isa projects in Australia. These include the Kalman Molybdenum/Rhenium/Copper/ Gold Project, the Mt Philp Iron Project and the surrounding tenement portfolio. The Kalman Project includes the 51% owned Pelican JV with Syndicated Metals Limited. Hammer is an unlisted company which intends to seek a listing on either the Australian or Singapore Stock Exchange and has exploration interests in the Mt Isa and Mt Morgan districts of Queensland. The Agreement will allow Santana to focus its financial and technical resources on its precious metals projects in Mexico whilst providing exposure to the Mt Isa projects through a shareholding in Hammer and a royalty on the Mt Philp project. Further, it provides exposure to Hammer s existing interests in Mt Isa and the Mt Morgan gold/copper district. 4. CORPORATE Santana evolved from the successful completion of the Cerro Resources NL (ASX:CJO) and Primero Mining Corp Scheme of Arrangement. Santana s shares were quoted for trading on ASX with trading having commenced on 31 May Primero holds 19.99% of Santana and nominated its President and CEO, Joseph Conway, to become a nonexecutive director of Santana. He was welcomed as a director on 27 June. For further information, please contact: Tony McDonald, Managing Director; or Craig McPherson, Chief Financial Officer admin@santanaminerals.com About Santana Santana is a precious metals explorer focused on Mexico where it is actively exploring the Namiquipa silver project in northern Mexico and the Espiritu Santo gold/silver project in Jalisco. Additional information about Santana and its projects is available on the website: Competent Person/Qualified Person The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Bill Fleshman (as it relates to Exploration Results at the Namiquipa and Espiritu Santo Projects), who is a Chartered Professional and Fellow of the Australasian Institute of Mining and Metallurgy; and Mr Trevor Leahey (as it relates to the Namiquipa Resource Estimate), who is a Chartered Professional and Member of the Australasian Institute of Mining and Metallurgy. Mr Fleshman and Mr Leahey are consultants to Santana Minerals Limited. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Fleshman and Mr Leahey consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. [8]

9 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, 01/05/2013 Name of entity SANTANA MINERALS LIMITED ABN JUNE 2013 Quarter ended ( current quarter ) Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A 000 Year to date (3 months) $A Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (149) (91) (149) (91) 1.3 Dividends received 1.4 Interest and other items of a similar nature 9 9 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (refund of Mexican IVA receivable) 1,166 1,166 Net Operating Cash Flows Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 1

10 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 4,000 4, Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (repayment of presubscription project funding net of opening project cash on hand) (820) (820) Net financing cash flows 3,180 3,180 Net increase (decrease) in cash held 4,115 4, Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item Cash at end of quarter 4,115 4,115 Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item 1.2 $ Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Item 1.23 Represents directors fees paid. Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil, other than as disclosed as part of the listing process of Santana Minerals Limited. + See chapter 19 for defined terms. Appendix 5B Page 2 01/05/2013

11 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next quarter $A Exploration and evaluation $1, Development 4.3 Production 4.4 Administration $270 Total $1,270 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter $A Cash on hand and at bank Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 4,022 4,115 + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 3

12 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Changes in interests in mining tenements and petroleum tenements 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased Tenement reference and location Mt Isa, Qld EPM EPM EPM EPM EPM EPM EPMA EPM EPMA EPMA Nature of interest (note (2)) Granted Tenement Granted Tenement Granted Tenement Granted Tenement Granted Tenement Granted Tenement Application for Tenement Granted Tenement Application for Tenement Application for Tenement Interest at beginning of quarter Sub blocks Interest at end of quarter Sub blocks 3 2 Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 97,725,799 97,725,799 Amount paid up per security (see note 3) (cents) 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks 19,535,387 19,535,387 $ / share Fully paid Ordinary + See chapter 19 for defined terms. Appendix 5B Page 4 01/05/2013

13 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 2,600,000 Nil Exercise price $0.275 Expiry date 24 April Issued during quarter 2,600,000 Nil $ April Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here:... Date: 25 July 2013 (Company secretary) Print name: Craig J. McPherson + See chapter 19 for defined terms. 01/05/2013 Appendix 5B Page 5

14 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 01/05/2013