June 2017 Quarterly Activity Report

Transcription

1 31 July 2017 Bassari Resurces Limited is an Australian ASXlisted cmpany fcused n discvering and develping multimillin unce gld depsits in the Birimian Gld Belt, Senegal, West Africa. FAST FACTS ASX Cde BSR Issued Capital 1,918,412,728 N f sharehlders 2,318 Tp 20 39% INVESTMENT HIGHLIGHTS Mineral tenements ver apprximately 590km² f prspective Birimian Gld Belt, Senegal. Makabingui Gld Prject Feasibility Study Initial high grade pen pit prject f 1Mt at 5.7g/t fr 171,000 z prductin inventry, $680/z cash cst, US$88m after tax cash flw in first three years, and expansin anticipated frm undergrund and infill drilling f 8km Makabingui Suth zne. Makabingui Gld Prject Mineral Resurce (Prepared and disclsed under JORC Cde 2004 and remains unchanged) 1 Mz in 11.9 Mt at 2.6 g/t gld (0.5 g/t cut-ff) : - Indicated: 336,000 z in 2.6 Mt at 4.0g/t - Inferred: 669,000 z in 9.3 Mt at 2.2g/t Makabingui Gld Prject pen pit JORC 2012 Prbable Ore Reserve: -158,000 z in 0.86 Mt at 5.7 g/t Senegal, stable demcracy since Well lcated tenements in a +60M unce gld prvince hsting wrld class depsits. Multiple prspects identified alng 80km f partially drilled mineralised strike. BOARD AND MANAGEMENT Alex Mackenzie Executive Chairman Philip Bruce Nn-Executive Directr Peter Spivey Directr Ian Riley Cmpany Secretary/Chief Financial Officer CONTACT US Bassari Resurces Limited (ACN ) Level 17, 500 Cllins Street, Melburne, Victria, 3000, Australia. T: F: admin@bassari.cm.au Website: June 2017 Quarterly Activity Reprt Gld develper Bassari Resurces Limited (ASX: BSR) is pleased t reprt n activities at its gld prjects in Senegal, West Africa. Makabingui Gld Prject Crprate Prject infrastructure, mining and plant cnstructin ptimisatin cntinue Feasibility study upgrade cntinues Grade cntrl infill drilling cntinues Term sheet negtiated with Cris Bank fr the prvisin f $US12 millin f debt funding Presidential Decree granted fr the prject During the quarter Bassari raised $1.7M befre csts AGM held in May 2017 passes all reslutins MAKABINGUI GOLD PROJECT During the quarter, the cmpany cntinued with the first phase f the Makabingui Gld Prject develpment. Prject ptimisatin studies cntinue The prject team has cntinued its preliminary wrk fr prject infrastructure, mining and prcessing plant cnstructin. Cnstructin cnsultants have cmpleted an inspectin f the Makabingui develpment site and reprted n pprtunities fr cst reductins and increased effectiveness. Cnsultants remarked n the gd cnditin f the existing camp and n the many existing resurces which can be utilised in the cnstructin stage, including the quality f the lcal wrk frce. Feasibility study upgrade The Feasibility Study scpe and verall planning fr the prject is being ptimised by Bassari s prject management team. The current scping fr the study will prvide mre detail than the earlier study.

2 Grade cntrl infill drilling A detailed mine design will be undertaken fllwing the cmpletin f the 5,100m (3,595m cmpleted t date) RC infill and resurce grade cntrl drilling prgram f the Makabingui Gld Depsit. This grade cntrl prgram is n a 25m x 25m grid in Pits 1 and 2 and is cnfirming the cntinuity f the ldes n strike, t the Nrth and at depth. Apprximately 1,480 samples have been sent t the labratry fr analysis with results pending. Earlier preliminary assay results received were reprted in ASX annuncements n 29 March 2017 and 26 April US$12 millin bank funding term sheet negtiated Subsequent t the end f the quarter the Bassari team in Senegal successfully negtiated a Term Sheet with the Senegal divisin f Cris Bank Internatinal, a West African bank incrprated in Burkina Fas. The term sheet utlines the key terms and indicative cnditins f a US$12 millin funding facility fr the develpment f the Makabingui Gld Prject thrugh t prductin. Key features f the facility term sheet are: - Amunt: US$12 millin (apprximately 7 billin FCFA) being the estimated prject CAPEX - Interest rate: 9.0% per annum - Security: Standard security arrangements ver assets f the Makabingui Gld Prject and guarantees prvided Bassari Makabingui Presidential Decree signed Subsequent t the end f the quarter, the Presidential Decree fr the Makabingui Explitatin permit has been signed by the President f Senegal and cunter signed by the Prime Minister. The signing validates the terms f the Makabingui Explitatin permit issued by the Mines Department and signed by the Minister f Mines & Gelgy. CORPORATE Fund Raising Placements during the June quarter at $ (1.75 cents) per rdinary share raised apprximately $1.7 millin befre csts t prvide wrking capital and funds t further prgress the develpment phase f the Makabingui Gld Prject, including a reverse circulatin (RC) infill and grade cntrl drilling prgram in Pits 1 and 2 f the Makabingui Gld depsit, upgrading the earlier feasibility study and prgressing the prject infrastructure, mining and prcessing plant ptimisatin. Annual General Meeting The Cmpany Annual General Meeting was held at the RACV City Club, 501 Burke Street Melburne at 10:30 am n Wednesday 31 May 2017 with all reslutins passed n a shw f hands. 2

3 Abut Bassari Melburne - based West African gld develper Bassari Resurces Limited (ASX:BSR) has a strategic prtfli f explratin permits fcused n the Birimian Gld Belt in Senegal. The permits cver an area f 590 km 2 with 80km f strike alng the cmbined three cntiguus permits. The permits are lcated within the Kenieba Inlier which is a +60M unce gld regin. Bassari s visin is t discver and delineate gld resurces which can be develped int prfitable peratins. Frward-Lking Statements This release may include frward-lking statements. Frward-lking statements include, are nt necessarily limited t, statements cncerning Bassari Resurces Limited planned peratin prgram and ther statements that are nt histric facts. When used in this dcument, the wrds such as culd, plan, estimate, expect, intend, may, ptential, shuld and similar expressins are frward-lking statements. Althugh BSR believes its expectatins reflected in these are reasnable, such statements invlve risks and uncertainties, and n assurance can be given that actual results will be cnsistent with these frward lking statements. BSR cnfirms that it is nt aware f any new infrmatin r data that materially affects the infrmatin included in this annuncement and that all material assumptins and technical parameters underpinning this annuncement cntinue t apply and have nt materially changed. Cmpetent Persn s Statement The infrmatin in this annuncement that relates t the Mineral Resurces and Explratin Results has been reviewed and apprved by Mr Mussa Diba wh is a Member f the Australasian Institute f Mining and Metallurgy. Mr Diba is the chief gelgist f Bassari Resurces Limited and has ver 20 years experience in the industry and has mre than five years experience which is relevant t the style f mineralisatin being reprted upn and the activity being undertaken t qualify as a Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Diba cnsents t the inclusin in the reprt f the matters based n the infrmatin in the frm and cntext in which it appears. The Mineral Resurce infrmatin referred t in the annuncement was prepared and first disclsed under the JORC Cde It has nt been updated since t cmply with the JORC Cde 2012 n the basis that the infrmatin has nt changed since it was last reprted. Fr Further Infrmatin Cntact: Executive Chairman Cmpany Secretary Mr Alex Mackenzie Mr Ian Riley Ph: Ph:

4 Mining explratin entity and il and gas explratin entity quarterly reprt Appendix 5B +Rule 5.5 Mining explratin entity and il and gas explratin entity quarterly reprt Intrduced 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 f entity BASSARI RESOURCES LIMITED ABN Quarter ended ( current quarter ) June 2017 Cnslidated statement f cash flws 1. Cash flws frm perating activities 1.1 Receipts frm custmers 1.2 Payments fr Current quarter Year t date (6 mnths) (a) explratin & evaluatin (562) (1,351) (b) develpment (c) prductin (d) staff csts (516) (900) (e) administratin and crprate csts (291) (506) 1.3 Dividends received (see nte 3) 1.4 Interest received Interest and ther csts f finance paid 1.6 Incme taxes paid 1.7 Research and develpment refunds 1.8 Other (prvide details if material) 1.9 Net cash frm / (used in) perating activities (1,367) (2,754) 2. Cash flws frm investing activities 2.1 Payments t acquire: (a) prperty, plant and equipment (b) tenements (see item 10) (c) investments (d) ther nn-current assets + See chapter 19 fr defined terms 1 September 2016 Page 1

5 Mining explratin entity and il and gas explratin entity quarterly reprt Cnslidated statement f cash flws 2.2 Prceeds frm the dispsal f: (a) prperty, plant and equipment (b) tenements (see item 10) (c) investments (d) ther nn-current assets 2.3 Cash flws frm lans t ther entities 2.4 Dividends received (see nte 3) 2.5 Other (prvide details if material) Current quarter Year t date (6 mnths) 2.6 Net cash frm / (used in) investing activities Cash flws frm financing activities 3.1 Prceeds frm issues f shares 1,691 2, Prceeds frm issue f cnvertible ntes 3.3 Prceeds frm exercise f share ptins 3.4 Transactin csts related t issues f shares, cnvertible ntes r ptins (118) (136) 3.5 Prceeds frm brrwings 3.6 Repayment f brrwings 3.7 Transactin csts related t lans and brrwings 3.8 Dividends paid 3.9 Other (prvide details if material) 3.10 Net cash frm / (used in) financing activities 1,573 2, Net increase / (decrease) in cash and cash equivalents fr the perid 4.1 Cash and cash equivalents at beginning f perid 4.2 Net cash frm / (used in) perating activities (item 1.9 abve) 4.3 Net cash frm / (used in) investing activities (item 2.6 abve) 4.4 Net cash frm / (used in) financing activities (item 3.10 abve) 4.5 Effect f mvement in exchange rates n cash held 4.6 Cash and cash equivalents at end f perid 299 1,044 (1,367) (2,754) 0 1,573 2,247 4 (28) See chapter 19 fr defined terms 1 September 2016 Page 2

6 Mining explratin entity and il and gas explratin entity quarterly reprt 5. Recnciliatin f cash and cash equivalents at the end f the quarter (as shwn in the cnslidated statement f cash flws) t the related items in the accunts Current quarter Previus quarter 5.1 Bank balances Call depsits 5.3 Bank verdrafts 5.4 Other (prvide details) 5.5 Cash and cash equivalents at end f quarter (shuld equal item 4.6 abve) Payments t directrs f the entity and their assciates Current quarter $A' Aggregate amunt f payments t these parties included in item Aggregate amunt f cash flw frm lans t these parties included in item Include belw any explanatin necessary t understand the transactins included in items 6.1 and 6.2 Directr fees and payments made t directrs fr cnsulting services t directr and directr related entities 7. Payments t related entities f the entity and their assciates Current quarter $A' Aggregate amunt f payments t these parties included in item Aggregate amunt f cash flw frm lans t these parties included in item Include belw any explanatin necessary t understand the transactins included in items 7.1 and 7.2 Amunt paid t directr related entities included in amunt shwn at item See chapter 19 fr defined terms 1 September 2016 Page 3

7 Mining explratin entity and il and gas explratin entity quarterly reprt 8. Financing facilities available Add ntes as necessary fr an understanding f the psitin Ttal facility amunt at quarter end Amunt drawn at quarter end 8.1 Lan facilities N/A N/A 8.2 Credit standby arrangements N/A N/A 8.3 Other (please specify) N/A N/A 8.4 Include belw a descriptin f each facility abve, including the lender, interest rate and whether it is secured r unsecured. If any additinal facilities have been entered int r are prpsed t be entered int after quarter end, include details f thse facilities as well. 9. Estimated cash utflws fr next quarter 9.1 Explratin and evaluatin Develpment 9.3 Prductin 9.4 Staff csts Administratin and crprate csts Other (prvide details if material) 9.7 Ttal estimated cash utflws 1, Changes in tenements (items 2.1(b) and 2.2(b) abve) Tenement reference and lcatin Nature f interest Interest at beginning f quarter Interest at end f quarter 10.1 Interests in mining tenements and petrleum tenements lapsed, relinquished r reduced NO CHANGE 10.2 Interests in mining tenements and petrleum tenements acquired r increased NO CHANGE In accrdance with ASX Listing Rule 5.3.3, Bassari Resurces Limited prvides its list f explratin and explitatin permits with its June 2017 quarterly activities reprt. + See chapter 19 fr defined terms 1 September 2016 Page 4

8 Mining explratin entity and il and gas explratin entity quarterly reprt Prject Cuntry Area Licence type Granted/ BSR Grup (sq km) renewed % interest Sambarabugu Senegal 278 Explratin Permit Mura Senegal 184 Explratin Permit % (a) % (a) Makabingui (within Sambarabugu) Senegal 128 Explitatin Permit % (b) (a) Bassari s whlly wned Senegal subsidiary is in jint venture with a third party which hlds the permit titles. (b) Bassari s jint venture partner hlds the permit prir t transferring the permit t an incrprated explitatin cmpany f which Bassari will hld a minimum 63% interest. Cmpliance statement 1 This statement has been prepared in accrdance with accunting standards and plicies which cmply with Listing Rule 19.11A. 2 This statement gives a true and fair view f the matters disclsed. Sign here: Date: 31 July 2017 (Cmpany secretary) Print name: Ian Riley Ntes 1. The quarterly reprt prvides a basis fr infrming the market hw the entity s activities have been financed fr the past quarter and the effect n its cash psitin. An entity that wishes t disclse additinal infrmatin is encuraged t d s, in a nte r ntes included in r attached t this reprt. 2. If this quarterly reprt has been prepared in accrdance with Australian Accunting Standards, the definitins in, and prvisins f, AASB 6: Explratin fr and Evaluatin f Mineral Resurces and AASB 107: Statement f Cash Flws apply t this reprt. If this quarterly reprt has been prepared in accrdance with ther accunting standards agreed by ASX pursuant t Listing Rule 19.11A, the crrespnding equivalent standards apply t this reprt. 3. Dividends received may be classified either as cash flws frm perating activities r cash flws frm investing activities, depending n the accunting plicy f the entity. + See chapter 19 fr defined terms 1 September 2016 Page 5