Quarterly Activities Report

Transcription

1 Quarterly Activities Report For the period ended 30 September 2016 Golden Rim Resources Ltd (ASX: GMR) is developing its project portfolio. The Company has advanced exploration projects in Chile and Burkina Faso. The Paguanta Zinc-Silver-Lead Project, in Chile, has a significant JORC Mineral Resource and US$31.5m in past expenditure. GMR plans to conduct drilling with the aim of expanding the higher grade portion of the resource. The Korongou Gold Project, in Burkina Faso, has widespread gold mineralisation. GMR has outlined a considerable Exploration Target. Head Office Office 7, Level Canterbury Road SURREY HILLS VIC 3127 AUSTRALIA T: Contact Craig Mackay Managing Director info@goldenrim.com.au Overview Paguanta, Chile Golden Rim finalised the acquisition of a 70% interest in the Paguanta Zinc-Silver-Lead Project in northern Chile. Paguanta is now the Company s flagship project. Since the start of 2016, there has been a strong rise in zinc (52%) and silver (28%) prices making the acquisition a timely and exciting new opportunity for shareholders. Golden Rim s due diligence on Paguanta revealed that coherent higher grade mineralisation predominantly associated with a hydrothermal breccia in the Cathedral Vein at the Patricia Prospect is likely to be the focus for future mine development. An initial Exploration Target of approximately 4.5Mt to 6.8Mt at approximate grades of 4.5% to 6.7% zinc, 1.5% to 2.3% lead and 100 g/t to 150 g/t silver has been estimated for Patricia for potential extensions to the higher grade portion of the Mineral Resource 1 at Patricia. Golden Rim has re-established the exploration camp at Paguanta and is currently arranging for an exploration office to be opened in Iquique (120km southwest of Paguanta). Previous ground magnetic and Induced Polarisation (IP) / Resistivity geophysical data from Patricia has been remodelled with the results coinciding with the vein-hosted mineralisation, suggesting an extension to the east and southeast. A 12 line-km Magneto-Telluric (MT) geophysical survey commenced at Patricia with the objective of better defining the extensions of the mineralisation at depth and along strike to the east. Mr Alex Raab was appointed as Exploration Manager in Chile. Directors Glenister Lamont, Non Executive Chairman Craig Mackay, Managing Director Rick Crabb, Non Executive Director 1 Details of the Mineral Resource were previously announced by Golden Rim on 10 May 2016 Golden Rim to Acquire Advanced Silver-Lead-Zinc-Copper Project in Chile. Golden Rim Resources Ltd I ABN I Office 7, Level 2, 609 Canterbury Road, Surrey Hills VIC 3127, Australia I PO Box 378, West Perth WA 6872, Australia I info@goldenrim.com.au I T

2 Paguanta Project, Chile Paguanta is located in the Tarapacá Region of northern Chile, approximately 195km northeast of Iquique and 30km west of the Chile-Bolivia border. Paguanta is situated approximately 40km northeast of BHP Billiton s Cerro Colorado Mine, which has a Mineral Resource of 0.62% copper for 5.5Blb of copper and annual copper cathode production of approximately 175Mlb. During the Quarter, Golden Rim finalised the transaction with Herencia Resources plc (Herencia) to acquire all the issued shares in Herencia s wholly owned subsidiary Paguanta Resources Chile SA (PRC). PRC holds 70% of the shares in Compania Minera Paguanta SA (CMP) which holds the primary mineral concessions at the Paguanta zinc-silver-lead project in northern Chile. The final acquisition price for Paguanta was US$1.49m cash. In addition to the cash consideration, Golden Rim will issue US$0.8m in fully paid ordinary shares (Shares) to Herencia at a deemed issue price equal to the 20 day volume weighted average price (VWAP) in the event of a decision to mine at Paguanta. Past expenditure on the project is approximately US$31.5m (A$41.4m 1 ). Work completed on the project includes: more than 40,000m of drilling (predominantly diamond drilling) the majority of a feasibility study. Golden Rim s due diligence on Paguanta revealed that coherent higher grade mineralisation predominantly associated with a hydrothermal breccia in the Cathedral Vein at Patricia is likely to be the Company s focus for a future mine development (Figure 1). The higher grade mineralisation is mainly associated with the Cathedral Vein and is open at depth and along strike. The Paguanta Project is now the Company s current focus. Since the start of 2016, there has been a strong rise in zinc (52%) and silver (28%) prices making the acquisition a timely and exciting new opportunity for shareholders. Exploration Target Mining Plus Pty Ltd (Mining Plus) has estimated an initial Exploration Target in accordance with JORC (2012) for the potential strike and depth extensions to the higher grade mineralisation at Patricia. The results of this study are presented in Table 1 and the area included in the Exploration Target is depicted in Figure 2. The Exploration Target represents polymetallic endowment in addition to the current Mineral Resource 2 for the Patricia deposit. 1 Calculated at the conversion rate of US$1 = A$ Details of the Mineral Resource were previously announced by Golden Rim on 10 May 2016 Golden Rim to Acquire Advanced Silver-Lead-Zinc-Copper Project in Chile. Page 2

3 Table 1. Patricia Exploration Target Estimation Tonnage Range (Mt) Zinc Grade Range (%) Lead Grade Range (%) Silver Grade Range (g/t) Gold Grade Range (g/t) 80% 120% 80% 120% 80% 120% 80% 120% 80% 120% Notes: 1) Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources. 2) Mining Plus created an indicative mineralisation model to identify the potential location and size of the immediate strike and dip extensions to the current mineralised system utilising Leapfrog Geo implicit modelling software to create solids at a 3% cut-off grade and a maximum vein width of 5m. 3) The Exploration Target was based on drilling data, surface geochemical data and a 3D model of Induced Polarisation (IP) chargeability data. The surface geochemical data (1,930 samples) and IP geophysical data (survey by Zonge, Chile, 2012) were utilised to support the continuity of mineralisation in areas where drilling was more sparse. 4) A total of 28 RC drill holes (3,626m) and 11 diamond drill holes (1,338m) were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 20m 250m apart, with a spacing along the lines ranging from 30m 200m. The holes used for the Exploration Target are depicted on Figure 3. 5) A base for the Exploration Target was set at 3250mRL 200m below the base of the current drilling. The Exploration Target extends along strike for 250m from the eastern-most drill hole. 6) The Exploration Target was calculated using a SG of 3.2 g/cm 3 Commencement of On-Ground Activities in Chile During the Quarter, Golden Rim re-established the exploration camp at Paguanta. Golden Rim is currently also arranging for an exploration office to be opened in Iquique (120km southwest of Paguanta). During the Quarter, earthmoving equipment was mobilised to repair access roads in preparation for drilling. A detailed geological mapping program at Patricia is underway to better define the extent of and the structural controls on the mineralisation. Subsequent to the end of the Quarter, Golden Rim appointed Mr Alex Raab as Exploration Manager in Chile. As well as focusing on the Paguanta Project, Mr Raab will assist the Company with new business development and, in particular, assessing and evaluating new minerals project opportunities in South America. Geophysical Studies During the Quarter previous ground magnetic and Induced Polarisation (IP) / Resistivity geophysical data from the Patricia Prospect was remodelled. A Chilean company, Southernrock Geophysics (Southernrock), was contracted to review and remodel the previous geophysical data collected at Paguanta. The magnetic response coincides with the vein-hosted mineralisation at Patricia and suggests an extension to the east and southeast. IP / Resistivity data defines coincident high chargeability IP and elevated resistivity anomalies around the Patricia mineralisation. A second significant coherent high chargeability anomaly to the southeast of Patricia remains untested by drilling. In addition to the data remodelling, a 12 line-km Magneto-Telluric (MT) geophysical survey was conducted by Southernrock at Patricia with the objective of better defining the extensions of the Page 3

4 mineralisation at depth (below the extent of the previous IP / Resistivity survey) and along strike to the east. The results of the MT survey were received and released subsequent to the end of the Quarter. Burkina Faso Gold Projects Korongou Project The Korongou Project covers part of a highly prospective Lower Proterozoic Birimian Samira Hill greenstone belt in Burkina Faso and is traversed by a significant NE-trending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Kiaka (5.9 Moz gold), Bomboré (5.2 Moz gold) and Essakane (6.2 Moz gold). The mineralised fault system extends into western Niger where the 2Moz Samira Hill is located (Figure 4). The Korongou Project is comprised of one permit (Korongou) which is 90% owned by Golden Rim. The initial Exploration Target for Korongou, detailed in Table 2, is estimated in a range of 7,954,000 to 9,722,000 tonnes grading from approximately 1.8 to 2.2 g/t gold and containing approximately 500,000 to 611,000 ounces of gold. Table 2. Korongou Exploration Target Estimation Exploration Tonnage Range Gold Grade Range (g/t) Gold Ounces Range Target Area 90% 110% 90% 110% 90% 110% Guitorga North 2,924,000 3,573, , ,000 Guitorga South 3,643,000 4,452, , ,000 MCA/MCB Pits 719, , ,000 57,000 Diabouga 669, , ,000 89,000 TOTAL 7,954,000 9,722, , ,000 Notes: 1) Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources. 2) The Exploration Target was estimated using the following parameters: 0.5 g/t gold cut-off grade; maximum of 100m strike extent from drill holes (where the continuity of the mineralisation is supported by mapping, the location of artisanal workings or anomalous auger results); maximum of 70m vertical extent below surface for the Guitorga North, Guitorga South and Diabouga areas; maximum of 120m vertical extent below surface for the MCA/MCB Pits area; minimum downhole intercept width of 2m; and SG of ) A total of 94 RC drill holes were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 40m 100m apart, with a spacing along the lines ranging from 40m 50m. No field work was carried out on the Korongou Project during the Quarter. MNG Group of companies (MNG) has withdrawn from its agreement to enter into an unincorporated joint venture with respect to Korongou. Golden Rim is now actively seeking other divestment opportunities. Given the current positive market sentiment on gold, Golden Rim will endeavour to maintain an up-side interest in any potential transaction. Babonga and Yako Projects No field work was completed on the Babonga and Yako projects during the Quarter. Page 4

5 MNG has withdrawn from its agreement to enter into sale agreements with respect to the Yako and Babonga projects. Golden Rim is now actively seeking other divestment opportunities. Mali Project (Sepola) No work was completed on the projects in Mali during the Quarter. Golden Rim continues to be in active discussions regarding the divestment of the Sepola Project. Corporate and Financial The transaction with Herencia Resources plc (Herencia) to acquire all the issued shares in PRC which holds 70% of the shares in CMP (the Paguanta zinc-silver-lead project) was finalised. A payment of US$50,000 remains outstanding under the transaction, to be paid once Golden Rim is satisfied all costs incurred by PRC and/or CMP prior to completion of the transaction have been settled. The Company s expenditure during the quarter was A$2,788,000. The significant majority of the expenditure was for the acquisition of the Paguanta Project. At the end of the quarter the Company s cash balance was A$3,861,000. Following the end of the quarter, the Company announced a Share Purchase Plan offer (see announcement of 26 October 2016) to raise a maximum of $1,800,000 (the Directors have reserved the right to accept oversubscriptions). The funds raised under the offer are intended: to immediately expand the proposed drilling program at Paguanta to enable the Company to test the significant extensions to the mineralisation suggested by recent geological mapping and the MT geophysical survey; to continue drilling early in the new year, should initial results from the drilling program be positive; to review new project opportunities for the Company; and for administration costs and general working capital. -ENDS- Page 5

6 Figure 1. Plan view of the Patricia Veins at Paguanta, Chile, and selected significant drilling intercepts. The high-grade Cathedral Vein is coloured in yellow. Figure 2. Current Mineral Resource Model block (green-yellow). The orange shape represents the extent of the Exploration Target (Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of Mineral Resources). Page 6

7 Figure 3. Drill hole collar locations at Patricia. Holes with green collars were used to calculate the Exploration Target. Page 7

8 Figure 4. Location of Golden Rim s Burkina Faso permits and projects. Page 8

9 Table 1: Tenements (additional information in relation to the Company s tenements held at the end of the Quarter (on a consolidated basis)) Tenement name Mali Kolumba North Gourbassi East Project name Golden Rim Holding (%) Golden Rim s potential equity (%) Changes in the Quarter Sepola Sepola Kenibandi East Sepola Burkina Faso Babonga Babonga Zanna Yako Korongou Korongou Chile José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired José Miguel Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Carlos Felipe Exploitation Paguanta Acquired Teki I 1 Exploration Paguanta Acquired Teki I 2 Exploration Paguanta Acquired Teki I 3 Exploration Paguanta Acquired Teki I 4 Exploration Paguanta Acquired Teki I 5 Exploration Paguanta Acquired Teki I 6 Exploration Paguanta Acquired Teki I 7 Exploration Paguanta Acquired Teki I 8 Exploration Paguanta Page 9

10 Competent Persons Statement The information in this release that relates to the estimation of the Exploration Target at Paguanta has been compiled by Mr. Richard Buerger BSc (Hons). Mr. Buerger is a full-time employee of Mining Plus Pty Ltd and has acted as an independent consultant during the estimation of the Exploration Target for the Paguanta Deposit. Mr. Buerger is a Member of the Australian Institute of Geoscientists and has sufficient experience with the style of mineralisation, deposit type under consideration and to the activities undertaken 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 (The JORC Code). Mr. Buerger consents to the inclusion in this report of the contained technical information relating to the estimation of the Exploration Target in the form and context in which it appears. The information in this report relating to the Exploration Targets at Korongou is extracted from the announcement Initial Exploration Target Defined for Korongou dated 16 July 2015 has been reported in accordance with the 2012 edition of the JORC Code. These announcements are available on the Company s website ( The Company confirms that it is not aware of any new information or data that materially affects the information included in these announcements. Forward Looking Statements Certain statements in this document are or maybe forward-looking statements and represent Golden Rim s intentions, projections, expectations or beliefs concerning among other things, future exploration activities. The projections, estimates and beliefs contained in such forward looking statements necessarily involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Golden Rim, and which may cause Golden Rim s actual performance in future periods to differ materially from any express or implied estimates or projections. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect and differences may be material. Golden Rim does not make any representation or warranty as to the accuracy of such statements or assumptions. Further Company Information E: info@goldenrim.com.au W:goldenrim.com.au Capital Structure: Issued Shares: 1,438,520,000 Unlisted Options: 143,358,400 Share Registry: Link Market Services Limited Central Park Level St Georges Terrace Perth WA 6000 Telephone: (+61) Fax: Page 10

11 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Appendix 5B 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 GOL:DEN RIM RESOURCES LTD ABN Quarter ended ( current quarter ) September 2016 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Current quarter Year to date (3 months) - - (a) exploration & evaluation (449) (449) (b) development - - (c) production - - (d) staff costs (125) (125) (e) administration and corporate costs (223) (223) 1.3 Dividends received (see note 3) Interest received Interest and other costs of finance paid Income taxes paid Research and development refunds Other (provide details if material) Net cash from / (used in) operating activities (797) (797) 2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (15) (15) (b) tenements (see item 10) (1,976) (1,976) (c) investments - - (d) other non-current assets See chapter 19 for defined terms 1 September 2016 Page 1

12 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows 2.2 Proceeds from the disposal of: (a) property, plant and equipment Current quarter Year to date (3 months) - - (b) tenements (see item 10) - - (c) investments - - (d) other non-current assets Cash flows from loans to other entities Dividends received (see note 3) Other (provide details if material) Net cash from / (used in) investing activities (1,991) (1,991) 3. Cash flows from financing activities 3.1 Proceeds from issues of shares Proceeds from issue of convertible notes Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from / (used in) financing activities 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) 4.5 Effect of movement in exchange rates on cash held 6,675 6,675 (797) (797) (1,991) (1,991) - - (26) (26) 4.6 Cash and cash equivalents at end of period 3,861 3,861 + See chapter 19 for defined terms 1 September 2016 Page 2

13 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 5. 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 3,841 6, Call deposits Bank overdrafts Other (provide details) Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3,861 6, 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 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

14 8. Financing facilities available Add notes as necessary for an understanding of the position Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Total facility amount at quarter end Amount drawn at quarter end 8.1 Loan facilities Credit standby arrangements Other (please specify) 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 1, Development Production Staff costs Administration and corporate costs Other (provide details if material) Total estimated cash outflows 1, Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location Nature of interest Interest at begining of quarter Interest at end of quarter 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced + See chapter 19 for defined terms 1 September 2016 Page 4

15 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 10.2 Interests in mining tenements and petroleum tenements acquired or increased Paguanta, Chile: 1. José Miguel , José Miguel , José Miguel , José Miguel , José Miguel , José Miguel , José Miguel , José Miguel , Carlos Felipe , Carlos Felipe , Carlos Felipe , Carlos Felipe , Carlos Felipe , Carlos Felipe Joint Venture interest acquired - 70% 2. Teki I 1, Teki I 2 Teki I 3 Teki I 4 Teki I 5 Teki I 6 Teki I 7, Teki I 8. Acquisition - 100% Compliance statement 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: 31 October 2016 (Company secretary) Print name:.hayley Butcher 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