ASX ANNOUNCEMENT ASX: IVG Date: 29 July 2011 Number: 013/290711 JUNE 2011 QUARTERLY REPORT SUMMARY Market Cap A$3.78 m ($0.105 p/s) Issued Capital 36,000,006 First pass and infill soil geochemistry surveys for a total of 5,085 samples were completed at the Diamond Creek, Saint Annes and Scartwater Prospects and along the Alliance Fault in the Mount Kroman area; The majority of the results have been received and interpretation of the data is in progress; Detailed mapping completed at the Saint Annes, Pseudo and Blackwater Prospects; At the Retro Extended Prospect field checking and rock chip samples up to 7 g/t gold, 65 g/t silver and 0.1% copper have extended the known strike of the mineralized quartz vein by 800 m; High grade rock chip results (up to one ounce per tonne), strongly anomalous gold in soil responses and coincident magnetic and potassium anomalies in airborne geophysical data have defined a new gold prospect at Scartwater. An infill soil geochemistry survey has been completed and results are awaited. Detailed field mapping is in progress; Maiden drill programmes scheduled to commence by the end of August; and Cash Position: $2.67 million. Directors Peter Unsworth Chairman Michael Jones Managing Director Michael Busbridge Technical Director Rodney Fripp Executive Director James CooperJones Company Secretary INVICTUS GOLD LIMITED ACN 145 891 907 www.invictusgold.com.au 309 Newcastle Street Northbridge Western Australia 6003 Tel +61 8 6454 6666 Fax +61 8 6454 6667 Email info@invictusgold.com.au
1. EXPLORATION PROGRAMMES IN THE DRUMMOND BASIN Fieldwork has continued throughout the Quarter on the Company s Drummond Basin gold project in north central Queensland (Figure 1). The Drummond Basin contains three of the Company s five 100% owned projects that are prospective for World Class deposits of gold silver, gold copper, molybdenum and tin. The Drummond East and Drummond West Projects are highly prospective for bulk tonnage porphyry style gold copper and gold copper molybdenum deposits such as Cadia Hill (>23 Moz gold) and Ridgeway (>2.6 Moz), both in New South Wales, as well as breccia pipes such as Kidston (>4 Moz) and Mount Leyshon (>3 Moz) in Queensland. Invictus has identified five previously untested targets in the Drummond West and Drummond East projects where there are geophysical and/or geochemical indicators of large porphyry style and breccia pipe deposits: Alliance Fault, the Clewitts Domain, Diamond Creek, Elgin Downs and Saint Annes. During the Quarter the following soil geochemistry surveys for a total of 5,085 samples were completed: 3486 samples at spacings of 400 m by 80 m and 200 m by 50 m along the Alliance Fault in the Mount Kroman area; 302 infill samples at a spacing of 200 m by 50 m at the Diamond Creek Prospect; 857 infill samples at a spacing of 200 m by 50 m at the Saint Annes Prospect; and 440 infill samples at a spacing of 200 m by 80 m at the Scartwater Prospect. Apart from the infill samples at Scartwater, results from all the other surveys have been received and interpretation of the data is in progress. Since listing in January, Invictus has completed five large first pass and infill soil geochemistry surveys for a total of about 6,800 samples. In addition, during the Quarter detailed mapping was completed at the Saint Annes Prospect as well as the Pseudo and Blackwater Prospects in the Clewitts Domain where Invictus has received a grant from the Queensland Government of up to $150,000 towards direct drilling costs. The mapping has shown that most of the prospect areas are poorly exposed and covered by thin colluvium and alluvium. This has hindered previous explorers. Where there is outcrop, weak silica alteration and narrow quartz veins are common. Sixteen rock chip samples were taken with gold assays all less than 0.1 grams per tonne. Field checking and rock chip sampling of the Retro Extended Prospect on EPM14116 (part of the Clermont Project, Figure 1), where previous drilling returned a high grade intercept of 16 m at 8.5 g/t gold, 146 g/t silver, 5.6% copper and 7.6% lead, has extended the known length of the Retro Extended quartz vein by at least 800 m to the south west. The rock chip samples returned assays of up to 7 g/t gold, 65 g/t silver and 0.1% copper. This extension of the vein has not been drilled.
2. SCARTWATER PROSPECT On the basis of elevated gold in soil responses and high grade rock chip assays in the Mount Kroman area on EPM14932 a new Prospect called Scartwater has been identified (Figures 1 and 2). The Prospect is at least 1,200 m by 500 m in dimension. There has been no previous exploration work in this area. The Scartwater Prospect is highly prospective for porphyry style gold deposits and is a priority area for follow up work. Infill systematic soil sampling to define drill targets has been completed and assay results are due in August. Four rock chip samples taken over a 10 square metre area in an outcrop of weathered granitic rock returned gold assay results of 32 g/t (1 ounce per tonne), 25.7 g/t, 12.9 g/t, and 11.8 g/t grams per tonne. These rock chip samples occur in a 500 m wide zone of anomalous gold in soil results (greater than 10 times background) that is at least 1,200 m long (Figure 2). Two soil samples taken about 100 m to the north of the rock chip samples and 80 m apart from each other have returned results greater than 75 times background (Figure 2). This area is coincident with a magnetic anomaly and elevated potassium responses in airborne geophysical data (Figure 2). Such signatures are very similar to those at many porphyry style deposits including the Mount Wright and Mount Leyshon Mines about 100 km to the north of Scartwater and the large Anthony porphyry hosted molybdenum deposit about 100 km to the south. 3. MAIDEN DRILL PROGRAMMES Work for the next Quarter will focus on commencing the maiden drill programmes for Invictus. Statutory Aboriginal Heritage Surveys of some of the priority drill targets were scheduled for mid July but have been delayed until early August at the request of the local community. Negotiations for Compensation Agreements with private land owners and leaseholders are being finalized. Compensation Agreements with land owners prior to drilling is a new requirement introduced by the Queensland Government in January 2011. The Agreements require legal reviews by lawyers for the land owners and this has taken longer than anticipated to be completed. It is expected that drilling could commence at Diamond Creek and Scartwater by the end of August. 4. CORPORATE In May 2011 the Company announced the resignation of Joint Company Secretary Mark Pitts. James Cooper Jones, who has acted as Joint Company Secretary with Mr Pitts since December 2010, has been appointed the sole Company Secretary of the Company. The Company s cash position was $2.67 million at 30 June 2011. Dr Michael G Jones Managing Director
Figure 1. Geology of the Drummond Basin showing the location of Invictus Gold s tenements. The Scartwater Prospect is located on EPM14932 just west of the Alliance Fault.
Figure 2. Images of the first vertical derivative of the Total Magnetic Intensity (left hand side) and the KK/Th ratio image from airborne magnetic data over the Scartwater Prospect. Also shown are the location of the rock chip samples (red dots with assay values in g/t) and soil samples (black dots) with elevated gold in soil responses shown as yellow (>10 times background) and red (>75 times background). The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works full time for Invictus Gold Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Rule 5.3 Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity INVICTUS GOLD LIMITED ABN Quarter ended ( current quarter ) 34 145 891 907 30 JUNE 2011 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors Current quarter Year to date ( 3 months) 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (427) (169) (579) (289) 1.3 Dividends received 1.4 Interest and other items of a similar nature 15 35 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) (13) (13) (595) (847) 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 17/12/2010 Page 1
1.13 Total operating and investing cash flows (carried forward) (595) (847) 1.13 Total operating and investing cash flows (brought forward) (595) (847) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 4,000 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other Issue costs (484) Net financing cash flows 3,515 Net increase (decrease) in cash held (595) (2,668) 1.20 Cash at beginning of quarter/year to date 3,263 1.22 Cash at end of quarter 2,668 2,668 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 $110 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of the transactions Noncash financing and investing ng 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 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 Page 2 17/12/2010
Financing facilities available Add notes as necessary for an understanding of the position. 3.1 Loan facilities Amount available Amount used 3.2 Credit standby arrangements Estimated cash outflows for next quarter 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration 500 200 Total 700 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 Previous quarter 5.1 Cash on hand and at bank 918 1 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (Term Deposits) Total: cash at end of quarter (item 1.22) 3,265 1,750 2,668 3,266 Changes in interests in mining tenements Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 17/12/2010 Page 3
6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased 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 7.3 + Ordinary securities Total number Number quoted Issue price per security (see note 3) (cents) 36,000,006 20,000,006 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 7.5 + Convertible debt securities (description) Page 4 17/12/2010
7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) 8,000,000 8,000,000 6,400,000 6,400,000 4,000,000 2,250,000 NIL NIL 8,000,000 8,000,000 Exercise price 20 cents 25 cents 20 cents 25 cents 25 cents 25 cents Expiry date 31 Jan 2012 30 Nov 2015 30 Nov 2015 30 Nov 2015 30 Jun 2014 30 Jun 2014 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 give a true and fair view of the matters disclosed. Sign here:... Date: 19 July 2011 (Company secretary) Print name: James CooperJones 17/12/2010 Page 5
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 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, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 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. == == == == == Page 6 17/12/2010