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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Metminco | LSE:MNC | London | Ordinary Share | AU000000MNC7 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.325 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
TIDMMNC
RNS Number : 0645V
Metminco Limited
31 October 2017
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AIM ANNOUNCEMENT 31 October 2017
-------------------------------------------- -----------------------------------------
QUARTERLY ACTIVITIES REPORT & APPIX 5B
3 MONTHS TO 30 SEPTEMBER 2017
MIRAFLORES LIFE OF MINE AISC ESTIMATED AT US $ 643/OZ
Highlights for the quarter ending 30 September 2017 for Metminco Limited
("the Company" or "Metminco"):
Miraflores Gold Project
The Company received approval for underground development, completed a
Feasibility Study ("the Study") and announced a maiden Ore Reserve for
the Miraflores Gold Project in Colombia during the quarter.
-- The Company received approval from the Corporacion
Autonoma Del Risaralda (CARDER), the environmental
agency in the Department of Risaralda, Colombia, to
construct up to 2,000m of underground development
under the Company's existing Plan De Manejo Ambiental
(PMA - Resolution 562 of 21 October 1997 and renewed
under Resolution 1619 on 23 June 2009);
-- Maiden Ore Reserve Estimate for the Miraflores Gold
Project; Metminco has declared a maiden NI 43-101 and
JORC 2012-compliant Ore Reserve for Miraflores of
4.3Mt @ 3.3g/t Au for 456koz contained gold and
357koz contained silver;
-- Feasibility Study confirms Miraflores Gold Project as
financially robust and technically sound;
-- Average annual production of 45koz of gold and 23koz
of silver over approximately 9.5 years;
-- Total forecast Initial Capital cost of US$71.8
million (excluding contingency of 7.67%), with an
additional US$18.5 million in sustaining capital
required over life-of-mine (LOM);
-- Estimated LOM cash operating costs of US$599 an ounce
and LOM all-in sustaining costs (AISC) of US$643 an
ounce;
-- Estimated LOM undiscounted free cash flow of US$150
million (using US$1,300/oz gold price); and
-- Net Present Value of US$72.3 million (after tax, 8%
discount rate) and Internal Rate of Return of 25%
(after tax NPV of US$96.1 million at 5% discount
rate).
The critical path for the development of the project remains the completion
of the Environmental Licence including the validation of the impacts on
the local communities and the gaining of the social licence for the project.
Corporate
-- The Company's cash position at the end of the quarter
(30 September 2017) was approximately AUD $
2,382,000.
-- The Company completed the buyback of small holdings
as announced to the market on 14 July 2017. The total
number of shares purchased under the facility was
3,875,424 shares ("the Buyback"), representing
approximately 3% of the issued capital in Metminco.
With the purchase of the small holdings the number of
Metminco shareholders has reduced by more than 6,900
to 1,294 shareholders. The total number of ordinary
shares in issue after completion of the Buyback is
127,200,299, which represents the total number of
voting rights in the Company and may be used by
shareholders as the denominator for the calculations
by which they can determine if they are required to
notify their interest in, or a change to their
interest in the Company under the Financial Conduct
Authority's Disclosure and Transparency Rules.
Mr William Howe, Managing Director, commented: "Several significant milestones
have been achieved during the quarter. The Company received approval from
the CARDER for the development of up to 2,000m of underground development
under its existing PMA, announced a Maiden Ore Reserve for the Miraflores
Gold Project and completed a Feasibility Study for the potential development
of the Project. The development of the Miraflores Gold Project is fast
becoming a reality for the shareholders of Metminco."
=======================================================================================
MIRAFLORES PROJECT - COLOMBIA
Environmental Permit - Resolution 1505 of 7 September 2017 (Approved Permit)
Miraflores Compañía Minera (Miraflores), a wholly owned subsidiary of Metminco received approval from the CARDER to construct up to 2,000 metres of underground development under the Company's existing Plan De Manejo Ambiental (PMA - Resolution 562 of 21 October 1997 and renewed under Resolution 1619 on 23 June 2009) covering the Miraflores licence which is an exploitation licence. The Company has been working with the CARDER on this resolution since March 2017. The granting of the permit by the CARDER was announced to the market on 14 September 2017.
The exploration development approved by CARDER will allow the Company to expose the previously defined ore zones on multiple levels and complete infill diamond drilling for stope definition ahead of a final decision to construct the processing facilities and supporting infrastructure. The development to be undertaken will include providing access to the underground via a decline, development of a ventilation system for the mine, cross cutting and on reef driving on multiple levels.
The Company will also assess the possibility of trucking ore from the mine to a processing facility nearby to gain large scale bulk processing information ahead of a decision to construct the processing facilities at Miraflores.
The approval from the CARDER allows for the discharge of water from the underground development and development of waste and ore dumps on surface.
Summary of the Environmental Permit
-- Permits discharge of non-domestic wastewater from mining title 010-87M, with validity of 5 years.
-- Approval of non-domestic wastewater treatment system designs, for this permit it is necessary to have environmental obligations and semi-annual reports, as well as to submit laboratory analysis of water samples from the Quebrada Aguas Claras.
-- Permit for atmospheric emissions for fixed, punctual or diffuse sources, for the extraction of 50,000m(3) of waste material.
-- Stacking and disposal of waste materials from the construction of the exploration tunnel and the transportation of material resulting from the construction, this permit has a validity of 5 years from the notification of the Resolution.
-- Permit to occupy the channel.
-- Approval of plans, designs, construction and operation for the construction of the access road to the tunnel.
-- Authorization for the disposal of surplus material from excavations or excavations resulting from road and tunnel improvement covering a total area of 10,400m(2) and a total volume of 68,000m(3) .
-- Approval of Environmental Management Plan.
-- Approval of contingency plan and preventive and emergency mechanisms for contingency care for liquid fuels, gasoline, ACPM, Bentonite.
-- Miraflores Compañía Minera must submit an Environmental Impact Study aimed at obtaining an Environmental License for the exploitation phase of the 010-87M title.
-- Miraflores Compañía Minera must pay to CARDER Col$2,339,000 (approximately US$780) annually during the validity of the permit or Resolution 1505.
Ore Reserves
The Company completed a maiden NI 43-101 and JORC 2012-compliant Ore Reserve for its 100%-owned Miraflores Gold Project in Colombia of 4.3Mt @ 3.3g/t Au for 456koz contained gold and 357koz contained silver, and announced this to the market on 18 October 2017. The Ore Reserve has been estimated using a gold price assumption of US$1,200/oz and a cut-off grade of 1.5g/t Au. It is contained entirely within the Miraflores Deposit constrained Mineral Resource Estimate and is based entirely on the Measured and Indicated Resources.
The estimate represents a conversion rate of approximately 50% of Measured and Indicated Resources and has been based on information derived from the Study for Miraflores.
Mineral Resources
The Miraflores Measured and Indicated Mineral Resources are reported at a gold cut-off grade of 1.2g/t Au. The Resources are based on 25,884m of drilling in 73 diamond drill holes and 236m of underground channel samples. This includes 3,624m in 10 holes carried out by AngloGold Ashanti and B2Gold in 2006-2007.
Statistical and visual checks were performed by Metal Mining Consultants of the estimated block model to ensure there were no discrepancies in the grade estimation routines and to ensure the geometry of mineralisation meets the configuration that the geologists expected for estimated mineralisation.
Competent Person
Mr Boris Caro visited the site in August 2017 for 3 days as part of the Study team to review all aspects of the Study including an investigation of the mine, plant and site layouts. The Company's Ore Reserve Estimate for the Miraflores Gold Project has been independently reviewed and signed off by Mr Caro who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Member of the Chilean Mining Commission.
Type of Study Completed
A Feasibility Study has been completed for the Miraflores Project. Metminco engaged GR Engineering Services to complete the processing, infrastructure and feasibility study management aspects of the Feasibility Study. Ausenco Chile were engaged to complete all aspects of the mine design, mine scheduling, geotechnical analysis and ventilation system design to support the mine design, including capital and operating costs for the mine. Surface geotechnical design for the plant, infrastructure and tailings facility was undertaken by Dynami Geo Consulting (a Medellin based consulting company) and Grana y Montero Engineering, a Lima, Peru based engineering and contracting group assisted in the design of the Tailings Storage Facility. This study provided sufficient technical and economic support to back up the Ore Reserve Estimate.
Statement of Accuracy
The Competent Person has recommended that further work be conducted prior to commencement of construction of the Miraflores Project on the following topics:
-- Geotechnical stability analysis for the underground mine, especially in the areas containing non-backfilled stopes;
-- Stope Backfilling sequence; -- Development of a detailed mining construction schedule; -- Understanding the predicted underground water levels; and -- Updating the environmental and social costs as per the permit - still to be granted.
This further work may result in some changes to the modifying factors representing a high risk for the achievement of the technical and economic outcome of the Miraflores Gold Project delivered by the Feasibility Study.
Miraflores Feasibility Study
Metminco is pleased to announce the completion of the Feasibility Study into the development of its Miraflores Gold Project in Colombia, which has further demonstrated the financial and technical viability of the proposed operation.
As part of the study, Metminco declared a Maiden NI 43-101 and JORC 2012-compliant Ore Reserve for Miraflores of 4.3Mt grading 3.3g/t gold for 456koz contained gold and 357koz contained silver.
Over that period, the Miraflores plant would process 4.3 million tonnes of ore grading an average of 3.3g/t Au and 2.6 g/t Ag for total production of 421koz of gold and 211koz of silver (an average of approximately 45koz of gold and 23koz of silver per year over 9.5 years).
The initial capital cost of developing the mine and associated infrastructure has been estimated at US$71.8 million excluding contingency. Contingency is approximately US$6.1 million. An additional US$18.5 million in sustaining capital is expected to be required over the LOM.
LOM cash operating costs have been estimated at US$599/oz, while LOM AISC have been estimated at US$643/oz, which would position Miraflores in the first cost quartile of gold operations globally.
Applying a US$1,300 gold price, which was used for all base-case financial modelling in the Feasibility Study, Miraflores delivers LOM free cash flow of US$150 million, a Net Present Value at an 8% discount rate of US$72.3 million and an Internal Rate of Return of 25% (all measures are on an after-tax basis).
The Miraflores Feasibility Study did not take into account any upside that may result from exploration at the nearby Chuscal and Tesorito prospects, where the focus is on defining more resources in high-grade vein systems that could also be mined using underground methods.
MOLLACAS PROJECT - CHILE
The Company holds title to 21 Exploitation Concessions covering the Mollacas deposit and surrounding area, and owns 179 ha of land adjacent to the proposed open pit operation.
In addition, Metminco also owns water rights to approximately 175 litres/sec from two canals, albeit that the estimated water usage for the mining operation will only be 40 litres/sec.
The Project is currently on care and maintenance.
CORPORATE
Cash Position and Funding
As at 30 September 2017, Metminco Limited had approximately AUD $ 2,382,000 in cash.
Expenditure for the quarter ended 30 September 2017 was focussed on the Miraflores Feasibility Study, care and maintenance costs on its other projects (Mollacas, Vallecillo and Loica) and corporate overheads.
Small Holdings Buyback
The Company completed the buyback of small holdings as announced to the market on 14 July 2017.
All of the small holding shares purchased under the small holdings share purchase facility have been placed to clients of Martin Place Securities. The total number of shares purchased under the facility was 3,875,424 shares, representing approximately 3% of the issued capital in Metminco. With the purchase of the small holdings the number of Metminco shareholders has reduced by more than 6,900 to 1,294 shareholders.
Market Abuse Regulation (MAR) Disclosure
The information communicated in this announcement includes inside information for the purposes of Article 7 of Regulation 596/2014.
William Howe
Managing Director
For further information, please contact: METMINCO LIMITED Brian Jones Office: +61 (0) 2 9460 1856 Company Secretary NOMINATED ADVISOR AND BROKER RFC Ambrian Australia Will Souter / Alena Broesder Office: +61 (0) 2 9250 0000 United Kingdom Charlie Cryer Office: +44 (0) 20 3440 6800 JOINT BROKER SP Angel Corporate Finance LLP (UK) Ewan Leggat Office: +44 (0) 20 3470 0470 PUBLIC RELATIONS Camarco United Kingdom Gordon Poole / Nick Hennis Office: + 44 (0) 20 3757 4997
Media + Capital Partners
Australia
Luke Forrestal Office: +61 (0) 411 479 144
Competent Persons Statement
The information provided in this announcement as it relates to Mineral Reserves of the Miraflores Gold Project is based on information compiled by Mr Boris Caro. Mr Caro, a Qualified Person for JORC (2012 Edition) compliant statements, reviewed the technical information presented in this document.
Mr Caro has sufficient experience that is relevant to the style of mineralisation and type of mineral deposit under consideration, and to the activity which was undertaken, to make the statements found in this report in the form and context in which they appear. Mr Caro has consented to be named in this announcement and inclusion of information attributed to him in the form and context in which it appears herein.
Forward Looking Statement
All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as "anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
Metminco Limited
----------------
ABN Quarter ended ("current
quarter")
43 119 759 349 30 September 2017
-------------- -----------------------
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating A$'000 9.months
activities A$'000
---------------- -------------
1.1 Receipts from product - -
sales and related debtors
Payments for:
(a) exploration and
1.2 evaluation (1,090) (2,363)
(b) development - -
(c) production - -
(d) administration (1,673) (3,267)
1.3 Dividends received - -
1.4 Interest and other items - -
of a similar nature
received
1.5 Interest and other costs - -
of finance paid
1.6 Income taxes paid - -
1.7 Other - -
Net Operating Cash Flows (2,763) (5,630)
----- -------------------------------- ---------------- -------------
Cash flows related to
investing activities
Payment for purchases
of:
(a) prospects (1,008) (1,008)
(b) equity investment - -
1.8 (c) other fixed assets - -
Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
1.9 (c) other fixed assets 1 6,624
1.10 Loans to other entities - -
1.11 Loans repaid by other - -
entities
1.12 Other - -
Net investing cash flows (1,007) 5,616
Total operating and
investing cash flows
1.13 (carried forward) (3,770) (14)
----- -------------------------------- ---------------- -------------
Cash flows related to financing
activities
Proceeds from issues of shares,
options, derivative asset
1.14 fair value adjustment (91) 2,020
Costs of issue (76) (363)
1.15 Proceeds from sale of forfeited - -
shares
Proceeds from Convertible
1.16 Notes - 750
1.17 Repayment of borrowings - -
1.18 Dividends paid - -
Other: Cash received from
1.19 derivative asset 104 104
Net financing cash flows (63) 2,511
----- ---------------------------------- --------
Net increase (decrease) in
cash held (3,833) 2,497
Cash at beginning of quarter/year
1.20 to date 6,351 72
Exchange rate adjustments
1.21 to item 1.20 (136) (187)
---------- --------
1.22 Cash at end of quarter 2,382 2,382
----- ---------------------------------- ---------- --------
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
-----------------
Aggregate amount of payments to the parties
1.23 included in item 1.2 323
-----------------
1.24 Aggregate amount of loans to the parties -
included in item 1.10
-------- ------------------------------------------------- -----------------
1.25 Explanation necessary for an understanding of the transactions
Item 1.23 includes aggregate amounts paid to directors
for the period
01 July 17 - 30 September17 for:
Directors' fees: A$272,782
Directors' services: A$50,686
-----------------------------------------------------------------------------
Non-cash financing and investing activities
2.1 Details of financing and investing transactions
which have had a material effect on consolidated
assets and liabilities but did not involve
cash flows
None
--------------------------------------------------
2.2 Details of outlays made by other entities
to establish or increase their share in projects
in which the reporting entity has an interest
None
--------------------------------------------------
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
A$'000 A$'000
3.1 Loan facilities - -
----------------- ------------
3.2 Credit standby arrangements - -
---- ---------------------------- ----------------- ------------
Estimated cash outflows for next quarter
A$'000
-------
4.1 Exploration and evaluation 500
-------
4.2 Development -
-------
4.3 Production -
-------
4.4 Administration 200
-------
Total 700
---- --------------------------- -------
Reconciliation of cash
Reconciliation of cash Current quarter Previous quarter
at the end of the quarter A$'000 A$'000
(as shown in the consolidated
statement of cash flows)
to the related items in
the accounts is as follows.
--------------------------------- ---------------- -----------------
Cash on hand and at
5.1 bank 2,382 6,351
---------------- -----------------
5.2 Deposits at call - -
---------------- -----------------
5.3 Bank overdraft - -
---------------- -----------------
5.4 Other (provide details) - -
---------------- -----------------
Total: cash at end
of quarter (item 1.22) 2,382 6,351
----- -------------------------- ---------------- -----------------
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest
reference (note (2)) at beginning at end
of quarter of quarter
----------- ------------------- -------------- ------------
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.
Total number Number quoted Issue price Amount paid
per security up per security
(see note (see note
3) (cents) 3) (cents)
-------------------------------- ------------- -------------- -------------- -----------------
7.1 Preference
+securities
(description)
----- ------------------------- ------------- -------------- -------------- -----------------
7.2 Changes during
quarter:
(a) Increases
through Issues
Is
(b) Decreases
through returns
of capital,
buy backs,
redemptions
----- ------------------------- ------------- -------------- -------------- -----------------
+Ordinary
7.3 securities 127,200,299 127,200,299
----- ------------------------- ------------- -------------- -------------- -----------------
7.4 Changes during
Quarter:
(a) Increases
through Issues
(b) Decreases
through returns
of capital,
buy backs,
redemptions
----- ------------------------- ------------- -------------- -------------- -----------------
+Convertible
Debt securities Convertible
unlisted at: Expiry date:
Convertible
7.5 Notes 12,345,639 12,345,639 A$0.06075 17 May 2018
----- ------------------------- ------------- -------------- -------------- -----------------
7.6 Changes during
quarter:
(a) Increases
through issues
(b) Decreases
through Securities
matured,
converted
----- ------------------------- ------------- -------------- -------------- -----------------
7.7 Options (description Unlisted: Exercise Expiry date:
and conversion price:
factor) 12,345,639 17 May 2019
A$0.081
12,345,.639 25 May 2019
A$0.081
----- ------------------------- ------------- -------------- -------------- -----------------
7.8 Issued during
quarter
----- ------------------------- ------------- -------------- -------------- -----------------
7.9 Exercised
during
quarter
----- ------------------------- ------------- -------------- -------------- -----------------
Expired during
7.10 quarter 100,000 A$1.51 01 Aug 2017
----- ------------------------- ------------- -------------- -------------- -----------------
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 4).
2. This statement does give a true and fair view of the matters disclosed.
Date: 31.10.2017
(Company secretary)
Print name: Brian Jones
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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5. Accounting Standards: ASX will accept, for example, the use of International Accounting 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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