Quarterly Activities Review

 

TIDMBRL 
 
RNS Number : 4361M 
Blackthorn Resources Ltd 
29 January 2009 
 

BLACKTHORN RESOURCES LIMITED 
(the "Company" or "Blackthorn Resources") 
 
 
29 JANUARY 2009 
 
 
QUARTERLY ACTIVITIES REVIEW 
for the period ended 31 December 2008 
 
 
 
 
?KEY ISSUES 
PERKOA (Blackthorn Resources 90%) 
  *  Care and Maintenance program at Perkoa Zinc Mine implemented 
 
BURKINA FASO EXPLORATION (Blackthorn Resources 100%) 
  *  Commenced follow up work on identified high priority VTEM targets 
 
MUMBWA (Blackthorn Resources 50%) 
  *  Independent Geological consultant report provides encouraging conclusions about 
  Mumbwa Project potential 
  *  Assay results received for another five of the 18 cored holes 
  *  Revised JV Agreement signed with 50% JV Partner BHP Billiton in January 2009 
 
CORPORATE 
  *  Ms Nicole Bowman appointed Non-executive Director effective 8 October 2008 
  *  Mr Vic Bradley resigned as Non-executive Chairman effective 1 January 2009 
  *  Annual General Meeting held 24 November 2008 
  *  Company name changed to Blackthorn Resources Limited on 15 December 2008 
  *  Completed the consolidation of the Company's share capital 
  *  Cash on hand at 31 December 2008 $25.3 million 
 
 
 
? PERKOA ZINC PROJECT, BURKINA FASO (Blackthorn Resources 90%) 
Perkoa Care & Maintenance Program 
On 17 July 2008, the Company announced it would place the Perkoa Zinc Project in 
Burkina Faso in care and maintenance until further notice. That decision was 
made based on a detailed analysis of funding options and current economic 
factors, including a declining zinc price and a bleak outlook for the global 
metals and commodities market. 
The care and maintenance program has now been implemented according to plan, 
including delivery to site of the long lead time plant and equipment items. Work 
by contractors to complete footings and foundations for the process plant is 
continuing. 
Recommencement of construction at the Perkoa Zinc Mine will be subject to 
suitable financing being available and a stronger zinc price outlook. 
The Company is continuing its social and community programs in Burkina Faso. 
?EXPLORATION  - BURKINA FASO (Blackthorn Resources 100%) 
The Company is continuing to explore its exploration tenements in Burkina Faso 
as a follow up to the airborne Versatile Time-Domain Electro Magnetic ("VTEM") 
survey completed in 2008, which identified nine high priority targets from the 
Poa, Perkoa and Guido permit areas. 
Field activity during the quarter has focussed on the review and interpretation 
of the VTEM data set and integration with previous exploration data. Currently 
Induced Polarisation ("IP") and Resistivity surveys are being carried out. 
Interpretation of results is expected to be completed in early 2009, prior to 
commencing to drill test those targets confirmed by the IP and Resistivity 
surveys. 
? MUMBWA JOINT VENTURE PROJECT, ZAMBIA (Blackthorn Resources 50%) 
Independent Geologists Report 
During the quarter, BK Consulting, an independent geological consulting firm, 
provided an update to their original opinion (announced 5 August 2008) regarding 
the geological interpretation of the Mumbwa Project. The updated report 
concludes that the current data supports the view expressed in a number of other 
independent reports that the Mumbwa Project has positive potential to host an 
important Iron Oxide-Copper ("IOCG") system. 
The following is an extract from the independent geologist's report: 
"Further exploration stands a very good chance of greatly expanding or extending 
this discovery as the mineralised zone as currently known appears to parallel a 
strong district-sized geophysical anomaly comparable in strength to, but much 
larger than, the geophysical anomaly found over the super-giant Olympic Dam IOCG 
deposit in Australia." 
Phase 3 Drilling Results 
During the quarter the Company received additional assay results from the 18 
cored holes (8,000 metres) completed by Blackthorn Resources under the Phase 3 
drill program. To date the Company has received and announced drill core assay 
results for 11 holes (S36-003, S36-005, S36-007, S36-009, S36-010, S36-011, 
S36-014, S36-015, S36-016, S36-017 and S36-018). Details of these drill hole 
locations and drill results are available on the Company's website 
www.blackthornresources.com.au 
Joint Venture Agreement 
On 12 January 2009, the Company announced that the revised Joint Venture 
agreement ("JV agreement") had been signed by both Blackthorn Resources and BHP 
Billiton. 
The signing of the JV agreement marks the completion of a process that was first 
announced on 5 August 2008, when Blackthorn Resources informed the market that a 
"term sheet" summarising the key commercial terms and conditions of a revised 
agreement had been signed. 
The revised agreement is in line with the "term sheet" conditions, and brings 
positive benefits to both parties, including: 
  *  Additional time for extra drilling phase 
  *  Additional concept study 
  *  Potential for Blackthorn Resources to have up to 150% of its costs in the first 
  three Phases reimbursed subject to BHP Billiton exercising its options to fully 
  fund future phases of the project. 
 
? MOKOPANE PROJECT, SOUTH AFRICA (Blackthorn Resources 74%) 
No work has been carried out on this project during the quarter. 
On 27 January 2009, the Company announced that it was granted the renewal of the 
New Order Prospecting Rights, lodged with the Department of Minerals and Energy 
in March 2008. 
? CORPORATE 
Board Changes 
On 8 October 2008, Ms Nicki Bowman was appointed a non-executive Director of the 
Company. Ms Bowman comes to the Company with extensive experience as a corporate 
and commercial lawyer in private practice, as well as having held senior 
corporate counsel roles in BHP and Blue Scope Steel before moving into senior 
management and executive positions. 
On 10 December 2008, the Company announced that its Chairman, Mr Vic Bradley, 
would be stepping down as Non-executive Chairman, and resigning from the Board 
effective 1 January 2009. 
Mr Bill Cash assumed the position of Executive Chairman from 1 January 2009. 
Annual General Meeting 
The Company held its Annual General Meeting on 24 November 2008. A number of 
significant resolutions were approved by shareholders, including: 
  *  Appointment of KPMG as auditor to the Company 
  *  Adoption of a new Constitution 
  *  Change of company name to Blackthorn Resources Limited 
  *  Consolidation of the Company's share capital 
  *  Delisting of the Company's securities from the AIM Market of the London Stock 
  Exchange 
 
All these resolutions have now been implemented, with the last day of trading of 
the Company's securities on the AIM Market being 30 January 2009, and 
cancellation of admission of the Company's Shares to trading on AIM being 
effective from 7am UK time on 2 February 2009. 
Available Cash Funds 
As at 31 December 2008, the Company had a cash position of $25.3 million. 
 
 
Should you require further information please contact: 
 
 
Scott Lowe 
Managing Director 
Ph: + 61 2 9357 9000 
 
 
Fiona Owen 
Grant Thornton UK LLP 
Ph: [phone] 
 
 
 
 
 
 
 
 
www.blackthornresources.com.au 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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