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CCZ Castillo Copper Limited

0.25
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Castillo Copper Limited LSE:CCZ London Ordinary Share AU000000CCZ2 ORD NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.25 0.20 0.30 0.287 0.25 0.25 0.00 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Copper Ores 0 -6.94M -0.0053 0.00 0

Castillo Copper Limited December 2022 Quarterly Activities Report (3316N)

20/01/2023 7:00am

UK Regulatory


Castillo Copper (LSE:CCZ)
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TIDMCCZ

RNS Number : 3316N

Castillo Copper Limited

20 January 2023

20 January 2023

CASTILLO COPPER LIMITED

("Castillo", or the "Company")

December 2022 Quarterly Activities Report

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to present shareholders its latest quarterly report for the period 1 October to 31 December 2022

HIGHLIGHTS:

   --    EAST ZONE, BHA PROJECT, NEW SOUTH WALES 

-- Assays from seven drill-holes across the Fence Gossan (FG) and Tors Tank (TT) Prospects, confirm a significant shallow clay-hosted Rare Earth Elements (REE) discovery - up to 2,410ppm Total Rare Earth Oxides (TREO)(1) - the best intercepts comprise:

o 20m @ 1,780ppm TREO (28.9% Magnet REO) from surface including 4m @ 2,410ppm TREO from 16m (FG_003RC)(1)

o 7m @ 1,048ppm TREO (29.9% Magnet REO) from 12m (TT_002RC)(1)

o 19m @ 847ppm TREO (29.6% Magnet REO) from surface (TT_003RC)(1)

   --    LUANSHYA PROJECT ZAMBIA 

-- Incremental development work on known key targets - scheduled to commence in 1H2023 - focusing on the highly prospective Luanshya Project(1)

-- The Board remains committed to aligning with a development partner or undertaking a trade sale for the Zambia Copper Projects - efforts will be redoubled to deliver this outcome during 2023(1)

ACTIVITIES REPORT

During the period, most of the focus remained on developing the REE potential at the East Zone, BHA Project in Broken Hill.

An overview of key events follows:

DEVELOPMENT WORK

Castillo has four properties comprising the NWQ Copper Project in Mt Isa's copper-belt, the BHA Project near Broken Hill's world class silver-zinc-lead deposit in NSW, the historic Cangai Copper Mine and four assets across Zambia's copper-belt.

East Zone, BHA Project, NSW

On 3 October 2022, a four-week long, cobalt-focused drilling campaign at the East Zone commenced, comprising one diamond core and 17 RC drill-holes for 2,100m across four prospects(1) (Figure 1 & 2).

FIGURE 1: PROPOSED DRILLING CAMPAIGN BHA PROJECT EAST ZONE

 
 Prospects        # Drillholes       Target   Depth range   Type                       Objective 
                                  Commodity           (m) 
                 =============  ===========  ============  ===== 
 Reefs Tank,                                                               Target primary cobalt 
  Tors Tank,                        Co, Au,                  RC,    whilst assays to investigate 
  Fence Gossan              16       Ag, Cu       100-160    DDH             PGE & REE potential 
                 =============  ===========  ============  =====  ============================== 
                                                                   Test known EM interpretation; 
                                    Co, Cu,                               drill extensions north 
 The Sisters                 2          REE       120-160     RC                         & south 
                 =============  ===========  ============  =====  ============================== 
 

Source: CCZ geology team

A key focus for the campaign is drilling two lower potentially cobalt-rich zones at Fence Gossan (FG), Reefs Tanks (RT) & Tors Tank (TT), which are interpreted to host higher-grade mineralisation than modelled to date(1) .

Overall, the Board's strategic intent is to extend known mineralisation plus enhance the confidence and grade of the current global Mineral Resource Estimate (MRE) - 21,556t cobalt (64Mt @ 318 ppm Co) and 44,260t copper (63Mt @ 0.07% Cu)(1) .

FIGURE 2: DRILLING UNDERWAY AT BHA PROJECT'S EAST ZONE

Location: 6460000mN, 570000mE

Source: CCZ geology team

On 12 October 2022, Castillo announced four drill-holes for 488m were completed at the Tors Tank Prospect which delivered encouraging initial observations, including:

-- All four drill-holes hit targeted cobalt mineralisation zones, evidenced by intersecting sequences comprising clay, amphibolite, schist, and gneiss;

-- Qualitative logging identified multiple disseminated sulphide layers (mostly pyrite), up to 12m thick, associated with amphibolite layers that can potentially host cobalt mineralisation;

-- Field XRF observations, which are subject to final assay results, indicated the presence of cobalt mineralisation within these amphibolite zones; and

-- The intersected geology was interpreted to be consistent with observations by previous explorers, including Broken Hill North, across the 1970-80s(1) .

In addition, proximal to the amphibolite layers, there are significant magnetite-rich zones - associated with pegmatite up to 14m thick - that potentially hosts REEs. Notably, this interpretation is based on recently re-assayed diamond core from drill-hole DD90_IB3 at the Iron Blow Prospect which returned up to 1,270ppm TREO(1) .

On 24 October 2022, Castillo provided an update on drilling at the Fence Gossan Prospect, where four drill-holes for a total of 516m were completed, with positive initial observations comparable to the Tors Tank Prospect:

-- Targeted cobalt mineralisation zones were hit across the four drill-holes, as sequences intersected comprised clay, amphibolite, schist and gneiss;

-- Numerous disseminated sulphide layers (mostly pyrite linked to amphibolite), up to 17m thick, were logged which could potentially host cobalt mineralisation; and

-- Interpreting the intersected geology suggests it is consistent with observations noted by North Broken Hill in the 1970-80s, while XRF field observations (subject to final assays) indicated cobalt mineralisation is apparent(1) .

Similar to the Iron Blow Prospect, there are significant magnetite-rich zones - associated with pegmatite up to 19m thick - which potentially hosts REEs. These are based on field XRF observations and are subject to final assays(1) .

On 31 October 2022, after reconciling geochemical and geophysical data for the Iron Blow Prospect, Castillo announced several viable targets for drill-testing with significant exploration potential. These findings were based on a re-interpretation of geophysical campaigns from 2000, 2001 and 2017 which identified several significant bedrock conductors that could host mineralisation(1) .

The primary focus will be REEs since diamond core assays from drill-hole DD90_1B3 (sourced from the core library) returned positive readings - on a cumulative basis - over 35m, with the best intersections(1) :

   --    8m @ 1,460ppm TREO from 150m(1) 
   --    12m @ 297ppm TREO from 199m(1) 
   --    6.4m @ 290ppm TREO from 189m(1) 
   --    4.8m @ 311ppm TREO from 232m(1) 

Since there is still untested diamond core from DD90_1B3 at the core library, the geology team are planning for this to be fully re-assayed for REEs.

Contingent on the outcome of the current drilling campaign, the Board has earmarked the Iron Blow Prospect as the next priority target to drill-test with nine holes planned.

On 15 November 2022, assays from seven drill-holes across the Fence Gossan and Tors Tank Prospects, confirmed a significant shallow clay-hosted REE discovery - up to 2,410ppm TREO, with high-value Magnet REOs representing up to 29.9% of the grade - the best intercepts are highlighted in Figure 3 below(1) :

 
 FIGURE 3: BEST ASSAYED INTERCEPTS - FENCE GOSSAN / TORS 
  TANK PROSPECTS(1) 
          v 20m @ 1,780ppm TREO (28.9% Magnet REO) from surface 
           including 4m @ 2,410ppm TREO from 16m (FG_003RC) 
          v 7m @ 1,048ppm TREO (29.9% Magnet REO) from 12m (TT_002RC) 
          v 19m @ 847ppm TREO (29.6% Magnet REO) from surface (TT_003RC) 
          v 8m @ 773ppm TREO (24.0% Magnet REO) from 48m (FG_004RC) 
          v 4m @ 732ppm TREO (27.1% Magnet REO) from 24m (TT_001RC) 
          v 19m @ 661ppm TREO (28.0% Magnet REO) from surface (FG_002RC) 
          v 32m @ 636ppm TREO (25.7% Magnet REO) from 52m (FG_003RC) 
          v 28m @ 614ppm TREO (27.8% Magnet REO) from 4m (FG_004RC) 
 

Source: CCZ geology team

Of significance, the assays for FG_002-4RC delineated an initial 800m strike event starting near Fence Gossan's eastern boundary. Moreover, with REE mineralisation open in all directions, and Fence Gossan circa 4km long by 1km wide (W-E), the Board has ordered follow up geological mapping, sampling and auger drilling to target extending the known strike event to the west(1) .

While cobalt assays were consistent with previous observations, the new REE discovery has pivoted the Board's strategic focus for the current drilling campaign and beyond to fully understanding the extent of REE mineralisation across the BHA Project's East Zone(1) .

On 23 November 2022, Castillo announced new assays for RT_001RC and FG_001RC were positive for TREO, confirming REEs are more widely apparent across the East Zone than initially envisaged - the best intercepts comprise:

   --    11m @ 1,078 TREO from 8m (RT_001RC)(1) 
   --    20m @ 609ppm TREO from surface incl. 4m @ 1,709ppm REO from 8m (FG_001RC)(1) 
   --    11m @ 862ppm TREO from 58m (FG_001RC)(1) 

More significantly, all the assays returned to date from Fence Gossan, Tors Tank and Reefs Tank highlight the REE mineralisation discovered is extensive and shallow(1) .

On 20 December 2022, following the receipt of drill assays for the Fence Gossan, Tors Tank and partly Reefs Tank Prospects, Castillo's Board confirmed that shallow REE mineralisation is more widely apparent across the BHA Project's East Zone than initially envisaged. As an immediate next step, the Board commissioned an extensive auger sampling campaign(1) .

Encouragingly, the auger sampling campaign, which covered a 6.5km(2) area proximal to the Fence Gossan Prospect, was designed to identify the full extent of REE mineralisation and new targets to test-drill. As an immediate follow up, all samples were sent to the laboratory for further analysis, with subsequent interpretation charting the next phase of REE-focused exploration across the BHA Project's East Zone(1) .

Zambia Copper Projects

On 7 December 2022, Castillo's Board approved incremental development work on known key targets - scheduled to commence in 1H2023 - focusing on the highly prospective Luanshya Project which is in the heart of Zambia's copper belt(1) .

Specifically, the geology team plan to roll out an Induced Polarisation (IP) geophysics campaign to build on earlier work undertaken in 2021 which focused on a 6km zone of copper surface anomalism that delineated up to 14 chargeable zones. A key focus of the upcoming IP campaign will be to refine targets for test drilling and enhance the confidence of finding structurally controlled copper mineralisation(1) .

The plans for development work follow London-based, Metallea Group's (previously Hyperion Copper) decision to cancel plans to list on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE), due to extremely difficult equity market conditions. As this was a key requirement to secure funds to progress development work, Metallea has further advised it will not be exercising the option - which delivered a US$100,000 non-refundable deposit to Castillo - to acquire the Zambia Copper Projects(1) .

Moving forward, as Castillo's Board remains committed to aligning with a development partner or undertaking a trade sale for the Zambia Copper Projects, efforts will be redoubled to deliver this outcome during 2023(1) .

NWQ Copper Project, Queensland

No work was undertaken at the NWQ Copper Project during the review period.

However, on 20 December 2022, Castillo announced that the geology team planned to visit several prospects at the NWQ Copper Project during 1Q 2023 to determine the potential to host copper mineralisation(1) .

Cangai Copper Mine

No work was undertaken at Cangai Copper Mine during the review period.

CORPORATE

-- Result of AGM: On 29 November 2022, Castillo advised that all fives resolutions put to shareholders at the Annual General Meeting (AGM) were passed on a poll. The resolutions included: 1) Adopting the remuneration report; 2) Re-electing Dr Dennis Jensen as a director: 3) Re-electing Mr Geoff Reed as a director: 4) Approving the 7.1A mandate; and, 5) Replacing the constitution.

PAYMENTS TO, OR TO AN ASSOCIATE OF, A RELATED PARTY OF THE ENTITY DURING QUARTER DURING THE QUARTER

$97,000 was paid to related parties of Castillo relating to executive director and non-executive director fees.

SUMMARY OF THE EXPLORATION EXPITURE INCURRED DURING THE QUARTER

 
                         Consulting fees    Rates and mines 
                                            departments fees 
 Cangai                      $14,000            $10,000 
                        ----------------  ------------------ 
 Broken Hill Alliance       $710,000            $14,000 
                        ----------------  ------------------ 
 Mt Isa                      $67,000            $17,000 
                        ----------------  ------------------ 
 Zambia                      $26,000            $5,000 
                        ----------------  ------------------ 
 Total                      $817,000            $46,000 
                        ----------------  ------------------ 
 

For further information, please contact:

 
Castillo Copper Limited                                       +61 8 6558 0886 
Dr Dennis Jensen (Australia), Managing Director 
 Gerrard Hall (UK), Chairman 
 
SI Capital Limited (Financial Adviser and Corporate Broker)   +44 (0)1483 413500 
Nick Emerson 
 
Gracechurch Group (Financial PR)                              +44 (0)20 4582 3500 
Harry Chathli, Alexis Gore, Henry Gamble 
 

About Castillo Copper

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects:

-- A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region.

-- Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa.

   --   A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold and platinoids. 

-- Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines.

The group is listed on the LSE and ASX under the ticker "CCZ."

References

1) Note - All information referenced is from CCZ ASX Releases, as dated in text, from 1 October 2022 to 31 December 2022 inclusive

APPIX A: KEY PROJECTS

FIGURE A1: WEST AND EAST ZONE - BHA PROJECT, BROKEN HILL REGION

Source: CCZ geology team

FIGURE A2: ZAMBIA COPPER-BELT PROJECTS

Source: CCZ geology team

FIGURE A3: NWQ COPPER PROJECT, MT ISA REGION

Source: CCZ geology team

APPIX 1: INTEREST IN MINING TENEMENTS HELD

 
                                          JACKADERRY (CANGAI) 
                                       New England Orogen in NSW 
 Tenement ID    Ownership at start of Quarter   Ownership at end of Quarter   Change during the Quarter 
               ------------------------------  ----------------------------  -------------------------- 
    EL8635                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
    EL8625                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
    EL8601                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
 
 
                                              BROKEN HILL 
                            located within a 20km radius of Broken Hill, NSW 
 Tenement ID    Ownership at start of Quarter   Ownership at end of Quarter   Change during the Quarter 
               ------------------------------  ----------------------------  -------------------------- 
    EL8599                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
    EL8572                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
   EL 8434                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
   EL 8435                  100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
 
 
                                                MT OXIDE 
                                  Mt Isa region, northwest Queensland 
 Tenement ID    Ownership at start of Quarter   Ownership at end of Quarter   Change during the Quarter 
               ------------------------------  ----------------------------  -------------------------- 
  EPM 26513                 100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
  EPM 26525                 100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
  EPM 26574                 100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
  EPM 26462                 100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
  EPM 27440                 100%                           100%                           - 
               ------------------------------  ----------------------------  -------------------------- 
 
 
                                                        ZAMBIA 
    Project        Tenement ID      Ownership at start of      Ownership at end of Quarter   Change during the Quarter 
                                           Quarter 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
 Lumwana North    23914-HQ-SEL               100%                         100%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
 Lumwana North    23913-HQ-SEL               100%                         100%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
     Mkushi       24659-HQ-LEL               100%                         100%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
   Luanshya *     22448-HQ-LEL                -                             -                            - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
    Luanshya      25195-HQ-LEL               55%                           55%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
    Luanshya      25273-HQ-LEL               55%                           55%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
     Mwansa       25261-HQ-LEL               100%                         100%                           - 
                 --------------  ---------------------------  ----------------------------  -------------------------- 
 
   *      CCZ can earn up to 80% by meeting previously disclosed milestones 

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

 
 Name of entity 
----------------------------------------------------- 
 Castillo Copper Ltd 
 ABN                Quarter ended ("current quarter") 
---------------    ---------------------------------- 
 52 137 606 476     31 December 2022 
                   ---------------------------------- 
 
 
 Consolidated statement of cash flows                    Current quarter   Year to date 
                                                                            (6 months) 
                                                              $A'000           $A'000 
               1.   Cash flows from operating 
                     activities 
 1.1                Receipts from customers 
 1.2                Payments for 
                    (a) exploration & evaluation 
                    (b) development 
                    (c) production 
                    (d) staff costs 
                    (e) administration and corporate 
                     costs                                         (474)          (725) 
 1.3                Dividends received (see note 
                     3) 
 1.4                Interest received                                  3              3 
 1.5                Interest and other costs of 
                     finance paid 
 1.6                Income taxes paid 
 1.7                Government grants and tax 
                     incentives 
 1.8                Other (provide details if 
                     material) 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 1.9                 operating activities                          (471)          (722) 
-----------------  -----------------------------------  ----------------  ------------- 
 
 2.                      Cash flows from investing 
                          activities 
 2.1                     Payments to acquire or for: 
                    (a) entities 
                    (b) tenements 
                    (c) property, plant and equipment 
                    (d) exploration & evaluation                   (863)        (1,123) 
                    (e) investments 
                    (f) other non-current assets                      10           (82) 
                                                        ----------------  ------------- 
 2.2                     Proceeds from the disposal 
                          of: 
                    (a) entities 
                                                        ----------------  ------------- 
                    (b) tenements 
                    (c) property, plant and equipment 
                    (d) investments 
                    (e) other non-current assets 
 2.3                Cash flows from loans to other 
                     entities 
 2.4                Dividends received (see note 
                     3) 
 2.5                Other (provide details if 
                     material) 
                                                        ----------------  ------------- 
                    Net cash from / (used in) 
 2.6                 investing activities                          (853)        (1,205) 
-----------------  -----------------------------------  ----------------  ------------- 
 
 
 3.                 Cash flows from financing 
                     activities 
 3.1                Proceeds from issues of equity 
                     securities (excluding convertible 
                     debt securities) 
 3.2                Proceeds from issue of convertible 
                     debt securities 
 3.3                Proceeds from exercise of 
                     options 
 3.4                Transaction costs related 
                     to issues of equity securities 
                     or convertible debt securities 
 3.5                Proceeds from borrowings 
 3.6                Repayment of borrowings 
 3.7                Transaction costs related 
                     to loans and borrowings 
 3.8                Dividends paid 
 3.9                Other (provide details if 
                     material) 
                                                        ----------------  ------------- 
 3.10               Net cash from / (used in)                          -              - 
                     financing activities 
-----------------  -----------------------------------  ----------------  ------------- 
 
 4.                 Net increase / (decrease) 
                     in cash and cash equivalents 
                     for the period 
                    Cash and cash equivalents 
 4.1                 at beginning of period                        5,090          5,754 
                    Net cash from / (used in) 
                     operating activities (item 
 4.2                 1.9 above)                                    (471)          (722) 
                    Net cash from / (used in) 
                     investing activities (item 
 4.3                 2.6 above)                                    (853)        (1,205) 
 4.4                Net cash from / (used in)                          -              - 
                     financing activities (item 
                     3.10 above) 
                    Effect of movement in exchange 
 4.5                 rates on cash held                               82             21 
                                                        ----------------  ------------- 
                    Cash and cash equivalents 
 4.6                 at end of period                              3,848          3,848 
-----------------  -----------------------------------  ----------------  ------------- 
 
 
               5.   Reconciliation of cash and           Current quarter   Previous quarter 
                     cash equivalents                         $A'000            $A'000 
                     at the end of the quarter 
                     (as shown in the consolidated 
                     statement of cash flows) to 
                     the related items in the accounts 
 5.1                Bank balances                                  3,756              4,998 
 5.2                Call deposits                                     92                 92 
 5.3                Bank overdrafts 
 5.4                Other (provide details) 
                                                        ----------------  ----------------- 
                    Cash and cash equivalents 
                     at end of quarter (should 
 5.5                 equal item 4.6 above)                         3,848              5,090 
-----------------  -----------------------------------  ----------------  ----------------- 
 
 
               6.    Payments to related parties of the entity    Current quarter 
                      and their associates                             $A'000 
                     Aggregate amount of payments to related 
                      parties and their associates included in 
 6.1                  item 1                                                60(1) 
                                                                 ---------------- 
 6.2                 Aggregate amount of payments to related                37(2) 
                      parties and their associates included in 
                      item 2 
                                                                 ---------------- 
 
   (1) Comprises director's fees for the quarter. 
   (2) Comprises consulting fees paid to the Managing Director. 
 
 
               7.   Financing facilities                    Total facility      Amount drawn 
                     Note: the term "facility'             amount at quarter    at quarter end 
                     includes all forms of financing              end               $A'000 
                     arrangements available to                  $A'000 
                     the entity. Add notes as necessary 
                     for an understanding of the 
                     sources of finance available 
                     to the entity. 
 7.1                Loan facilities 
                                                         -------------------  ---------------- 
 7.2                Credit standby arrangements 
                                                         -------------------  ---------------- 
 7.3                Other (please specify) 
                                                         -------------------  ---------------- 
 7.4                Total financing facilities 
                                                         -------------------  ---------------- 
 
 7.5                Unused financing facilities available at 
                     quarter end 
                                                                              ---------------- 
 7.6                Include in the box below a description of each facility 
                     above, including the lender, interest rate, maturity date 
                     and whether it is secured or unsecured. If any additional 
                     financing facilities have been entered into or are proposed 
                     to be entered into after quarter end, include a note providing 
                     details of those facilities as well. 
-----------------  --------------------------------------------------------------------------- 
 
 
 
               8.   Estimated cash available for future operating              $A'000 
                     activities 
                    Net cash from / (used in) operating activities 
 8.1                 (item 1.9)                                                  (471) 
 8.2                (Payments for exploration & evaluation classified            (863) 
                     as investing activities) (item 2.1(d)) 
 8.3                Total relevant outgoings (item 8.1 + item                  (1,334) 
                     8.2) 
 8.4                Cash and cash equivalents at quarter end                     3,848 
                     (item 4.6) 
 8.5                Unused finance facilities available at quarter 
                     end (item 7.5) 
                                                                              -------- 
 8.6                Total available funding (item 8.4 + item                     3,848 
                     8.5) 
                                                                              -------- 
 
                    Estimated quarters of funding available 
 8.7                 (item 8.6 divided by item 8.3)                                2.9 
                                                                              -------- 
                    Note: if the entity has reported positive relevant outgoings 
                     (ie a net cash inflow) in item 8.3, answer item 8.7 as 
                     "N/A". Otherwise, a figure for the estimated quarters 
                     of funding available must be included in item 8.7. 
 8.8                If item 8.7 is less than 2 quarters, please provide answers 
                     to the following questions: 
                    8.8.1 Does the entity expect that it will continue to 
                     have the current level of net operating cash flows for 
                     the time being and, if not, why not? 
                   ------------------------------------------------------------------- 
                    Answer: N/A 
                   ------------------------------------------------------------------- 
                    8.8.2 Has the entity taken any steps, or does it propose 
                     to take any steps, to raise further cash to fund its operations 
                     and, if so, what are those steps and how likely does it 
                     believe that they will be successful? 
                   ------------------------------------------------------------------- 
                    Answer: N/A 
                   ------------------------------------------------------------------- 
                    8.8.3 Does the entity expect to be able to continue its 
                     operations and to meet its business objectives and, if 
                     so, on what basis? 
                   ------------------------------------------------------------------- 
                    Answer: N/A 
                   ------------------------------------------------------------------- 
                    Note: where item 8.7 is less than 2 quarters, all of 
                     questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. 
-----------------  ------------------------------------------------------------------- 
 

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. 
   Date:                      20 January 2023 
   Authorised by:     The Board of Directors 

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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