Quarterly Report for the Period Ended June 30th 2009

 
TIDMFND 
 
30 June 2009 
        Quarterly Report for the Period Ended June 30th 2009 
 
                             Highlights 
 
Wetar Copper Project 
*       Demonstration heap leach kinetics remain on target with 
  100,000 tonnes of ore stacked and under leach 
 
*       Copper cathode production since commissioning totals 530 
  tonnes (to 18 July 2009) with all shipments 
          achieving LME Grade A quality standards 
 
*       Entered into legally binding Heads of Agreement with Straits 
  Resources Limited to acquire their Whim Creek 
          SX-EW Plant for A$5 million 
 
*       Wetar Project Feasibility Study ("DFS") capacity set at 
  23,000 tonnes per annum cathode copper including 
           incorporation of Whim Creek plant at 18,500 tonnes per 
annum cathode 
 
*       Ausenco-led DFS  on target for review late August 
 
Ojolali Gold-Silver Project 
*       Major extensions of the Jambi alteration system to the north 
  and west, with fine pannable gold in quartz 
          veinlets,  indicated by hand dug trenching- assays are 
awaited 
 
Corporate 
*       Michael Stirzaker appointed Executive Director, Finance 
 
*       The EGM on 4th May approved 
           -     21,559,114 shares placed at 20 cents/ 9 pence per 
share, which together with the 6,400,000 shares 
                  issued on  26th March completed the A$5.6 million 
equity raising, and 
 
           -  2,984,833 shares issued at 20 cents per share on 
conversion of loans from directors and accrued interest 
              on the loans. 
 
Wetar Copper Project 
Finders Resources  Limited  94%  and  earning  through  expenditure, 
subject to audit 
 
Background Information 
The Wetar  Copper Project  comprises two  high grade  deposits,  Kali 
Kuning and Lerokis, which are located  within 3km from the coast  and 
suitable for  open pit  mining with  a low  waste:ore ratio.  Finders 
commenced work on the project in 2005 and 7,300m of drilling has been 
completed to  supplement historical  data.  JORC  resource  estimates 
have been undertaken by Hellman & Schofield. 
 
 
Table 1: JORC Resource Estimate 
Kali Kuning        Tonnes (M)      Cu %      Cont. Cu (KT) 
Measured               5.2          2.6           133 
Indicated              0.9          2.5            22 
Inferred               0.1          1.8            2 
Lerokis            Tonnes (M)      Cu %      Cont. Cu (KT) 
Measured               2.1          2.4            51 
Indicated              0.5          2.1            10 
Inferred               0.1          2.3            2 
Total                  8.8          2.4           218 
Resources on a 100% project basis, Subject to rounding errors 
 
 
 
In addition there is  a third deposit Meron,  located 2 km from  Kali 
Kuning.  This  prospect  has  a  potential size  of  1mt  @  2.3%  Cu 
(Non-JORC compliant) based  on historical drilling  results from  the 
previous gold mining operation. Meron is not included in the  current 
Feasibility Study ('DFS')  due to its  lack of technical  definition, 
however, engineering  plans  do  recognize the  potential  for  later 
additional leach  ore from  Meron and  additional leaching  space  is 
available in the DFS. 
 
Copper mineral species at  Kali Kuning and  Lerokis are dominated  by 
chalcocite and  covellite, which  are readily  amenable to  bacterial 
assisted leaching, and  chalcopyrite which leaches  faster at  higher 
temperatures.  A two  year laboratory test  program indicated  copper 
recoveries of up to 80%. 
 
As part  of a  definitive feasibility  study, a  demonstration  SX-EW 
plant with  5  tonnes  per  day  copper  cathode  capacity  has  been 
operational since February 2009 and  is permitted to process  100,000 
tonnes of ore from  the Kali Kuning deposit.   The test heaps are  at 
heights similar  to commercial  operations  worldwide and  the  SX-EW 
technology being used is industry standard. 
 
The Company is targeting commercial  production of 23,000 tonnes  per 
year cathode commencing in 2010, subject to schedules for engineering 
design work, final permitting  and project funding.  Pending  results 
of the DFS, which is  due for review at the  end of August 2009,  the 
project  is  expected  to  have  operating  costs  around  the   50th 
percentile of all current global  copper production costs and in  the 
lowest quartile of SX-EW copper production costs. 
 
SX-EW technology is  currently responsible for  approximately 22%  of 
the world's copper production. 
 
The project  is  at the  same  location as  an  old gold  mine  which 
operated  between  1989-1997  and   benefits  from  having   existing 
infrastructure in place, particularly a wharf, camp and roads. 
 
Demonstration Plant Progress Report 
The Demonstration SX-EW plant has  been running since February  2009, 
with  the  construction,  commissioning,  mining  and  stacking   all 
undertaken during the wet season. 
 
Nearly 100,000  tonnes  of  Kali Kuning  copper  sulphides  has  been 
stacked in  three test  heaps under  irrigation with  the fourth  and 
final heap scheduled to begin irrigation in August 2009. 
 
The heaps have monitoring equipment  installed and are being  trialed 
to determine optimum operating conditions with respect to the  effect 
of variations in heap height, irrigation rates and forced air ingress 
on the copper leach rates. 
 
The  Demonstration  Plant  also  significantly  de-risks  the   later 
commercial project as all components of the commercial operation from 
construction  to  mining  and   processing  have  been   successfully 
demonstrated as being commercially  achievable. This de-risking is  a 
major stepping stone for the later financing of the Project. 
 
Heap 4 with multiple aeration levels 
                                Bundles of copper cathode 
 
Copper leaching from full scale test heaps achieving project targets 
All  heaps   are   showing  excellent   percolation   and   stability 
characteristics, and  are  on  track  to  achieve  targeted  ultimate 
recoveries of >70%. 
 
Key operating  parameters for  the demonstration  plant to  date  are 
presented in Table  2. All recovery  curves are within  the range  of 
predictions from earlier laboratory  based test work.  Experience  to 
date has shown aeration  rates to be a  key factor controlling  leach 
kinetics, and copper leach rates have improved markedly from Heaps  1 
to 3 with improvements in the aeration systems used. 
 
The fourth heap has  been stacked to 9m  high with double layers  of 
aeration in order to  evaluate the effect  of increasing heap  height 
and copper  recovery rates.  The test  heaps have  been operating  at 
average temperatures  of  up  to  85oC  and  this  appears  to  be  a 
significant factor in the leach rates. 
 
During the reporting period, plant production was below budget due to 
a three week period of disturbed power supply (generator failure) and 
a one week shut-down (caused by a fault in the rectifier). 
 
Each shipment of cathode has been LME Grade A copper quality. 
 
 
 
Table 2: Operating Parameters 
Leach Performance*                   Heap 1     Heap 2      Heap 3 
Grade (Cu %)                          2.8        3.6         4.9 
Recovered Copper (total) - Tonnes     165        297         320 
Approx. % Copper Recovery to date     30%        36%         34% 
Approx. Number of weeks under          23         18          12 
Irrigation 
Electrowinning +                     Actual     Target     Variance 
Copper Produced - Tonnes              530        632         -16% 
Copper Shipped - Tonnes               511        600         -15% 
*As of 18 July 2009. All subject to final mass balances and weight 
reconciliations 
+ All figures project to date (30 June 2009), based on 5tpd nameplate 
capacity 
 
 
As the demonstration stage has progressed, more detailed  information 
regarding mineral  composition and  recovery rates  has allowed  fine 
tuning of the leach kinetic model to reach the stage that the current 
model will  form the  basis for  the mining  schedule and  production 
modeling in the feasibility study. 
 
Compared with laboratory  test results, the  rate of acid  generation 
during leaching  is higher  than predicted.   This will  require  the 
addition of a neutralisation plant  in the process circuit.  Abundant 
good quality limestone is  available a short  distance from the  Kali 
Kuning deposit.  Drilling during  the Quarter  confirmed a  limestone 
resource estimate in excess of what is required for the Project  with 
abundant additional resources if ever required. Test-work to date has 
confirmed its suitability as the required neutralizing agent. 
 
Positive reconciliation- grade control sampling from test pit mining 
Mining of ore for the test  heaps was undertaken from two test  pits, 
the principal southern test  pit, and a  small northern pit.  Hellman 
and Schofield  Pty  Ltd has  carried  out a  detailed  reconciliation 
between the current Kali Kuning  resource block model and the  grades 
indicated by close spaced (average 3.75m spacing) grade control assay 
data. 
A direct comparison between identical volumes for the resource  model 
and grade  control  drilling  for  the  main  southern  test  pit  is 
presented in Table 3 below. 
 
 
 
         Material                          Kt   % Cu  Kt_Cu 
         April 2009 resource model         213  3.68   7.8 
          Grade control drilling estimate  208  3.91   8.1 
         Difference                       -2.3% +6.3% +3.8% 
 
 Table 3- Southern Test Pit- comparison of resource model with grade 
                           control results 
 
In addition  to  the  above  direct  comparison,  the  grade  control 
drilling for  the southern  test pit  located an  additional 60kt  of 
massive sulphide ore, grading 3.6% Cu  from outside of the limits  of 
the massive sulphide resource model.   For the smaller northern  test 
pit,  situated  in   highly  broken  leached   and  transition   zone 
mineralization, where significant copper losses were suspected in the 
original resource drilling program, the grade control drilling showed 
a strong increase  in both  grade (36%), tonnes  (25%) and  contained 
copper (70%)  at  a 0.5%  Cu  cut-off  grade, when  compared  to  the 
resource model for the same volume. 
 
 
Definitive Feasibility Study (DFS) 
The formal DFS, managed by Ausenco remains on schedule for review  in 
August.  To maximize the benefits from existing assets on site a  two 
stage project expansion strategy has been adopted. 
 
Stage 1 comprises expansion of the current demonstration plant to  up 
4,500tpa cathode capacity and utilization of the existing gold pit at 
Kali Kuning to create an additional heap leach pad, with the whole of 
Stage 1 contained within the environmental footprint of the  previous 
gold mining operation. 
 
Stage 2  comprises relocation  of the  Whim Creek  plant (see  below) 
which has  a capacity  of  around 18,500tpa  cathode in  its  current 
configuration, and construction of a  new leach pad in the  adjoining 
valley,  utilizing  waste  rock  from   the  Kali  Kuning  open   pit 
pre-stripping. 
 
Benefits from this strategy include: 
*          Earlier increase in cash flow from demonstration plant 
  expansion 
 
*          Increased mining and irrigation flexibility with two 
  separate leach pads 
 
*          Significant long term risk reduction through the 
  availability of two independent SXEW production facilities 
 
         Kali Kuning Summary showing staged leach pad layout 
 
The combination of the expansion  of the demonstration plant and  the 
relocation of  Whim  Creek  will  create  a  project  with  nameplate 
capacity of 23,000 tonnes of cathode per annum. 
 
Final pit designs for both the Kali Kuning and Lerokis deposits  have 
been completed by Amdad Pty Ltd, and confirm that effectively 100% of 
the sulphide resource will be recoverable by low stripping ratio open 
pits. A  formal statement  of Ore  Reserves under  the JORC  code  is 
scheduled in August,  after detailed  review of  mining costs,  leach 
performance and mining cut-off grades. 
 
As part  of  the DFS,  life  of mine  heap  leach modeling  is  being 
undertaken  by   specialist  consultant   Simulus  Pty   Ltd,   using 
metallurgical  inputs  from  Finders  metallurgical  consultants  and 
mining schedules provided by Amdad. Results of this modeling to  date 
support the  potential for  sustained production  at up  to 25,000  t 
copper /year under realistic mining, stacking and leaching scenarios. 
 
Environmental/Permitting 
With adoption  of  the  final  project lay-out  the  final  stage  of 
environmental permitting applications  will be  submitted in  August. 
All designs are  being prepared  on the basis  of total  containment, 
with zero  release of  waters affected  by mining  operations to  the 
wider environment. 
 
Option to purchase Whim Creek SX-EW Plant 
On June 1st 2009, the Company entered into a legally binding Heads of 
Agreement covering  the  commercial terms  of  an option  to  acquire 
Straits Resources Limited's ('Straits')  Whim Creek SX-EW plant.  The 
Whim Creek SX-EW Plant has a capacity of 18,500 tonnes copper cathode 
per year. 
 
Whim                             Creek                             SX 
plant 
Whim Creek EW plant 
 
Finders has  the right  to purchase  the SX-EW  Plant and  associated 
equipment at any time during the period 1 October 2009 to 31 December 
2009. 
 
According to the  terms in  the Heads of  Agreement, on  the date  of 
exercising the option,  Finders will pay  Straits A$5.0 million  plus 
GST if applicable,  payable in Finders  fully paid ordinary  shares. 
Straits will  also  be issued  724,638  fully paid  Finders  ordinary 
shares as the option fee for the Agreement. 
 
The option  to  purchase  Whim Creek  plant  has  multiple  potential 
benefits. 
 
In  addition  to  potential  capital  cost  savings,  a   significant 
proportion of which are fixed, there are clear advantages in terms of 
logistics to a remote site location in having the ability to  control 
the timing and  the shipping  of a  proven operational  plant from  a 
single location,  hence  avoiding multiple  component  sourcing  from 
multiple locations. 
 
Ojolali Project 
Finders Resources Limited 72% with option to increase to 100% 
 
Background Information 
Finders believe  that the  Ojolali project  has strong  potential  to 
generate short-term cash flow by open pit CIL/CIP development of  the 
gold resource at the Jambi Oxide gold deposit (Table 4.) 
 
 
Table 4. Jambi Resource Estimates 
Cut     Indicated      Inferred         Total      Contained Attrib. 
off                                                            FND 
 Au   Mt   Au    Ag  Mt   Au   Ag   Mt   Au    Ag   Au koz   (72%) Au 
g/t        g/t  g/t      g/t  g/t        g/t  g/t              koz 
0.5  2.98  1.1  8.3  1.1 0.9  5.7  4.08 1.05  7.6     138       99 
1.0  1.13 1.74  8.5  0.3 1.6  6.7  1.43 1.71  8.1     79        57 
 
 
Finders has previously  announced Inferred Resources  at the  Tambang 
Prospect (7.9 Mt @ 167g/t Ag and 0.7 g/t Au at a 1 g/t Au  equivalent 
cut-off using  drilling data  from  a previous  explorer).   Previous 
regional exploration  by Finders,  using both  soil geochemistry  and 
ground geophysics  has  located  numerous  targets  with  outstanding 
potential for the discovery of additional resources. 
 
Previous  regional   exploration   by  Finders,   using   both   soil 
geochemistry and ground geophysics has located numerous targets  with 
outstanding potential for the discovery of additional resources  (see 
project area map) 
 
The  target  types  include  bulk  grade  gold-silver  stockwork  and 
fracture fill mineralization (Jambi, Jambi extensions, Belida, Talang 
Harno prospects); supergene enriched high grade silver (Tambang Oxide 
prospect); narrow,  high grade  epithermal quartz  (manganese)  veins 
Batu Kuning, Way Neki, Suban, Kencur, Way Umpu and Wujun prospects). 
 
Ojolali Project  area showing  location of  main prospects  including 
those with defined resources at Jambi and Tambang 
Gold soil anomalies (orange / red) 
Silver soil anomalies (green shades) 
 
Ojolali Field Work 
During the quarter field work  was restricted to surface mapping  and 
hand dug  trenching of  prioritized  target areas,  with a  focus  on 
locating drilling targets for  additional near surface resources,  in 
particular targets to the north and west of Jambi Hill, where bedrock 
is largely obscured by  surface scree.  A total  of 660m of  trenches 
were completed, and  channel sampled in  2m intervals. Assay  results 
for this work are not yet available. 
 
Mapping of trenches to  the north and west  of the currently  defined 
Jambi prospect (below) has located  wide zones of strong  alteration, 
similar to the main  Jambi mineralization. These zones,  individually 
up to 20m wide, contain  narrow quartz veinlets (generally less  than 
1cm thick and  0.5- 3% veining  by volume) with  fine pannable  gold. 
Within these alteration zones, the  presence of narrow breccia  zones 
with quartz  vein fragments  indicates potential  for increased  gold 
grade at depth. 
 
These zones have  the potential  to significantly  increase the  near 
surface resource at Jambi and are a top priority drill target when  a 
drill rig becomes available. 
 
         Jambi Trench plan and potential resource extensions 
 
Corporate 
 
Board Addition 
On 3rd June 2009,  Michael Stirzaker was appointed  to the Board,  in 
the role  of  Finance  Director.  Mike's initial  focus  will  be  to 
complete a comprehensive financing package  for the expansion of  the 
Company's Wetar Copper  project to 20-25,000  tonnes per year  copper 
production. He holds a  Bachelor of Commerce  from the University  of 
Cape Town and is an Australian Chartered Accountant. He has more than 
25 years of  commercial experience, most  of which have  been in  the 
mining finance and mining investment sector. 
 
Mike began his career with KPMG in Sydney, qualifying as a  Chartered 
Accountant in 1986. He then joined the Corporate Advisory Division of 
Wardley James Capel  (part of the  HSBC Group) and  in 1990 moved  to 
London, spending  three years  in Corporate  Advisory with  Kleinwort 
Benson Ltd. 
 
Mike joined RFC Group Ltd on his return to Sydney in 1993 and  co-led 
the management buyout of  RFC in 2001. He  has experience in  mergers 
and acquisitions, divestments and capital raisings. 
 
Mike was co-managing director of  RFC and managing director of  RFC's 
investment funds until 2007 when  he joined Tennant Metals. Mike  has 
relinquished his Executive Director duties at Tennant Metals to  take 
up the Finance Director role with the Company. 
 
Capital Structure 
Following shareholders' approval at an extraordinary general  meeting 
held on 4  May 2009,  the following  shares and  options were  issued 
during the quarter - 
 
a)      21,559,114  shares were  issued pursuant  to a  placement  to 
investors at 20 cents/9 pence per share to raise 
         A$4.3 million before expenses; 
 
b)      2,984,833  shares  were  issued  at 20  cents  per  share  on 
conversion of loans from directors and accrued 
          interest on the loans, together totaling A$597,000; 
 
c)        2,000,000  incentive  options  expiring  8  May  2014   and 
exercisable at 30 cents per share were issued to Mr 
          Robert Thomson, Director - Development. 
 
In addition, 2,375,000 incentive options were issued pursuant to  the 
Company's Employee Share Option Plan during the quarter. 
 
The capital structure at 30 June 2009 is set out in Table 5. 
 
 
Table 5. Current Capital Structure 
Type of 
Security                                          Number on Issue 
Fully Paid 
Ordinary Shares 
("Shares") 
Shares on issue 
at 31 March 
2009                                                       90,852,468 
Placement of 
Shares                                                     21,559,114 
Conversion of loans from directors                          2,984,833 
Issued in payment of convertible 
note interest                                                 152,258 
Shares on Issue 
at 30 June 2009                                           115,548,673 
Unlisted 
Options         Exercise Price Expiry Date 
                A$0.6875       June 13, 2010                  500,000 
                A$0.30         April 16, 2012                 500,000 
                A$0.30         April 16, 2014                 500,000 
                A$0.30         May 8, 2014                  2,000,000 
                A$0.37         June 23, 2014                  250,000 
                A$0.37         June 28, 2014                  625,000 
                A$0.37         June 29, 2014                  500,000 
 
Unlisted 
Options on 
issue at 30 
June 2009                                                   4,875,000 
12% Convertible                Conversion 
Note            Face Value     Price                    Maturity Date 
                US$1,500,000 
                (A$2,323,972)        A$0.37           19 January 2012 
 
 
 
 
 
As at 30 June 2009, Finders had A$1.7m cash in hand. 
 
The mining exploration entity quarterly report (Appendix 5B) is 
appended. 
 
 
 
 
Chris Farmer 
Managing Director 
 
Further details for  all projects including  location maps,  tenement 
schedules and  technical descriptions  may be  found on  the  Finders 
website at www.findersresources.com 
 
 
For further information please contact 
 
Finders Resources Ltd: 
Russell         Non-Executive Chairman      [phone] 
Fountain 
Chris Farmer    Managing Director           [e-mail] 
 
Financial PR: 
Doug Macdonald  Capital      Group      (in [phone] 
                Australia) 
Nick Elwes      College Hill (in the UK)    [phone] 
 
RFC Corporate Finance Ltd - Nomad: 
Rob Adamson     Managing Director           [phone] 
Stuart Laing    Executive Director          [phone] 
 
FinnCap -  Finders' Broker for the AIM market: 
Mathew Robinson Corporate Finance Director  [phone] 
Joe Lunn        Analyst                     [phone] 
 
 
 
Competent Person Statement 
The  information  in  this  report  that  relates  mineral   resource 
estimation is based on work completed by Dr Phillip Hellman who is  a 
full time employee of Hellman and  Schofield Pty Ltd and a member  of 
the Australasian Institute of Mining  and Metallurgy. Dr Hellman  has 
sufficient  experience   which   is   relevant  to   the   style   of 
mineralisation and type  of deposit  under consideration  and to  the 
activity which he is undertaking to qualify as a Competent Person  as 
defined in the 2004 Edition  of the 'Australasian Code for  Reporting 
of Exploration Results, Mineral Resources and Ore Reserves' and as  a 
Qualified Person as defined in the AIM Rules. Dr Hellman consents  to 
the inclusion in the report of  the matters based on his  information 
in the  form and  context in  which it  appears. Estimates  for  Kali 
Kuning are based on  a data set from  which some diamond drill  holes 
have been excluded due to  poor recovery of copper mineralisation  as 
evidenced by neighbouring RC holes. 
 
Geological information in this announcement and comments relating  to 
exploration  potential  and  the  project  in  general  is  based  on 
information  compiled  by  Dr  Russell  Fountain,  who  also  accepts 
responsibility for  the data  on  which the  resource is  based.   Dr 
Fountain is a Director  of Finders and a  Fellow of the  Australasian 
Institute of  Geoscientists. Dr  Fountain has  sufficient  experience 
that is  relevant  to  the  styles of  mineralisation  and  types  of 
deposits  under  consideration  and  to  the  activity  that  he   is 
undertaking to qualify  as Competent  Person as defined  in the  JORC 
Code. He  consents  to the  inclusion  in this  announcement  of  the 
matters based on  his information in  the form and  context in  which 
they appear. 
 
All assaying  of  drill  core  samples  was  undertaken  by  the  ITS 
laboratory in Jakarta. ITS is one of the world's largest product  and 
commodity testing,  inspection and  certification organizations.  The 
Jakarta laboratory is ISO 17025  accredited and employs a  Laboratory 
Information Management  System (LIMS)  for sample  tracking,  quality 
control and reporting. 
 
Disclaimer 
This announcement  may or  may not  contain certain  "forward-looking 
statements". All  statements,  other than  statements  of  historical 
fact, which address activities,  events or developments that  Finders 
believes, expects or anticipates will or may occur in the future, are 
forward-looking statements. Forward-looking statements are often, but 
not  always,  identified  by  the  use  of  words  such  as   "seek", 
"anticipate", "believe", "plan",  "estimate", "targeting",  "expect", 
and "intend" and statements  that an event  or result "may",  "will", 
"can", "should", "could", or "might"  occur or be achieved and  other 
similar expressions.  These  forward-looking statements  reflect  the 
current internal  projections,  expectations or  beliefs  of  Finders 
based on information  currently available to  Finders. Statements  in 
this document that are forward-looking and involve numerous risks and 
uncertainties that could  cause actual results  to differ  materially 
from expected results are based on the Company's current beliefs  and 
assumptions  regarding  a  large  number  of  factors  affecting  its 
business. Actual results may differ materially from expected results. 
There can be no assurance that (i) the Company has correctly measured 
or identified all of the factors affecting its business or the extent 
of their likely impact, (ii) the publicly available information  with 
respect to these factors on which the Company's analysis is based  is 
complete or accurate, (iii) the Company's analysis is correct or (iv) 
the Company's strategy, which is based in part on this analysis, will 
be successful. Finders expressly  disclaims any obligation to  update 
or revise any such forward-looking statements. 
 
Appendix 5B 
 
             Mining exploration entity quarterly report 
 
 
Name of entity 
FINDERS RESOURCES LIMITED 
 
 
 
ABN              Quarter ended ("current quarter") 
82 108 547 413             30 JUNE 2009 
 
 
Cash flows related to operating activities 
 
 
+--------------------------------------------------------------------------------------------+ 
|    |                                                                  |Current|Year to date| 
|    |                                                                  |quarter|(.12.months)| 
|    |                                                                  | $A'000|      $A'000| 
|----+------------------------------------------------------------------+-------+------------| 
|1.1 |Receipts from product sales and related debtors                   |  2,263|       2,947| 
|----+------------------------------------------------------------------+-------+------------| 
|1.2 |Payments for (a) exploration and evaluation                       |  (529)|     (1,675)| 
|    |                         (b) development                          |  (531)|     (6,343)| 
|    |                         (c) production                           |(3,610)|     (6,220)| 
|    |                         (d) administration                       |  (354)|     (2,496)| 
|----+------------------------------------------------------------------+-------+------------| 
|1.3 |Dividends received                                                |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.4 |Interest and other items of a similar nature received             |      -|          55| 
|----+------------------------------------------------------------------+-------+------------| 
|1.5 |Interest and other costs of finance paid                          |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.6 |Taxes and value added tax paid                                    |  (285)|     (1,545)| 
|----+------------------------------------------------------------------+-------+------------| 
|1.7 |Other (provide details if material)                               |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|    |Net Operating Cash Flows                                          |(3,046)|    (15,277)| 
|----+------------------------------------------------------------------+-------+------------| 
|    |Cash flows related to investing activities                        |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|    |Payment for purchases of:      (a) prospects                      |       |            | 
|    |                                                  (b) equity      |       |            | 
|1.8 |investments                                                       |  (287)|     (5,324)| 
|    |                                                  (c)other   fixed|       |            | 
|    |assets                                                            |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|    |Proceeds from sale of:             (a) prospects                  |       |            | 
|    |                                                  (b) equity      |       |            | 
|1.9 |investments                                                       |      -|          14| 
|    |                                                  (c) other fixed |       |            | 
|    |assets                                                            |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.10|Loans to other entities                                           |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.11|Loans repaid by other entities                                    |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.12|Other (provide details if material)                               |       |            | 
|    |Payment for shares in subsidiary acquired from minority           |      -|       (325)| 
|    |shareholder                                                       |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|    |Net investing cash flows                                          |  (287)|     (5,635)| 
|----+------------------------------------------------------------------+-------+------------| 
|1.13|Total operating and investing cash flows (carried forward)        |(3,333)|    (20,912)| 
|----+------------------------------------------------------------------+-------+------------| 
|1.13|Total operating and investing cash flows (brought  forward)       |(3,333)|    (20,912)| 
|----+------------------------------------------------------------------+-------+------------| 
|    |                                                                  |       |            | 
|    |Cash flows related to financing activities                        |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.14|Proceeds from issues of shares, options, etc.                     |  4,113|      10,719| 
|----+------------------------------------------------------------------+-------+------------| 
|1.15|Proceeds from sale of forfeited shares                            |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.16|Proceeds from borrowings                                          |  1,435|       6,165| 
|----+------------------------------------------------------------------+-------+------------| 
|1.17|Repayment of borrowings                                           |  (906)|       (969)| 
|----+------------------------------------------------------------------+-------+------------| 
|1.18|Dividends paid                                                    |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.19|Other (provide details if material)                               |       |            | 
|    |                                                                  |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|    |Net financing cash flows                                          |  4,642|      15,915| 
|----+------------------------------------------------------------------+-------+------------| 
|    |                                                                  |       |            | 
|    |Net increase (decrease) in cash held                              |  1,309|     (4,997)| 
|    |                                                                  |       |            | 
|----+------------------------------------------------------------------+-------+------------| 
|1.20|Cash at beginning of quarter/year to date                         |    429|       4,988| 
|----+------------------------------------------------------------------+-------+------------| 
|1.21|Exchange rate adjustments to item 1.20                            |   (15)|       1,732| 
|----+------------------------------------------------------------------+-------+------------| 
|1.22|Cash at end of quarter                                            |  1,723|       1,723| 
+--------------------------------------------------------------------------------------------+ 
 
 
 
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        166 
       included in item 1.2 
  1.24 Aggregate amount of loans to the parties            - 
       included in item 1.10 
  1.25 Explanation necessary for an understanding of the 
       transactions 
       Payments are for salaries, directors fees and consulting 
       fees. 
 
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 
    a) Interest on the convertible note of $44,000 was satisfied by 
    the issue of 152,258 Finders shares. 
 
    b) Following shareholders' approval at an extraordinary general 
    meeting held on 4 May 2009, loans from 
        directors and accrued interest totalling A$597,000 were 
    converted into 2,984,833 Finders shares at $0.20 
        per share. 
 
 
 
 
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 
    Loan facilities (USD 5,000,000) 
    Convertible note facility (USD            6,162          6,162 
3.1 1,500,000)                                1,848          1,848 
    Copper Forward Sale and Purchase          2,464          1,232 
    Facility 
    (USD 2,000,000) 
3.2 Credit standby arrangements                NIL            NIL 
 
 
Estimated cash outflows for next quarter * 
 
                               $A'000 
                                600 
4.1 Exploration and evaluation 
 
4.2 Development                  - 
 
 
    Total                       600 
 
 
 
 
Reconciliation of cash 
 
Reconciliation of cash at the end of the quarter (as Current Previous 
shown in the consolidated statement of cash flows)   quarter quarter 
to the related items in the accounts is as follows.  $A'000   $A'000 
5.1       Cash on hand and at bank                    1,723    427 
5.2       Deposits at call                              -       - 
5.3       Bank overdraft                                -       - 
5.4       Other (provide details)                       -       - 
          Total: cash at end of quarter (item 1.22)   1,723    427 
 
 
 
 
Changes in interests in mining tenements 
 
 
                         Tenement    Nature of  Interest at Interest 
                         reference    interest   beginning  at end of 
                                     (note (2)) of quarter   quarter 
6.1 Interests in 
    mining tenements 
    relinquished,           NIL                     NIL        NIL 
    reduced or lapsed 
 
 
6.2 Interests in       Wetar Copper  Increase   72.38%      93.94% 
    mining tenements   Project -     in 
    acquired or                      interest 
    increased          Tenement Nos: through 
                       543/08a/2009  earn-in 
                       543/09b/2009 
                       543/09c/2009 
                       543/04a/2009 
                       543/05a/2009 
                       543/06a/2009 
                       543/07a/2009 
                       545/957/2006 
 
 
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    Issue price Amount paid 
                                    quoted        per       up per 
                                               security    security 
                                                (cents)     (cents) 
                                               (see note   (see note 
                                                  3)          3) 
7.1  Preference 
     +securities         N/A 
     (description) 
7.2  Changes during 
     quarter 
     (a)  Increases 
     through issues 
     (b)  Decreases      N/A 
     through returns 
     of capital, 
     buy-backs, 
     redemptions 
7.3  +Ordinary       115,548,673  115,548,673 
     securities 
7.4  Changes during 
     quarter 
     (a)   Increases 
     through issues     3,000,000   3,000,000   9pence      9pence 
                       21,543,947  21,543,947   20cents     20cents 
                          150,873     150,873   29cents     29cents 
                            1,385       1,385   33cents     33cents 
 
     (b)  Decreases      NIL          NIL 
     through returns 
     of capital, 
     buy-backs 
7.5  +Convertible 
     debt securities  6,281,005       NIL       37cents     37cents 
     (description) 
7.6  Changes during 
     quarter 
     (a)  Increases 
     through issues 
     (b)  Decreases      NIL 
     through 
     securities 
     matured, 
     converted 
7.7  Options                                   Exercise   Expiry date 
     (description      500,000        NIL        price    13.06.2010 
     and conversion    500,000        NIL     68.75cents  16.04.2012 
     factor)           500,000        NIL       30cents   16.04.2014 
                      2,000,000       NIL       30cents   08.05.2014 
                       250,000        NIL       30cents   23.06.2014 
                       625,000        NIL       37cents   28.06.2014 
                       500,000        NIL       37cents   29.06.2014 
                                                37cents 
7.8  Issued during     500,000        NIL       30cents   16.04.2012 
     quarter           500,000        NIL       30cents   16.04.2014 
                      2,000,000       NIL       30cents   08.05.2014 
                       250,000        NIL       37cents   23.06.2014 
                       625,000        NIL       37cents   28.06.2014 
                       500,000        NIL       37cents   29.06.2014 
7.9  Exercised           NIL          NIL 
     during quarter 
7.10 Expired during      NIL          NIL 
     quarter 
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 /does  not* (delete  one) give  a 
true and fair view of the matters disclosed. 
 
 
 
Sign                         here: 
............................................................ 
Date: . 30 July 2009 
(Director) 
 
 
 
Print        name:                        ....Christopher         Ben 
Farmer........................... 
 
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. 
 
=--END OF MESSAGE--- 
 
 
 
 
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solely responsible for the content of this announcement.