Quarterly Activities Report - 31 December 2011

 
TIDMGGG 
 
31 January 2012 
 
                               GGG Resources plc 
 
                           (the "Company" or "GGG") 
 
 
 
                          QUARTERLY ACTIVITIES REPORT 
 
                     FOR THE PERIOD ENDED 31 DECEMBER 2011 
 
 
 
HIGHLIGHTS 
 
Corporate 
 
The merger with Auzex Resources Limited is progressing according to plan, with 
Auzex now awaiting approval for the merger from its shareholders and the Court. 
In October 2011, Auzex completed a capital raising and entitlements issue, with 
GGG taking up its full entitlement. 
 
 
 
On December 16 2011 the Scheme Document for the acquisition of GGG's entire 
share capital by Bullabulling Gold Limited was posted to GGG shareholders. The 
General Meeting of shareholders and Court Meeting were held on 9 January 2012, 
with approval for the merger from both meetings. On the same day, Auzex's 
shareholders approved the demerger of Auzex Exploration Limited (acquiring all 
the non Bullabulling gold assets of Auzex) from Auzex Resources. 
 
 
 
On 30 November 2011, the Directors of GGG exercised their warrants in GGG at an 
exercise price of 12.6p per share. The total number of Ordinary Shares on issue 
in GGG following this exercise is 166,280,298. 
 
 
 
Exploration 
 
Phase II infill drilling was completed during the quarter. A total of 425 holes 
were drilled for 74,452 metres. Upon receipt of all the results an updated 
resource estimate will be calculated and this will be used for the purposes of 
the pre-feasibility study. 
 
 
 
During the quarter the following drilling results were announced: 
 
1m @ 48.80 g/t Au from 182m and 
 
16m @ 1.75 g/t Au from 63m in hole BJ1297, 
 
9m @ 13.32 g/t Au from 195m and 
 
15m @ 1.39 g/t Au from 161m in hole BJ0371, 
 
1m @ 12.50 g/t Au from 61m in hole BJ2012, 
 
2m @ 5.01 g/t Au from 55m in hole BJ2085, 
 
2m @ 3.99 g/t Au from 76m in hole BJ2338, 
 
9m @ 3.52 g/t Au from 113m in hole BJ1945, 
 
2m @ 3.48 g/t Au from 82m in hole BJ2160, 
 
13m @ 3.45 g/t Au from 92m in hole BJ1257, 
 
20m @ 3.45 g/t Au from 21m with 
 
12m @ 1.97 g/t Au from 58m and 
 
12m @ 1.77 g/t Au from 133m in hole BJ0405, 
 
10m @ 2.61 g/t Au from 125mand 
 
14m @ 1.94 g/t Au from 44m in hole BJ0261, 
 
14m @ 2.51 g/t Au from 130m in hole BJ2083, 
 
10m @ 2.48 g/t Au from 45m in hole BJ0466, 
 
19m @ 2.48 g/t Au from 19m in hole BJM024, 
 
14m @ 2.41 g/t Au from 21m and 
 
26m @ 0.83 g/t Au from 62m in hole BJ0381, 
 
14m @ 2.40 g/t Au from 65m in hole BJ2066. 
 
 
 
Approximately 99% of drill holes have so far intersected mineralisation. 
 
 
 
During the quarter 2D seismic and aeromagnetic data acquisition were completed 
and the data are now processed. This, together gravity data, which will be 
acquired in January, will help target deeper, possibly higher grade 
mineralisation. 
 
 
 
A new exploration programme has been planned to test regional structures and 
anomalies identified by recent regolith mapping. 
 
 
 
In November the Joint Venture announced the results of initial metallurgical 
study of the primary mineralisation, from samples taken between Bacchus and 
Phoenix pits. The results show 92.5% recovery over 24 hours for the master 
composite sample grading 0.96 g/t Au. The samples have soft to medium hardness 
and moderate abrasiveness. The results indicate that the project is amenable to 
SAG milling and possibly high pressure grinding rolls. 
 
 
 
Following the metallurgical results, in December the Joint Venture announced 
the initial scoping study results. Highlights of the results are: 
 
- 230,000 ounces of annual recovered gold production targeted 
 
- 7.5 million tonnes per annum base case plant size 
 
- Capital costs of A$366 million 
 
- Significant OPEX cost reduction potential 
 
- IRR of 29% at A$1,500/oz (IRR of 42% at A$1,700/oz) 
 
- Reduced CAPEX costs being studied with external consultants 
 
- Ten year plus mine life targeted 
 
- Full pre-feasibility study underway, reporting in Q3 2012 
 
 
 
Maps and graphics ("Figures") referred to in the scoping study announcement are 
available on the version of the release available on the Company's website 
www.gggresources.com. 
 
 
 
 
 
EXPLORATION 
 
The Company has a 50% interest in the Bullabulling gold project located 65 
kilometres south-west of Kalgoorlie in Western Australia.  The remaining 50% 
interest is held by Auzex Resources Ltd. The Company is in the process of 
merging with Auzex Resources Ltd. 
 
 
 
Bullabulling is a large tonnage, low-grade deposit associated with the regional 
Bullabulling shear zone, which extends over tens of kilometres.  The 
mineralised structure is up to 800m wide, consisting of multiple west dipping, 
low-grade stacked zones with narrow high grade mineralisation. 
 
 
 
 
 
 
 
PHASE TWO DRILLING PROGRAMME 
 
 
 
During the December quarter Phase Two drilling to define the resources within 
the Bullabulling Trend was completed. Better intersections from the Phase Two 
drilling results received during the reporting period include: 
 
 
 
16m @ 1.75 g/t Au from 63m and1m @ 48.80 g/t Au from 182m in hole BJ1297, 
 
15m @ 1.39 g/t Au from 161m and9m @ 13.32 g/t Au from 195m in hole BJ0371, 
 
1m @ 12.50 g/t Au from 61m in hole BJ2012, 
 
2m @ 5.01 g/t Au from 55m in hole BJ2085, 
 
2m @ 3.99 g/t Au from 76m in hole BJ2338, 
 
9m @ 3.52 g/t Au from 113m in hole BJ1945, 
 
2m @ 3.48 g/t Au from 82m in hole BJ2160, 
 
13m @ 3.45 g/t Au from 92m in hole BJ1257, 
 
20m @ 3.45 g/t Au from 21m, 12m @ 1.97 g/t Au from 58mand 12m @ 1.77 g/t Au 
from 133m in hole BJ0405, 
 
10m @ 2.61 g/t Au from 125m and 14m @ 1.94 g/t Au from 44m in hole BJ0261, 
 
14m @ 2.51 g/t Au from 130m in hole BJ2083, 
 
10m @ 2.48 g/t Au from 45m in hole BJ0466, 
 
19m @ 2.48 g/t Au from 19m in hole BJM024, 
 
14m @ 2.41 g/t Au from 21m and 26m @ 0.83 g/t Au from 62m in hole BJ0381, 
 
14m @ 2.40 g/t Au from 65m in hole BJ2066, 
 
18m @ 1.60 g/t Au from 146m and 11m @ 1.19 g/t Au from 237m in hole BJ2070, 
 
12m @ 1.55 g/t Au from 94m in hole BJ1921, 
 
14m @ 1.45 g/t Au from 35m and 12m @ 1.17 g/t Au from 126m in hole BJ1996, 
 
19m @ 1.31 g/t Au from 123m in hole BJ0384, 
 
12m @ 1.30 g/t Au from 90m in hole BJ0370, 
 
17m @ 1.15 g/t Au from 42m in hole BJ2106 and 
 
25m @ 0.98 g/t Au from 28m in hole BJ0718. 
 
 
 
So far only seven drill holes that have not intersected mineralisation out of 
the 565 holes drilled since the programme started (approximately 99% of the 
holes are hitting mineralisation). 
 
 
 
As in the previously announced holes, there are generally at least 4 
intersections per drill hole relating to the multiple stacked lodes defined by 
the structural mapping. Approximately 60% of the intersections to date are 
better than estimated by the model, 34% are similar to the model and 6% are 
worse or missing as predicted by the new model developed by Snowden. High grade 
mineralisation continues to be intersected within the broad low grade halo with 
intersections such as 9m @ 13.32 g/t Au from 195m in hole BJ03711, 9m @ 3.52 g/ 
t Au from 113m in hole BJ1945, 13m @ 3.45 g/t Au from 92m in hole BJ1257, 20m @ 
3.45 g/t Au from 21m in hole BJ0405 and10m @ 2.61 g/t Au from 125m in hole 
BJ0261 providing encouragement for targeting high grade ore shoots within the 
Bullabulling Trend beneath the currently mineralised stratigraphy. 
 
 
 
Near Surface Exploration Follow up Drill Planning 
 
The review of the soil geochemistry database completed using historical soil 
data in combination with photo-mapping of regolith identified six regional 
scale targets that require follow up exploration drilling. Drill planning for 
this work has been completed. The exploration drilling will follow on from the 
current Phase Two infill drilling programme and exploration along the Gibraltar 
Trend and to the south of the Bullabulling Trend have been incorporated into 
the exploration work plan. The aim of the exploration drilling is to test for 
regional extensions to known mineralisation and to better define the geology, 
especially in the south. The programme will consist of 340m at Kraken, 1,520m 
at Gryphon, 700m at Edwards, 2,500m on the southern Exploration Licence (Rhea) 
and 2,000m along strike from Gibraltar. Two separate "Programme of Works" have 
been lodged with the Department of Mines covering these prospects and these are 
anticipated to be approved early in the New Year, with drilling expected to 
take between 46 and 60 days, extending into late February. 
 
 
 
Deeps Exploration Programme 
 
Planning the Deeps exploration programme continued with aeromagnetic and 
radiometric data acquisition completed over the Bullabulling shear zone (Figure 
2). The survey was flown along 50m spaced East-West lines with a nominal flying 
height of 30m. Final data are provided as 10m cell size grids for TMI 
magnetics, a DTM and K, U, Th and Total Count radiometric channels. The TMI 
magnetic data were reduced to the pole and a suite of enhancement filters 
applied. These images will be used to develop a 2D geological and structural 
interpretation of the area covered by the magnetic survey. The new data are 
significantly more detailed than previously available and will lead to a better 
understanding of the geology and structure of the Bullabulling region. The data 
will now be analysed to produce a number of filtered geophysical images, 
unconstrained inversions over the Bullabulling Trend and a geological and 
structural interpretive map of the study area. 
 
 
 
Acquisition of high resolution 2D seismic data to map the geology of 
Bullabulling at depth has been completed and the data has been processed. The 
objective of high resolution 2D seismic data acquisition over the Bullabulling 
Trend is to investigate the application of seismic imaging to delineate complex 
geological structure at depth and improve the effectiveness of targeting and 
interpreting future drilling and exploration. The lines have been planned 
perpendicular to major geological structures and strike of the stratigraphy to 
maximise the resolution of the data collected (Figure 3). Data collection 
covered both the hanging and footwalls of the main stratigraphic units that 
host gold mineralisation along the Bullabulling Trend. The data acquisition 
program was completed in the quarter and the seismic data processing was also 
completed and images received for the three lines of data collected (Figure 4). 
The line data images now require interpretation using the magnetic data and 
known geological information from drilling to develop geological cross sections 
that will be used to constrain a 3D geological model of the Bullabulling Trend, 
which will also use the yet to be acquired gravity data. 
 
 
 
A final plan and proposal for gravity data acquisition has been completed and 
approved. The program will cover the Bullabulling area and is planned to start 
in late January. There are 4543 stations in total, which will take 10-15 days 
to collect the data. 
 
 
 
A combination of the detailed magnetic data will be used in combination with 2D 
seismic and gravity to develop a detailed 3D model of the structure and geology 
of the Bullabulling Trend. This model will then be used to target 
mineralisation at depth. 
 
 
 
Tenement Acquisition 
 
A new exploration licence covering 40km2 was acquired to extend the tenement 
coverage to the south along strike from the Bullabulling sequence and along a 
known water bearing palaeochannel for water exploration. The Joint Venture now 
has a total of 176km2 in tenements held in various Mining Permits, 
Miscellaneous Licences, Prospecting Licences and applications. The Joint 
Venture also holds the underlying Pastoral Lease. 
 
 
 
Metallurgy 
 
During the quarter the Bullabulling Joint Venture announced the results of the 
first stage comprehensive metallurgical test work on fresh mineralisation at 
the Bullabulling Gold Project. The test work was based on five samples from PQ 
size diamond core holes, which were composited to a master composite sample and 
the remaining samples were the subject of variability test work. The samples 
were selected from fresh (primary) mineralisation taken at intervals along the 
Bullabulling Trend between Bacchus pit in the south and Phoenix pit in the 
north. 
 
 
 
The results from both the test work on the composite sample and the variability 
test work are highly encouraging with the results confirming that the 
Bullabulling gold deposit has excellent recoveries at head grades of less than 
1.0 g/t Au, with approximately 40% of the contained gold recoverable by 
gravity. The gold recoveries are sensitive to grind size and additional test 
work is planned to optimise the required grind. 
 
 
 
Process water, obtained from the existing borefield at Bullabulling, was used 
for all parts of the test programme where wet grinding and slurry preparation 
were required. 
 
 
 
Sample  Au g/t Gravity %  % Au Extraction  (Hours )  Consumption (kg/t) 
 
                           2      8      24     48     Lime      NaCN 
 
Master   0.96    45.00   87.01  91.15  92.51  93.17    6.89      0.39 
 
HS25168  0.56    27.59   86.51  86.51  87.76  88.97    4.72      0.82 
 
HS25169  5.44    47.73   93.86  94.42  96.93  97.61    4.92      0.89 
 
HS25170  2.18    42.79   91.29  94.26  95.40  97.05    5.49      0.88 
 
HS25171  1.60    52.50   90.33  92.57  94.00  94.70    5.33      0.78 
 
HS25172  1.53    47.53   92.10  93.49  93.49  93.49    5.23      0.88 
 
 
 
 
    Table 1: Variability recovery test work results from individual samples 
 
 
 
The composite sample was also tested at four different grind sizes and the 
results suggest that the ore from Bullabulling is sensitive to grind size with 
the 75 micron sample giving the best recovery of 94.8%, with recoveries 
reducing to 88.58% at a 150 micron grind (Table 2). 
 
 
 
 Sample     Grind    Gravity        % Au Extraction        Consumption 
          (microns)                     (Hours)               (kg/t) 
 
                                2      8      24     48 
 
HS24786      150      33.97   77.62  85.72  87.65  88.58   6.90   0.68 
 
HS24787      125      34.71   79.30  87.60  89.57  90.52   6.80   0.67 
 
HS24788      106      36.28   80.68  89.33  90.36  90.85   6.87   0.77 
 
HS24789      75       35.22   85.33  91.61  93.11  94.08   6.84   0.97 
 
 
 
 
      Table 2: Grind size recovery test results from the composite sample 
 
 
 
Initial Cyanide (%) % Au Recovery 
                      (24 hrs) 
 
       0.200            94.84 
 
       0.100            94.40 
 
       0.075            92.08 
 
       0.050            91.85 
 
       0.025            86.81 
 
 
                   Table 3: Summary of Cyanidation Testwork 
 
 
 
A comprehensive comminution testwork programme was performed on samples from 
the five sample drill holes, with most of the testwork being performed on 
composite samples from the mineralised intervals in each drillhole 
('comminution composites'). The UCS values ranged from 5.4 to 161.3 MPa with an 
average of 101 MPa; the range spans Very Soft to Competent material, and 
indicates SAG milling would be an appropriate process option. The Bond Crushing 
Work Indices recorded ranged from 4.6 to 18.1 kW/t, averaging 8.8 kW/t. Apart 
from the high outlier readings the samples are considered soft to medium with 
respect to impact resistance and are generally lower than average for typical 
Eastern goldfields type gold deposits. The Bond Rod Mill Work Indices were 
consistently higher than the Ball Mill Work Indices averaging 15.7 and 12.5 kWh 
/t respectively. The Crushing Work Indices reported were significantly lower 
than the Rod and Ball Milling figures, which also supports the inclusion of a 
SAG mill in the process flowsheet. The Bond Abrasion Indices varied from 0.14 
to 0.27 averaging 0.19 which is moderately abrasive. The Drop Weight and SMC 
testing indicate the samples exhibit significant resistance to both impact and 
abrasion breakage and indicate High Pressure Grinding Rolls (HPGR's) should be 
considered to realise power efficiencies. 
 
 
 
Compared to other deposits in the Goldfields, the ore at Bullabulling is 
neither hard nor abrasive due to the lack of quartz associated with the gold 
mineralisation. This should have a positive impact on operating costs. 
 
 
 
Planning and sampling of additional ore from the entire length of the 
Bullabulling Trend to increase the number of variability test work samples has 
commenced and these data will be used in the next phase of work to more 
accurately estimate processing and capital costs and assess recoveries at lower 
head grades. 
 
 
 
 
 
SCOPING STUDY 
 
During the December quarter the Joint Venture issued a Scoping Study results 
which assessed the potential economic and technical viability of a large 
tonnage - low grade open cut mining operation at Bullabulling. The study is an 
initial attempt to estimate the capital and operating costs based on the 
current inferred and indicated resources and the estimated costs have an 
accuracy of ±30% which will then be further refined in the pre-feasibility 
study (PFS) and bankable feasibility study (BFS) The results gave the Joint 
Venture the confidence to progress to a PFS and if successful then onto a BFS. 
 
 
 
The Scoping Study identified a substantial gold project capable of producing 
approximately 230,000 ounces of gold per annum over a 10 year period. The study 
also highlighted that there is a significant level of cost improvements that 
can be made at both operating and capital cost levels that will enhance the 
economics of the project. 
 
 
 
The main results from the study are: 
 
 
 
                Financial Model Summary 
        Bullabulling Gold Project, November 2011 
                  Gold price A$1500oz 
 
 
 
 
Mining Physicals 
 
  Total material movement               Mbcm          148.4 
 
  Waste tonnes mined                    Mt            260.1 
 
  Ore mined                             Mt             69.4 
 
  Ore grade mined                       g/t            1.04 
 
Waste: ore strip ratio                  t:t             3.7 
 
  Mine life                             years           9.2 
 
 
 
  Maximum marginal ore in stockpile     kt            1,750 
 
  Waste backfilled to pit void          Mlcm         114.91 
 
 
 
Processing Physicals 
 
  Total CIL ore processed               Mt             69.4 
 
  Annual process rate                   Mt              7.5 
 
  CIL grade                             g/t            1.04 
 
  CIL Au recovery                       %              92.5 
 
  Total recovered gold                  koz           2,149 
 
  Ave. recovered gold per annum         koz           233.6 
 
 
 
Operating Costs 
 
  Average mining unit cost              $/t material   3.41 
 
  Average CIL process & admin unit cost $/t ore       13.65 
 
  Total operating unit cost             $/t ore       29.98 
 
 
 
Capital Costs 
 
  Preproduction & working capital       $M             22.5 
 
  Start-up capital                      $M            366.5 
 
Cash operating cost per ounce produced  A$oz            968 
 
NPV (6% discount rate)                  $M              389 
 
IRR%                                    %                29 
 
 
 
 
 
 
MERGER 
 
The merger with Auzex Resources Limited is progressing according to plan and 
Auzex is awaiting approval for the merger from its shareholders and the Court. 
 
 
 
Bullabulling Gold Limited has been incorporated, and will be the listed vehicle 
that merges with Auzex following the successful merger between Bullabulling 
Gold and GGG Resources plc. This will result in the consolidation of a 100% 
interest in the Bullabulling Project into a single entity. 
 
 
 
On 16 December 2011 the Scheme Document for the acquisition of GGG's entire 
share capital by Bullabulling Gold Limited was posted to GGG shareholders. The 
General Meeting and Court Meeting were held on 9 January 2012, both meetings 
approving the acquisition. On the same day, Auzex's shareholders approved the 
demerger of Auzex Exploration Limited (acquiring the non Bullbulling gold 
assets of Auzex) from Auzex Resources. 
 
 
 
Prior to the publication of the Scheme Document, in order to simplify the 
capital structure, the Directors of GGG exercised their warrants in GGG at an 
exercise price of 12.6p per share. The total number of Ordinary Shares on issue 
following this exercise is 166,280,298. 
 
 
 
An executive search is underway for a new independent Chairman and Managing 
Director for Bullabulling Gold Limited which we hope to update the market on in 
due course. 
 
 
 
 
 
FUTURE WORK PLAN 
 
The following work is expected to be completed in the coming months: 
 
Update resource estimation based on Phase Two infill drilling 
 
Complete Phase Two exploration drilling at Gibraltar and other prospects 
 
Work to reduce estimated capital costs 
 
Work to reduce estimated operating costs 
 
Finalise variability metallurgical testwork 
 
Finalise engineering design. 
 
Finalise mining studies 
 
Develop a life of mine schedule 
 
Optimisation and ore reserve estimation 
 
Completion of Pre-Feasibility Study 
 
Completion of geophysical modelling to target high grade deep exploration 
 
Drilling of potential high grade targets 
 
 
 
 
 
COMPETENT PERSON STATEMENT 
 
 
 
The information in this letter/report that relates to the Exploration results 
is based upon information compiled by Dr. Jeffrey Malaihollo who is a full-time 
employee of the Company and Fellow of The Australasian Institute of Mining and 
Metallurgy and a Fellow of the Geological Society of London. He is qualified as 
a Competent Person under the Code for the Reporting Mineral Exploration 
Results, Mineral Resources and Mineral Reserves, 2004 ("The Reporting Code") 
prepared by the Australasian Institute of Mining and Metallurgy and the 
Australian Institute of Geoscientists. Jeff Malaihollo consents to the 
inclusion in the report of the matters based on his information in the form and 
context in which it appears. 
 
 
 
 
 
Contacts: 
 
David McArthur                       David Brook 
 
 
 
GGG Resources plc (Australia)        Professional Public Relations (Australia 
                                     Media) 
41 Stirling Highway 
 
Nedlands, WA, 6009 
 
Australia 
                                     Email: [e-mail] 
Tel: [phone] 
                                     Tel: [phone] 
 
 
 
Dr. Jeffrey Malaihollo               Westhouse Securities Limited 
 
Managing Director, GGG Resources plc (UK Nominated Adviser) 
(UK) 
                                     Tom Price / Martin Davison 
Email: 
[e-mail]     Tel: [phone] 
 
Tel: [phone] 
 
 
 
Neil Boom                            Collins Stewart Europe Limited (Broker) 
 
MD, Gresham PR Ltd (UK media)        John Prior / Adam Miller 
 
Tel: [phone]                Tel: [phone] 
 
 
 
 
 
 
 
                                                                       Rule 5.3 
 
Appendix 5B 
 
Mining exploration entity quarterly report 
 
Introduced 1/7/96.  Origin:  Appendix 8.  Amended 1/7/97, 1/7/98, 30/9/01, 01/ 
06/10, 17/12/10 
 
 
 
Name of entity 
 
GGG RESOURCES PLC 
 
 
 
 
ARBN                   Quarter ended ("current quarter") 
 
143 978 376            31 DECEMBER 2011 
 
 
 
 
Consolidated statement of cash flows 
 
 
 
                                                             Current   Year to 
                                                             quarter      date 
Cash flows related to operating activities                    $A'000        (9 
                                                                       months) 
                                                                        $A'000 
 
1.1  Receipts from product sales and related debtors 
 
 
 
1.2  Payments for            (a)  exploration and            (2,620)  (10,927) 
     evaluation 
 
                                     (b)  development          (859)   (2,028) 
 
                                     (c)  production 
 
                                     (d)  administration 
 
1.3  Dividends received 
 
1.4  Interest and other items of a similar nature                326       705 
     received 
 
1.5  Interest and other costs of finance paid 
 
1.6  Income taxes paid 
 
1.7  Other (provide details if material) 
 
 
     Net Operating Cash Flows                                (3,153)  (12,250) 
 
 
     Cash flows related to investing activities 
 
1.8  Payment for purchases of:      (a) prospects 
 
                                                    (b) 
     equity investments 
 
                                                    (c) 
     other fixed assets 
 
1.9  Proceeds from sale of:            (a) prospects 
 
                                                    (b) 
     equity investments 
 
                                                    (c) 
     other fixed assets 
 
1.10 Loans to other entities 
 
1.11 Loans repaid by other entities 
 
1.12 Other (provide details if material) 
 
 
     Net investing cash flows 
 
1.13 Total operating and investing cash flows 
     (carried forward)                                       (3,153)  (12,250) 
 
 
 
 
 
1.13  Total operating and investing cash flows 
      (brought  forward)                                     (3,153)  (12,250) 
 
 
 
      Cash flows related to financing activities 
 
 
1.14  Proceeds from issues of shares, options, etc.                -     8,129 
 
1.15  Proceeds from sale of forfeited shares 
 
1.16  Proceeds from borrowings 
 
1.17  Repayment of borrowings 
 
1.18  Dividends paid 
 
1.19  Other - capital raising costs                                -     (715) 
 
      Net financing cash flows                                     -     7,414 
 
 
      Net increase (decrease) in cash held                   (3,153)   (4,836) 
 
1.20  Cash at beginning of quarter/year to date               14,724    16,285 
 
1.21  Exchange rate adjustments to item 1.20                   (144)      (22) 
 
1.22  Cash at end of quarter                                  11,427    11,427 
 
 
Payments to directors of the entity and associates of the directors 
 
Payments to related entities of the entity and associates of the related 
entities 
 
                                                                        Current 
                                                                        quarter 
                                                                         $A'000 
 
 
1.23 Aggregate amount of payments to the parties included in                 94 
     item 1.2 
 
 
1.24 Aggregate amount of loans to the parties included in item              Nil 
     1.10 
 
 
1.25 Explanation necessary for an understanding of the transactions 
 
     All intercompany loans have been eliminated at consolidation for purposes 
     of this 
      report 
 
 
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                                       3,600 
 
4.2     Development 
 
4.3     Production 
 
4.4     Administration                                                     700 
 
        Total                                                            4,300 
 
 
 
 
Reconciliation of cash 
 
Reconciliation of cash at the end of the quarter         Current      Previous 
(as shown in                                             quarter       quarter 
 the consolidated statement of cash flows) to the         $A'000        $A'000 
related 
 items in the accounts is as follows. 
 
5.1  Cash on hand and at bank                             10,182        15,601 
 
5.2  Deposits at call                                          -             - 
 
5.3  Bank overdraft                                            -             - 
 
5.4  Other (provide details)                                   -             - 
 
     Total: cash at end of quarter (item 1.22)            10,182        15,601 
 
 
 
 
Changes in interests in mining tenements 
 
 
 
                            Tenement         Nature of Interest at Interest at 
                           reference          interest   beginning      end of 
                                            (note (2))          of     quarter 
                                                           quarter 
 
6.1 Interests in mining 
    tenements 
    relinquished,                N/A 
     reduced or lapsed 
 
6.2 Interests in mining 
    tenements acquired or        N/A 
    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      Issue Amount paid 
                                    number     quoted  price per      up per 
                                                        security    security 
                                                       (see note   (see note 
                                                              3)          3) 
                                                         (cents)     (cents) 
 
7.1  Preference 
     +securities 
     (description) 
 
7.2  Changes during 
     quarter 
     (a)  Increases 
     through issues 
     (b)  Decreases 
     through returns of 
     capital, buy-backs, 
     redemptions 
 
7.3  +Ordinary                  20,322,500 20,322,500        N/A         N/A 
     securities ** 
 
7.4  Changes during 
     quarter 
     (a)  Increases through 
     issues 
     (b)  Decreases through 
     returns of capital, 
     buy-backs 
 
7.5  +Convertible debt 
     securities 
     (description) 
 
7.6  Changes during 
     quarter 
     (a)  Increases 
     through issues 
     (b)  Decreases 
     through securities 
     matured, converted 
 
7.7  Options 
     (description and 
     conversion factor) 
 
7.8  Issued during 
     quarter 
 
7.9  Exercised during 
     quarter 
 
7.10 Expired during 
     quarter 
 
7.11 Debentures 
     (totals only) 
 
7.12 Unsecured notes 
     (totals only) 
 
 
 
 
 
 
 
Compliance statement 
 
 
 
1          This statement has been prepared under accounting policies which 
comply with accounting standards as defined in the Corporations Act or other 
standards acceptable to ASX (see note 5). 
 
 
 
2          This statement does give a true and fair view of the matters 
disclosed. 
 
 
 
 
 
 
 
Sign here:                                                         Date: 
 
 
 
Director/Company Secretary 
 
 
 
Print name: 
 
 
 
 
 
Notes 
 
 
 
1          The quarterly report provides a basis for informing the market how 
the entity's activities have been financed for the past quarter and the effect 
on its cash position.  An entity wanting to disclose additional information is 
encouraged to do so, in a note or notes attached to this report. 
 
 
 
2          The "Nature of interest" (items 6.1 and 6.2) includes options in 
respect of interests in mining tenements acquired, exercised or lapsed during 
the reporting period.  If the entity is involved in a joint venture agreement 
and there are conditions precedent which will change its percentage interest in 
a mining tenement, it should disclose the change of percentage interest and 
conditions precedent in the list required for items 6.1 and 6.2. 
 
 
 
3          Issued and quoted securities The issue price and amount paid up is 
not required in items 7.1 and 7.3 for fully paid securities. 
 
 
 
4          The definitions in, and provisions of, AASB 6: Exploration for and 
Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to 
this report. 
 
 
 
5          Accounting Standards ASX will accept, for example, the use of 
International Financial Reporting Standards for foreign entities.  If the 
standards used do not address a topic, the Australian standard on that topic 
(if any) must be complied with. 
 
 
 
 
 
                                == == == == == 
 
 
 
 
 
END