ORECORP ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE
September 2014 Quarterly Report
The Board of OreCorp Limited (OreCorp or the Company) is pleased to present its quarterly report for the period ended 30 September 2014. Highlights include:
Mauritania
Akjoujt South Project
The two licence renewals progressed during the quarter.
Induced Polarisation (IP) geophysical survey (dipole lines and gradient array)
is now planned to commence during the December quarter.
The IP survey will focus on Anomaly 5, targeting disseminated nickel‐copper sulphide mineralisation.
Mineralised trench widths at Anomaly 5 of up to 160m of 0.24% nickel and
0.21% copper previously reported.
Geochemical anomalism associated with Anomaly 5 is up to 1.6km in length with soil results of up to 0.26% nickel and 0.23% copper.
Ethiopia
Yubdo ‐ Ursa Project
A process to identify a joint venture partner commenced during the quarter.
Corporate
The Company continued to aggressively pursue project and corporate opportunities in Africa and elsewhere.
The acquisition initiatives in Africa and elsewhere are focussed on advanced projects.
Assessment of a number of opportunities is ongoing.
The Company remains in a strong financial position with approximately
$7.2m cash and no debt.
For further information please contact:
Matthew Yates
CEO & Managing Director
Mobile: +61 (0) 417 953 315
ASX RELEASE:
31 October 2014
ASX CODE:
Shares: ORR
Listed Options: ORRO
BOARD & MANAGEMENT: Craig Williams Non‐Executive Chairman
Matthew Yates
CEO & Managing Director
Alastair Morrison
Non‐Executive Director
Mike Klessens
Non‐Executive Director
Luke Watson
CFO & Company Secretary
ISSUED CAPITAL: Shares: 113.4 million Listed Options: 5.9 million
Unlisted Options: 7.1 million
ABOUT ORECORP:
OreCorp Limited is a Western Australian based mineral company with gold & base metal projects in Ethiopia and Mauritania.
MAURITANIAFigure 1: Location Map of Mauritanian Project Area
Akjoujt South Project (Ni‐Cu‐Au: 90% interest in Licences 1415 & 1416)
The Akjoujt South Project comprises two licences (1415 and 1416). Renewal documentation, including a 25% reduction of the licence areas, was lodged during the March quarter for both licences. Once renewed, the licences will cover a total area of 460 km2 (Figure 1). Recent communication from the Ministry indicates that the renewals are progressing. An application has been lodged covering the 136 km2 immediately to the north of licence 1415 and Anomaly 5.
Following the licence renewals, the Company intends to complete an induced polarisation (IP) chargeability and resistivity survey over Anomaly 5, which has the potential to host intrusion related disseminated nickel‐ copper mineralisation. It is anticipated that the survey will be completed in the December quarter, followed by 3‐D inversions of dipole‐dipole lines to refine target areas as a prelude to potential drill testing. The survey parameters have now been defined and the Company is working with consultants to complete the work.
The survey will comprise high resolution dipole‐dipole lines across the area of nickel/copper mineralisation identified from the previous trenching, as well as a regional gradient array survey covering an area to the northeast of the mapped intrusive, including the area of Trench 9 (values of up to 4m @ 0.44% nickel and
0.24% copper) and its associated geochemical anomalism. Targets identified from the gradient array survey may be followed‐up with additional dipole lines (Figures 2 & 3).
Anomaly 5 was identified in a regional soil sampling program which generated an anomalous soil sample of
0.26% nickel and 0.23% copper. The anomalism is associated with a circular intrusive body and alteration assemblage. Subsequent mapping, infill sampling and trenching has defined a zone of geochemical anomalism approximately 1.6km long. Trenching across this anomalism has intersected mineralised intervals of up to 160m in width of 0.24% nickel and 0.21% copper. Further mineralisation has been identified in Trench 9, three kilometres to the east (Figure 2).
2
Figure 2: Akjoujt South Project ‐ Geology and Geochemistry with Geophysical Survey Areas
Figure 3: Akjoujt South Project Anomaly 5 ‐ Geology and Geochemistry with IP Survey Lines
3
ETHIOPIAAkjoujt South Project ‐ Trenching at Anomaly 5
Yubdo ‐ Ursa Project (Au‐Ni‐Cu‐Cr‐PGE: OreCorp 100% in Licences 243 & 244)
The Yubdo - Ursa Project covers approximately 300km2 (under renewal) of Ethiopia's Western Greenstone Belt, adjacent to KEFI Minerals' Tulu Kapi Project (Figure 4), which hosts a JORC resource of 1.9 million ounces @ 2.51g/t gold (refer KEFI Minerals' AIM release dated 18 August 2014). Previous work by OreCorp has identified gold, nickel, chromium and platinum anomalism.
Figure 4: Yubdo ‐ Ursa Geology with Area of Drilling and Regional Prospects
4
Future Work
During the quarter the Board decided to seek potential joint venture partners for Yubdo ‐ Ursa. Several parties have expressed an interest, signed a confidentiality agreement and received the data pack. Discussions are on‐going.
Werri River Project
During the previous quarter, the Company completed a review of the Werri River Project and adjacent applications and decided to undertake a process to farm out the Project. Several companies reviewed the data for a potential joint venture opportunity and declined to progress discussions any further. The Company subsequently relinquished the licence and has also withdrawn its adjacent application.
Other Activities in Ethiopia
The Company has continued to evaluate additional projects within Ethiopia during the quarter, however none were deemed suitable. The pending licence applications were withdrawn following on‐going processing delays.
CORPORATE AND BUSINESS DEVELOPMENTThe Company continued to aggresively pursue a number of other project and corporate opportunities in Africa and elsewhere, with an emphasis on advanced projects. The Company is maintaining a disciplined and thorough evaluation approach to the opportunities it is assessing. Assessment of a number of opportunities is ongoing.
Change of Registered Office
The Company advises that it changed its registered office during the quarter. The new office contact details are as follows:
Ground Floor
516 Hay Street
SUBIACO, WA 6008
Tel: +61 (0)8 9381 9997
Fax: +61 (0)8 9381 9996
Financial
OreCorp remains in a strong financial position with approximately $7.2m cash and no debt.
5
EXPLORATION INTERESTS
During the September quarter, the Company had an interest in the following projects and exploration
licences:
1) Licence renewal dates are 21 July 2014.
2) Licence renewal dates are 5 August 2014 and 25 August 2014 respectively.
3) No field work was completed during the quarter at Cheriton's East.
The renewal for the Werri River Licence was withdrawn during the quarter and the licence relinquished. In addition, the Company relinquished the Yubdo - Ursa Licences in October. No other tenements were acquired or disposed during the quarter (including beneficial interests in joint venture projects), nor were there any changes to the beneficial interest in any tenements during the quarter.
Renewal documentation for all of the licences in Mauritania and Ethiopia were lodged during the June quarter, which included a 25% area reduction. There is no guarantee that the licences will be renewed.
ABOUT ORECORP LIMITED
OreCorp Limited is a Western Australian based mineral company with gold & base metal projects in Mauritania and Ethiopia and is listed on the
Australian Securities Exchange (ASX) under the code 'ORR'. The Company is well funded with approximately $7.2 million in cash and no debt as of
30 September 2014. OreCorp's key project is the Akjoujt South Project in Mauritania, prospective for nickel, copper and gold.
Competent Person's Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Matthew Yates, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Yates is a full‐time employee and beneficial shareholder of OreCorp Limited. Mr Yates has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Yates consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statements This release contains 'forward‐looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward‐looking information includes, among other things, statements with respect to pre‐feasibility and definitive feasibility studies, the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward‐looking information can be identified by the use of forward‐looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend',
'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.
Forward‐looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward‐looking information. Forward‐looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Prospectus dated January 2013.
This list is not exhaustive of the factors that may affect our forward‐looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward‐looking information. The Company disclaims any intent or obligations to update or revise any forward‐looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
6
Appendix 5B
Mining exploration entity quarterly report
Appendix 5B Mining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
ORECORP LIMITED
Rule 5.3
ABN Quarter ended ("current quarter")
24 147 917 299 30 SEPTEMBER 2014
Consolidated statement of cash flowsCash flows related to operating activities
1.1 Receipts from product sales and related debtors
1.2 Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) corporate and administration
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other receipts (refunds)
1.8 Other - business development
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
Current quarter $A'000 | Year to date $A'000 (3 months) | |
1.13 Total operating and investing cash flows (brought forward) | (407) | (407) |
Cash flows related to financing activities 1.14 Proceeds from issue of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Costs associated with issue of shares Net financing cash flows | ‐ ‐ ‐ ‐ ‐ ‐ | ‐ ‐ ‐ ‐ ‐ ‐ |
Cash flows related to financing activities 1.14 Proceeds from issue of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Costs associated with issue of shares Net financing cash flows | ‐ | ‐ |
Net increase/(decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | (407) 7,339 236 | (407) 7,339 236 |
Net increase/(decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 7,168 | 7,168 |
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 77
1.24 Aggregate amount of loans to the parties included in item 1.10 Nil
1.25 Explanation necessary for an understanding of the transactions
Payments include non‐executive directors' fees and the managing director's salary.
Non‐cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Nil
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
Nil
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 2
Appendix 5B
Mining exploration entity quarterly report
Financing facilities availableAdd notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter4.1 Exploration and evaluation (including business development)
4.2 Development
4.3 Production
4.4 Corporate and administration
Reconciliation of cashReconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Changes in interests in mining tenements6.1
Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with prices and dates.
Changes during quarter
(a) Increases
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 4
Appendix 5B
Mining exploration entity quarterly report
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: 31 October 2014 (Director/Company secretary)
Print name: Luke Watson
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.
== == == == ==
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
|
distributed by
|