Quarterly Report
30 Avril 2003 - 12:20PM
UK Regulatory
RNS Number:5518K
Reefton Mining N.L.
30 April 2003
REEFTON MINING N.L.
QUARTERLY ACTIVITIES REPORT
FOR THE PERIOD ENDED 31 MARCH 2003
DIAMOND PROJECT - SKELETON COAST, Namibia
EPL's 2698 - 2700 (100%)
Commencement of Stage 2 programme
Detailed results of the Stage 1 programme were received and assessed during the
Quarter. The presence of substantial amounts of high quality diamonds has been
confirmed. The Stage 2 programme has commenced and will begin to determine the
grade of the deposits discovered during Stage 1 as well as the quantity and size
of diamonds located in the fissures and potholes of the bedrock. Usually the
bedrock interface contains the majority of the diamonds and the larger sizes due
to settling in the storm beach gravel pile. Excavation of trenches up to 10
metres in width will allow effective removal of the material on the bedrock.
Excavation of the trenches during the Stage 1 programme did not penetrate into
the gullies, potholes and fissures of the bedrock and was aimed at determining
the presence of diamonds in the beach gravels and overlying deflation zones. Now
that the presence of significant diamonds has been established, the undulating
jointed and fissured surface of the bedrock can be fully evaluated. The average
size of 0.24 carats and the impressive proportion of larger diamonds (7 diamonds
greater than 0.99 carats totalling 8.95 carats (13.8% of total)) recovered
during Stage 1 is significant, supporting evidence for the presence of large
diamonds on the basement.
New equipment arrived on site
During the Quarter two new major items of equipment were acquired, a large wheel
based excavator and a vacuum system for cleaning the bedrock. The equipment was
transported to Walvis Bay, the port city of Namibia and has arrived on site at
Mowe Bay. This additional equipment will compliment the Company-owned earth
moving equipment, trucks, track mounted dry screening plant, 10 tonnes per hour
("tph") gravel washing and Dense Media Separation ("DMS") plant together with
camp and support facilities located at the field base approximately 23
kilometres north of Mowe Bay.
Aerial photographic survey
An aerial photographic survey of the 220 kilometres of the coast has been
organised. This will be at 1:20,000 scale in colour and which will allow
definition of the exposed fossil beaches, reveal potential trap sites along the
coast and allow interpretation of the elevated fossil beaches. Further trenching
sites will be selected by studies of the aerial photography.
ERONGO PROJECT - NAMIBIA
EPL's 2805 - 2811 (100%)
Work during the quarter consisted of evaluations of the gold and base metal
targets and models within the extraordinary mineralised environment covered by
the licenses. The project comprises of a group of exploration licenses in
Central Namibia with a 150 kilometre strike length and 50 kilometre width of
multiple deep seated mineralising geological structures. Resources of gold, tin
and important prospects for industrial minerals (rutile, tungsten) occur.
Prospects for precious and base metals exist in several geological environments.
Consistent with the scale of deep seated geological structures the tenements
have world class mines in close proximity, the world's largest open cut hard
rock tin mine (Uis), the world's largest Uranium mine (Rossing) and the Navachab
gold Mine (reserves 5.7 million tonnes grading 1.7 g/t Au, resources 81.6
million tonnes containing 2.8 million ounces of gold).
Gold
During the Quarter work continued to priortise targets identified from research
of past exploration, Landsat image studies and ground mapping, geochemical
sampling, aeromagnetic image interpretation and studies of surrounding mines
include a Biotite-graphite association in specific marble horizons,
pyrrhotite-skarn mineralisation (often associated with magnetic anomalies),
shear zones (usually in Kuiseb schists) and sheeted quartz vein arrays. The
latter appear to be very important at Navachab and were not recognised during
the early development and mining.
Rare Earths
During the quarter studies of the carbonatite hosted monazite (rare earth)
occurrence located at Eureka continued.
Monazite is a primary ore of rare earth metals notably thorium, cerium,
lanthanum and neodymium. Of economic interest is the rather high concentration
of Eu2O3 at 0.073% mass in the monazite. During the separation and enrichment
process the other rare earths will report to the product. The Eureka monazite is
also attractive because of its low concentration of ThO2 (0.7%mass). The
proximity of the road and rail system are regarded as very positive aspects for
potential mining activity in the area.
Tantalite
Exploration has delineated several zones of tantalite bearing rare metal
pegmatites including the Sandamap-Erongo belt of 50 kilometres length and 2
kilometres width containing numerous large rare metal pegmatite bodies. Grades
of up to 8 pounds per tonne Ta2O5 have been returned during exploration
sampling. Joint venture partners for the project are being sourced.
COOLGARDIE GOLD PROJECT (100%) - WESTERN AUSTRALIA
E15/284 (Bonnievale)
P16/1410-1412, P15/3037 (Star of Fremantle)
The Company is seeking a joint venture partner to evaluate the potential for
gold and nickel targets within the Bonnievale tenement.
Exploration activities on Star of Fremantle during the quarter have been
restricted to geological and economic evaluation of the project. The review is
comprehensive and will be used to determine Placer Dome's exploration level and
ongoing involvement in the project.
KANOWNA WEST
E24/73, P24/3016-3020
The ground was relinquished during the quarter after the joint venture with
Centaur Mining (in liquidation) was officially terminated.
DIRECTOR APPOINTMENT
Subsequent to the end of the Quarter Anthony Ogilvie Thompson accepted a
position as director of Reefton. Mr Ogilvie Thompson has eleven years experience
in resource finance and has extensive experience investing in junior resource
companies. His experience includes working with both the oil and gas sector and
the mining industry. Additionally, his experience includes advisory work for
both these sectors, working in a major mining company and employment as a
natural resources private equity specialist. Prior to joining the Resource
Advisory Partnership, he joined RH Fleming & Co. to develop a private equity
arm, focusing on natural resources in emerging markets. He has worked in
Johannesburg, London and New York, giving him experience and contacts in the
three most important financial centres for African natural resources.
CORPORATE
In respect to the Agreement by the Company and its wholly owned subsidiary
Reefton Exploration Pty Ltd with Charter Summit Investments Limited, Carlos Da
Cruz and Manuel De Castro in Namibia the directors advise that Charter Summit,
Cruz and Castro have been unable to settle the placement of securities and the
acquisition of 40% of the issued capital of Storm Diamond Mining Company (Pty)
Ltd and Black Range Mining (Pty) Ltd pursuant to the Heads of Agreement dated 23
January 2003.
The Company has sought legal advice and has issued Notices of Default and Demand
for Performance. The Company maintains a dialogue with Charter Summit and Cruz's
solicitors with a view to early settlement of the transactions.
The Company also advises that the contract of employment with the Chief
Executive Officer, Mr Mal Randall, has not been renewed. The Company wishes Mr
Randall every success in his future endeavours.
B S Moore
Chairman
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.
Name of entity
Reefton Mining N.L.
ACN or ARBN Quarter ended ("current quarter")
------------------- ------------------
010 546 675 31 March 2003
------------------- ------------------
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 (147) (698)
evaluation
(b) development
(c) production
(d) administration (93) (659)
1.3 Dividends received
1.4 Interest and other items of a 1 26
similar nature received
1.5 Interest and other costs of finance
paid
1.6 Income taxes paid
1.7 Other (provide details if material)
London, UK listing costs - (65)
------------ ------------
Net Operating Cash Flows (239) (1396)
----------------------------- ------------ ------------
Cash flows related to investing
activities
1.8 Payment for purchases of: (a)
prospects
(b)equity investments
(c) other fixed assets (136) (392)
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 - 88
1.12 Other (provide details if material)
------------ ------------
Net investing cash flows (136) (304)
------------ ------------
1.13 Total operating and investing cash
flows (carried forward)
(375) (1700)
----------------------- ------------ ------------
1.13 Total operating and investing cash (375) (1700)
flows (brought forward) ------------ ------------
Cash flows related to financing
activities
1.14 Proceeds from issues of shares,
options, etc.
1.15 Proceeds from sale of forfeited
shares
1.16 Proceeds from borrowings 154 154
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Underwriting fees ------------ ------------
Net financing cash flows 154 154
------------ ------------
Net increase (decrease) in cash (221) (1546)
held
1.20 Cash at beginning of quarter/year to 232 1,557
date
1.21 Exchange rate adjustments to item
1.20 ------------ ------------
1.22 Cash at end of quarter 11 11
----------------------- ------------ ------------
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 38
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
N/A
-------------------------------------------
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
--------------------------------------------
N/A
--------------------------------------------
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
--------------------------------------------
N/A
--------------------------------------------
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 500 154
------------- -------------
3.2 Credit standby arrangements NIL
----------------------- ------------- -------------
Estimated cash outflows for next quarter
$A'000
------------------
4.1 Exploration and evaluation 200
------------------
4.2 Development
----------------------------- ------------------
Total 200
----------------------------- ------------------
Reconciliation of cash
Reconciliation of cash at the end of the Current Previous
quarter (as shown in the consolidated quarter quarter
statement of cash flows) to the related
items in the accounts is as follows.
$A'000 $A'000
------------------------- ------------ -------------
5.1 Cash on hand and at bank 11 74
------------ -------------
5.2 Deposits at call - 158
------------ -------------
5.3 Bank overdraft
------------ -------------
5.4 Other (provide details)
---------------------- ------------ -------------
Total: cash at end of quarter (item 11 232
1.22) ------------ -------------
----------------------
Changes in interests in mining tenements
----------- ------------- -------- --------
Tenement Nature of Interest Interest
reference interest at at end of
beginning quarter
of
quarter
(note (2))
----------- ------------- -------- --------
6.1 Interests in
mining tenements
relinquished,
reduced or
lapsed N/A
----------- ------------- -------- --------
6.2 Interests in
mining tenements
acquired or
increased N/A
----------- ------------- -------- --------
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 price per Amount paid
number quoted security (see up per
note 3) (cents) security (see
note 3)
(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 143,716,647 143,716,647
securities 30,000,000 30,000,000 7 cents 1 cent
5,000,000 NIL 25 cents 17 cents
------------ ------------ ------------- ------------
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 Exercise price Expiry date
(description 20 cents 30/11/2003
and 106,920,392 106,920,392
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 Law or
other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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