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ORPHEUS URANIUM LIMITED Interim / Quarterly Report 2004
65509_rns_2004-07-29_1b95de94-9ffa-4950-8b3d-979342f40d16.pdf
Interim / Quarterly Report
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30th July 2004
ASX Code: ARE
QUARTERLY REPORT
For period ending 30 June 2004
The Board of Directors of Argonaut Resources NL (Argonaut) report for the quarter to 30 June 2004 as follows.
HIGHLIGHTS
- Q Rock-chip sampling by Argonaut's Joint Venture partners, Hillgrove Resources Limited, at the Emily Star Prospect on EL2663 resulted in rock chip samples grading up to 18.29% copper, 14.6g/t gold, 14.98% zinc and 8 ounces silver
- a RC drilling at Emily Star intercepted 27m at 3.94% copper including 14m at 6.77% copper from 19m.
- a Argonaut stepped up its efforts to gain title to the Century Thrust area, west of Vientiane in Laos
- a Argonaut secured the Mt. Kroombit zinc-copper deposit in southeastern Queensland.
- Q Argonaut secured a Native Title Heritage Clearance with the Kuyani People to conduct exploration activities on Lake Torrens.
EXPLORATION
EL 2663, Kanmantoo
In the June Quarter, Argonaut's Joint Venture partners, Hillgrove Resources Limited (Hillgrove), announced drill intercepts from the Emily Star Prospect on EL 2663 including 27m at 3.94% copper including 14m at 6.77% copper from 19m in drillhole KTRC008. In addition, rock-chip sampling, some 2km south of Emily Star generated results up to 18.29% copper, 14.6g/t gold, 14.98% zinc and 8 ounces silver.
Hillgrove plans to conduct further RC drilling in this area during the September Quarter.
Hillgrove purchased a 40% interest in the tenement from Kelaray's previous partners and has spent sufficient money on exploration works to earn an additional 50% interest from Kelaray under the terms of the Farm-in Joint Venture. Kelaray's remaining 10% interest will be free carried until a decision to mine.
After the decision to mine Kelaray may elect to contribute to retain the interest or revert to a 2% net smelter royalty.
Laos Venture
Argonaut management has focused efforts on negotiations with the Laotian Government in a concerted effort to secure commercially practical title to the prospective Century Thrust area.
The Century application covers a significant strike length of the highly prospective Century Thrust Zone, which lies within the Luang Prabang - Petchabun Tectonic Foldbelt that extends from northern Laos to central Thailand. The Century Thrust is immediately east of a tectonic subduction related volcanic arc.
ML 5631, Mt. Kroombit
The Mt. Kroombit zinc-copper deposit is located east-southeast of Biloela in Queensland. Copper-Zinc resource estimates by previous lease holders are not JORC compliant and will not be quoted by Argonaut at this time.
The transfer of Mt. Kroombit to Argonaut was previously subject to the exercising of a separate option agreement. The transfer was brought forward by mutual consent subject only to a 2% Net Smelter Royalty payable on commencement of commercial operations.
Argonaut intends to evaluate the deposit and, if warranted, continue to increase the resource base by extending the existing grid of drillholes.
EL 3195, Torrens
Argonaut secured a Site Survey Report from representatives of the Kuvani Native Title Claim, which cleared the entire proposed exploration area, the majority of which is over part of Lake Torrens.
This positive clearance report is significant as it would appear that this is the first clearance of a South Australian salt lake since the introduction of Native Title.
Argonaut, together with Joint Venture partners, Straits Resources will continue to progress the various approvals required to allow an exploration programme to commence.
EL 3037, Alford
An independent Geophysical Consultant undertook a reprocessing and reinterpretation of all gravity, airborne magnetic and airborne electro-magnetic data. Results of this work will be available shortly and will become the basis for future geophysical acquisition and drilling by Hillgrove.
EL 2889, Sandstone
No exploration work was undertaken on EL 2889 during the quarter.
EL 2895, Willouran Hill
No exploration work was undertaken on EL 2895 during the quarter
EL 3193 and EL 3075, Aroona
No exploration work was undertaken on ELA 260/03 and EL 3075 during the quarter.
CORPORATE
During the period a continuing flow of encouraging exploration results generated by Hillgrove following their drilling program and rock sampling carried out on the Emily Star prospect on EL 2663. This progress continues to support our policy of shared exploration risk with other companies covered by various previously announced joint venture agreements.
This exploration activity by our partners will continue during subsequent periods on various Argonaut leases.
This company will continue to seek further advanced exploration plays or the acquisition of known resources or operations.
We are currently considering further interests in Australia, Laos and other areas within the Asian region.
Graeme Ellis
Managing Director Argonaut Resources NL
Geological information detailed in this report was compiled by Mr Lindsay Owler of Argonaut Resources NL and Mr. Dale Ferguson of Hillgrove Gold Ltd. who are corporate members of the Australian Institute of Mining and Metallurgy and who have in excess of 5 years experience in this field of activity.
TENEMENT SCHEDULE AS AT 30 JUNE 2004
EXPLORATION LICENCES
| Tenement | Granted | Expiry | Area Km 2 | Locality | Licensee | Interest |
|---|---|---|---|---|---|---|
| EL 2654 | 14/10/1999 | 13/10/2004 | 215 | Sandstone | Coombedown Resources Pty Ltd | 10% |
| EL 2663 | 3/11/1999 | 2/5/2004 | 489 | Kanmantoo | Kelaray Pty Ltd | 60% |
| EL 2884 | 7/01/2002 | 6/01/2005 | 42 | Campfire Bore | Coombedown Resources Pty Ltd | 10% |
| EL 2889 | 18/01/2002 | 17/01/2005 | 215 | Sandstone | Kelaray Pty Ltd | 76.6% |
| EL 2895 | 22/02/2002 | 21/02/2005 | 826 | Willouran Hill | Kelaray Pty Ltd | 100% |
| EL 3037 | 25/10/2002 | 24/10/2004 | 477 | Alford | Kelaray Pty Ltd | 100% |
| EL 3075 | 2/04/2003 | 1/04/2004 | 166 | Myrtle Springs | Kelaray Pty Ltd | 100% |
| EL 3115 | 4/8/2003 | 3/8/2004 | 80 | Aurora Tank | Kelaray Pty Ltd | 45% |
| EL 3172 | 4/3/2004 | 3/3/2005 | 95 | Breaden Hill | Kelaray Pty Ltd | 100% |
| EL 3193 | 1/4/2004 | 31/3/2005 | 281 | Mt Parry | Kelaray Pty Ltd | 100% |
| EL 3195 | 6/4/2004 | 5/4/2004 | 295 | Lake Torrens | Kelaray Pty Ltd | 100% |
| EL 3210 | 1/6/2004 | 31/5/2005 | 66 | Garford | Kelaray Pty Ltd | 76.6% |
EXPLORATION LICENCE APPLICATIONS
| Γenement | Application Date | Area Km 4 | Locality | Applicant |
|---|---|---|---|---|
| ELA 143/97 | 6/02/1997 | 1040 | Carbeena Hill | Kelarav Ptv Ltd |
| ELA 144/97 | 6/02/1997 | 835 | Harcus | Kelarav Ptv Ltd |
| ELA 186/97 | 14/02/1997 | 1815 | Moombunya | Kelarav Ptv Ltd |
| ELA 321/97 | 15/04/1997 | 624 | Mt Illillinna | Kelarav Ptv Ltd |
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
| Name of entity | |||
|---|---|---|---|
| Argonaut Resources NL | |||
| ABN | Quarter ended ("current quarter") | ||
| 97 008 084 848 | $30th$ June 2004 | ||
| Consolidated statement of cash flows | |||
| Cash flows related to operating activities | Current quarter SA'000 |
Year to date (12 months) \$A'000 |
|
| 1.1 | Receipts from product sales and related debtors | ||
| 1.2 | Payments for exploration (a) and evaluation (b) development (c) production |
(20) | (207) |
| (d) administration | (146) | (1,103) | |
| 1.3 | Dividends received | ||
| 1.4 | Interest and other items of a similar nature received |
32 | 43 |
| 1.5 | Interest and other costs of finance paid | (6) | (117) |
| 1.6 | Income taxes paid | ||
| 1.7 | Other (provide details if material) | ||
| Net Operating Cash Flows | (140) | (1,384) | |
| 1.8 | Cash flows related to investing activities Payment for purchases of: (a)prospects (b)equity investments |
||
| 1.9 | (c) other fixed assets Proceeds from sale of: (a)prospects |
$\overline{a}$
$(140)$
(b)equity investments (c)other fixed assets
Loans repaid by other entities
Net investing cash flows
(carried forward)
Other (provide details if material)
Total operating and investing cash flows
Loans to other entities
$1.10$
$1.11$
1.12
1.13
$\overline{a}$
$(1, 384)$
+ See chapter 19 for defined terms.
| 1.13 | Total operating and investing cash flows (brought forward) |
(140) | (1, 384) |
|---|---|---|---|
| Cash flows related to financing activities | |||
| 1.14 | Proceeds from issues of shares, options, etc. | 428 | 3,128 |
| 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 (provide details if material) | ||
| Net financing cash flows | 428 | 3.128 | |
| Net increase (decrease) in eash held | 288. | 1,744 | |
| 1.20 | Cash at beginning of quarter/year to date | 2,141 | 685 |
| 1.21 | Exchange rate adjustments to item 1.20 | ||
| 1.22 | Cash at end of quarter | 2,429 | 2,429 |
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 SA'000 |
||
|---|---|---|
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 32 |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 |
1.25 Explanation necessary for an understanding of the transactions
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
- $2.2^{\circ}$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
| Amount available | Amount used |
|---|---|
| $\vert$ \$A'000 | $\frac{1}{2}$ \$A'000 |
+ See chapter 19 for defined terms.
| -3.1 | Loan facilities | |
|---|---|---|
| -3.2 | Credit standby arrangements |
Estimated cash outflows for next quarter
| 4.1 | Exploration and evaluation | \$A'000 50 |
|---|---|---|
| 4.2 | Development | |
| Total | 50 |
Reconciliation of cash
| Reconciliation 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. |
Current quarter SA'000 |
Previous quarter \$A'000 |
|
|---|---|---|---|
| 5.1 | Cash on hand and at bank | 26 | 856 |
| 5.2 | Deposits at call | 2,403 | 1,285 |
| 5.3 | Bank overdraft | ||
| 5.4 | Other (provide details) | ||
| Total: cash at end of quarter (item 1.22) | 2,429 | 2,141 |
Changes in interests in mining tenements
| Tenement reference |
Nature of interest (note (2)) |
Interest at beginning of quarter |
Interest at end of quarter |
||
|---|---|---|---|---|---|
| 6.1 | Interests in mining tenements relinquished, reduced or lapsed |
||||
| 6.2 | Interests in mining tenements acquired or increased |
+ See chapter 19 for defined terms.
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 quoted | Issue price per security (see note $3)$ (cents) |
Amount paid up per 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 securities |
56,183,227 | 56,183,227 | ||
| 7.4 | Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs |
3,280,500 | 3,280,500 | ||
| 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) |
18,986,379 Convertible to ordinary shares on payment of .30 cents |
18,986,379 | Exercise price .30 |
Expiry date 30.06.07 |
| 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) |
+ See chapter 19 for defined terms.
Compliance statement
- $\mathbf{I}$ 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).
- $\overline{2}$ This statement does give a true and fair view of the matters disclosed.
Sign here:
....................................... (Director/Company secretary)
Date: 30th July 2004
Print name: Graeme Ellis
Notes
- $\mathbf{I}$ 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.
- $\overline{2}$ 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.
- $\mathfrak{Z}$ 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.