abn 27 107 131 653 for personal use only · appendix 5b mining exploration entity quarterly report...

Appendix 5B Mining exploration entity quarterly report

Appendix 5B

Suite 4, Level 3, South Shore Centre 83-85 The South Perth Esplanade

South Perth PO Box 859 South Perth

WA 6151 ABN 27 107 131 653 Tel: 08 9367 6471

Fax: 08 9367 2355 Email: [email protected]

Website: www.ngmresources.com.au QUARTERLY REPORT 30 JUNE 2009 ELS 04 2010

HIGHLIGHTS • Regional field work completed in Niger during the quarter • Drilling and down hole logging contractors commenced work as scheduled

on July 6 (Refer to ASX Release dated 23 July for drilling results update) • Paladin Energy Limited acquires a further 2% of the Company for a total

interest of 16.7%

Uranium – Niger The Company is the holder of three exploration concessions in the highly prospective Tim Mersoї basin located in Niger, the world’s fourth largest producer of uranium. Access to the Company’s concessions has been undertaken with no security issues arising. During the quarter the Company initiated a fieldwork program which included mapping of radiometric anomalies, sampling of outcrop utilising a handheld XRF spectrometer and general checking and validation of information obtained from work previously carried out by Cogema. High grade outcropping uranium anomalism was located on all three concessions. A detailed release on the results of the program was made to the ASX on 25th May 2009. An extract of this release follows:

Introduction NGM Resources (through its wholly owned subsidiary Indo Energy Ltd) hold 100% of three exploration permits in the Tim Mersoï Basin of Niger. This sedimentary basin is host to several world class uranium deposits that have been mined by Areva at Arlit over the past 30 years. Areva has recently commenced construction of the Imouraren uranium mine, claimed to contain approximately 150,000 tonnes of U3O8. The Imouraren mine site lies approximately 120kms north of NGM’s permits.

For

per

sona

l use

onl

y


Appendix 5B

NGM’s tenements are shown in Figure 1. From north to south they are Tagait 4 (TAGT4), Toulouk 1 (TOU1) and Terzemazour 1 (TER1). The town of Agadez is the regional centre for the district and all Government authorities and services are located there, and the main sealed road from Agadez to Arlit passes through the centre of the each tenement.

Figure 1 Location map

For

per

sona

l use

onl

y


Appendix 5B

Airborne Radiometrics Fugro completed an airborne radiometric and magnetic survey for the Niger Government in 2007. The results of this work were released in 2009. The area surveyed covers approximately 75% of NGM’s concessions, including the most prospective lithologies as previously identified from the 1970’s work by Areva. Figure 2 below shows the extent of the survey, the location of the sealed Agadez to Arlit Road, and an image of the U/Th ratio depicting the location of the robust uranium anomalies. These anomalies extend over distances of 5km.

Figure 2 Fugro radiometric survey

For

per

sona

l use

onl

y


Appendix 5B

Field Work NGM has completed an initial field program on the three concessions it holds in the Tim Mersoï basin in Niger. Field activities included limited mapping, and sampling of selected outcrops using a combination of a hand held gamma detector reading total counts per second and a hand held XRF spectrometer. The results of the XRF spectrometer only are appended as Table 1 and shown in Figure 3. The XRF spectrometer utilised is an Innovex X-Ray Spectrometer operated by an experienced geologist from SRK Consulting familiar with this device. Prior to measuring the U concentration at each site the Innovex instrument was calibrated with a standard reference material appropriate for the concentrations to be detected in this region. The field work located an area of higher grade uranium mineralisation on the Terzemazour permit (Takardeit prospect) with a maximum value of 1.34% U3O8. Figure 4 shows an enlargement of this three (3) km long area of outcropping mineralisation. The recent field work has validated the previous Areva (Areva operated as Cogema during the 1970’s in Niger) data obtained from the Niger Ministry of Mines, and confirms the existence of high grade outcropping zones of uranium mineralisation. The field work has confirmed that the principal lithology hosting the outcropping radiometric anomalies is the same sandstone lithology as logged by Areva in their drill holes in the 1970’s and often associated with anomalous radiometric values. The previously released cross-sections (Idekel on Tagait 4 and Takardeit on Terzemazour 1 permits respectively and shown in Figure 5 below) of the Areva data indicate that the radiometric anomalism is located at the same shale–sandstone contact as identified at surface and extending for over 5km down dip. The Areva may indicate that the anomalous uranium identified at surface may have significant down-dip extent, to be confirmed by drilling. The work has therefore confirmed the extensive along strike dimensions of the uranium anomalism on the NGM permits. Within these large areas of uranium anomalism the recent field work has also demonstrated the existence of high grade uranium mineralisation. The extent and thickness of these higher grade zones is not able to be determined from the work to date.

For

per

sona

l use

onl

y


Appendix 5B

Permit U U3O8 Cu Mo PbXRF Calculated XRF XRF XRFppm ppm ppm ppm ppm

Tagait 4 900 1,061 104 335 52Tagait 4 542 639 178 229 50Tagait 4 552 651 81 226 32Tagait 4 148 175 194 62 15Terzemazour 1 699 824 <LOD 296 667Terzemazour 1 426 502 29 163 52Terzemazour 1 15 17 <LOD <LOD 13Terzemazour 1 139 164 <LOD 88 248Terzemazour 1 148 174 <LOD 89 256Terzemazour 1 2,250 2,653 <LOD 735 127Terzemazour 1 949 1,119 <LOD 919 384Terzemazour 1 1,784 2,103 <LOD 910 370Terzemazour 1 11,394 13,434 66 414 262Terzemazour 1 2,220 2,618 <LOD 810 61Terzemazour 1 39 46 <LOD <LOD 304Terzemazour 1 94 111 <LOD <LOD 1,462Terzemazour 1 185 219 <LOD 92 72Terzemazour 1 364 429 33 95 36Terzemazour 1 774 913 <LOD 325 71Terzemazour 1 687 810 <LOD 307 64Terzemazour 1 2,744 3,235 <LOD 1,277 449Terzemazour 1 980 1,155 <LOD 553 104Terzemazour 1 1,515 1,787 <LOD 745 147Terzemazour 1 1,933 2,279 <LOD 574 127Terzemazour 1 1,695 1,999 <LOD 796 100Terzemazour 1 811 957 <LOD 646 174Toulouk 1 790 932 <LOD 351 199Toulouk 1 394 464 <LOD 153 402

Table 1 XRF Results NB: U3O8 is calculated as U in ppm multiplied by 1.178

For

per

sona

l use

onl

y


Appendix 5B

Figure 3 Location of XRF (ppm U308) assays

For

per

sona

l use

onl

y


Appendix 5B

Figure 4 XRF (ppm U3O8) assays at Takardeit Prospect

For

per

sona

l use

onl

y


Appendix 5B

Security Field work has previously been suspended in the Tim Mersoï area due to the Government imposed mise en garde which has been advised in prior Company releases. The security situation has significantly improved and stabilised as negotiations between those groups seeking greater regional input and the Government of Niger progress. As a result of the improved security many exploration companies have recommenced working in Niger with both Fugro and UTC flying airborne surveys, and several companies undertaking drilling programmes, soil radiometric surveys and mapping.

Madagascar The Company will commence field reconnaissance programs on its iron ore project area in July 2009. Corporate Paladin Energy invested an initial $500,000 to acquire a stake of approximately 14.3% in March 2009. In May, Paladin acquired a further 2.4% by investing $300,000. In March the Company entered into a Subscription Agreement with Paladin in which the Company agreed to complete some field programs and 1,500m of drilling on its concessions in Niger. The Agreement has an expiry date of 31 December 2009 or, if the drilling and fieldwork is completed in July as expected, the Agreement will expire on 18th September 2009. The Company has no other obligations to Paladin Energy under the Agreement. The Company has prepared presentations for shareholders and investors which are available on the Company’s website www.ngmresources.com.au For further information please contact: Robert Kirtlan +61 8 9367 6471

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Peter Rolley, who is a Member of the Australian Institute of Geoscientists. Mr Rolley is a consultant to the company.

Mr Rolley 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’.

Mr Rolley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For

per

sona

l use

onl

y


Appendix 5B

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Name of entity

ABN Quarter ended (“current quarter”)

27 107 131 653 30 June 2009

Consolidated statement of cash flows Cash flows related to operating activities

Current quarter $A’000

Year to date (9 months)

$A’0001.1 Receipts from product sales and related debtors

-

-

1.2 Payments for (a) exploration and evaluation

(b) development (c) production (d) administration

(445) - -

(6)

(966) - -

(522)

1.3 Dividends received - -1.4 Interest and other items of a similar nature

received 1 11

1.5 Interest and other costs of finance paid (1) (1)1.6 Income taxes paid - -1.7 Other 1 311

Net Operating Cash Flows

(450)

(1,167)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects (b)equity investments (c)other fixed assets (d)security deposit

- - - -

- - --

1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets (d) security deposit

- -

48 -

- -

150 -

1.10 Loans to other entities - -1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - -

Net investing cash flows

48

1501.13 Total operating and investing cash flows

(carried forward)

(402)

(1,017)

For

per

sona

l use

onl

y


Appendix 5B

1.13 Total operating and investing cash flows (brought

forward)

(402)

(1,017)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 346 7991.15 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)

Share issue costs

(4)

(4) Net financing cash flows

342

795

Net increase (decrease) in cash held

(60)

(222) 1.20 Cash at beginning of quarter/year to date 544 695 1.21 Exchange rate adjustments to item 1.20 (1) 10

1.22 Cash at end of quarter 483 483

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 item 1.2

6

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

1.23Consulting fees paid to associates of director

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

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

Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

3.2 Credit standby arrangements

For

per

sona

l use

onl

y


Appendix 5B

Estimated cash outflows for next quarter $A’0004.1 Exploration and evaluation

270

4.2 Development

-

Total 270

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 $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 483 164

5.2 Deposits at call -

500

5.3 Bank overdraft -

-

5.4 Other (provide details) -

-

Total: cash at end of quarter (item 1.22) 483 664

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

For

per

sona

l use

onl

y


Appendix 5B

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

145,180,001

145,180,001

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

1,8650,000 4,280,000

1,865,000 4,280,000

2.5 cents 7.0 cents

2.5 cents 7.0 cents

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)

20,000,000 7,500,000

Exercise price $1.00 $1.00

Expiry date 31 Dec 2010 31 Dec 2011

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)

7.13 Other securities Incentive shares *

30,000,000

* These unlisted incentive shares have rights only after the achievement of certain performance hurdles.

For

per

sona

l use

onl

y


Appendix 5B

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 give a true and fair view of the matters disclosed.

Sign here: Greg Corner Date 29 July 2009 Print name: Greg Corner - Company Secretary

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.

== == == == ==

F

or p

erso

nal u

se o

nly

abn 27 107 131 653 for personal use only · appendix 5b mining exploration entity quarterly report...

Documents