RNS Number:6007X
Ballarat Goldfields N.L.
30 January 2006
Ballarat Goldfields NL (ACN 006245441)
ASX and Media release: 30 January 2006
Quarterly Activities and Cash flow Report
For the 3 months ended 31 December 2005
KEY POINTS
* Construction of the crushing and gravity recovery circuits of the
processing plant was completed on schedule on 12 December 2005.
* First gold was poured on 21 December 2005 during the commissioning of
the gravity recovery section of the plant.
* Breakthrough of the ventilation drive into the North Prince Extended
Vent Shaft was finally achieved on 11 January 2006
* Mining was undertaken in the first stope from the 189 Woah Hawp North
Ore Drive with the first lift of the cut and fill mining method successfully
completed.
* High grade gold drill intersections at Ballarat East during the
quarter include:
3.0m @ 41.2g/t,
3.0m @ 17.1g/t,
4.0m @ 14.1g/t,
2.0m @ 16.8g/t,
3.0m @ 9.1g/t.
* Construction of the tailings storage facility commenced during the
quarter.
* Placement of ordinary shares to Australian and international
institutions raised A45 million.
* Ballarat Goldfieds, in association with the City of Ballarat, donated
the gold to be used in the production of the gold medals for the Melbourne
2006 Commonwealth Games.
* Nomination received for a Victorian Worksafe Award.
* Laura Chibnall was appointed Manager - Community and Environment.
BALLARAT EAST PROJECT DEVELOPMENT
Underground decline development
Underground development at the end of the quarter had advanced a total of 2,183
metres.
The primary mine development objective remained the Sulieman decline to the
north and the Woah Hawp decline to the south.
The Sulieman decline, now at a depth of 223 metres below surface, continued to
experience good ground conditions allowing consistent progress. Development was
halted during the last part of the quarter to allow access for underground drill
rigs. This decline is being developed to the north to initially provide drill
platforms for resource definition before ultimately providing a return airway
for the mine.
The Woah Hawp decline, at a depth of 230 metres below surface, continued to the
south providing access to the first stopes from the 189 Woah Hawp Ore Drives,
North and South. Ground conditions were variable, however reasonable progress
continued to be achieved.
Break through into the North Prince Extended ventilation shaft occurred on 11
January, some 4 months later than originally planned. The primary vent fans were
installed during the quarter, and this phase of the ventilation circuit
construction is now complete. The shaft sinking infrastructure was removed and a
temporary cover put in place until a permanent air guide (evase) is established
over the shaft collar.
Breakthrough of the ventilation circuit and installation of the fans will allow
the introduction of additional development and mining equipment in order to
ramp-up development rates.
Underground mining
A total of around 6,000 tonnes was mined from the 189 Woah Hawp North access and
stockpiled on the surface. The first lift in the strike drive was completed and
the void successfully filled prior to commencing the second lift.
PROCESSING PLANT
Construction of the crushing and gravity recovery circuits of the processing
plant was completed on 12 December 2005 as planned at a cost of approximately
A$18 million. This circuit allows the largely coarse free gold to be liberated
and collected in the gravity concentration circuit. Several concentrated streams
are then collected for further separation and smelting. As planned, the first
stage of the process plant will be completed with the addition of a leaching
circuit, utilizing a high intensity leach reactor, later in this half year. Data
collected during commissioning will allow fine tuning of the design and
implementation of the leaching circuit.
Commissioning
Commissioning of the processing plant commenced in December 2005 and will
continue into the current quarter. During this time the plant will be run on a
batch basis as grade reconciliation, process tuning and mechanical performance
are monitored.
Prior to construction of the leaching circuit the gold bearing sulphide
concentrate will be stockpiled.
Tailings storage facility and water supply
The tailings (fine grain sand) will be deposited in a tailings storage facility
("TSF"). Construction began early in October following review and signoff of the
final engineering design. The new design, approved under a work plan variation,
incorporates current industry best practise and complies with international and
Australian guidelines and principles for world class environmental management
and sustainable development.
Ballarat Goldfields is a member of the Mineral Council of Australia, and is
committed to the implementation of the principles of "Enduring Value", the
industries benchmark for stewardship.
The TSF is expected to be completed during the current quarter. The process
water storage dam, associated supply pipework and pump were also completed in
the quarter. An area within the process water dam is being utilized for interim
tailings storage prior to the completion of the TSF.
MINE GEOLOGY AND EXPLORATION
Ballarat East resource definition drilling
Diamond drilling continued at Ballarat East, with two drill rigs focussed on
regional resource definition and a third drill rig focussed on stope definition
drilling.
The regional drilling program targeted gold mineralisation on the Tiger and Mako
faults which are typically 500 to 600m below the surface.
Access to shallow targets on the northern sections was restricted until the end
of the quarter, due to the limited availability of the Sulieman decline. The
drilling from the northernmost section of the decline has successfully
identified gold mineralisation on the Hammerhead fault. This particular fault is
significant as it will allow for development and stoping later in 2006 in an
area previously targeted but not drilled.
The drilling continues to intersect gold mineralisation in the targeted zones
identified by the BGF geological model. Visible gold is also repeatedly observed
in these zones giving further confidence in the model.
Significant assay results from the December quarter drilling are summarised in
Table 1.
Hole number Down hole depth (m) Width (m)* Grade g/t Location
BEU080 85 to 89 4.0 14.1 Hammerhead Fault
--------------------------------------------------------------------------------
BEU088 277 to 279 1.9 12.1 Hammerhead Fault
--------------------------------------------------------------------------------
BEU093 262 to 265 3.0 9.1 Hammerhead Fault
--------------------------------------------------------------------------------
BED07A 548 to 551 3.0 17.1 Tiger Fault
--------------------------------------------------------------------------------
BEU050A 315 to 317 2.0 16.8 Tiger Fault
--------------------------------------------------------------------------------
BED008 536 to 538 2.0 13.1 Tiger Fault
--------------------------------------------------------------------------------
BEU087 310 to 315 5.0 3.7 Tiger Fault
--------------------------------------------------------------------------------
BED008C 603 to 606 3.0 41.2 Mako Fault
--------------------------------------------------------------------------------
BEU50B 380 to 382 2.0 10.7 Mako Fault
--------------------------------------------------------------------------------
Table 1: Significant assay results received in the December quarter 2005
*All of the intersections reported have been adjusted for their estimated true
widths.
Other Exploration
During the quarter work began on the exploration programs for Ballarat South,
Berringa and Ballarat West. This included the employment of staff and purchase
of drilling equipment.
In addition, the company has consolidated its exploration and mining licences
from 16 to 4, along with two new applications.
The total area under licence remains the same, with the two applications adding
to the portfolio. This change is aimed at simplifying future applications,
administration and expenditure management.
Safety Award Nomination
Ballarat Goldfields were nominated for a Worksafe Victoria award in the category
of "Best Strategies for Health and Safety Management". The nomination recognised
the design and operational ingenuity of the company's drill core processing
facilities.
This is an important recognition both, of the company's innovation and focus on
safety, and the commitment of key personnel in implementing an outstanding
facility.
Established industry practice in this area is inadequate. To address this, staff
established the drill core processing facility to address numerous health,
safety and operational inefficiencies that typically exist.
As a result, BGF has seen a dramatic improvement in the efficiency of recording
key information that can identify the location of gold mineralisation. This
places the company in a position where it can effectively expand its exploration
activities to the additional projects that it owns, without interfering with the
quality of information and attention required at its Ballarat East project.
CORPORATE AND FINANCE
Finance
The cash balance at 31 December 2005 was $53.9 million. During the quarter, $6
million of the principle outstanding was repaid to Investec Australia Ltd, with
$6 million debt remaining.
Ordinary share placement
In November 2005, BGF undertook an international placement of 150 million shares
at A$0.30 raising A$45 million, before costs, to clients of RBC Capital Markets,
Numis Securities (UK) and Haywood Securities (UK). The funds raised by the
placement will be applied to exploration and feasibility of the Ballarat South,
Berringa and Ballarat West projects and towards the Ballarat East gold
development.
Key management appointment
Laura Chibnall was appointed Manager Environment and Community. Laura is an
environmental scientist who began her career in land use planning with the State
Government of Victoria. Laura also brings a wealth of mining industry experience
having worked in Kalgoorlie with Goldfields Limited and, more recently, with MPI
and Leviathan Resources Ltd at the Stawell Gold Mine in Victoria.
COMMUNITY
Commonwealth Games - Melbourne 2006
Ballarat Goldfields was honoured to donate gold to the City of Ballarat, a
sponsor of the Melbourne 2006, Commonwealth Games.
Gold, from Ballarat Goldfields ore processed at the Sovereign Hill tourist mine
during the quarter, will be used in the production of the gold medals for the
Melbourne 2006 Commonwealth Games.
BACKGROUND INFORMATION
Ballarat East Project Summary
Situated in one of the most famous historical gold mining regions of Australia,
Ballarat produced over 12 million ounces before it's premature closure, around
the time of the first world war.
In 2004, for the first time following discovery in the 1850's, the leases over
the entire Ballarat field were consolidated under the sole ownership of BGF.
This has resulted in the company constructing a comprehensive geological model
of the entire field, demonstrating what many had suspected, that Ballarat had
massive unexplored prospectivity.
BGF completed a pre-feasibility study in 2004 which proposed an initial
underground mine at Ballarat East, with twin access declines servicing the
haulage and ventilation. The mine, based on BGF's geological model, would have
a life of 21 years, with an average production rate of approximately 200,000
ounces of gold per annum.
Underground development at Ballarat East recommenced in December 2004 and BGF
accessed the first mining block in September 2005. The process plant began
commissioning in December 2005.
BGF's geological model robust
BGF's geological model remains robust as the drilling continues to intersect
gold mineralisation in the target zones identified by the geological model.
After probability adjustment for risk and uncertainty the company derived an
Exploration Potential of 8.3 million ounces, with 90% confidence limits ranging
from 2.8 million ounces to 14.4 million ounces in addition to an inferred
resource of 1.1 million ounces for Ballarat East. (Further information is
available on the BGF website www.ballarat-goldfields.com.au )
Note:The information in this report that relates to Exploration Results, Mineral
Resources and Exploration Potential is based on information compiled by Mr
Steven Olsen. Mr Olsen is an employee of Ballarat Goldfields NL, is a member of
the Australian Institute of Mining and Metallurgy and is a Competent Person
under the definition of the 2004 JORC Code. The Exploration Potential described
above is conceptual in nature, and there is insufficient information to
establish whether further exploration will result in the determination of a
Mineral Resource. Mr Olsen consents to the publication of this information in
the form and context in which it appears.
CORPORATE DIRECTORY
Registered and Principal Office Directors Chairman
10 Woolshed Gully Drive Colin Smith Managing Director
Mt Clear Victoria 3350 Richard Non-executive
Laufmann Director
Australia Mike Etheridge Non-executive
Director
Alister
Maitland
Web Site Company Secretary
www.ballarat-goldfields.com.au Amber Rivamonte
Shareholder Services Stock Exchange Listing
Computershare Investor Services Pty Australian Stock Exchange Code BGF
Limited
GPO Box 2975EE Alternative Investment Market (AIM)
BGF
Melbourne AIM Nominated Advisor
Victoria 3000 RFC Corporate Finance Ltd
Australia Level 14
Investor Enquires Tel: 1300 850 505 19-31 Pitt St
Tel: 03 9415 5000 Sydney, NSW
Fax: 03 9473 2500 Australia 2000
www.computershare.com AIM Nominated Broker
Numis Securities
Cheapside House
138 Cheapside
London EC2V 6LH
United Kingdom
To see the full version of this Release and further information:
please visit the company website (www.ballarat-goldfields.com.au)
Or contact Joel Forwood, Manager Corporate and Markets, on +613 5327 1111.
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
BALLARAT GOLDFIELDS NL
ABN Quarter ended ("current quarter")
------------------- ------------------
50 006 245 441 December 2005
------------------- ------------------
Consolidated statement of cash flows
-----------------------------
Cash flows related to operating activities Current quarter Year to date
$A'000 (12 months)
$A'000
-----------------------------
1.1 Receipts from product sales and related
debtors - -
1.2 Payments for (a) exploration and
evaluation (7,376) (15,532)
(b) development - -
(c) production - -
(d) administration (772) (1,610)
1.3 Dividends received - -
1.4 Interest and other items of a similar
nature received 101 135
1.5 Interest and other costs of finance
paid (190) (755)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
---------------------------
Net Operating Cash Flows (8,237) (17,761)
--------------------------------------------------------------------------------
Cash flows related to investing
activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets (11,747) (16,766)
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 (11,747) (16,766)
---------------------------
1.13 Total operating and investing cash flows
(carried forward) (19,985) (34,527)
--------------------------------------------------------------------------------
1.13 Total operating and investing cash flows
(brought forward) (19,985) (34,527)
--------------------------------------------------------------------------------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 47,116 77,727
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings 12,000
1.17 Repayment of borrowings (6,000) (6,000)
1.18 Dividends paid
1.19 Other (provide details if material) (4,231) (4,231)
-------------------------
Net financing cash flows 36,885 79,496
--------------------------------------------------------------------------------
Net increase (decrease) in cash held 16,901 44,970
1.20 Cash at beginning of quarter/year to date 37,006 8,937
1.21 Exchange rate adjustments to item 1.20
-------------------------
1.22 Cash at end of quarter 53,907 53,907
--------------------------------------------------------------------------------
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 241
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
--------------------------------------------------------------------------------
Item 1.23 includes salaries, director fees and superannuation paid to
directors during the quarter.
--------------------------------------------------------------------------------
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 6,000 6,000
-------------------------------------
3.2 Credit standby arrangements - -
--------------------------------------------------------------------------------
Estimated cash outflows for next quarter
$A'000
------------------
4.1 Exploration and evaluation 10,000
------------------
4.2 Development -
--------------------------------------------------------------------------------
Total 10,000
--------------------------------------------------------------------------------
Reconciliation of cash
--------------------------
Reconciliation of cash at the end of the quarter (as Current Previous
shown in the consolidated statement of cash flows) to quarter quarter
the related items in the accounts is as follows.
$A'000 $A'000
--------------------------------------------------------------------------------
5.1 Cash on hand and at bank 53,907 37,006
--------------------------
5.2 Deposits at call
--------------------------
5.3 Bank overdraft
--------------------------
5.4 Other (provide details)
--------------------------------------------------------------------------------
Total: cash at end of quarter (item 1.22) 53,907 37,006
--------------------------------------------------------------------------------
Changes in interests in mining tenements
---------------------------------------------------
Tenement Nature of Interest at Interest
reference interest beginning of at end of
quarter quarter
(note (2))
---------------------------------------------------
6.1 Interests in mining
tenements
---------------------------------------------------
relinquished, reduced
or lapsed
6.2 Interests in mining
tenements acquired or
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 Number quoted Issue price Amount paid
per security up per
(see note 3) security
(cents) (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 1,162,373,324 1,162,373,324
securities
--------------------------------------------------------------------------------
7.4 Changes during 161,616,435 161,616,435 15 cents 15 cents
quarter
(a) Increases 150,000,000 150,000,000 30 cents 30 cents
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 5,000,000 Exercise Expiry
(description price date
and conversion
factor)
2,666,668 3.45 cents 30/9/2006
11,000,000 4.72 cents 30/9/2006
2,000,000 One third each 30/9/2007
at: 12 cents;
13 cents; 15
cents
respectively
5,000,000 17.25 cents 30/9/2007
1,500,000 15 cents 2/12/2007
25 cents 30/9/2008
--------------------------------------------------------------------------------
7.8 Issued during
quarter
--------------------------------------------------------------------------------
7.9 Exercised 161,616,435 161,616,435 15 cents 30/9/2005
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 4).
2 This statement does give a true and fair view of the matters disclosed.
Sign here:
Managing Director
Richard Laufmann
Date: 30 January 2006
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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