2003 Annual Report
Address by the Chairman
It is my pleasure to present to you the Annual Report for the year to 30 June 2003.
During the year the Company undertook a re-evaluation of its Telfer project in Western Australia. The outcome of this re-evaluation has determined that the potential for discovering any resource akin to the Telfer Deeps style of mineralisation is most likely to be found at the East Thompson’s Dome Prospect. The Company believes that whilst a very small but very high grade near surface resource exists at East Thompson’s Dome, sufficient work has been conducted to date to negate the potential for the discovery of a significant near-surface open cut resource. However, it is believed that the potential for a resource similar to the Telfer Deeps style of mineralisation still exists at depth.
At Tim’s Dome Prospect the Company believes that potential exists for stockwork type gold mineralisation in a similar, geological setting to that which exists at Newcrest’s Telfer Main Dome.
At Perrinvale, a gold and basemetals exploration project west of Menzies in Western Australia in which the Company is earning equity from Heron Resources Ltd, the Company commenced negotiations with various Native Title Parties in an effort to consolidate the ground holding in the area. The Company believes that once tenements which have been applied for and are now subject to Native Title negotiations can be consolidated with tenements already granted, a much more effective exploration effort can be applied.
In Namibia, at the Tsumkwe Diamond Exploration Project, a significant amount of this years exploration budget was applied to conducting ground gravity surveys. Whilst several gravity anomalies were generated none of them proved to be kimberlites when drill tested. More recent geomorphological work which has been specifically directed at trying to determine the source area of the G10 garnets and macro diamonds found within the project, is tending to confirm a potential source area in the eastern regions of the project. The potential for the discovery of another kimberlite within the Gura area, where the Company has found three kimberlites to date, is demonstrated by the results the Company announced in its June 2003 quarterly report. A significant number of very fresh pyrope garnets were found in a drillhole drilled to the east of and up slope from the Gura kimberlite. The fact that these garnets did not show any signs of wear indicates that they must have shed from a kimberlite within close proximity to the drillhole.
On the eastern side of the tenement area, within proximity of the Namibia/Botswana border, the Company has obtained some very encouraging basemetals results from a geochemical sampling programme. These are currently in the process of being followed up.
Of particular note is the fact that on the Botswana side of the border from where these basemetals results were obtained, the Company has recently been granted Prospecting Licence P69/2003 for base and precious metals. This area in Botswana has previously been explored by Billiton Botswana (Pty) Ltd. Billiton obtained some very encouraging results and in its final report of July 1983 stated that the results suggested that there is potential for a large zinc/lead deposit.
During the year much exposure and debate has been given to the recently recommended Corporate Governance Principles. Under ASX Listing Rule 4.10, the Company will be required to disclose in its annual report for the year to 30 June 2004, the extent to which it has adopted the recommended principles. Further, companies have been encouraged to report in this annual report the extent to which the recommended principles have been adopted. Because of the impact of these principles, particularly on smaller companies and the time required to implement them in an effective manner, the Company is still in the process of determining how best to adopt some of the principles.
The Board of the Company frequently reviews its composition, with the intention that it should comprise members best able to direct the Company to achieve its objectives. Given the present size of the Company, it is unlikely to adopt the new principles in their entirety in this regard.
If the Company was to immediately adopt the new principles in their entirety, it would probably require the appointment of an additional two or three non-executive directors. From a purely commercial point of view, this would not be in the best interests of the Company.
Finally, I should like to take this opportunity to thank the other Board members and Company employees for their commitment during the year.
N R FORRESTER
CHAIRMAN
