2004 Annual Report
Posted on 30/06/2004
Address by the Chairman
It is my pleasure to present to you the Annual Report for the year to 30 June 2004.
Last year I informed shareholders that the Company had undertaken a major re-evaluation of its Telfer Project, which determined the potential to discover Telfer Deeps style mineralisation similar to that being developed by Newcrest Mining Limited at its main Telfer Dome Mine. This potential, relative to the Company’s tenements at Telfer, which include Tim’s Dome and East Thomson’s Dome, has also been recognized by Barrick Gold of Australia Limited, with the result that a joint venture has now been formed between Barrick and the Company.
Barrick has the right to earn a 51% interest through the expenditure of Aud $5 million, at which point the Company can either elect to contribute pro-rata or be free-funded through to a decision to mine with a 25% interest. Since the commencement of the joint venture in the New Year, Barrick has carried out a significant appraisal of the Company’s tenements, particularly relating to structural and stratigraphic interpretation, in preparation for commencing some deep diamond core drilling in September 2004 at both Tim’s Dome & East Thomsons Dome. This drilling will test the hitherto unexplored “M Reefs” and “I Reefs” within the lower Malu Formation on the Company’s Tenements.
In Namibia, at the Tsumkwe Diamond Exploration project, the Company has continued to acquire further encouraging results in the form of fresh kimberlitic indicator minerals, all of which convincingly suggest the presence of further kimberlite sources, other than the Gura kimberlites discovered to date.
The recovery of fresh garnets from three drill holes completed during the year in the mid to north- western part of the project has exposed the potential for a discovery of a kimberlite in an area not previously considered to be prospective. Whilst exploring in an area with variable depths of Kalahari sand cover is accepted as being challenging, the Company none the less believes its efforts will lead to further kimberlite discoveries.
In July last year the Company was granted Prospecting Licence P69/2003, in neighbouring Botswana, for base and precious metals. During this financial year the Company conducted a widespread drilling programme over a 2.6km long zinc anomaly. Grades of up to 5.4% zinc, 2.7% lead and 194 g/t silver were recorded. What is encouraging about the drilling conducted to date is that whilst the grades so far achieved are considered to be at the lower end of the scale, the widths of mineralisation in the 30m + range are significant and have been intersected at shallow depths. Samples have been submitted for metallurgical testing, and mapping is being conducted over this anomaly and several other anomalies in the area, including a gossan yielding 5.4% zinc, 1.6% vanadium, 12.4% lead and 102g/t silver, prior to conducting further drilling.
During the year Mr. Jeffrey Moore resigned from the Company’s Board to pursue a Board position with another resource company. The management of the Company’s projects has been undertaken by Mr. Martin Spence B.Sc. Aus. IMM.
Mr. Alfred Stirling FCA, joined the Board as a non-executive Director. Both Mr. Spence and Mr. Stirling have given the Company considerable support in their own separate ways, for which I am most grateful. Not least of all I should also like to thank our other Directors and employees for their continued support and commitment to the Company during the year.
N R FORRESTER
CHAIRMAN
In Namibia, at the Tsumkwe Diamond Exploration project, the Company has continued to acquire further encouraging results in the form of fresh kimberlitic indicator minerals, all of which convincingly suggest the presence of further kimberlite sources, other than the Gura kimberlites discovered to date.
The recovery of fresh garnets from three drill holes completed during the year in the mid to north- western part of the project has exposed the potential for a discovery of a kimberlite in an area not previously considered to be prospective. Whilst exploring in an area with variable depths of Kalahari sand cover is accepted as being challenging, the Company none the less believes its efforts will lead to further kimberlite discoveries.
In July last year the Company was granted Prospecting Licence P69/2003, in neighbouring Botswana, for base and precious metals. During this financial year the Company conducted a widespread drilling programme over a 2.6km long zinc anomaly. Grades of up to 5.4% zinc, 2.7% lead and 194 g/t silver were recorded. What is encouraging about the drilling conducted to date is that whilst the grades so far achieved are considered to be at the lower end of the scale, the widths of mineralisation in the 30m + range are significant and have been intersected at shallow depths. Samples have been submitted for metallurgical testing, and mapping is being conducted over this anomaly and several other anomalies in the area, including a gossan yielding 5.4% zinc, 1.6% vanadium, 12.4% lead and 102g/t silver, prior to conducting further drilling.
During the year Mr. Jeffrey Moore resigned from the Company’s Board to pursue a Board position with another resource company. The management of the Company’s projects has been undertaken by Mr. Martin Spence B.Sc. Aus. IMM.
Mr. Alfred Stirling FCA, joined the Board as a non-executive Director. Both Mr. Spence and Mr. Stirling have given the Company considerable support in their own separate ways, for which I am most grateful. Not least of all I should also like to thank our other Directors and employees for their continued support and commitment to the Company during the year.
N R FORRESTER
CHAIRMAN
