media / asx release - nzuri...

Level 14, 31 Queen Street, Melbourne, Victoria, Australia 3000

P: 613 8610 8633 | F: 613 8610 8666 | www.regalresources.com.au | ACN 106 294 106

1

MEDIA / ASX RELEASE

Thursday 31 July 2014

QUARTERLY REPORT FOR PERIOD ENDING 30 JUNE

2014

HIGHLIGHTS

Kalongwe Mining SA – High Grade Copper/Cobalt Project

Maiden JORC Inferred Mineral Resource estimate for the Kalongwe Mining JV Project:

o 10.4Mt @ 2.65% Cu incl. 4.0Mt @ 0.72% Co and,

o 1.94Mt @ 0.69% Co for:

o 276,000 tonnes of Cu and 42,500 tonnes of Co

The Mineral Resource estimate only considers oxide mineralisation from one of the several fragments

of Roan rocks that occur within the Project area.

The Company anticipates that there is significant potential to expand the current resource both down

dip and at depth and that there is potential to discover new zones of mineralisation by drill-testing of

the other fragments of Roan series rock units.

Of the current resource 85% lies within 150m of surface with an average grade of 2.75% Cu.

Within the resource are significant zones of high-grade (+3%) secondary Cu mineralisation (malachite),

and scoping studies have commenced to examine options for an accelerated low-cost Heavy Media

Separation (“HMS”) operation.

The resource includes a near-surface and very high-grade Co unit that has potential to be selectively

mined and processed.

Phase I diamond drilling programme of 12 diamond holes for 1,785m was completed and all assay

results received.

Significant intersections include:

o DKAL_DD086: 76.7m @ 4.06% Cu & 0.59% Co from 37.4m

incl. 19.4m @ 9.82% Cu & 0.60% Co


incl. 17.5m @ 3.17% Cu & 0.16% Co



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MEDIA / ASX RELEASE



A large batch of crushed drill core, representative of the different mineralisation domains, was

dispatched to the Mintek laboratory, South Africa to evaluate the suitability of mineralisation for

processing by HMS.

Preparations are well advanced for the start of a 5,000m Phase II diamond drilling programme, which

is scheduled to start in August. Objectives of the programme are to upgrade the category of current

resources estimate, to advance the completion of a feasibility study and to test regional exploration

targets.

The ownership of the Kalongwe JV Project Permit (PR 12198) was transferred from La Generale

Industrielle et Commerciale au Congo SPRL (“GICC”), to Kalongwe Mining SA.

Regal SK Gold Project

Maiden JORC Resource estimate for Ngoy Project - 2Mt @ 3.3g/t Au for 213,000oz was announced in

the previous period.

The Company is investigating a number of options to realise the significant prospective value from this

resource and associated exploration permits.

Corporate

The Company raised AUD2M through a share placement managed by Blackswan Equities.

Mr Dawie Marx was appointed as the CFO of the Company.

Events Subsequent

On 4 July 2014 the Company appointed Mr. Mark Savich as a director. Mr Savich has strong background

in the resource sector, especially in corporate and financial matters.

The Directors of Regal Resources Ltd (“Regal” or the “Company”) (ASX:RER) are pleased to present their

quarterly activities report for the period ended 30 June 2014.



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MEDIA / ASX RELEASE

Kalongwe Mining – Copper/Cobalt Project

Kalongwe Project Overview

The Kalongwe JV Project is covered by permit PR 12198 held by Kalongwe Mining SA a DRC registered

company. Shares in Kalongwe Mining are currently owned by and by Regal and Traxys, who each have a

30% interest and by GICC who hold a 40% interest

The project is located towards the western end of the World Class Central African Copperbelt. It is

situated some 15km south from Ivanhoe Mines, Kamoa deposit (considered to be Africa’s largest recent

high-grade copper discovery) and is approximately 45km from the copper mining and processing centre

at Kolwezi (Figure 1).

The Central African Copperbelt (Figure 1), hosts some of the world's most continuous, largest and richest

sediment-hosted copper and cobalt deposits known, with over 90% of the copper deposits hosted in

Mine Series rock of the Lower Roan sequence.

Figure 1. Location of Kalongwe JV Project and other significant copper-cobalt deposits in the Central African Copper Belt.



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MEDIA / ASX RELEASE

Within the Project area a number of fragments of Mine Series rocks have been identified by regional

geological mapping. These occur along the core of a southwest-trending anticline structure. Of the

identified fragments the most prominent is the Kalongwe fragment which outcrops and hosts significant

supergene mineralisation at surface, and has been tested over a strike length of about 400m.

Mineralisation plunges to the north-east at approximately 35° to 40°.

The Kalongwe fragment was explored by a fifty four (54) hole diamond drilling programme of

approximately 10,000m by Ivanhoe Mines over the period 2006 to 2007. Regal has further tested the

fragment with a twelve (12) hole, Phase I diamond drilling programme of 1,785m that was completed

this Quarter.

Drill coverage is generally on a 100m by 100m (locally 50 by 50m) grid spacing, and the drilling extends

to an average drill hole depth of 220m vertically below surface with one historic hole being drilled to

about 520m.

The mineralisation is predominantly secondary, and is primarily stratabound. The principal copper oxide

minerals above the base of oxidation are malachite and chrysocolla, with minor amounts of azurite.

Cobalt occurs as heterogenite. Below the base of oxidation chalcocite and minor bornite and chalcopyrite

have been observed. The base of oxidation varies from 150 to 180 m vertically below the surface.

Mineralisation is found in veins and breccias and as disseminated blebs and grains in stratigraphic

horizons. Broad zones of high-grade copper-cobalt mineralisation extend down-dip, broadly

conformable with dipping strata. Minor structural stratigraphic offsets are present, however local re-

mobilisation of mineralisation during weathering has resulted in reasonable good lateral and down-dip

continuity of supergene mineralisation.

A revised geological model based on surface mapping and core logging identifies that the copper-cobalt

mineralisation at the Kalongwe fragment is hosted within Mines Series (Lower Roan) stratigraphic units

that have been shaped into a recumbent (tilted) isoclinal fold structure. The fold hinge strikes north-

south and strata in the normal and overturned limb of the fold are dipping to the east-southeast. The

strata in both limbs show evidence of faulting and fragmentation.

Interpretation of drill core data shows that mineralisation is preferentially hosted in deformed

sedimentary units of the Lower Mine Series (R2) of the Roan Group. It also confirms that the geology of

the deposit has characteristics typical of the majority of the strataform Congolese Copperbelt type

deposits which host over 90% of operating mines in Katanga Province, DRC.

Phase I Drilling Programme

During the reporting period the Company completed the Phase I diamond drilling which comprised a

total of 12 holes for an aggregate of 1,785m (Figure 2) (Table 1).



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MEDIA / ASX RELEASE

The primary aim of the Phase I programme was to validate historic drill data that has been obtained from

Ivanhoe Mines in order that the historic drill results could be incorporated into a JORC standard Mineral

Resource estimate.

The first four holes of the Phase 1 programme (DKAL_DD010T, DD011T, DD017T and DD022T,) were twin

holes designed to test the integrity of the historic drilling data, (Figure 2).

The remaining eight holes completed in the programme were either infill holes to test for the lateral

continuity of mineralisation between historic holes, (generally drilled on 100m x 100m centres), or drilled

as extension holes to target for additional zones of mineralisation.

Table 1: Collar details for drill holes completed for Phase I drilling programme

Hole ID East

(UTM)

North

(UTM)

RL Dip Azimuth

(magnetic)

Hole

Type

EOH Recovery

(%)

Comments

DKAL_DD011T 306352.925 8781747.217 1336.46 -60 270 DD 220.00 70-90 Assays

received

DKAL_DD010T 306476.09 8781648.42 1342.48 -60 270 DD 158 ~83 Assays

received

DKAL_DD022T 306101.30 8781702.26 1332.97 -90 000 DD 167 ~80 Assays

received

DKAL_DD017T 306332.20 8781595.37 1345.89 -90 000 DD 155.5 ~85 Assays

received

DKAL_DD080 306328.36 8781454.95 1345.56 -60 270 DD 125 ~78 Assays

received

DKAL_DD081 306266.58 8781494.50 1347.41 -90 000 DD 155.5 ~90 Assays

received

DKAL_DD082 306269.56 8781555.06 1346.84 -90 000 DD 107.8 ~94 Assays

received

DKAL_DD083 306497.31 8781858.85 1331.06 -60 270 DD 163 68 Not

assayed

DKAL_DD084 306396.38 8781858.15 1330.42 -60 270 DD 140.1 87 Not

assayed

DKAL_DD085 306421.84 8781552.74 1346.98 -60 270 DD 166.8 86 Assays

received

DKAL_DD086 306330.82 8781641.40 1344.61 -60 270 DD 135 79 Assays

received

DKAL_DD087 306218.54 8781548.17 1347.06 -60 270 DD 61.9 82 Assays

received



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MEDIA / ASX RELEASE

The overall results of the Phase I programme (Table 2) are considered very encouraging:

They confirmed and have extended the lateral continuity of the two principle Copper

mineralised horizons.

A near surface, discrete, high grade and laterally extensive zone of cobalt mineralisation was

delineated.

The overall grade and width of the mineralised intersections of the twin holes correlate within

an acceptable level of variation with the mineralised intervals reported for the historic holes

that were twinned.

The outcome of the Phase I programme provided a high level of confidence that the results of the historic

drill holes can be incorporated into the database that would be used to estimate the maiden JORC

Mineral Resource.

A geological review was completed of both the historic and recent data in order to prepare geological

and mineralisation interpretations that would form the basis of a maiden JORC compliant Mineral

Resource estimate.



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MEDIA / ASX RELEASE

Table 2: Phase I drilling programme copper and cobalt assay results for completed drill holes.

Hole ID From

(m)

To (m) Down

hole

interval

(m)

Cu % Co % Recovery

(%)

Comments

DKAL_DD011T 110.2 116.0 5.8 4.37 0.61 81% Down hole length

161.5 175.3 13.7 1.55 0.31 36% Down hole length

215.4 218.7 3.3 0.69 0.69 100% Down hole length

DKAL_DD010T 49.2 117.5 68.3 4.92 0.57 77% Down hole length

125.9 126.8 0.9 1.81 0.13 100% Down hole length

DKAL_DD017T2 Down hole length

29.3 35.5 6.20 0.11 0.68 83% Down hole length

36.0 52.3 16.9 8.05 1.33 85% Down hole length

52.9 72.1 19.2 0.16 1,14 57% Down hole length

86.4 137.2 50.8 2.25 0.16 95% Down hole length

Incl. 102.1 121.7 19.6 4.66 0.24 98%

DKAL_DD022T 45.8 59.3 13.5 0.55 80% Down hole length

67.3 79.7 12.4 0.77 100 Down hole length

87.9 97.3 10.0 0.56 45% Down hole length

DKAL_DD080 NSR

DKAL_DD081 8.5 14.8 6.3 0.07 0.44 88% Down hole length

20.6 25.7 5.0 0.17 0.48 88% Down hole length

34.7 46.0 11.3 1.38 0.57 88%

66.2 104.9 38.6 1.95 0.13 91%

Incl. 86.4 103.9 17.5 3.17 0.16 90% Down hole length


17.0 21.5 4.5 0.22 0.42 89% Down hole length

30.7 38.3 7.6 1.11 0.36 77% Down hole length

42.3 60.6 18.3 1.13 0.34 94% Down hole length

82.5 84.9 2.4 1.68 0.01 100% Down hole length

DKAL_DD083 NSR

DKAL_DD084 NSR



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MEDIA / ASX RELEASE

Hole ID From

(m)

To (m) Down

hole

interval

(m)

Cu % Co % Recovery

(%)

Comments


118.5 129.5 11.0 2.96 0.59 66% Down hole length


Incl. 37.4 65.8 19.4 9.82 0.60 95% Down hole length


23.1 34.2 11.1 0.74 0.46 55% Down hole length

NOTES: 1. All holes are diamond drill holes containing PQ3 and HQ core. 2. All samples comprise crushed half core. 3.

Assaying is conducted at ALS Chemex Laboratories, Johannesburg, South Africa using industry standard analysis for Copper and Cobalt (ME-ICP61). 4. Certified reference materials, blanks and crushed lab duplicates are inserted into the

sample stream and monitored by CSA Global UK. 5. Down hole intercepts are quoted to two decimal places using a >0.5% lower cut-off for Cu and 0.2% cut off for Co which includes no more than 5m of internal dilution but rarely

exceeds 2m (>0.5% Cu). 6. No high cut-off grade has been applied. 7. True widths are approximately 80-90% of the reported down-hole interval. 8. NSR – no significant results.



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MEDIA / ASX RELEASE

Figure 2: Geological map of the Kalongwe Cu-Co project area and location of all drill holes completed for Phase I.

.



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MEDIA / ASX RELEASE

Kalongwe JV Maiden JORC Mineral Resource Estimate

During the Quarter the Company announced a maiden JORC complaint Mineral Resource estimate for

the Kalongwe fragment “ecaille”.

The Kalongwe Mineral Resource estimate was prepared by the Perth based, independent geological

consulting group CSA Global Pty Ltd (‘CSA’) and is reported in accordance with the principles of the

Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 edition

(JORC 2012).

The Mineral Resource estimate is reported at a lower cut-off grade of 0.5% Cu and 0.2% Co (Table 3).

Table 3. Kalongwe Cu-Co Project –JORC Inferred Mineral Resource estimate (July 2014)

JORC

Classification Domain

Tonnage

(Mt) Cu (%) Co (%) Tonnes Cu Tonnes Co

Inferred Cu Only 1 6.37 2.34 - 149,000 -

Inferred Mixed 3 4.04 3.14 0.72 127,000 29,100

Inferred Total Cu

Domains 10.41 2.65 - 276,000 -

Inferred Co Only 2 1.94 - 0.69 - 13,400

Inferred Total Co

Domains 1.94 - 0.69 -

13,400 + 29,100 (Co

credits in Mixed

zone)

1. The Cu only domains were reported by selecting blocks with Cu >= 0.5%.

2. The Co only domains were reported by selecting blocks with Co >= 0.2%.

3. The Mixed Domains (blocks located within overlapping Cu and Co domains) were reported by selecting

blocks with Cu >= 0.5%. The Co grade from these blocks was also recorded.

4. It is assumed for the purposes of this Mineral Resource that Cu grades in the Co only domains, and Co

grades in the Cu only domains are 0%, although low grade mineralisation was recorded in sample.

The basis for the Mineral Resource estimate are the drilling results of the Company’s Phase l programme

and the historic drilling results obtained from Ivanhoe Mines. This data was used to produce a detailed

3D geological model of the Kalongwe deposit.

Mineralised wireframes were generated by CSA using lower cut-off grades of 0.50% Cu and 0.20% Co.

The wireframes were created by joining mineralisation polygons based upon geological knowledge of

the deposit, derived from drill core logs and geological observations on surface. For Mineral Resource

estimate purposes the distribution of Copper-Cobalt mineralisation within the deposit was modelled as

three different metal domains, each representing the significant metal content of that particular

mineralised domain within the overall block model.



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MEDIA / ASX RELEASE

Domain 1 - has Copper but no significant Cobalt, Domain 2 - has Cobalt but no significant Copper and

Domain 3 - has significant Copper and Cobalt mineralisation.

The relative positions of the various mineralised domains can be seen in (Figure 3).

There is a near-surface zone of predominantly Cobalt mineralisation, and beneath this are mixed Copper-

Cobalt mineralisation zones, and at a greater depth is a Copper-only zone of mineralisation.

Within the overall resource model mineralistion averages 20m to 40m true width but can reach widths

of up to 70m true width. Approximately 85 % of the identified Mineral Resource for the Copper domains

lies within 150 metres of the surface with an average grade of 2.75% Cu. Mineralisation.

While over 97% of the resource represents oxide mineralisation a number of the historic Ivanhoe drill

holes intercepted sulphide Copper mineralisation below the base of oxidation. The Copper sulphide

intercepts from five of these holes were included in the mineralised model, and are incorporated into the

Mineral Resource estimate.

Figure3. Kalongwe JV Project geological cross section on the LHS and corresponding resource block

model section and examples of the distribution of metal-domains on the RHS.

While the exploration work that has been undertaken and the resulting data is of high quality a

classification of Inferred under the JORC code has been applied, to reflect that drilling was generally on

100m by 100m centres.



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MEDIA / ASX RELEASE

A grade tonnage inventory of the metal contained within the mineralised wireframes was produced using

various levels of cut-off grades. The graph shows that the Mineral Resource is not particularly sensitive

to cut-off grade and even at 1% Copper cut off retain in excess of 90% of its metal content.

Kalongwe Project – Future Potential

The Company considers that there remains significant potential to expand the current Mineral Resource

estimate by further drilling, as mineralisation remains open down dip and at depth. Regal intends to test

this potential in the Phase II drilling programme scheduled to commence in August.

The Phase II programme is planned to include 5,000m of diamond drilling and is designed to infill and

extend the existing drill coverage over the Kalongwe fragment with the aim of upgrading and expanding

the current Mineral Resource estimate. A revised resource estimate is then expected to support a detailed

Feasibility Study.

Within the current resource model there are near surface oxide zones of significant very high grade

copper (+3% Cu) and cobalt grades (+0.75% Co) which may be amenable to upgrading through a HMS

operation to produce saleable concentrates of both copper and cobalt.

During the reporting period the Company submitted a large batch of crushed drill core, representative

of the different mineralisation domains, to the Mintek laboratory, South Africa to evaluate the suitability

of mineralisation for processing by HMS.

The results of this test work are expected early in the next Quarter and additional metallurgical testwork

is expected to be undertaken during the Phase 2 programme.

During the Quarter the Company acquired from Ivanhoe Mines all of their exploration results for the

work they undertook over the area covered by the Kalongwe Permit. This includes results of grid soil

sampling over parts of the other fragments of Roan sediments that have been mapped within the permit.

The Company is in the process of reviewing this data and intends during the course of the Phase II

programme to drill test any significant anomalies that may be identified during the review process.

Transfer of Kalongwe Project Permit

During the Quarter, in compliance with Article 380 of the DRC Mining Code, the ownership of PR 12198

was transferred from La Generale Industrielle et Commerciale au Congo SPRL (“GICC”), , to Kalongwe

Mining SA (“Kalongwe Mining”, effective 17 June 2014.

The transfer of title was endorsed by CAMI (the DRC Mining Register).



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MEDIA / ASX RELEASE

Kalongwe Mining is a DRC registered company. Shares in Kalongwe Mining are currently held 30% by

Regal, 30% by Traxys Europe SA (“Traxys”) and 40% by GICC.

Under the terms of the agreement Traxys and Regal have the right to acquire an additional 20% of the

shares held by GICC at or before feasibility stage and have a further option to acquire all of GICC‘s

remaining interest in Kalongwe Mining.

Regal SK -South Kivu - Gold Project

During the previous reporting period the Company announced a Maiden JORC compliant Mineral

Resource estimate for the Ngoy Project of 2Mt @ 3.3g/t Au for 213,000oz in the inferred category in an

ASX Announcement dated 31 March 2014.

The resource estimation was undertaken by the Perth based independent geological consulting group

CSA Global Pty Ltd and is reported in accordance with the principles of the Australian Code for Reporting

of Exploration Results, Mineral Resources and Ore Reserves, 2012 edition .

The deposit occurs within exploration permit, PR4799, which forms part of the Regal SK Joint venture in

which the Company holds a 50% interest with its Kinshasa based partner, Afrimines SPRL (Figure 4).



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MEDIA / ASX RELEASE

Figure 4. Regal SK JV Project and Prospect location map and significant gold deposits.



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MEDIA / ASX RELEASE

The Ngoy Gold Project is a greenfields discovery that resulted from regional stream and rock chip

sampling programmes and is one of several highly prospective gold prospects located in the Regal SK

Project area.

The Mineral Resource estimate was calculated using a lower cut-off grade of 0.5g/t Au and covered the

Nyamikundu and Kadutu Prospects (Table 4).

Table 4. Mineral Resource estimate results for Ngoy Gold Project.

Victorian Brown Coal Tenements

No activities undertaken during the reporting period.

Corporate

During the Quarter, the Company announced that it had successfully raised $2,000,000 under a

placement mandate with Blackswan Equities (Lead Manager). The fundraising comprised the placement

of 36,363,636 new fully paid ordinary shares at an issue price of 5.5 cents per share. The Company’s

Managing Director, Mr David Young and Dr Simon Dorling the Technical Director will participate under

the offer (1,818,000 shares and 455,000 shares respectively) subject to shareholder approval at a

forthcoming General Meeting.

The proceeds of the Placement together with existing cash reserves will be used to accelerate exploration

at the Kalongwe high grade Cu-Co project.

On behalf of the Board of Directors,

David Young

Managing Director

Regal Resources Limited – Ngoy Gold Project - Mineral Resource Estimate Depos

it Classification Tonnes (Million

Tonnes) Au g/t Au Oz. ('000s)

Kadutu

Inferred

1.8 3.2 186.9 Nyamikundu Inferre

d 0.2 4.3 26.5

Combined Total Inferred 2.0 3.3 213.4 Note: The Mineral Resource was estimated within constraining wireframe solids based on a nominal lower cut-off

grade of 0.4 g/t Au. The Mineral Resource is quoted from all blocks above a lower cut-off grade of 0.5g/t Au.

Differences may occur due to rounding.



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MEDIA / ASX RELEASE

Information Note

Information about the Kalongwe and Regal SK Projects referred to above, insofar as it relates to exploration results

is based upon information previously lodged with ASX which contained information compiled by the Competent

Persons: Mr David Young and Dr Simon Dorling, dated and released to ASX as separate announcements on 31 March

2014, 20 June 2014 and on 11 July 2014. Further detail can be obtained from the above announcement, which is

available from the ASX website, www.asx.com.au. The Competent Person Mr David Young is a full time employee of

the Company. The Company confirms that it is not aware of any new information or data that materially affects

information as it relates to exploration results included in the announcements referred to, and that the form and

context in which the competent person’s (Mr David Young and Dr Simon Dorling’s) findings are presented have not

been materially modified.

Competent Persons Statement

Scientific or technical information in this release has been prepared by Mr David Young and Dr Simon Dorling and,

the Company’s Managing and Technical Directors. Mr David Young is a Member of the Australian Institute of Mining

and Metallurgy (AusIMM) and Dr Simon Dorling is a member of the Australasian Institute of Geoscientists (MAIG)

and both have sufficient experience which is relevant to the style of mineralisation under consideration and to the

activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the

“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr

David Young and Dr Simon Dorling consent to the inclusion in this report of the Information, in the form and context

in which it appear.

http://www.asx.com.au/

Tenement Schedule

Joint Venture with

Afrimines SPRL (RER earning

up to 90% of Regal SK SPRL)

Tenement No. Tenement Holder Country Province/State% held by RER at

end of Quarter *

% disposed of

during Quarter

%

acquired

during

Quarter

South Kivu PR4790 Regal SK SPRL Democratic Republic of Congo South Kivu 100 0 0













South Kivu PR4816 Transfer pending Democratic Republic of Congo South Kivu

* RER holds control of Regal SK SPRL, whereby it holds a 50% interest in the issued capital of Regal SPRL

Incorporated Joint Venture

with Traxys SA and GICC

(with Traxys and RER

capable of earning up to

80% of Kalongwe Mining SA)

Tenement No. Tenement Holder Country Province% held by RER at

end of Quarter

% disposed of

during Quarter

%

acquired

during

Quarter

Kalongwe PR12198 Kalongwe Mining SA Democratic Republic of Congo Katanga 30 0 0

Project / Tenements Tenement No. Tenement Holder Country Province/State% held by RER at

end of Quarter

% disposed of

during Quarter

%

acquired

during

Quarter

EL 4507Western Victorian

Energy P/LAustralia VIC 100% 0 0

EL 4510Western Victorian

Energy P/LAustralia VIC 100% 0 0

M 39/1083 PA Wiltshire Australia WA 10% 0 0

Appendix 5B

Mining exploration entity quarterly report

Appendix 5B

Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

REGAL RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

23 106 294 106 30 JUNE 2014

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter

$A’000

Year to date

(12 months)

$A’000

1.1 Receipts from product sales and related debtors

- -

1.2 Payments for (a) exploration and evaluation

(b) development

(c) production

(d) administration

(e) bank guarantee

(846)

-

-

(150)

-

(4,161)

-

-

(772)

-

1.3 Dividends received - -

1.4 Interest and other items of a similar nature received 6 17

1.5 Interest and other costs of finance paid - -

1.6 Income taxes paid - -

1.7 Other 8 8

Net operating cash flows

(982)

(4,908)

Cash flows related to investing activities

1.8 Payment for purchases of: (a)prospects

(b)equity investments

(c)other fixed assets

-

-

-

-

(20)

-

1.9 Proceeds from sale of: (a)prospects

(b)equity investments

(c)other fixed assets

-

-

-

-

20

-

1.10 Loans to other entities (53) (166)

1.11 Loans repaid by other entities - -

1.12 Other – Development of UTCL and W10 - (4)

Net investing cash flows

(53)

(170)

1.13 Total operating and investing cash flows (carried

forward)

(1,035) (5,078)

Appendix 5B


1.13 Total operating and investing cash flows (brought

forward)

(1,035) (5,078)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 2,000 3,008

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 (capital raising costs) (119) (174)

Net financing cash flows

1,881 2,834

Net increase (decrease) in cash held

846

(2,244)

1.20 Cash at beginning of quarter/year to date 1,607 4,600

1.21 Exchange rate adjustments to item 1.20 (27) 70

1.22 Cash at end of quarter 2,426 2,426

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

102

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

Wages and Consultancy fees paid to directors and director related entities 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

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

Appendix 5B


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

- -

Estimated cash outflows for next quarter $A’000

4.1 Exploration and evaluation

1,000

4.2 Development

-

4.3 Production

-

4.4 Administration

250

Total

1,250

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 2,426 1,607

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 2,426 1,607

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

- - - -

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.

Number issued Number quoted Issue value

(cents)

Paid-up value (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

150,772,458

150,772,458

7.4 Changes during

quarter

(a) Increases

through issues

(b) Decreases

through returns of

capital, buy-backs,

redemptions

2,083,333

34,090,636

2,083,333

34,090,636

3.6

5.5

3.6

5.5

7.5 +Convertible debt

securities

(description)

Nil Nil

7.6 Changes during

quarter

(a) Increases

through issues

(b) Decreases

through returns of

capital, buy-backs,

redemptions

7.7

Options (description and

conversion factor)

22,000,000

-

Exercise price

$0.08

Expiry date

31/10/2017

7.8 Issued during

quarter

1,500,000

-

$0.08

31/10/2017

7.9 Exercised during

quarter

7.10 Expired during

quarter

7.11 Debentures

(totals only)

Nil Nil

7.12 Unsecured notes (totals only)

Nil Nil

Appendix 5B


Compliance statement

1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Law 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: ...... ...................... Date: 31 July 2014

Print name: ADRIEN WING

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.

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