Final Audited Results For The Year Ended 30 June 2011
Greatland Gold plc (“Greatland” or the “Company”) the mineral exploration and development company focused on gold projects in Tasmania and Western Australia announced today its final audited results for the year ended 30 June 2011.
It gives me pleasure to report the acceleration in our exploration activities and significant progress, post the year end in respect of our Tasmanian licences.
Of note is the recently signed Farm In deal with Unity Mining Limited (ASX:UML) covering the Firetower licences. This major development is a step forward for Greatland in developing its Tasmanian asset base. We look forward to the Unity Mining team drilling at Firetower and an improvement in the current JORC inferred resource.
The recent performance of gold has been nothing short of remarkable, reaching a record high of $1,923 in early September 2011. Whilst the gold price appears to be consolidating, it remains underpinned as a safe asset in a volatile global market.
Greatland has been busy adding to its portfolio of licence interests and undertaking exploration work to ensure investors can be confident we are acquiring in the right areas.
Early in 2011, we added the Bromus project, a highly prospective area in the Southern Yilgarn near Norseman. We began work at Bromus early in 2011 and have received encouraging indications of gold anomalies over a large area. We have also been busy with exploration at both Lackman Rock and Ernest Giles. After having confirmed a new greenstone belt at Ernest Giles further encouraging data showed a large mineralised system.
Our follow up drilling at Derby North, our best performing area in terms of featured gold anomalies, received encouraging data just after the 2011 year end. The Warrentinna licence continues to surprise in terms of providing consistent findings of gold mineralisation.
During June 2011 Greatland Gold placed 11,111,111 ordinary shares raising £250,000 before expenses. At the end of June 2011 Greatland Gold had 300,661,111 ordinary shares with 6,000,000 options outstanding. Our current cash levels are sufficient for foreseeable expenses well into the 2012 financial year.
We remain amenable to further third party interest and see opportunities in increasing cost and risk sharing opportunities. It may be that there is more interest over the next 12/18 months from financial investors interested in taking a stake in our projects as a result of our activities.
I would express my sincere gratitude to our shareholders. We will continue to provide timely updates as appropriate to AIM and via our website (greatlandgold.drench-development.com). May I also take this opportunity to thank our professional advisors for their work.
Andrew R. McM. Bell
12 October 2011
Chief Executive’s Review of Operations
The Company reported a net loss of £506k equating to a loss per share of 0.17p on income of £37.3k which related to a grant from the Western Australia government. Both net loss and net loss per share reduced from 2010 levels helped by the revenue item and our continued focus on cost containment. Greatland held £1.1m in liquid resources at the end of the accounting period and balance sheet net assets of £2.17m.
Greatland has been active over 2011 adding to its licence interests and expanding knowledge of its projects. Our momentum has built and we are increasingly confident our strategy is bearing fruit.
In Western Australia we have improved our understanding of our find of a mineralised greenstone belt at the Ernest Giles project with encouraging first phase exploration and follow up work. Given the size of the area at 948km², the task of properly delineating the mineralised zone is very much work in progress and we expect to undertake follow up drilling to confirm gold mineralisation in key areas.
We acquired and commenced work at Bromus in the Southern Yilgarn area close to the gold mining centre of Norseman. The work has revealed significant gold anomalies over a large area. This property is interesting due to the strike length of greenstone and excellent location. We also undertook follow up work at Lackman Rock which showed areas with anomalous gold and positive indications of ultramafic lithologies with potential for nickel sulphides.
In Tasmania we completed a reverse circulation drill programme at Warrentinna with the bulk of holes intersecting gold mineralisation. This was followed by further work during August that confirmed coarse nugget type gold. We remain of the view that on its present development trajectory further positive findings could result in an open pit operation.
We also worked to negotiate and conclude discussions that led to the signing of a farm in deal with ASX listed Unity Mining Ltd with regard to our Firetower project in the last month. We consider the farm-in deal with Unity Mining a major step in moving forward our licence interests and increasing our JORC inferred resource base. The deal brings additional excellent expertise and reduces cash outlays whilst improving the valuation and transparency of our portfolio. We look forward to keeping a watchful brief on the drill programme at Firetower.
Currently we have a buoyant and competitive Australian resources sector. Recent research by Melbourne based Surbiton Associates highlighted a near 10% increase in Australian gold production to 270 tons to end June 2011 and profit margins of over $1,000 per ounce at many companies in the industry. The research pointed to the Department of Mines and Petroleum issuing 1,721 rights to small prospectors causing competition between prospectors, and the industry. These conditions are certainly bidding up prices for gold prospective areas, increasing interest from mid tier players and M&A/ acquisition type deals.
Greatland’s portfolio and acreage under licence increased over 2011 due to the Bromus addition. The Company currently owns six mineral projects comprising thirteen mineral licences all located in Australia, the details are tabulated on page 4 of the downloadable pdf below.
Following our farm-in deal with Unity Mining we are shifting from sole proprietor to a joint ownership and cost sharing arrangement. We expect to continue to seek and attract interest from other mining and exploration companies as the competitive environment tightens up.
We raised £250k from new and existing investors during June 2011 at 2.25p per share via the issue of 11.1m new ordinary shares. Recent capital market conditions have resulted in weaker investment appetite on AIM. Cost management over the year has served the Company well in reducing external funding requirements. Where possible we plan to continue this approach. Current financial resources at over £1m are sufficient for immediate needs and we continue to exercise vigilance over costs.
I would like to say a thank you for the keen interest and support you have shown as shareholders. Please find regular updates on our website (greatlandgold.drench-development.com) and we look forward to hearing from you.
Callum N Baxter
12 October 2011
Results and dividends
The Group’s results are described in the Group statement of comprehensive income.
The Group has incurred a loss for the year of £506,060 (2010:£616,732).
The Directors do not recommend the payment of a dividend.
The Group’s results have been audited by Messrs Chapman Davis LLP who have signed an unqualified report.
Please refer to the PDF below for full report