2016
ANNUAL REPORT
AUSGOLD LIMITED ANNUAL REPORT 2016 1
TABLE OF CONTENTS
Corporate Directory 2 Review of Operations 3 Directors' Report 17 Remuneration Report (Audited) 22 Corporate Governance 30 Auditor's Independence Declaration 37 Consolidated Statement of Profit Or Loss and Other Comprehensive Income 38
Consolidated Statement of Financial Position 39
Consolidated Statement of Changes in Equity 40
Consolidated Statement of Cash Flows 41
Notes to the Consolidated Financial Statements 42
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Reporting Entity 42
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Statement of Compliance 42
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Basis of Preparation 42
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Going Concern 42
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Significant Accounting Judgements, Estimates snd Assumptions 43
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Significant Accounting Policies 44
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Financial Risk Management 50
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Segment Reporting 54
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Income Tax Expense 55
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Cash and Cash Equivalents 55
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Trade And Other Receivables 56
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Security Deposits 57
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Property, Plant And Equipment 57
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Exploration And Evaluation Expenditure & Prepayment 58
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Trade and Other Payables 58
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Provisions 59
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Contributed Equity 59
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Reserves 60
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Accumulated Losses 62
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Loss Per Share 62
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Cash Flows from Operating Activities Reconciliation 63
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Auditor's Remuneration 63
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Commitments 63
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Related Party Disclosure 64
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Key Management Personnel 65
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Parent Entity Information 66
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Contingent Liabilities 66
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Events Subsequent to Reporting Date 66
Directors' Declaration 67 Independent Audit Report 68 Shareholder Information 70
Schedule of Mineral Licence Interest 72
2 AUSGOLD LIMITED ANNUAL REPORT 2016
CORPORATE DIRECTORY
DIRECTORS
Mr Richard Lockwood
(Non-Executive Chairman)
Mr Neil Fearis
(Non-Executive Director)
Mr Geoffrey Jones
(Non-Executive Director)
Mr Denis Rakich
(Executive Director)
COMPANY SECRETARY
Mr Denis Rakich
REGISTERED OFFICE
Level 16, AMP Building 140 St Georges Terrace PERTH WA 6000
Telephone: (08) 9220 9890
Facsimile: (08) 9220 9820
Web: www.ausgoldlimited.com Email: [email protected]
AUDITORS
BDO Audit (WA) Pty Ltd 38 Station Street
SUBIACO WA 6008
Telephone: (08) 6382 4600
Facsimile: (08) 6382 4601
SECURITIES EXCHANGE
Australian Securities Exchange Level 40, Central Park
152-158 St Georges Terrace PERTH WA 6000
ASX Code: AUC
SHARE REGISTRY
Security Transfer Registrars Pty Ltd 770 Canning Highway
APPLECROSS WA 6153
Telephone: (08) 9315 2333
Facsimile: (08) 9315 2233
SOLICITORS
Squire Patton Boggs
Level 21, 300 Murray Street
PERTH WA 6000
BANKERS
Westpac Banking Corporation 109 St Georges Terrace PERTH WA 6000
AUSGOLD LIMITED ANNUAL REPORT 2016 3
REVIEW OF OPERATIONS
Ausgold's flagship Katanning Gold Project ("KGP", Figure 1) has remained the primary focus of activity over the past twelve months.
The highlight of the year was the successful completion of an air core ("AC") exploration and reverse circulation ("RC") drilling program at the KGP which produced excellent drill results and supports Ausgold's ambition of re-establishing mining operations at the KGP. Ausgold is working towards increasing the global resource base at the KGP. To this end, during 2017 the Company proposes to complete further drilling to extend the resources. Ausgold also completed a scoping study for the Jinkas and Dingo deposits.
A review of all other Ausgold projects has been ongoing throughout the year. Targeting exercises across Ausgold's 100%-owned Doolgunna Station project have identified four target styles: Hermes Gold type, Peak Hill Gold type, Plutonic Gold type and DeGrussa Cu-Au VMS type. Previous exploration has been limited to broad regional studies, including aeromagnetic interpretation and target definition, stream sediment sampling, and reconnaissance soil sampling. Ausgold is planning an exploration work program at Doolgunna, including reconnaissance mapping and geochemistry across the entire project area during the latter part of 2016.
At Yamarna, Ausgold has identified encouraging nickel-copper mineralisation from historical exploration. Ausgold remains optimistic and is encouraged by historical results at Yamarna that enhance the prospectivity of the region for copper-nickel-cobalt and nickel sulphide mineralisation.
Figure 1 - Ausgold's Projects
