ABN 74 072 692 365
ANNUAL REPORT
30 JUNE 2016
Contents
Page
Corporate Directory ii
Managing Director's Report 1
Directors' Report 6
Auditor's Independence Declaration 15
Consolidated Statement of Profit & Loss and 16
Other Comprehensive Income
Consolidated Statement of Financial Position 17
Consolidated Statement of Changes in Equity 18
Consolidated Statement of Cash Flows 19
Notes to the Financial Statements 20
Directors' Declaration 43
Independent Audit Report 44
Corporate Governance Statement 46
Shareholder Information 54
Mining Tenements 56
i
CORPORATE DIRECTORY - Hill End Gold Limited
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Directors
Philip Francis Bruce
Executive Chairman / Managing Director
Graham Charles Reveleigh Non-Executive Director
William Joseph Condon Non-Executive Director
Company Secretary
Kevin Martin Lynn
Australian Business Number
74 072 692 365
Sydney / Registered Office
Hill End Gold Limited
Suite 111, 350 George Street
Sydney NSW 2000
Telephone: +61 2 8283 1915
Field Office
4 Bowen Street
Hill End NSW 2850
Telephone: +61 2 6337 8343
Facsimile: + 61 2 6337 8345 www.hillendgold.com.au
Share Registry
Boardroom Limited
Level 12, 225 George Street
Sydney NSW 2000
Telephone +61 2 9290 9600
Facsimile: +61 2 9279 0664 www.boardroomlimited.com.au
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Auditor
Moyes Yong
Level 7 Norwich House 6 O'Connell Street
Sydney NSW 2000
Telephone: +61 2 8256 1100
Facsimile: +61 2 8256 1111
Solicitors
Kelly Hazel Quill
Level 15, 440 Collins Street
Melbourne Vic 3000
Telephone: +61 3 9663 9877
Facsimile: +61 3 9009 5494
Bankers
Commonwealth Bank of Australia 48 Martin Place
Sydney NSW 2000
Stock Exchange Listing
Hill End Gold Limited shares are listed on the Australian Securities Exchange (ASX code: HEG)
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ii
MANAGING DIRECTOR'S REPORT - Hill End Gold Limited
Summary
This past financial year has seen an improving investment market for gold resource companies with the Australian gold price lifting by 16% to $1,774/ounce. Earlier in the year your Company completed a restructure of its management and has reduced costs to an optimum low level while exploring and maintaining its NSW properties and evaluating investment and growth opportunities.
The proposed Reward Gold Project and Red Hill project in Hill End are ready for drilling and pre-development studies and the Hargraves Gold Project is at the pre-mining permitting stage and other near-production projects in Australia and overseas have been assessed.
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Figure 1. Hill End Gold Project locations
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The Hargraves project (100% owned) has a Pre- Feasibility Study completed in 2014 for a 100,000oz open pit and low impact processing project1.
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The Red Hill project (minimum 85%) is in preparation for a Pre-feasibility Study on an open pit project with an onsite processing plant or as a source of ore for an offsite plant.
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The Reward Gold Mine (minimum 85%) requires drilling of the near-surface Frenchmans - Stevens wide zone and modification of the mining permits.
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Hargraves Area (EL 6996 - 100%)
A pre-development study based on optimisation studies, metallurgical test work and project design estimates has indicated that an initial project of two open pits producing 1.2Mt of ore at 2.9g/t would generate ~25,000 ounces per year over four years at a cash cost of
The Hargraves Gold Project could be developed at a low capital cost of approximately $15M and produce a net profit of $40M after full cost recovery and payment of royalties at a gold price of $1,600/ounce.
The Company has extensive gravity recovery experience gained during the Reward trial mining exercise and with other projects, which will be applied to the Hargraves Gold Project. Test work indicates that total gravity recovery of ~95% is expected down to a coarse grind size of P800.3mm. The project requires a low environmental impact plant and infrastructure and some capital cost savings may be realised with existing equipment.
The Conceptual Project Development Plan for the Hargraves Gold Project has been passed by the relevant authorities and background data is being obtained in preparation for the Mining Lease Application
Figure 2. Hill End and Hargraves tenements
1 First announced 30.4.2013 and PFS report completed June 2014 with JORC Table 1 Section 4 material assumptions outlined in release dated 20.9.16. We are not aware of any new information or data that materially affects the information included in the relevant market announcements and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
1
