ABN 51 127 297 170
Metal Bank Limited and its controlled entities
Annual Financial Report For the year ended
30 June 2016
METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
CONTENTS
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Letter from the Chair
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1
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Review of Operations
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2 - 10
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Corporate Governance
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11
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Directors' Report
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12 - 18
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Auditor's Independence Declaration
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19
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Consolidated Statement Profit or Loss and Other Comprehensive Income
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20
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Consolidated Statement of Financial Position
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21
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Consolidated Statement of Changes in Equity
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22
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Consolidated Statement of Cash Flows
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23
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Notes to the Financial Statements
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24 - 48
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Directors' Declaration
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49
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Independent Audit Report to the Members of Metal Bank Limited
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50 - 51
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Additional Information for Listed Companies
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52 - 54
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Corporate Directory
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55
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
LETTER FROM THE CHAIR
Dear Shareholder
On behalf of the Directors of Metal Bank Limited (Metal Bank, MBK or the Company), I am pleased to report on the activities of the Company for the year ended 30 June 2016.
2016 has seen a change in focus from the Mason Valley Copper Project in Nevada, USA to the Company's Eastern Australian gold projects with significant exploration success at the Triumph Project, Queensland.
Near surface, high grade gold mineralisation has been intersected in drilling on both of the targets tested so far and we are confident of further discoveries as we expand our programme and begin testing other priority targets and move towards resource definition. We are also excited by the prospect that the high grade mineralisation intersected to date may represent gold leakage from a significant bulk tonnage gold system.
We believe the Triumph project has compelling upside that will contribute significantly to the future growth of Metal Bank.
The Company's Eidsvold Project is also very prospective and is centred on an historical goldfield with past production (circa. 1900's) of approximately 100,000oz Au. We have secured tenure over a 250km2 igneous complex prospective for intrusion related gold which is underexplored. This project has many similarities to the Triumph project being centred on an historical goldfield with the surrounding prospective rocks concealed by sedimentary cover. Initial exploration by Metal Bank in 2014 led to the discovery of high grade mineralisation including 1m @ 17.45g/t Au, 90g/t Ag, and 2.5% Cu which confirmed our targeting and exploration model. With renewal of the tenement for a further five years, we anticipate commencing further exploration work during the 2017 period.
The Company is also continuing to review new project opportunities with a view to identifying projects that fit with its growth strategy and have the ability to add shareholder value.
Successful capital raisings in September 2015, March 2016 and more recently in September 2016 show investor confidence in the Company and strong continuing support by shareholders.
Inés Scotland
Non-executive Chair 28 September 2016
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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES
REVIEW OF OPERATIONS
REVIEW OF OPERATIONS
The operations of the consolidated entity during the year are as described below:
Figure 1: Metal Bank Limited -Project Locations (note Mason Valley JV finished in April 2016)
During the year Metal Bank focussed on its gold projects in Queensland, particularly the Triumph project where near surface, high grade drill results were returned. MBK has invested in significant greenfields exploration over the past five years resulting in the definition of an extensive gold camp / system predominantly concealed by shallow cover. Only two of the targets have been drill tested so far with both returning near surface high grade gold mineralisation. The priority on the project is to define near surface gold resources to support an initial open pit mining scenario.
Drilling results on the Mason Valley Copper project Joint Venture (Nevada) during the year were encouraging although not considered sufficient to justify continuing beyond Year 1 of the Joint Venture. The Joint Venture ceased on 31 March 2016 after meeting the initial commitments.
Gold - Eastern Australia
MBK holds two gold projects prospective for intrusion related gold mineralisation within the northern New England Orogen of eastern Australia (Error! Reference source not found.). This region hosts several gold mines including the Cracow (3Moz Au), Mt Rawdon (2Moz Au) gold mines and Mt Carlton gold-silver-copper mine (1.4Moz AuEq) as well as the historical Mt Morgan deposit (8Moz Au). Refer to Error! Reference source not found. showing the intrusion related gold model and MBK projects.
The Triumph project represents the highest priority for MBK. High grade gold mineralisation intersected in drilling this year provide strong support for multi-million ounce gold potential within a large under-explored gold system dominantly concealed by shallow cover.
The Eidsvold project is centred on a historical goldfield (100,000oz Au historical production) with almost no exploration completed beneath the surrounding sedimentary cover in the district. Regional airborne magnetics provides support for large untested targets beneath the cover.
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