Haoma Mining NL
A.B.N 12 008 676 177
Registered Office & Head Office:
Level 1, 401 Collins Street, Melbourne, Vic., 3000, GPO Box 2282U, Melbourne, Vic., 3001.
Telephone (03) 9629 6888, Facsimile (03) 9629 1250 Email: [email protected] Website: www.haoma.com.au
Company Announcements Office July 31, 2016
Australian Stock Exchange Level 4, North Tower, Rialto 525 Collins Street
MELBOURNE, VIC 3000
ACTIVITIES REPORT FOR THE QUARTER ENDED JUNE 30, 2016 - HIGHLIGHTS
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Group Consolidated Financial Result:
During the Quarter Haoma produced and sold 1,566 grams (50.3ozs) of gold and 620 grams (19.9ozs) of silver from cyanide leaching trials on bulk samples of Bamboo Creek Tailings Concentrate for a total sale value of $82,447.
Haoma Mining's unaudited consolidated financial result for the three months ended June 30, 2016 was a before tax loss of $1.26 million after interest of $0.48 million, depreciation and amortisation of $0.05 million, and development and test work expenditure of $0.80 million.
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'Test work' at Bamboo Creek:
The Bamboo Creek Pilot Plant has been further modified with a view to increasing processing efficiencies and lowering production costs. 'Test work' on gold extraction concentrated on samples from:
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Bamboo Creek Tailings, and
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Mt Webber iron ore, sourced from Atlas Iron with whom Haoma has a Royalty Payment Entitlement regarding Mt Webber (M45/1197) (See Appendix 1)
Bamboo Creek 'Test work' is now being conducted in conjunction with The University of Melbourne and involves mainly hydrometallurgy methods (cyanide and acids rather than smelting). These methods result in a significant reduction in plant costs as smelting is only used at the final stages of gold recovery.
The following initial Hydrometallurgy 'Test work' results have been achieved.
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Bamboo Creek Tailings: Gold was recovered gravimetrically from a 500g sample of Bamboo Creek Concentrate (1% of Bamboo Creek Tailings) equating to 1,807g/t gold in the 'concentrate sample' processed, or a 'back calculated' Bamboo Creek Tailings 'Head grade' of 18.1 g/t gold.
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Low Grade Mt Webber Iron Ore (after processing a 'large sample' of Mt Webber low grade iron ore. Specifically, 'wet' beneficiation of a 945.46g sample of low grade (produced an 'upgraded ore fraction' (78.5%) and a 'slimes fraction' (21.5%). A 'gravity concentrate' from the 'slimes fraction' produced cyanide recoverable gold with a 'back calculated' gold grade of 8.96 g/t in the 'slimes fraction'.
The iron grade of the 'upgraded ore fraction' (78.5%), extracted from low grade Mt Webber iron ore (was about 58% Fe. These results have the potential to 'upgrade the value' of Mt Webber and surrounding tenements. It is anticipated that during the current Quarter further 'Test work' will be undertaken on processing 'ore parcels' of low grade Mt Webber iron ore through the Bamboo Creek Plant.
CONTENTS
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Group Consolidated Result to June 30, 2016
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Operations at Bamboo Creek Western Australia
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GROUP CONSOLIDATED RESULT TO JUNE 30, 2016
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Haoma Mining NL Consolidated Profit & Loss
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2014/15
4th Qtr ($m)
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2014/15
Full Year ($m)
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2015/16
1st Qtr ($m)
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2015/16
2nd Qtr ($m)
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2015/16
3rd Qtr ($m)
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2015/16
4th Qtr ($m)
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2015/16
Full Year ($m)
|
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Operating Revenue:
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0.02
|
0.70
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-
|
0.03
|
0.05
|
0.08
|
0.13
|
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Gold & Silver Sales
|
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Gold Concentrate in Circuit
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1.22
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(0.07)
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1.15
|
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Royalties
|
-
|
0.01
|
0.04
|
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Retail Sales & Misc
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0.03
|
0.17
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0.04
|
0.03
|
0.02
|
0.02
|
0.11
|
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Profit on Sale of Investments
|
0.14
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0.14
|
|
Operating Revenue
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0.05
|
0.87
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0.04
|
0.06
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1.29
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0.18
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1.57
|
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Operating profit (loss) before interest, depreciation, amortisation, exploration
& development costs: Interest (*see Item 1.2 below) Depreciation & amortization
Exploration, development & test work
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(0.83)
(0.91)
(0.05)
(0.48)
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(1.11)
(3.70)
(0.21)
(2.37)
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(0.42)
(0.47)
(0.03)
(0.62)
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(0.20)
(0.48)
(0.04)
(0.64)
|
0.99
(0.49)
(0.04)
(0.70)
|
0.06
(0.48)
(0.05)
(0.80)
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0.44
(1.92)
(0.16)
(2.76)
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Operating (loss) before tax
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(2.27)
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(7.39)
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(1.54)
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(1.36)
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(0.24)
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(1.26)
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(4.40)
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Haoma's Group Consolid ated Result
Haoma Mining's unaudited consolidated financial result for the three months ended June 30, 2016 was a before tax loss of $1.26 million after interest of $0.48 million, depreciation and amortisation of
$0.05 million, and development and test work expenditure of $0.80 million.
During the Quarter Haoma produced and sold 1,566 grams (50.3ozs) of gold and 620 grams (19.9ozs) of silver from cyanide leaching trials on bulk samples of Bamboo Creek Tailings Concentrate for a total sale value of $82,447. This was achieved with the Bamboo Creek Pilot Plant which was configured for batch processing of bulk samples.
In the March 31, 2016 Quarter Activities Report, Haoma advised shareholders that by the end of April 2016, 13.78 tonnes of 'Gold Concentrate' had been produced and that details of the gold grade will be released to the ASX when finally calculated. Haoma is continuing work to determine the correct final grade of this Gold Concentrate. No adjustment has been made to the value of gold held in circuit from that included in in the March Quarter results other than to reflect the value of gold produced and sold during the Quarter.
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Funding of Operations
At present, funding for Haoma's operations is being provided by The Roy Morgan Research Centre Pty Ltd, a company owned and controlled by Haoma's Chairman, Gary Morgan. Interest on debt to Roy Morgan Research Centre accrues at the 30 day commercial bill rate plus a facility margin of 1%.
At June 30, 2016 the principal debt to The Roy Morgan Research Centre Pty Ltd was $36.82 million. Interest accrued for the 3 months to June 30, 2016 was $469,597. Total interest accrued and unpaid to June 30, 2016 is $28.22 million.
The Roy Morgan Research Centre Pty Ltd has advised that that no net debt repayment will be required until Haoma's annualised EDITDA exceeds $15 million per annum and that debt repayments will not exceed 50% of Haoma's EBITDA in any year.
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Sale of Shares in Exterra Resources Limited
During the Quarter, Haoma disposed of its shareholding of 10 million shares in Exterra Resources Limited. All shares were sold on market. Total proceeds received were $460,605 for an average sale price of $0.046 per share.
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Discussions in Relation to Sale of 5 Marble Bar Region Tenements' Mi nin g Rights
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Haoma is in discussions for the sale of gold and silver mining rights in respect to its 5 Marble Bar Region tenements from Fielding's Gully to Warrawoona. Further details will be released as and when an agreement is completed.
Figure 1: Haoma Mining's Fielding's Gully to Warrawoona Area Tenement Plan.
2.0 OPERATIONS AT BAMBOO CREEK, WESTERN AUSTRALIA
Figure 2: Location map of Haoma Mining and other Pilbara mining locations.