TIDMORE
RNS Number : 6998O
Orogen Gold PLC
24 September 2013
Orogen Gold
("Orogen" or the "Company")
Interim Results for the six months ended 30 June 2013
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, announces its interim results for the six months ended 30
June 2013.
Highlights
-- Near surface gold discovery in Armenia - impressive widths and grades
-- Maiden gold resource at Mutsk targeted for 2014
-- $2.5 million / 80% earn-in on Mutsk gold property scheduled to complete in 2016
-- Drilling high-grade trench discoveries at Deli Jovan in
Serbia targeting open-pittable resource
-- Strong balance sheet and cash position
-- Mutually agreed with Darwin Strategic to cancel Equity Finance Facility
John Barry, Chairman of Orogen Gold, commented: "I am delighted
with our progress during the period. In particular I am excited
about the new gold discovery In Armenia where we have reported very
impressive initial exploration drilling results from our Mutsk gold
project which cut relatively high grades over robust widths near
surface. We are continuing with our drilling programme at Deli
Jovan and are keen to resume drilling at Mutsk during the current
season, subject to rig availability and weather conditions. We look
forward to another exciting round of drilling results over the next
few months."
Enquiries:
Orogen Gold Plc +353 1662 8395
Ed Slowey, CEO
Alan Mooney, FD
WH Ireland Limited (Nominated Adviser and
Joint Broker) +44 (0) 20 7220 1666
Tim Feather
James Bavister
XCAP Securities plc (Joint Broker) +44 (0) 20 7101 7070
Jon Belliss
Walbrook (Public Relations and Investor
Relations) +44 (0) 20 933 8780
Bob Huxford/ Guy McDougall (Public Relations)
Paul Cornelius (Investor Relations)
About Orogen
Orogen is a UK public company quoted on the London Stock
Exchange AIM market (ticker: ORE). The Company's activities are
focused on mineral exploration and development in Europe. The Deli
Jovan gold exploration district in Serbia is the Company's main
operational project. The historic high-grade gold mining camp was
last in production prior to World War II and has been significantly
under-explored in modern times. The Mutsk gold project in Armenia
was optioned by Orogen early in 2013 to follow-up reports of a new
epithermal discovery within an established gold district.
Chairman's Statement
Orogen's strategy as a gold exploration and project development
company is to acquire prospective early-stage growth opportunities
at a low entry cost within the European arena. In particular, we
are focused on the gold grade of our prospects and gold grade for
us is a proxy for profit margin.
I am delighted with our progress during the period. In
particular, I am excited about our new gold discovery in Armenia
where we have reported very impressive initial drilling results
from the Mutsk gold project which cut relatively high grades over
robust widths near surface. We are continuing with drilling
programmes on both of our gold projects and look forward to another
exciting round of drilling results over the next few months.
Although at an early stage, the Mutsk project in particular has the
potential to be a Company-maker. We are keen to resume drilling on
this project before the winter. Results from Deli Jovan in Serbia
are most encouraging and current drilling is targeting the
potential for a near surface open pittable gold resource close to
the old Gindusa mine.
The exploration potential at the Mutsk gold project was
recognised late last year by Orogen management and we moved quickly
to secure an interest in the property. This opportunity was
uncovered for a total cost to date of GBP200,000. With only a
handful of drill-holes completed on the project the potential is
clear. Drilled widths and average grades even at this early stage
show that if we can establish strike continuity in the next round
of drilling then we can target a maiden inferred gold resource for
the property in 2014.
The Mutsk gold project sits in the very exciting and little
explored part of the major Tethyan metallogenic belt, which
includes Lydian International's Amulsar gold deposit (published
resource 2.3 million ounces of gold) located just 30km from
Mutsk.
In the coming weeks our geologists, including a Canadian
epithermal and porphyry expert, will be on site in Armenia to plan
the next phase of drilling which we hope to commence later this
year and complete in the 2014 field-season.
"The easiest place to make a new mine is beside an old one" the
saying goes and that has been our approach at Deli Jovan in Serbia.
The initial thrust of our exploration was to find continuity of the
high-grade lodes beneath the old underground workings at the Rusman
and Gindusa Mines. The main gold lode, and indeed newly discovered
lodes, was confirmed by drilling in 2012 as deep as 280m, with most
of the 15 drill holes intersecting gold mineralisation. However,
the continuity of width and grade has been challenging with respect
to providing sufficient confidence to commit to commence mining and
therefore our focus has shifted to an exciting new near-surface
discovery at Gindusa West where late last year trenching cut
exceptionally high gold grades - 3m averaging 29.6 g/t.
More good news came during H1 2013, with further trenching at
Gindusa West returning excellent gold grades, while also confirming
a 300m strike-extent on the shallow mineralised zone. Current
drilling is testing the possible shallow extensions to this
high-grade surface mineralisation and success would certainly
warrant a second-phase of drilling on this target to establish an
initial resource and put us on a track towards evaluation of the
potential for a shallow starter open-pit operation to exploit this
high-grade mineralisation. Assay results should be available in Q4
2013 from Deli Jovan.
Over the last month the interest in junior gold exploration
companies has increased and it is encouraging to see that genuinely
good exploration results are now being rewarded with a lift in
share prices. Although markets remain volatile, we are optimistic
and believe that with continuing positive exploration results we
will enjoy strong market support and for this reason we feel we can
no longer maximise the benefit of an EFF and have therefore
mutually agreed with Darwin Strategic to cancel the facility.
Orogen's treasury is relatively strong and, with comparatively
very low overheads, the vast bulk of the funds raised from our
shareholders go into our projects. We work very cost effectively
with our partners in Armenia and Serbia by leveraging on their
established infrastructures. We bring in the best experts in areas
of specific technical expertise in structural geology, epithermal
gold deposits and narrow-vein mining so that we maximise
effectiveness in our decision making. Our general administration is
run cost effectively from our Dublin office by sharing a highly
experienced team with other resource companies. This ensures that
we squeeze the greatest value from the funds entrusted to us by our
shareholders. Our philosophy is very much one of alignment and
incentivisation of management with our stakeholders' interests,
based on success and value creation. Similarly, we respect our
people, our partners and the communities and environments in which
we work.
________________
John Barry
Chairman
Date: 24 September 2013
Chief Executive's Statement
The six month period to 30 June 2013 was significant in that
Orogen added a second high-quality asset to the Company. We are
pleased to report important progress by the Company on both
projects.
Mutsk project, Armenia
In January, we concluded negotiations on an earn-in agreement on
the Mutsk gold project in Southern Armenia. Our aim was to confirm
the potential of a low-sulphidation gold epithermal system
discovered by our partners, Georaid CJSC in 2011 through a
programme of shallow vertical drilling. Orogen's verification work
comprised re-logging and sampling of existing drill core, as well
as detailed mapping and sampling in the under-explored permit area.
We also commenced a short programme of diamond drilling in Q2, the
results of which we announced in August 2013.
Orogen believed that the original sampling during the 2011 drill
programme may have understated the grades and widths of the zone,
as not all drill core was sampled and the sampling process was not
fully compliant with best practice. Re-sampling of most of the
historic core was carried out under Orogen's supervision, with
tighter QA/QC control over the process. This confirmed
substantially higher grades and greater widths than reported
previously.
Previous results reported included:
B-5: 14.4m @ 1.09g/t Au, including 5.0m @ 2.75g/t Au
B-7: 5.1m @ 1.26g/t Au
Re-sampling and re-assaying by Orogen of the same holes returned
the following results:
B-5: 23.8m @ 3.34g/t Au, including 17.5m @ 4.17g/t Au
B-7: 14.0m @ 3.27g/t Au
Confirmatory drilling of six short vertical and angled holes
undertaken by Orogen repeated the higher tenor of gold grades, with
assay intervals including 11.0m @ 5.56g/t Au (hole OG13-01) and
10.2m @ 5.73g/t Au (hole OG13-02). The re-sampling and drilling
programme undertaken by the Company has suggested that the
mineralised zone extends over almost 1km of strike, with possible
extension to 2km+. The results demonstrate an exciting new gold
discovery at shallow depths within an established epithermal
district. While further work is needed to fully understand the
controls on mineralisation, we are particularly encouraged by the
high grades and widths encountered in several of the holes and the
apparently large strike extent of the system.
We have announced our intention to move into Phase 2 of
programme to earn an 80% interest in the property.
Deli Jovan project, Serbia
At Deli Jovan, following receipt of excellent trenching results,
the Board took the decision to re-prioritise drilling to focus on
shallow testing of the high grade trench discoveries at Gindusa
West.
Exploration undertaken included further high-density soil
sampling, followed by step-out trenching from the 2012 discovery
trench, TAG-2, reported last year (3m @ 29.6g/t Au) in order to
extend and define the mineralised zone.
Highlights of the 2013 work based on channel sample assaying
include a 3.5m intercept grading 61.42g/t Au including a 2m zone
assaying 107g/t Au in trench T6, on a separate structure to the
north of the TAG-2 intercept. A further 350m to the northwest,
trench T8 intersected a mineralised shear zone assaying 5.75g/t Au
over 2.0m, including 1m @ 8.88g/t Au.
Interpretation of the results received indicated that the main
gold-mineralised, steeply north-dipping east-west shear structure
intersected in trench TAG-2 late last year, extends for at least
360m. Widths range from 1.0-13.0m and gold grades range from
1.44-29.55g/t. The continuity and width of this zone at surface is
particularly encouraging as previously mapped vein structures at
Deli Jovan tend to be narrower and of shorter strike extent.
A minimum 1,000m drill programme is planned in Q3 to test the
sub-surface extensions of the mineralised zones encountered in
trenching. Results will be reported as they are received and
interpreted.
Financial and Corporate Review
At 30 June 2013 cash stood at GBP1,553,000 (31 December 2012:
GBP1,621,000). The loss for the period amounted to GBP185,000 (6
months to 30 June 2012: GBP263,000).
Outlook
Orogen has reached a very exciting stage in its development. We
look forward to announcing further progress from both projects.
_____________________
Ed Slowey
Chief Executive
Date: 24 September 2013
Group statement of comprehensive income
For the six months ended 30 June 2013
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2013 2012 2012
Notes GBP'000 GBP'000 GBP'000
------------------------------------- ------ ---------- ---------- -------------
Continuing operations
Revenue - - 7
Operational costs - - -
------------------------------------- ------ ---------- ---------- -------------
Gross loss - - 7
General and administrative (197) (182) (499)
Share based payments (1) (106) (196)
Group operating loss (198) (288) (688)
Interest received 13 25 37
------------------------------------- ------ ---------- ---------- -------------
Loss on ordinary activities before
taxation (185) (263) (651)
Tax on loss on ordinary activities - - -
------------------------------------- ------ ---------- ---------- -------------
Loss for the year from continuing
operations (185) (263) (651)
Attributable to:
Equity holders of the parent (184) (262) (651)
Non-controlling interests (1) (1) -
------------------------------------- ------ ---------- ---------- -------------
(185) (263) (651)
------------------------------------- ------ ---------- ---------- -------------
Loss per share:
Loss per share - basic and diluted,
attributable to ordinary equity
holders of the parent 3 (0.01) (0.01) (0.03)
Other comprehensive income
Group loss for the period (185) (263) (651)
Exchange translation differences 9 3 17
------------------------------------- ------ ---------- ---------- -------------
Total comprehensive loss for the
year (176) (260) (634)
Attributable to:
Owners of the parent (175) (259) (634)
Non-controlling interests (1) (1) -
------------------------------------- ------ ---------- ---------- -------------
(176) (260) (634)
------------------------------------- ------ ---------- ---------- -------------
Group statement of financial position
As at 30 June 2013
Unaudited Unaudited Audited
30 June 30 June 31 December
2013 2012 2012
Notes GBP'000 GBP'000 GBP'000
----------------------------------- ------ ---------- ---------- -------------
Assets
Non-current assets
Exploration and evaluation assets 4 5,278 4,443 4,986
Property, plant and equipment 24 25 23
----------------------------------- ------ ---------- ---------- -------------
Total non-current assets 5,302 4,468 5,009
----------------------------------- ------ ---------- ---------- -------------
Current assets
Trade and other receivables 58 110 368
Cash and cash equivalents 5 1,553 1,502 1,621
Inventories - 20 -
----------------------------------- ------ ---------- ---------- -------------
Total current assets 1,611 1,632 1,989
----------------------------------- ------ ---------- ---------- -------------
Total assets 6,913 6,100 6,998
----------------------------------- ------ ---------- ---------- -------------
Equity and liabilities
Equity
Share capital 6 2,841 2,567 2,841
Share premium 6 11,325 10,239 11,325
Other reserves 739 625 729
Retained earnings (8,561) (7,988) (8,377)
----------------------------------- ------ ---------- ---------- -------------
Equity attributable to owners of
the parent 6,344 5,443 6,518
Non-controlling interests 402 349 403
----------------------------------- ------ ---------- ---------- -------------
Total equity 6,746 5,792 6,921
----------------------------------- ------ ---------- ---------- -------------
Current liabilities
Trade and other payables 167 308 77
----------------------------------- ------ ---------- ---------- -------------
Total current liabilities 167 308 77
----------------------------------- ------ ---------- ---------- -------------
Total liabilities 167 308 77
----------------------------------- ------ ---------- ---------- -------------
Total equity and liabilities 6,913 6,100 6,998
----------------------------------- ------ ---------- ---------- -------------
Group cash flow statement
For the six months ended 30 June 2013
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to 31 December
30 June 30 June 2012
2013 2012
Notes GBP'000 GBP'000 GBP'000
------------------------------------------- ------ ---------- ---------- ----------------
Cash flows from operating activities
Group operating loss (198) (288) (688)
Decrease/(increase) in trade and other
receivables 317 (38) (272)
Increase/(decrease) in trade and other
payables 88 77 (156)
Decrease in inventories - 1 -
Share based payments 1 106 196
------------------------------------------- ------ ---------- ---------- ----------------
Net cash flow from operating activities 208 (142) (920)
------------------------------------------- ------ ---------- ---------- ----------------
Cash flow from investing activities
Payments advanced as part of project
earn-in - (327) (335)
Expenditure on exploration and evaluation
assets (292) (191) (681)
Net cash inflow on acquisition of
subsidiary - 130 130
Interest received 13 25 37
------------------------------------------- ------ ---------- ---------- ----------------
Net cash flow from investing activities (279) (363) (849)
------------------------------------------- ------ ---------- ---------- ----------------
Cash flow from financing activities
Net proceeds from issue of equity
instruments - - 1,360
------------------------------------------- ------ ---------- ---------- ----------------
Net cash flow from financing activities - - 1,360
------------------------------------------- ------ ---------- ---------- ----------------
Net change in cash and cash equivalents (71) (505) (409)
Net foreign exchange difference 3 3 26
Cash and cash equivalents at beginning
of period 1,621 2,004 2,004
------------------------------------------- ------ ---------- ---------- ----------------
Cash and cash equivalents at end of
period 5 1,553 1,502 1,621
------------------------------------------- ------ ---------- ---------- ----------------
Group statement of changes in equity
For the six months ended 30 June 2013
Foreign
Share currency
based Retained translation Non-controlling
Share Share payment earnings reserve Total interests Total
capital premium reserve equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------- ---------- ---------- ---------- ----------- ------------- -------- ----------------- ---------
Balance at 1
January
2012 2,567 10,239 516 (7,726) - 5,596 - 5,596
Loss for the
period - - - (262) - (262) (1) (263)
Share based
payments - - 106 - - 106 - 106
Foreign
exchange
translation
reserve - - - - 3 3 - 3
Acquisition
of
subsidiary - - - - - - 350 350
Balance at 30
June
2012 2,567 10,239 622 (7,988) 3 5,443 349 5,792
-------------- ---------- ---------- ---------- ----------- ------------- -------- ----------------- ---------
Balance at 1
July
2012 2,567 10,239 622 (7,988) 3 5,443 349 5,792
Loss for the
period - - - (389) - (389) 1 (388)
Issue of
share
capital 274 1,161 - - - 1,435 - 1,435
Share issue
costs - (75) - - - (75) - (75)
Share based
payments - - 90 - - 90 - 90
Foreign
exchange
translation
reserve - - - - 14 14 - 14
Acquisition
of
subsidiary - - - - - - 53 53
-------------- ---------- ---------- ---------- ----------- ------------- -------- ----------------- ---------
Balance at 31
December
2012 2,841 11,325 712 (8,377) 17 6,518 403 6,921
-------------- ---------- ---------- ---------- ----------- ------------- -------- ----------------- ---------
Balance at 1
January
2013 2,841 11,325 712 (8,377) 17 6,518 403 6,921
Loss for the
period - - - (184) - (184) (1) (185)
Share based
payments - - 1 - - 1 - 1
Foreign
exchange
translation
reserve - - - - 9 9 - 9
Balance at 30
June
2013 2,841 11,325 713 (8,561) 26 6,344 402 6,746
-------------- ---------- ---------- ---------- ----------- ------------- -------- ----------------- ---------
Notes to the Accounts
1. General information
Orogen Gold plc is a Company incorporated and domiciled in
England and Wales. Details of the registered office, the officers
and advisers to the Company are presented on the Company
information page on the Company's website www.orogengold.com. The
Company's offices are in London and Dublin. The Company is quoted
on the AIM market of the London Stock Exchange (Ticker: ORE.L). The
Company is focused on gold and minerals exploration in Europe.
Exploration operations are based in Serbia (Deli Jovan project) and
in Armenia (Mutsk project).
2. Basis of preparation
The financial information for the six months ended 30 June 2013
and 30 June 2012 is unaudited.
The Interim Report has been prepared using the same accounting
policies as were applied in the Group's audited financial
statements to 31 December 2012, which have been prepared in
accordance with International Financial Reporting Standards
("IFRS"). The Directors consider that the financial information
presented in this Interim Report represents fairly the financial
position, operations and cash flows for the period, in conformity
with IFRS. The Interim Report for the six months ended 30 June 2013
was approved by the Directors on 24 September 2013.
The financial information presented for the period ended 31
December 2012 is an extraction from the Group's audited accounts on
which the auditors issued an unqualified report, the information
presented does not constitute full accounts for that period.
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period:
Unaudited Unaudited Audited
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- ---------- -------------
Loss after tax attributable to equity
holders of the parent (184) (262) (651)
Weighted average number of ordinary shares
in issue ('000) 2,615,007 1,905,172 1,641,207
Basic and diluted loss per share (pence) (0.01) (0.01) (0.03)
-------------------------------------------- ---------- ---------- -------------
Basic and diluted earnings per share are the same, since where a
loss is incurred the effect of outstanding share options and
warrants is considered anti-dilutive and is ignored for the purpose
of the loss per share calculation. The share options outstanding as
at 30 June 2013 totalled 265,000,000 (30 June 2012: 245,000,000, 31
December 2012: 265,000,000) and are potentially dilutive.
4. Exploration and evaluation assets
Deli Jovan Mutsk Total
GBP'000 GBP'000 GBP'000
---------------------------------------------- ----------- -------- --------
Cost as at 1 January 2012 - - -
Acquisition of Deli Jovan Exploration d.o.o. 1,132 - 1,132
Additions 191 - 191
Transfers and other adjustments 3,120 - 3,120
---------------------------------------------- ----------- -------- --------
Cost as at 30 June 2012 4,443 - 4,443
---------------------------------------------- ----------- -------- --------
Cost as at 1 July 2012 4,443 - 4,443
Additions 543 - 543
---------------------------------------------- ----------- -------- --------
Cost as at 31 December 2012 4,986 - 4,986
---------------------------------------------- ----------- -------- --------
Cost as at 1 January 2013 4,986 - 4,986
Additions 141 151 292
---------------------------------------------- ----------- -------- --------
Cost at 30 June 2013 5,127 151 5,278
---------------------------------------------- ----------- -------- --------
Net book value as at 30 June 2012 4,443 - 4,443
Net book value as at 31 December 2012 4,986 - 4,986
Net book value as at 30 June 2013 5,127 151 5,278
---------------------------------------------- ----------- -------- --------
Acquisition of Deli JovanExploration d.o.o
On 13 June 2012, the Group acquired 55% of the Serbian company
Deli Jovan Exploration d.o.o. (the holding company of the Deli
Jovan Exploration permit) following the completion of CAD1.5
million Phase 1 exploration financing of the Deli Jovan gold
project. The remaining 45% of Deli Jovan Exploration d.o.o. is held
by Reservoir Minerals Inc.. The main asset of Deli Jovan
Exploration d.o.o. on the date of acquisition was the earn-in
agreement on the Deli Jovan gold project. The transfers and other
adjustments in the period to 30 June 2012 includes a GBP3,173,000
goodwill transfer to exploration and evaluation assets on
completion of the first phase of the earn-in and the application of
the 55% earn-in to the transfer of ownership of 55% of Deli Jovan
Exploration d.o.o. to the Group.
5. Cash and cash equivalents
Unaudited Unaudited Audited
30 June 30 June 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
--------------------------- ---------- ---------- -------------
Cash at bank 1,553 1,502 1,621
--------------------------- ---------- ---------- -------------
Cash and cash equivalents 1,553 1,502 1,621
--------------------------- ---------- ---------- -------------
6. Share capital
Ordinary shares Deferred shares
of.GBP0.001 each of GBP0.009 each
------------------------ ---------------------
Number Nominal Number Nominal Share Total
value value premium consideration
GBP'000 GBP'000 GBP,000 GBP,000
------------------------ -------------- -------- ----------- -------- --------- ---------------
Authorised 5,000,000,000 5,000 73,599,817 662
------------------------ -------------- -------- ----------- -------- --------- ---------------
Allotted, called
up and fully paid
Balance at 1 January
2012 and 30 June
2012 1,905,172,453 1,905 73,599,817 662 10,239 12,806
------------------------ -------------- -------- ----------- -------- --------- ---------------
Issue of new shares 270,000,000 274 - - 1,161 1,435
Share issue costs - - - - (75) (75)
------------------------ -------------- -------- ----------- -------- --------- ---------------
Balance at 31 December
2012 and 30 June
2013 2,175,172,453 2,179 73,599,817 662 11,325 14,166
------------------------ -------------- -------- ----------- -------- --------- ---------------
On 27 December 2012, 34,000,000 new ordinary shares of GBP0.001
each were issued at GBP0.006 per share by way of share placing. The
cash consideration received by the Company was GBP192,000.
On 17 October 2012, 240,000,000 new ordinary shares of GBP0.001
each were issued at GBP0.005 per share by way of share placing. The
cash consideration received by the Company was GBP1,137,000.
7. Subsequent events
On 30 August 2013, Orogen announced assay results for its first
test diamond drilling programme at the Mutsk gold project in
Armenia. In addition to the announcement of the results, Orogen
confirmed that the Company had informed Georaid CJSC (Orogen's
Armenian partners on the project) that Orogen will proceed to Phase
2 of the programme under which Orogen has an option to earn an 80
per cent interest in the Mutsk project by spending a total of
US$2.5 million by end August 2016.
8. Copy of the Interim Report
Copies of the Interim Report are available to download from the
Company's website at
www.orogengold.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LJMLTMBITBBJ
Orogen Gold (LSE:ORE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Orogen Gold (LSE:ORE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
