TIDMORE
RNS Number : 5699X
Orogen Gold PLC
09 May 2016
9 May 2016
Orogen Gold Plc
("Orogen Gold", "Orogen" or "the Company")
Final Results for the year ended 31 December 2015
Orogen Gold (AIM:ORE), the AIM quoted mineral exploration
company focused on gold exploration and development, announces its
audited results for the year ended 31 December 2015.
Operational Highlights
Mutsk gold project Armenia
-- Shallow gold bearing intervals intersected in two holes with enhanced gold grades
-- Two distinct gold-bearing zones have been identified covering
a minimum strike length of 550m
-- 2015 drilling programme succeeded in confirming potentially
significant extensions to the previously discovered gold zones
-- Independent geological review concluded that Mutsk overlies a large hydrothermal system
-- Analogies can be drawn with other large scale epithermal gold deposits
Financial and Corporate Highlights
-- GBP450,000 raised at 0.025p before expenses, each Director subscribed
-- Cash at 31 December 2015 GBP921,000
-- Loss for the year down 52% to GBP890,000
-- Colin Bird appointed as Chief Executive Officer
Post Year End
-- Highly prospective gold-silver property optioned in Nevada, USA
-- Previous bedrock and drill sampling outline area >0.5g/t Au measuring 1km x 0.5km
-- Historic gold and silver production from the district
-- Notice of the AGM, to be held on 8 June 2016, is now available on the company's website at www.orogengold.com
Enquiries:
Orogen Gold Plc +353 1662 8395
Colin Bird, Chief Executive
Ed Slowey, Operations
Director
Cairn Financial Advisers
LLP +44 (0)207 148 7900
(Nominated Adviser)
Liam Murray
Beaufort Securities Limited
(Broker) +44 (0)207 382 8300
Jon Belliss
Walbrook (Public & Investor
Relations) +44 (0)207 993 8780
Gary Middleton/Paul Cornelius
CHAIRMAN'S STATEMENT
An initial bull run in gold at the beginning of 2015 quickly ran
out of steam and by the end of the year it was trading around its
lowest level since late 2009, with other commodities being hit even
harder. However, we saw welcome signs of a recovery in the price of
gold in late 2015 and continuing into 2016, with the bullion price
rallying some $200.
With the uncertainty in the price of gold, we sought to conserve
cash reserves as much as possible and to focus our expenditure on
the promising Mutsk gold project in Armenia. We also welcomed Mr
Colin Bird to the Board as CEO, with a view to positioning the
Company to take advantage of project opportunities resulting from
the recent difficult market conditions.
Mutsk, Armenia
The development of the mining industry in Armenia was given a
boost towards the end of 2015 after our neighbour, Lydian
International announced $325m of construction financing for its
Amulsar Gold mine just north of our Mutsk project, with
construction expected to commence in 2016. Our optimism on Mutsk
was given a further boost early in the year after an independent
geological review concluded that this is a large hydrothermal
system of which only a small portion has been explored to date. The
report added that 2014 drilling indicated potential for higher
grade mineralized zones.
Mutsk is proving to be a potentially large, shallow, low-medium
grade gold discovery, with some similarities to the Amulsar
project, requiring further exploration and drilling to bring it to
resource stage. Following thorough review and modelling of the
deposit we recommenced drilling in the third quarter and succeeded
in locating some higher than average grades as well as
demonstrating that the gold zones remain open in several
directions.
Deli Jovan, Serbia
As indicated in the Interim Report, continuity of the
gold-bearing veins at Deli Jovan has proven difficult to establish
and further detailed infill drilling would be required to
demonstrate continuity. With significantly more encouraging results
from the Mutsk project, Orogen, together with our partners at Deli
Jovan, sought to find a new partner to take on the work on the
project. Given the weak commodity market, no suitable partner could
be found so the decision was made to withdraw from the project.
Corporate
In the third quarter, highly experienced mining engineer Colin
Bird accepted our invitation to become Chief Executive Officer and
Ed Slowey assumed the role of Operations Director allowing him more
time to manage the extensive amount of data on our projects and
possible new targets. Despite continuing difficult stock market
conditions we also managed to bulk up our cash reserves with a
GBP450,000 placing in the third quarter.
Post Year End
Recently we announced the expansion of our portfolio with an
exclusive agreement signed with AIM listed Galileo Resources where
Orogen has the right to earn-in to a 51% stake in Galileo's
Silverton gold-silver project in Nevada by spending $400,000 within
18 months. This project compliments the Mutsk property and provides
investors with a balanced gold/exploration portfolio.
Outlook
A steady rise in the gold price so far this year is encouraging
though as we saw last year that situation can turn very quickly. As
such we are determined to utilise our cash reserves in the most
efficient way possible while at the same time growing our
understanding of our high potential projects on both sides of the
Atlantic.
Adam Reynolds
Chairman
9 May 2016
STRATEGIC REPORT
STRATEGY AND OBJECTIVES
The principal activity of Orogen Gold plc ("Orogen" or the
"Company") is the development of mineral exploration and production
projects, with an emphasis on gold exploration and project
development. Orogen's strategy is to acquire prospective
early-stage growth opportunities at a low entry cost. The three
steps in the Orogen strategy are to:
(1) Identify and secure low entry cost gold projects,
(2) Undertake an efficient cost controlled programme of project
evaluation and appraisal,
(3) Move to establish gold resources at an early stage and/or
seek a mining partner to take the project forward towards
production.
Orogen currently operates the Mutsk Gold Project ("Mutsk"),
which is located in the Syunik Province in southern Armenia, 210km
southeast of the capital city Yerevan. Orogen has an exclusive
Joint Venture agreement with Georaid CJSC ("Georaid"), an Armenia
registered company, to earn an 80% interest in Mutsk by incurring a
total of US$2.5m in exploration expenditure on the project by the
end of August 2016. Orogen's work to date at Mutsk has delineated a
gold deposit in two zones within a 2.5km x 1km area of hydrothermal
alteration. Further drilling and follow-up work is required to
bring the project to resource status.
In April 2016, the Company signed a term sheet with Galileo
Resources plc to earn a minimum 51% interest in the Silverton
gold-silver project in Nevada, USA ("Silverton"). Orogen will focus
initially on drilling a shear zone that may contain high grade gold
and silver deposits, while also reviewing the potential for large,
lower grade gold and silver resources within the wider property
area.
REVIEW OF BUSINESS
Mutsk Gold Project
Orogen has discovered a new, low-sulphidation epithermal gold
deposit through its exploration at Mutsk. The alteration and pyrite
mineralisation 'footprint' is substantial, covering an area of at
least 2.5km x 1km. This confirms that there has been a large
hydrothermal system operating at Mutsk. Gold mineralisation
discovered so far appears to be focussed on a north-south trending
structure, which locally contains high grades up to 10g/t Au.
However, the bulk of the gold occurs at lower grades within
hydrothermally altered and brecciated andesitic volcanics
peripheral to this structure.
So far two distinct gold-bearing zones have been identified
covering a minimum strike length of 550m. The intervening area
between the zones appears relatively unaltered and unmineralised,
with probable cross-cutting faulting.
The occurrence of gold in several distinct zones within the
overall target area is quite typical for such deposits and the
nearby Amulsar deposit shows similar characteristics. Amulsar now
has a total resource of 5Moz Au and targeted production of 200,000
ounces annually with an average grade of 0.78g/t Au. Lydian
International plans to commence construction at Amulsar in Spring
2016 - this will represent the first new gold mine development in
Armenia under the current mining regulations.
At Mutsk, gold grades within the wider mineralised sections
generally range from 0.5-2.0g/t, averaging close to 1g/t Au, with
some higher grade intervals - see examples from Table 1 below -
including holes 46 and 47 from the 2015 drilling programme. Many of
the intervals are from shallow depths.
Table 1 - Mutsk diamond drilling -
selected gold assay intervals*
---------------------------------------------------------------
Hole Hole direction From To Interval Au
No. (m) (m) (m) g/t
--------- ---------------- ------- ------- --------- -----
OG13-01 Vertical 37.00 48.00 11.00 5.56
--------- ---------------- ------- ------- --------- -----
-50 degrees
OG14-25 to E 108.00 132.00 24.00 1.25
--------- ---------------- ------- ------- --------- -----
-50 degrees
OG14-27 to E 12.00 72.00 60.00 1.21
--------- ---------------- ------- ------- --------- -----
incl. 19.00 29.00 10.00 3.11
--------------------------- ------- ------- --------- -----
-50 degrees
OG15-46 to E 29.00 50.00 21.00 2.68
--------- ---------------- ------- ------- --------- -----
-50 degrees
OG15-47 to E 20.00 42.40 22.40 1.08
--------- ---------------- ------- ------- --------- -----
incl. 20.00 26.20 6.20 2.17
--------------------------- ------- ------- --------- -----
and 36.00 43.00 7.00 1.53
--------------------------- ------- ------- --------- -----
* Downhole intervals reported - true
widths to be confirmed; OG13-01 may
be drilled along a high-angle structure
The 2015 drilling programme succeeded in confirming potentially
significant extensions to the previously discovered gold zones. In
the northern zone, OG15-46 provided lateral dimension to the gold
intercepts on profile 3950N, as well as intersecting higher than
average grades. In the main zone, OG15-47 demonstrated that
alteration and gold mineralisation continues to the south where it
remains open. OG15-48 confirmed extension of the main zone to the
east, beyond any hole previously drilled. While the intercepts in
this hole were limited in scale and grade, this could represent an
important continuation of the target zone to the east, beyond what
had previously been understood to be a north-south trending
boundary structure.
Encouragingly, an initial core sample tested by SGS Mineral
Services for gold deportment in 2015 suggested that the gold is
potentially recoverable by standard processes.
Deli Jovan Gold Project
It has been concluded that the individual gold-bearing veins at
Deli Jovan, while high grade in places, are not sufficiently
continuous to be amenable to economic evaluation and mining at
current gold prices. The exploration data was reviewed by several
interested parties during 2015 with a view to a farm-in or purchase
arrangement, but no firm proposal was forthcoming. Orogen considers
that it has better options available to it at Mutsk and elsewhere
and therefore it has been decided to terminate the project and
relinquish the exploration permit.
Financial
The loss for the year amounted to GBP890,000 (2014:
GBP1,859,000). The loss for the year comprises an impairment charge
of GBP534,000 (2014: GBP1,318,000), general and administrative
expenses of GBP356,000 (2014: GBP548,000), share based payment
charge of GBP5,000 (2014: nil) and finance income of GBP5,000
(2014: GBP7,000). The impairment charge is as a result of a review
performed on the carrying value of the exploration and evaluation
assets related to the Deli Jovan Gold Project.
FUTURE DEVELOPMENTS
Silverton, Nevada
In April 2016, Orogen Gold, announced that it had signed an
exclusive Term Sheet with Galileo Resources Plc, a UK AIM-listed
company, covering a highly prospective epithermal gold-silver
project at Silverton in Nevada, USA, which is one of the
best-endowed gold districts in the world.
Orogen will have an exclusive right to earn an initial 51%
interest in the Silverton project over the 6km(2) claim area
through exploration spend of US$400,000 over 18 months.
Subsequently the Company can earn an additional 24% interest in the
project through an additional exploration spend of US$1.5 million
over a further 30 month period.
Based on analogy with other gold-silver deposits in the Nevada
region, the project has potential for discovery of zones of high
grade structurally-hosted gold-silver mineralisation and/or a
large, low grade, open-pittable deposit.
The property is located in Nye County in the Basin and Range
structural province of east-central Nevada, with ready access from
the Ely-Tonopah highway. Mineralization and hydrothermal alteration
at Silverton occurs in narrow, steep-to-shallow dipping veins and
horizons, as well as disseminated in porous and permeable rhyolite
tuffs. Surface rock chip sampling shows widespread low-order gold
mineralisation over several square kilometres. Historic non-core
drilling at Silverton also cut extensive low-grade gold intervals,
much of it at shallow depths. However, several zones in excess of
1g/t Au were intersected, such as 15.24m @ 1.05g/t Au (hole 88-13),
7.62m @ 2.29g/t (hole S-3), 10.66m @ 1.10g/t Au (hole S-11) and
1.52m @ 5.97g/t Au (hole S-4).
In addition, in the south of the property, a one kilometre
north-south zone along the Silverton Shear with a 0.1--1.5g/t Au
anomaly at surface remains untested by drilling. Vertical drill
holes marginal to the shear reportedly returned several gold and
silver-mineralized intervals, including 10.67m @ 1g/t Au (hole
81-10) from 79.2-89.9m depth. Shallow holes 81-12 and 81-13 also
both bottomed in gold mineralisation. In addition, several strong
silver intercepts are recorded up to 604g/t Ag over 1.52m from
18.29m to 19.81m depth in hole 81-12 and 280g/t Ag over 3.04m from
1.52m to 4.57m depth in hole 81-5. Small scale mining was carried
out here from 1930 to 1937 and in 1953. Total production for the
district is reported as <100,000oz silver, <2,000oz gold and
<1 ton of antimony.
The Silverton Shear Zone represents a particular target of
interest to Orogen. The Company plans to complete due diligence and
to prepare a programme of drilling of angled holes to test the
shear and vein system for high grade gold-silver beneath and along
strike from the workings.
Mutsk Gold Project
Orogen will continue to advance the Mutsk project, with the aim
of completing earn-in to an 80% interest in the property during
2016. The work plan proposed for 2016 includes further drilling to
extend the footprint of the known mineralisation as a step towards
building an initial mineral resource. Particular attention will
focus on the southern and eastern margins of the main gold zone
which currently remain open. Further drilling will also seek out
pockets of higher grade gold, including extensions to the OG15-46
intercept in the northern zone.
Deli Jovan Gold Project
It has been concluded that the individual gold-bearing veins at
Deli Jovan, while high grade in places, are not sufficiently
continuous to present an economic mining opportunity at current
gold prices. The exploration data was reviewed by several
interested parties during 2015 with a view to a farm-in or purchase
arrangement, but no firm proposal was forthcoming. Orogen considers
that it has better options available to it and therefore it has
decided to terminate the project and relinquish the exploration
permit.
KEY PERFORMANCE INDICATORS
The key indicators of performance for the Group is its success
in identifying, acquiring and developing and divesting of
investment in exploration projects so as to create shareholder
value. The Group carries out its operations by way of execution of
operational plans that are approved and budgeted in advance by the
Board. Operational progress is reviewed by the Board on a regular
basis and actual costs are compared to budgets.
Control of bank and cash balances is a priority for the Group
and these are budgeted and monitored closely to ensure that the
Group maintains adequate liquidity to meet financial commitments as
they arise. At 31 December 2015 the Group held GBP921,000 of cash
resources.
The Company initially secured an exclusive option to earn-in the
Mutsk Gold Project in January 2013 and has subsequently signed a
full joint venture earn-in agreement in February 2014. During the
current year the Company incurred GBP266,000 of exploration costs
on Mutsk. The Company remains on track to complete the project
earn-in by incurring US$2.5m of exploration expenditure on the
project by 20 August 2016. At year-end 2015, approximately 89% of
qualifying earn-in expenditure has been incurred.
PRINCIPAL RISKS AND UNCERTAINTIES
The Group considers that the principal risks to the achievement
of its business plans are as follows:
Operational
In common with other businesses operating in gold exploration,
the Group's activities are speculative and are inherently subject
to a high degree of risk.
The Group's operational work involves geological exploration and
the implementation of geological work programmes. Interpretation of
the results of these programmes is dependent upon judgements and
assessments that by their very nature are speculative; these
interpretations are applied in designing further work programmes to
which the Group can commit significant resources. Work programmes
often involve excavation of former mine workings, drilling
operations and other geological work that present significant
engineering challenges which are subject to unexpected operational
problems. The actual cost of programmed operations can vary
significantly from planned levels as a result of unexpected issues
arising.
Climate
The Group's activities take place in remote locations that can
be subject to severe climate events, particularly during the winter
season. Severe winter weather can cause delays in implementation of
planned programmes and can have cost consequences in recovering
from damage caused by climatic events.
Political, economic, legal, regulatory and social
The Group operates in different countries where political,
economic, legal, regulatory and social uncertainties are potential
risk factors. The Group has restricted its activities to Europe and
the USA where such risks could be considered to be less than in
many developing countries in other parts of the world.
Tax risk
The Group endeavours to be fully tax compliant and to manage its
tax affairs efficiently in every jurisdiction in which it operates.
In a complex and ever changing taxation environment, some
uncertainty is inherent in estimating the Group's liabilities. The
Group is exposed to changes in legislation and interpretation of
existing policies across the countries in which operations take
place. The Company exercises judgement in assessing the required
level of provision for taxes arising.
Organisational
The Group is dependent on the experience and skills of the
Directors and senior management to successfully execute its
strategy; the loss of such key contributors would present a risk to
the business. Staffing levels and development of business processes
and policies are kept under regular review to ensure that they are
appropriate and adequate for the scale and growth of the Group's
business.
Financial
The Group's projects are at an early stage and currently do not
generate any cash flow to support the exploration activities. The
valuation and future earnings of the Company are exposed to
movements in the market price of gold which is sold in US$. Orogen
is also subject to exchange rate risk with the Company's accounts
in GBP while the Company's projects require funding in US$. The
operating entities of the projects to which Orogen has earn-in
agreements incur substantial costs in Armenian Dram and in US$.
Insurance
The Group has in place insurance protection, including a
directors and officers liability policy, to insure against risks of
loss where management deems appropriate and cost effective; however
in some cases risks cannot be effectively covered by insurance and
the cover in place may not be sufficient to cover the extent of
potential liabilities.
Health and safety
Health and safety of all those working in and visiting the
Group's installations is a priority. The Group's operations can
take place in dangerous environments particularly where underground
mining and exploration activities are being pursued. The Group has
in place a comprehensive health and safety policy alerting all
concerned to the risks involved and to the required precautions
that staff and visitors to the Group's operations must take. Staff
and authorised visitors are only permitted access to underground
facilities when safety inspection has been completed and
certificates issued by the appropriate and competent authority.
Environment and community
The Company recognises its social responsibilities and seeks to
adopt the best contemporary practice applicable to each country and
region of operation. To ensure this standard is met the Company
aims to:
-- plan and conduct exploration activities in a manner that
complies with legislation pertaining to the protection of the
environment and employees;
-- in the absence of legislation, apply best contemporary
practice relating to the protection of the environment;
-- undertake internal environmental reviews associated with operational fieldwork;
-- train staff to apply best contemporary practices;
-- engage in research to study the impact of mining activities
on the locality and implement technologies that are environmentally
friendly;
-- participate in the development of environmental legislation
to ensure a balance is attained between protecting the environment
and developing practical laws;
-- inform government, employees, local communities and other
stakeholders of our activities, and encourage joint venture
partners and suppliers to adopt the principles of this
statement.
Ed Slowey Alan Mooney
Director Director
9 May 2016
Consolidated statement of profit
or loss and other comprehensive
income
For the year ended 31 December
2015 2015 2014
GBP'000 GBP'000
------------------------------------ -------- --------
Continuing operations
Revenue - -
Operational costs - -
------------------------------------ -------- --------
Gross profit - -
General and administrative
expenses (356) (548)
Share based payments (5) -
Impairment of exploration and
evaluation assets (534) (1,318)
Group operating loss (895) (1,866)
Finance income 5 7
------------------------------------ -------- --------
Loss on ordinary activities
before taxation (890) (1,859)
Tax on loss on ordinary activities - -
------------------------------------ -------- --------
Loss for the year from continuing
operations (890) (1,859)
Attributable to:
Equity holders of the parent (677) (1,657)
Non-controlling interests (213) (202)
------------------------------------ -------- --------
Group loss for the year (890) (1,859)
Exchange translation differences (2) (3)
------------------------------------ -------- --------
Total comprehensive loss for
the year (892) (1,862)
Attributable to:
Owners of the parent (679) (1,660)
Non-controlling interests (213) (202)
------------------------------------ -------- --------
(892) (1,862)
------------------------------------ -------- --------
Loss per share:
Loss per share - basic and
diluted, attributable to ordinary
equity holders of the parent
(pence) (0.02) (0.06)
Consolidated statement of financial position
As at 31 December 2015
2015 2014
GBP'000 GBP'000
------------------------------- --------- ---------
Assets
Non-current assets
Exploration and evaluation
assets 1,577 1,811
Property, plant and equipment 2 3
------------------------------- --------- ---------
Total non-current assets 1,579 1,814
------------------------------- --------- ---------
Current assets
Trade and other receivables 22 58
Cash and cash equivalents 921 1,118
Total current assets 943 1,176
------------------------------- --------- ---------
Total assets 2,522 2,990
------------------------------- --------- ---------
Equity and liabilities
Equity
Share capital 4,418 4,222
Share premium 12,181 11,827
Other reserves 625 760
Retained earnings (14,765) (14,088)
------------------------------- --------- ---------
Equity attributable to owners
of the parent 2,459 2,721
Non-controlling interests - 200
------------------------------- --------- ---------
Total equity 2,459 2,921
------------------------------- --------- ---------
Current liabilities
Trade and other payables 63 69
------------------------------- --------- ---------
Total current liabilities 63 69
------------------------------- --------- ---------
Total liabilities 63 69
------------------------------- --------- ---------
Total equity and liabilities 2,522 2,990
------------------------------- --------- ---------
Consolidated statement of cash flows
For the year ended 31 December 2015
2015 2014
GBP'000 GBP'000
-------------------------------------- -------- --------
Cash flows from operating activities
Group operating loss (895) (1,866)
Decrease in trade and other
receivables 36 35
(Decrease)/Increase in trade
and other payables (4) 18
Impairment of exploration and
evaluation assets 534 1,318
Share based payments 5 -
-------------------------------------- -------- --------
Net cash flow from operating
activities (324) (495)
-------------------------------------- -------- --------
Cash flow from investing activities
Expenditure on exploration
and evaluation assets and project
earn-ins (292) (893)
Bank interest received 5 7
-------------------------------------- -------- --------
Net cash flow from investing
activities (287) (886)
-------------------------------------- -------- --------
Cash flow from financing activities
Net proceeds from issue of
equity instruments 411 1,288
-------------------------------------- -------- --------
Net cash flow from financing
activities 411 1,288
-------------------------------------- -------- --------
Net change in cash and cash
equivalents (200) (93)
Net foreign exchange difference 3 3
Cash and cash equivalents at
beginning of year 1,118 1,208
-------------------------------------- -------- --------
Cash and cash equivalents at
end of year 921 1,118
-------------------------------------- -------- --------
Consolidated
statement Foreign
of changes in Share Shares currency Non-controlling
equity Share Share based to be Retained translation interests
For the year capital premium payment issued earnings reserve Total Total
ended reserve reserve equity
31 December
2015
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
-------------- --------- --------- --------- --------- ---------- ------------- -------- ----------------- --------
Balance at 1
January
2014 3,057 11,704 592 - (12,431) 33 2,955 402 3,357
Loss for the
year - - - - (1,657) - (1,657) (202) (1,859)
Shares to be
issued - - - 138 - - 138 - 138
Foreign
exchange
translation
reserve - - - - - (3) (3) - (3)
Issue of
share
capital 1,165 123 - - - - 1,288 - 1,288
-------------- --------- --------- --------- --------- ---------- ------------- -------- ----------------- --------
Balance at 31
December
2014 4,222 11,827 592 138 (14,088) 30 2,721 200 2,921
-------------- --------- --------- --------- --------- ---------- ------------- -------- ----------------- --------
Balance at 1
January
2015 4,222 11,827 592 138 (14,088) 30 2,721 200 2,921
Loss for the
year - - - - (677) - (677) (213) (890)
Other
movements - - - - - - - 13 13
Shares based
payments - - 5 - - - 5 - 5
Foreign
exchange
translation
reserve - - - - - (2) (2) - (2)
Issue of
share
capital 196 354 - (138) - - 412 - 412
Balance at 31
December
2015 4,418 12,181 597 - (14,765) 28 2,459 - 2,459
-------------- --------- --------- --------- --------- ---------- ------------- -------- ----------------- --------
Notes
1 Financial information
The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 December 2015,
but is derived from those accounts. The auditors have reported on
those accounts; their report was unqualified and did not draw
attention to any matters by way of emphasis without qualifying
their report.
2 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:
2015 2014
------------------------------------------ ------- --------
Loss after tax attributable to equity
holders of the parent (GBP'000) (677) (1,657)
Weighted average number of ordinary
shares in issue (share in millions) 4,002 2,723
Fully diluted average number of ordinary
shares in issue (share in millions) 4,002 2,723
------------------------------------------ ------- --------
Basic and diluted loss per share (pence) (0.02) (0.06)
------------------------------------------ ------- --------
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 31 December 2015 totalled 380,000,000 (2014: 225,000,000) and
are potentially dilutive.
3 Exploration and evaluation assets
Armenia Serbia Total
GBP'000 GBP'000 GBP'000
---------------------------- ---------- --------- --------
Cost
At 1 January 2014 387 5,451 5,838
Additions 924 69 993
---------------------------- ---------- --------- --------
At 31 December 2014 1,311 5,520 6,831
---------------------------- ---------- --------- --------
Impairment
At 1 January 2014 - 3,702 3,702
Impairment charge - 1,318 1,318
---------------------------- ---------- --------- --------
At 31 December 2014 - 5,020 5,020
---------------------------- ---------- --------- --------
Carrying value 31 December
2014 1,311 500 1,811
---------------------------- ---------- --------- --------
Cost
At 1 January 2015 1,311 5,520 6,831
Additions 266 34 300
---------------------------- ---------- --------- --------
At 31 December 2015 1,577 5,554 7,131
Impairment
At 1 January 2015 - 5,020 5,020
Impairment charge - 534 534
At 31 December 2015 - 5,554 5,554
Carrying value 31 December
2015 1,577 - 1,577
---------------------------- ---------- --------- --------
As part of the annual impairment review of asset carrying values
a charge of GBP534,000 (2014: GBP1,318,000) was recorded in
relation to the Deli Jovan project in Serbia. Subsequent to year
end, the Company has concluded that it has better options available
to it and therefore it has decided to terminate the Deli Jovan
project and relinquish the exploration permit.
4 Events after the reporting period
In March 2016 the Deli Jovan permit lapsed. An application for
renewal of the permit was not submitted and the partners have
agreed to withdraw from the project. The Board estimates that the
total exit costs, all to be incurred in 2016, should not exceed an
aggregate sum of GBP20,000.
In April 2016, Orogen Gold, announced that it had signed an
exclusive Term Sheet with Galileo Resources Plc, a UK AIM-listed
company, covering a highly prospective epithermal gold-silver
project at Silverton in Nevada, USA, which is one of the
best-endowed gold districts in the world.
Orogen will have an exclusive right to earn an initial 51%
interest in the Silverton project over the 6km(2) claim area
through exploration spend of US$400,000 over 18 months.
Subsequently the Company can earn an additional 24% interest in the
project through an additional exploration spend of US$1.5 million
over a further 30 month period.
5 Annual Report and Annual General Meeting
The Annual Report for the year ended 31 December 2015 will be
posted to shareholders on 10 May 2016 and will be available to
download from the Company's website at www.orogengold.com on 10 May
2016.
The Annual General Meeting of Orogen Gold plc will be held at
Finsgate, 5-7 Cranwood Street, London EC1V 9EE on 8 June 2016 at
10am. Notice of the AGM is now available on the Company's website
at www.orogengold.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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