Results for Year End
30 Juni 2003 - 4:44PM
UK Regulatory
RNS Number:9544M
Ormonde Mining PLC
30 June 2003
ORMONDE MINING PLC ("Ormonde" or "the Company")
Results for the YEAR Ended 31 DECEMBER 2002
CHAIRMAN'S STATEMENT
I am pleased to present your Company's Consolidated Profit and Loss Account and
Balance Sheet for the year ended 31 December 2002. In my last Chairman's
statement I reported that the Company had been re-listed, re-financed, had
recruited a new management team and staff and had commenced the acquisition of
prospective exploration properties. The emphasis of this acquisition exercise
has been on gold in Spain, and to acquire at least one advanced project. I am
therefore very pleased to be able to include the Salamon gold deposit as a key
asset of the Company. The high gold grades and affinities with Carlin-style
mineralization make this a very exciting project, which strongly enhances the
Company's strategic position in Spain. The Salamon deposit shows considerable
potential and we look forward to a resumption of drilling on the deposit in
October of this year.
Through two share placements in 2002, the Company raised a total of Euro530,000
net of expenses in a difficult market, which were used to carry out initial work
programmes in Spain and Morocco. These works are summarised in the Review of
Activities of the Ormonde Annual Report. The Company has completed exploration
programmes on its properties, although limited in places, through careful
husbandry of its cash resources and a cost-consciousness of all of its
activities.
In June of this year Ormonde signed a joint venture agreement with a Spanish
geological company, SIEMCALSA, over the Salamon gold deposit and surrounding 120
square kilometres of highly prospective exploration ground. The Salamon licences
are located in northern Spain some 100 kilometres from Rio Narcea's El Valle
gold mine, which produced around 180,000 ounces of gold in 2002. Ormonde has the
right to earn a 51% interest in the Salamon deposit by funding and managing the
next phase of drilling. SIEMCALSA's current resource estimate for Salamon is
640,000 tonnes grading 9.1 g/t gold and the deposit is open down dip and
partially along strike. This resource equates to approximately 187,000 contained
troy ounces of gold in the first 100 to 120 metres of depth covered by the
drilling. Particularly attractive features of this deposit are its high grade
and significant intersection widths of up to 22 metres. The Company believes
that at these grades and widths, if the resource can be proven to extend in
size, Salamon has the potential to become a profitable underground mine.
The many old workings and gold showings in the surrounding ground demonstrate
the potential for further occurrences of this type of gold mineralization within
the large exploration licence area. Trenching on one of these gold occurrences,
located 1.8 kilometres west of Salamon, returned 11.5 metres grading 4.1 g/t
gold, and Ormonde plans to extend this trenching with a view to defining
drilling targets.
I am also pleased to note that our exploration endeavours have also advanced the
Trives property in Galicia, Spain, to the point where it is now ready for
drilling. Sampling across steeply dipping gold-bearing zones within a prominent
20 metre wide shear zone exposed in Roman workings, returned encouraging
mineralized intervals, such as 2.0m at 7.3 g/t gold (within 8.0m @ 2.6 g/t
gold), and 4.0m at 4.9 g/t gold. Separate sampling of multiple, narrow,
sub-horizontal veins, which cut across the steeply dipping zones, returned
values of 7.1, 17.2, 19.6 and 28.6 g/t gold. Drilling is now scheduled for later
this year to establish the true thickness of this 800 metre long mineralized
zone and the weighted average gold grade of the two styles of mineralization.
Exploration on the Tracia permit, also in Galicia, has yielded encouraging
results, with the location of several zones exhibiting gold mineralization and
returning best results of 22.7 and 58.0 g/t gold. It is intended to conduct soil
sampling and trenching in these areas with a view to advancing them to the
drilling stage in 2004.
In Morocco activities were carried out in joint venture with the BRPM, the state
company responsible for minerals development, on the Tamlalt project in the
northeast of the country. Drilling by the BRPM in 2002 returned intervals
including 19.0m grading 2.7 g/t gold (including 4.0m grading 9.9 g/t gold) and
16.0m grading 2.5 g/t gold (including 6.0m grading 4.5 g/t gold). A detailed
structural interpretation and elucidation of the alteration associated with the
mineralization was carried out towards the end of 2002, which identified several
further target areas for follow-up work. However, as the Company focuses its
efforts on northern Spain and the Salamon deposit, it is assessing the direction
of its work programmes in Morocco.
I believe that the market is starting to turn for the better for junior
exploration companies and a number of recent fundings have been completed by the
sector. With the acquisition of the Salamon high-grade gold deposit and the
advancement of the Trives project your Company is well placed for a most
interesting year. The Company's activities will be consolidated around Spain and
the Salamon project, with the bulk of exploration being focussed on drilling
programmes. I believe that we now have exciting assets and sufficient direction
to successfully seek funding and to look to move the Company's listing to a
larger market. The Board has examined a number of funding alternatives at this
stage and is progressing on putting the necessary funding structure in place.
I would like to most sincerely thank our shareholders for their patience and for
their support whilst the Company conducted its activities during the year. Your
Board remains dedicated to returning this trust and patience by sustained
capital growth through acquisition, exploration and mine development. The recent
completion of the joint venture over the Salamon gold deposit demonstrates that
your Company has the ability to advance and add to shareholder value.
I would also like to thank Dr. Kerr Anderson and his team for their efforts over
the past year, as, without their dedication, the Company would not have
progressed to the advantageous position it now holds.
Colin J. Andrew
Chairman
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2002
12 months ended 18 months ended
31 December 31 December
2002 2001
Euro Euro
Administrative expenses (150,402) (104,539)
Other operating income 12,697 -
Write-down of exploration costs - (704,778)
Exceptional item (cost of re-listing) - (68,225)
OPERATING LOSS (137,705) (877,512)
Interest income 750 1,568
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (136,955) (875,944)
Taxation - 3,204
LOSS ON ORDINARY ACTIVITIES (136,955) (872,740)
AFTER TAXATION
Profit and loss account brought forward - (deficit) (8,589,712) (7,716,972)
Profit and loss account carried forward - (deficit) (8,726,667) (8,589,712)
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2002
12 months ended 18 months ended
31 December 31 December
2002 2001
Euro Euro
FIXED ASSETS
Tangible assets 35,603 8,227
Intangible assets 716,332 381,237
389,464
751,935
CURRENT ASSETS
Debtors 82,747 18,603
Cash at bank and on hand 119,498 152,287
202,245 170,890
CREDITORS : (Amounts falling due (118,876) (138,202)
within one year)
NET CURRENT ASSETS / (LIABILITIES) 83,369 32,688
CREDITORS : (Amounts falling due (24,558) -
after one year)
NET ASSETS 810,746 422,152
CAPITAL AND RESERVES
Called-up share capital 3,635,418 3,404,355
Share premium account 5,865,820 5,600,262
Capital conversion reserve fund 28,928 -
Capital reserve 7,247 7,247
Profit and loss account - (deficit) (8,726,667) (8,589,712)
EQUITY SHAREHOLDERS' FUNDS 810,746 422,152
Enquiries to:
Kerr Anderson - Managing Director John Carroll - Director
Ormonde Mining plc Ormonde Mining plc
Tel: 00 353 46 73623 Tel: 00 353 1 492 2936
kanderson@ormondemining.com offacc@iol.ie
30 June 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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