v2 Report - Additional Information Supplement
HGD Heritage Gold NZ Limited
Press releases
|
31 May, 2007, 08:46 Full Year Results |
| Issuer Name: Heritage Gold New
Zealand Ltd Reporting Period: One year to 31 March 2007 Previous Reporting Period: One year to 31 March 2006 Results for Announcement to the Market: Amount ($) Percentage Change Revenue from ordinary activities $35,140 - 86% Profit/(loss) from ordinary activities after tax attributable to members of the listed issuer ($807,230) - 69% Net profit/(loss) attributable to members of the listed issuer ($807,230) - 69% News Release Listed exploration company Heritage Gold recorded a $807,000 loss for the year to 31 March 2007, compared with a $2.6 million loss in the previous corresponding period. The change from last year can be attributed to the write-off of approximately $2.4 million from the Onemana project in 2006. Heritage Gold managing director Peter Atkinson says: "Exploration expenditure for the current year is strong and reflects the expansion of our mineral interests." Shareholder investment during the year was $1.8 million compared to $1.1 million in the previous financial year. The purpose of the funding was for advancing exploration of Heritage Gold's current projects, investigation of the uranium proposal, and for working capital. This year's expenditure included an exploration write-off of an additional $200,418 for the Onemana project and exploration expenditure of $750,818 was capitalised. Mr Atkinson says Heritage Gold's income is predominantly derived from interest earned on investments. "Income results for the period are consistent with the previous period, after an adjustment for a one-off revenue item in the previous year." Earnings/(loss) per share for the year to 31 March 2007 improved from (0.0224) to (0.0051) cents per share. During the year Heritage expanded both its mineral targets and areas of interest. "Exploration work undertaken this year focused on the company's gold and cobalt projects," Mr Atkinson says. "In addition, the company has recently entered into an agreement to earn 50% equity in a Northern Territory uranium prospect." Mr Atkinson says the current level of exploration activity is expected to continue into the 2008 financial year. Karangahake Project (100%) Heritage's three exploration permits lie about 15 kilometres (km) west of Waihi within a prominent hydrothermal alteration system covering 16 square km. Mineralised veins, which have been mined at Talisman in the southern part of the area, have been traced along strike for 4km, based on surface outcrop, strong soil and rock geochemical anomalies, and geophysical signatures. Drilling commenced in early 2007. At the Talisman mine a JORC compliant resource of 205,000 ounces (oz) gold and 800,000oz silver has been estimated. The mine has recorded production of 1Moz of gold and 3Moz of silver. Other Gold Projects (100%) Heritage has two other major gold projects in the district, within a 10 km radius of Newmont's Waihi treatment plant. Waihi North extends from the boundary of the Martha open pit mine and north for 10 km to the southern boundary of the Golden Cross mine. The permit covers the northern part of the Waihi hydrothermal alteration system that hosts the Martha gold deposit and the Favona deposit. In the Waihi North permit, several alteration systems have been identified by exploration using mapping, geophysics, and geochemical techniques. At Golden Valley, along the eastern boundary of Newmont's Martha and Favona mines near the Waihi treatment plant, Heritage has a 50 square kilometre area that contains major structures and geophysical anomalies, similar to those associated with the Martha and Favona gold deposits. Work on the Golden Valley permit has given encouraging results and further surveys are scheduled, along with drilling in 2007. Drilling commenced on the Rahu project in the last quarter and is continuing into the 2007/2008 year. Six holes have already been reported with the results supporting the company's understanding that gold is consistently present in the areas targetted. Northland Projects (100%) Heritage has applied for prospecting permits in the Northland region over ground favourable for epithermal goldsilver deposits, porphyry copper-gold deposits and gold-rich volcanogenic massive sulphide base metal deposits. Thackaringa Cobalt Project, New South Wales (33%) Heritage has an interest in cobalt through its 33% equity in Broken Hill Cobalt Ltd, which holds the Thackaringa cobalt project. Broken Hill Cobalt Ltd (BHCL) has completed several phases of metallurgical test work to examine options for future processing of the mineralisation. Market surveys have been undertaken for cobalt and by-product minerals in the deposits, which have been test drilled to 100 metres below surface. This year a drilling programme is being undertaken to test extensions of the known mineralisation. In addition, the Company's consultant's have been assessing metallurgical test work to determine which processing options warrant further investigation to achieve potential economic viability of the proposed project. BHCL plans to explore in 2007 for additional cobalt resources to underpin potential development. Dunmarra Basin As part of its strategy to expand it's interests to include uranium in Australia, Heritage entered into a joint venture project in the Dunmarra Basin, comprising three exploration licences for an area totalling 1,250 square kilometres. Following due diligence on Dunmarra Basin, consultants engaged by Heritage Gold revealed that "considerable potential existed for the discovery of economic deposits in this part of the Northern Territory". Geoffrey Hill, Chairman of Heritage said "The due diligence has confirmed our view of the Dunmarra Basin opportunity. It appears to be a significant but overlooked geological environment that could host valuable uranium resources. We look forward to an exciting exploration programme once the licences are granted". Heritage can earn 50% interest by the expenditure of A$2 million over three years. For more information please refer to Preliminary Full Year Report (Appendix 1) lodged with the NZSE on Wednesday 30 March 2007. The financial statements upon which this report is based are in the process of being audited. ENDS For further information please contact: Peter Atkinson Managing Director Heritage Gold +64 21 630 463 +64 9 303 1893 +64 21 630 463 About Heritage Gold Heritage listed on the NZX in 1986 and has a current market capitalisation of approximately $18 million. Heritage is also listed on the ASX and the National Stock Exchange of Australia (formerly Newcastle Stock Exchange). The company has valuable gold assets in the Waihi district of New Zealand, where it is a major tenement holder. Heritage also owns 33% of Broken Hill Cobalt Ltd in Australia and has applied for permits to prospect for gold, silver, copper, and base metals in Northland, about 150km north of Auckland. Heritage recently entered into a joint venture to explore for uranium in the Dunmarra Basin of the Northern Territory. |
|
Heritage Gold NZ Limited HGD 31 Jul, 2007, 17:00 First Quarter Activities Report |
| Heritage Gold is pleased to
present the quarterly report for the three months ended 30 June
2007. Highlights include: - Completion of Waihi district drilling programme - Reconnaissance exploration starting at Dunmarra uranium prospect - Third prospecting permit applied for in Northland DUNMARRA URANIUM PROSPECT (Northern Territory, Australia) (earning 50% interest) Ground reconnaissance exploration of the Dunmarra uranium joint venture areas commenced after the end of the quarter. This exploration involves sampling of radiometric anomalies and geological mapping. Notices of proposed grant of the three exploration licence applications have been received and advertised for objections. This process should be completed at the end of September 2007. The Dunmarra joint venture tenements cover a total land area of approximately 1,250 square kilometres. Under the joint venture arrangement, Heritage can earn up to a 50% stake in the licences if it spends A$2 million over three years. That may increase to 75% if a further A$2 million is spent. The minimum commitment Heritage must make is A$100,000. The three tenement areas are some distance apart, but each indicates potential for sandstone-hosted and roll front uranium mineralisation. There are numerous uranium occurrences to the north, southwest and northeast of the licence areas that offer good source potential for uranium. In addition, the basin has aquifers that are thought to have allowed long term movement of uranium bearing groundwater. It also has a structural environment that appears favourable for discovering uranium deposits formed by re-deposition of uranium from these solutions. Radiometric anomalies have been found previously within the application areas. GOLD PROJECTS (Waihi District, New Zealand) (100%) Karangahake Project (Rahu, Talisman, and Dominion Knoll permits) Diamond core drilling at Rahu Ridge was completed in early July 2007 and the data will now undergo geological modelling to review the outcomes. A total of nine holes was drilled for 1,565 metres. The depths of holes ranged between 113 and 310 metres. The nine holes encountered gold mineralisation in hydrothermal breccias over a total strike length of 1,400 metres, with some holes showing multiple intersections. Another feature of the gold mineralisation is its association with other geological units such as lake sediments, and quartz vein stockworks within dacite porphyry intrusives. Previous exploration at Rahu Ridge outlined three parallel structures over a strike length of approximately 2km. The structures were identified by ground geophysical surveys and geochemical sampling. Only two of them were drilled in this programme. The data collected during the drilling will be evaluated further in the current quarter, and will include petrological and mineragraphic studies to characterise the gold mineralisation. This will help identify those areas within the structures with greater potential to host higher grades at depth. The mineralisation has features consistent with it being at a high level in the epithermal system, and higher grade feeder veins are expected to occur below the hydrothermal breccias drilled. This is supported by the recognition of quartz vein fragments within the mineralised hydrothermal breccias. The additional recognition of gold mineralised sediments and intrusive rocks adds to the prospectivity of Rahu, indicating a more complex mineralisation history than initially thought. The Rahu Ridge zone lies along the same epithermal system that was responsible for gold deposits at the Talisman mine to the south. The Talisman area has multiple quartz veins containing high grade ore zones. In the past, the mine produced 1 million ounces (Moz) of gold and 3 Moz of silver. Other Gold Projects (100%) Exploration work has continued at Waihi North and Golden Valley to aid identification of drill targets. This has included detailed ground geophysical surveys and trace element geochemical surveys designed to detect anomalies above buried mineralisation. Estimates for an airborne low level geophysical survey are currently being sought as part of this work. GOLD & BASE METALS (Northland, New Zealand) (100%) In diversifying its mineral interests, Heritage Gold has applied for three prospecting permits in Northland, about 150km north of Auckland, New Zealand. The third application was lodged over the area surrounding the Puhipuhi epithermal gold prospect and adjacent to Heritage Gold's Hikurangi prospecting permit application. The new Waikaire application contains several gold, silver and antimony prospects in favourable geological settings. A recent study of the mineral resource potential of Northland by a consortium of district councils, and the regional economic development group (Enterprise Northland), complemented a detailed study of the regional economic benefits of mineral developments. This has given further support to Heritage Gold's decision to expand its interests in the Northland region. The three areas have potential to host epithermal gold-silver, porphyry copper-gold, and volcanogenic massive sulphide base metal deposits. The applications are currently being processed by the Ministry of Economic Development and Heritage may undertake initial prospecting work by treating the three contiguous areas as a single project. THACKARINGA COBALT PROJECT (New South Wales) (33%) Heritage Gold has 33% equity in Broken Hill Cobalt Limited (BHCL) and is manager for the project. BHCL holds an exploration licence and two mining leases over the key areas of cobalt mineralisation at Thackaringa, about 25km south of Broken Hill, NSW. During the quarter, extensive mapping and sampling of prospective parts of the exploration licence were completed, and rock and soil samples submitted for analysis. Several areas have been identified that warrant further investigation by drilling. Due to farming requirements on the land, the drilling programme has been deferred for two months, with arrangements in place to secure a drilling rig for the work. BHCL is currently negotiating private funding to advance the programme and proceed to stock exchange listing of the company. APPOINTMENT OF DIRECTOR Mr Warwick Grigor was appointed an independent director during the quarter. An original investor in Heritage when it first listed on the New Zealand stock exchange, Mr Grigor specialises in research based mining company financing and corporate advisory services through Far East Capital Ltd (FEC), which he founded in 1991. Prior to forming FEC Mr Grigor, who has degrees in law and economics from the Australian National University, gained extensive experience as a senior mining analyst and research partner with several Sydney stock broking firms. WARRANTS The closing date for conversion of the Heritage Gold warrants was 27 June 2007. In June 5,629,852 warrants were converted to fully paid ordinary shares, raising approximately NZ$354,000. The remaining 16,858,608 warrants expired. ANNUAL MEETING The Annual Meeting of Shareholders will be held at 3pm on 29 August at 545 Parnell Road, Parnell, Auckland, New Zealand. APPOINTMENT OF MANAGING DIRECTOR An announcement regarding the appointment of a new Managing Director is expected to be made by 29 August 2007. DISCLOSURE: The information in the report to which this statement is attached that relates to gold and base metals Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Murray Ronald Stevens who is a Member of The Australasian Institute of Mining and Metallurgy (The AusIMM). Mr Stevens is self-employed. Mr Stevens has sufficient experience which is relevant to the styles of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and Mr Stevens consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to uranium exploration results is based on information compiled Mr Wolfgang Leyh. Mr Leyh is employed by Eaglehawk Geological Consulting Pty Ltd and is a Member of The AusIMM. Mr Leyh has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Leyh consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. About Heritage Gold Heritage listed on the NZSX in 1986 and has a current market capitalisation of approximately $16 million. Heritage is also listed on the ASX and the National Stock Exchange of Australia. The company has valuable gold assets in the Waihi district of New Zealand, where it is a major tenement holder. Heritage also owns 33% of Broken Hill Cobalt Ltd in Australia and has applied for several permits to prospect for gold, silver, copper, and base metals in Northland, about 150km north of Auckland. Heritage has entered into a joint venture to explore for uranium in the Dunmarra Basin of the Northern Territory, Australia. |
Chairman's report
Director's Report
