asx announcement · program completed at lue river’s jasmine prospect earlier this year. results...
TRANSCRIPT
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
ASX Code: VKA
QUARTERLY REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2012
During the three months to 30 September, 2012, exploration activities were restricted due to the
impacts of the West African wet season. Viking Ashanti received results from nine drill holes on its
Akoase and Blue River gold projects, both located in southern Ghana, West Africa (Figure 1).
Highlights included:
Results from drilling at Akoase and Blue River continue to demonstrate the gold
prospectivity of both projects.
Drilling re-commences at Akoase, targeting down dip extensions of the higher grade gold
mineralization at the Alimac prospect.
Company successfully completes a pro-rata non renounceable rights issue, raising A$1.27 million (before costs).
1. Exploration
1.1 Akoase Gold Project (VKA 100%)
Alimac Prospect Drilling
Assay results have been received from the final six Reverse Circulation (RC) and RC precollar holes
drilled at the Alimac prospect prior to cessation of drilling activities late in May.
Drill holes locations and assay results are summarized in Figure 2 and Table 1 respectively.
Results are from two RC precollars (AKRC24D and 25D) for deeper diamond tails, designed to test
beneath existing shallower, higher grade drill intersections at Alimac. The pre-collared part of
AKRC25D has intersected 16m @ 2.19 g/t Au, which is consistent with an up-dip intersection of 11m
@ 2.06 g/t Au in previously reported hole AKRC 188. The remaining four RC holes form part of a single
line of six RC holes designed to traverse across part of the >50 ppb gold in soil anomaly linking the
Alimac prospect with the Company’s Andy Hills prospect, 2.5km to the northeast. Two RC holes
remain to be drilled to complete the traverse.
ASX Announcement
25 October 2012
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
A new program of approximately 1,000m of diamond and 1,000m of RC drilling commenced at the
Alimac prospect on 12 October. This drilling is targeting down dip and along strike extensions of the
new higher grade zone at the Alimac prospect. Recent drilling has demonstrated that this higher grade
gold zone, currently at shallow depth of less than 100 metres, extends over more than 400 metres
strike length and remains open along strike to the northeast and at depth.
1.2 West Star/Blue River Joint Venture Gold Project (VKA 100% hard rock rights)
Final assay results have been received from samples relating to RC drill holes BRC 98, 100 and 101 at
the Blue River gold project in southern Ghana. These holes formed part of a 28 hole RC drilling
program completed at Blue River’s Jasmine prospect earlier this year. Results for the majority of holes
have been previously reported (refer ASX announcement dated 12 July 2012).
Drill hole locations and assay results are summarized in Figure 3 and Table 2 respectively.
These results, in conjunction with the previously reported results have confirmed historical, broader
spaced drilling at the Jasmine prospect, and have demonstrated that the 17 strike km of the Salman
shear zone held by Viking Ashanti is a prime exploration target for further systematic evaluation.
The West Star and Blue River properties are subject to joint venture agreements with local Ghanaian
companies, where Viking Ashanti has earned 100% of the rights to all hard rock gold mineralization.
2. Corporate and Administration
As at the date of this report, Viking Ashanti has 82.85 million ordinary shares, and 18.68 million
options on issue.
On 24 August 2012 the Company announced the issue of 12,683,913 ordinary shares at an issue price
of A$0.10 upon closure of the Company’s 1 for 4 non-renounceable rights issue to further advance its
gold exploration projects in Ghana, West Africa.
The rights issue was well supported by shareholders with a 73% take up, raising A$1.27 million (before
costs).
In addition, the rights issue subscribers have each been allotted one free option exercisable at A$0.18
on or before 31 August 2014 in accordance with the rights issue terms.
With the current strong gold price and equities interest in West Africa, a number of corporate and
farm-in opportunities for gold projects were reviewed during the quarter. None are currently at an
advanced stage of consideration.
Viking Ashanti continues to pursue an active program of investor and broker presentations and
presented at the Africa Down-Under Conference, in Perth late in August 2012.
Cash reserves at 30 September 2012 were A$1.19 million.
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
Peter McMickan Managing Director For further information contact: Peter McMickan Managing Director Viking Ashanti Ltd [email protected] 0401 476 266 Competent Persons Statement: The information in this Public Report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Peter McMickan, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr McMickan is a full time employee of Viking Ashanti Limited. Mr McMickan has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that 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. Mr McMickan consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward Looking Statements: This document may include forward looking statements. Forward looking statements may include, but are not limited to statements concerning Viking Ashanti Limited’s planned exploration programs and other statements that are not historical facts. When used in this document, words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward looking statements. Although Viking Ashanti Limited believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements.
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
Figure 1: Viking Ashanti Project Locations, Southern Ghana
Figure 2: Alimac Prospect Drill Hole location Plan
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
Table 1: Alimac Prospect RC Drilling Intersections
Drill hole Information Mineralized Intercepts
Hole ID Easting* Northing* RL* dip/azim
uth
hole depth
(m)
from (m)
to (m)
intersection width
(m)
grade (g/t Au)
oxidation Comment
AKRC 203 744976 715283 254 -55/140 60 4 6 2 1.15 oxidized
AKRC 204 744946 715296 229 -55/140 66 19 20 1 2.62 oxidized
36 38 2 0.50 fresh
57 58 1 0.59 fresh
63 64 1 0.57 fresh
AKRC 205 744930 715314 273 -55/140 69 18 22 4 1.32 oxidized
49 51 2 1.28 fresh
AKRC 206 744912 715328 263 -55/140 69 7 8 1 1.07 oxidized
62 63 1 0.51 fresh
AKRC024D 744467 714890 307 -50/315 80 45 47 2 1.73 oxidized Precollar
76 77 1 0.91 fresh
AKRC025D 714976 744304 353 -66/140 80 36 52 16 2.19 oxidized Precollar
68 69 1 0.92 fresh
75 76 1 0.83 fresh
*GPS Co-ordinates
The site split RC chip samples (approx. 3kg each) from each hole were collected at 1m down hole intervals, and submitted
to ALS Laboratories in Kumasi, Ghana for gold analysis. The analytical method was 50g fire assay/AAS finish with a 0.01 g/t
Au detection limit. Significant results reported are nominally above 0.5 g/t Au over a minimum down-hole interval of 1
metre, with no top cut applied. Assay quality control procedures included insertion of certified reference standards, blanks
and duplicates. True intersection widths are estimated to be approximately 75% of reported drill intersection widths.
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
Figure 3: Jasmine Prospect Drill Hole location Plan
Table 2: Jasmine Prospect RC Drilling Intersections
Drill hole Information Mineralized Intercepts
Hole ID Easting* Northing* RL* dip/azimuth
hole
depth
(m)
from (m) to (m) intersection
width (m)
grade
(g/t
Au)
oxidation
BRC098 584907 560800 34 -50/140 60 56 60 4 0.53 fresh
BRC100 584954 560907 39 -50/140 76 5 11 6 1.01 oxidised
13 14 1 0.81 oxidised
22 23 1 0.55 oxidised
BRC101 584903 560900 27 -50/140 54 12 13 1 0.75 fresh
44 49 5 0.53 fresh
*GPS Co-ordinates
The site split RC chip samples (approx. 3kg each) from each hole were collected at 1m down hole intervals, and submitted
to SGS Laboratories in Tarkwa, Ghana for gold analysis. The analytical method was 50g fire assay/AAS finish with a 0.01 g/t
Au detection limit. Significant results reported are nominally above 0.5 g/t Au over a minimum down-hole interval of 1
metre, with no top cut applied. Assay quality control procedures included insertion of certified reference standards, blanks
and duplicates. True intersection widths are estimated to be approximately 80% of reported drill intersection widths.
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
COMPANY INFORMATION
Directors Australian Stock Exchange Listing
Jack Gardner Non-Executive Chairman Shares VKA
Peter McMickan Managing Director
Trygve Kroepelien Non-Executive Director Capital Structure as at 30 September 2012
Mark Newlands Non-Executive Director Ordinary Shares on Issue 81,850,580
Unlisted Options:
Company Secretary
Michael Langoulant
Options Exercise price 34.5
cents on or before 31 December
2012
6,000,000
Options Exercise price 18 cents
on or before 31 August 2014
12,683,913
Shareholder Enquiries
Peter McMickan
Contact
Telephone: +618 9261 7300
Facsimile: +618 9322 8892
Email: [email protected]
Website: www.vikingashanti.com
Share Registry
Computershare Investor Services Pty Ltd
PERTH WA 6000
Telephone: +618 9323 2000
Facsimile: +618 9323 2033
An ASX-listed Australian company focused on gold exploration in Ghana, West Africa
Ground Floor, Suite 1, 16 Ord Street, West Perth WA 6005 T +61 8 9261 7300 F +61 8 9322 8892 W www.vikingashanti.com
About mining in Ghana Our projects in Ghana
Ghana is an English speaking country located on
the west coast of Africa, which achieved
independence in 1957. Ghana is socially and
politically stable, operates under a well-
established Westminster legal system, has
excellent internal infrastructure with a 25 year
history of modern mining and a substantial
internal skills base to support the resources
sector.
Ghana is a significant gold producer, with 3Moz
gold production in 2011, which ranks #2 in Africa
and #9 in the world. A broad mix of multi-national
mining companies, mid-tier gold producers and
junior explorers operate successfully in the
country.
Akoase Gold Project:
Viking Ashanti’s most advanced project is the
100% owned Akoase gold project, located at the
northeastern end of the Ashanti Gold Belt in
southern Ghana. The project contains an
established near surface Inferred resource of
704,000 oz of contained gold at a 0.5 g/t Au cut-
off at the Akoase East deposit. Viking has
completed 8,000 m of RC drilling and 3,000 m of
diamond drilling at Akoase since acquisition, and
drilling is ongoing to the northeast and at depth to
extend the known mineralized zones.
West Star/Blue River project:
Viking’s other major area of interest is the West
Star/Blue River project, located adjacent to the
Adamus’ 2 million ounce Nzema gold mine at the
southwestern end of the Ashanti Gold Belt in
southern Ghana. Viking has 100% interest in the
hard rock rights of the licences. Extensive soil
geochemistry and drilling programs have been
completed, identifying the 17 strike km of the
Salman shear zone as a prime exploration target.
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
VIKING ASHANTI LIMITED
ABN Quarter ended (“current quarter”)
126 200 280 30 September 2012
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter $A’000
Year to date (3.months)
$A’000 1.1 Receipts from product sales and related
debtors
1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration
(305) - -
(253)
(305) - -
(253) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature
received 2 2
1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - -
Net Operating Cash Flows
(556)
(556)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets
- - -
- - -
1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets
- - -
- - -
1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - -
Net investing cash flows -
-
1.13 Total operating and investing cash flows (carried forward)
(556)
(556)
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010
1.13 Total operating and investing cash flows
(brought forward)
(556)
(556)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1,268 1,268 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other ‐ capital raising costs (42) (42) Net financing cash flows 1,226 1,226
Net increase (decrease) in cash held
670
670
1.20 Cash at beginning of quarter/year to date 532 532 1.21 Exchange rate adjustments to item 1.20 (12) (12)
1.22 Cash at end of quarter 1,190 1,190
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
Current quarter $A'000
1.23
Aggregate amount of payments to the parties included in item 1.2
161
1.24
Aggregate amount of loans to the parties included in item 1.10
1.25
Explanation necessary for an understanding of the transactions
Non‐cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3
Financing facilities available Add notes as necessary for an understanding of the position.
Amount available $A’000
Amount used $A’000
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A’000 4.1 Exploration and evaluation
100
4.2 Development
4.3 Production
4.4 Administration
150
Total
250
Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Current quarter $A’000
Previous quarter $A’000
5.1 Cash on hand and at bank 1,190 532
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22) 1,190 532
Changes in interests in mining tenements Tenement
reference Nature of interest (note (2))
Interest at beginning of quarter
Interest at end of quarter
6.1 Interests in mining tenements relinquished, reduced or lapsed
- - - -
6.2 Interests in mining tenements acquired or increased
- - - -
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010
Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per
security (see note 3) (cents)
Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description)
7.2 Changes during quarter (a) Increases through issues (b) Decreases
7.3 +Ordinary securities
81,850,580 69,550,580
7.4 Changes during quarter (a) Increases through issues (b) Decreases
12,683,913
12,683,913
$0.10
$0.10
7.5 +Convertible debt securities (description)
7.6 Changes during quarter (a) Increases through issues (b) Decreases
7.7 Options (description and conversion factor)
6,000,000 12,683,913
- -
Exercise price $0.345 $0.18
Expiry date 31/12/2012 31/08/2014
7.8 Issued during quarter
12,683,913 - $0.18 31/08/2014
7.9 Exercised during quarter
7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)
Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5
Compliance statement 1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does /does not* (delete one) give a true and fair view of the
matters disclosed.
Sign here: Date: 25 October 2012 Director
Print name: Michael Langoulant
Notes 1 The quarterly report provides a basis for informing the market how the entity’s
activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International
Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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