quarterly report - tanga resources limited...• additional tenements have been granted north, west,...

Quarterly Report for the three months ended 31 March 2017

March 2017 Quarterly Report Page | 1

Summary & Highlights

SINGIDA PROJECT:

• Winston: work during the March quarter concentrated on preliminary resource modelling, metallurgical test work, pit & trench sampling, infill geological mapping and general assessment work.

• Drilling is planned to commence in late May (at the end of the wet season): aimed at resource definition on the gold zones at Winston; testing geochemical, structural, and geophysical anomalies at Pauline; and follow up work at Sophie.

• Additional tenements have been granted north, west, and east of Winston giving at total ground position for the Singida Project of ~1120km²

GEITA PROJECT: • No field work was carried out on the Geita Project during

the March quarter.

CORPORATE: • Placements of $500,000 (less costs) were made by

sophisticated investors at $0.035 per share & a placement of $350,000 was made by private investment group Great Gold Investments at $0.035 per share.

• Total capital raised during the quarter was approximately $820,000. This money will be used to fund drilling at the Singida Project and for working capital purposes.

• Board changes: Allen Lafferty appointed to the Board as Chairman.

Tanga Resources Limited

Tanga is an exploration company exploring for gold in the United Republic of Tanzania and its aim is the discovery and development of economic gold resources

ASX Code: TRL ABN: 41 141 940 230 Registered Office Ground Floor, 63 Hay Street Subiaco, WA 6008 t: +61(8) 9382 8822 [email protected] www.tangaresources.com.au Issued Capital 424.7 million Shares

Options 7.4 M ($0.05) exp 30/4/17 16.5M ($0.12) exp 30/9/19 1.5M ($0.05) exp 30/6/19 Board & Management Allen Lafferty Chairman

John Jones Non-executive Director

John Stockley Technical Director

Mark Wilson Non-executive Director

Graeme Smith Company Secretary


Figure 1. Tanzanian project location plan.


SINGIDA PROJECT: Work during the March 2017 quarter was focussed on the Winston gold prospect, and consisted of preliminary resource modelling (currently being carried out by consultant group Ravensgate in Perth); metallurgical test work on RC drill samples (currently being carried out by METS and Bureau Veritas in Perth); pit and trench rock chip & channel sampling; infill geological mapping in the area of the pitting & trenching; and general project assessment work. None of the above programs have been completed at this stage. It is planned to re-commence RC and Diamond drilling on the Singida Project during the coming quarter: this work is targeted at resource definition work on the gold zones at Winston; testing of geochemical-structural-geophysical anomalies at Mjuhu (the Camp zone) and Pauline which is located 500m south of Winston; and shallow drill testing for geochemical targets on and around the Sophie Prospect located 2.5km west of Winston.

Figure 2. Winston-Mjuhu-Pauline Drill Hole Location Plan; draped on IP chargeability at the minus 150m below surface.


Tenement Acquisition: During the recent quarter an additional 202.85 km² of ground along strike and to the north, west & east of Winston have been acquired. This takes the total ground position at the Singida Project to 1099km². Figure 3 below shows the overall outline of the Singida Project tenement package held by the Company:

Figure 3. Singida Project Tenement Plan.


GEITA PROJECT: No field work was carried out on the Geita Project tenements during the March quarter. A strategic review of the Project will be carried out in the coming quarter.

CORPORATE: Capital raising during the quarter consisted of two tranches:

• $500,000 (less costs) from sophisticated investors at $0.035 per share; and

• $63,000 from the conversion of Options at $0.035 per share. Total capital raised during the quarter was approximately $530,000 nett. This money will be used to fund exploration activities at the Singida Project, and for working capital purposes. On 11 April 10,000,000 shares were issued at $0.035 per share to raise $350,000 from a professional and sophisticated investor. Board Changes: During the quarter Allen Lafferty was invited to the Board of the Company and succeeded John Jones as Chairman. Allen Lafferty was the founding director of the private company Simba Minerals Ltd in 2011, which became a 100% subsidiary of Tanga in 2014. John Jones remains a Non-Executive Director of the Company. In addition, the Board of the 99.95% owned subsidiary Kudu Resources (TZ) Ltd was strengthened by the appointment of Dr Ben Moses to the Board of Kudu, together with Allen Lafferty and Graeme Smith. The current Board of Kudu comprises Dr Ben Moses (Chairman), Willy Lazarus Mwaigwisya, John Stockley, Allen Lafferty and Graeme Smith. Dr Moses brings a wealth of political and public service experience from a Tanzanian point of view: he has worked closely with the previous three Presidents of the United Republic, has served as overseas Ambassador Extraordinary and Plenipotentiary to Sweden, the Nordic Countries and the Baltic States, and was Tanzania’s High Commissioner to Canada where he was also accredited to Cuba as Ambassador Extraordinary and Plenipotentiary. Dr Moses is held in high regard by the current Tanzanian government leadership. Dr Moses holds a BA (Hons) in Political Science, Public Administration and International Relations, an MA in Public Policy and Administration, and is also a graduate of Curtin University in Perth having completed a Doctorate in Business and Administration.

March 2017 Quarterly report Page | 6

Future Work: Singida Project:

• On-going resource modelling work on the Winston gold deposit; • Completion of the metallurgical test work on the Winston gold mineralisation; • Evaluation of additional drilling required at Winston, Mjuhu, Pauline & Sophie; and • Evaluation of regional gold targets within the Singida Project.

Geita Project:

• Strategic review of the Geita Project tenements.


Competent Person Statement: The information in this report relates to Exploration Results based on information compiled by John Stockley who is a Competent Person and member of the Australian Institute of Geoscientists (AIG). John Stockley is a Director of Tanga Resources Ltd. John Stockley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity they have undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves”. John Stockley consents to the inclusion in the report of the matters based on his information in the form and context which it appears.

For futher information please contact Allen Lafferty John Stockley Chairman Technical Director Tanga Resources Limited Tanga Resources Limited Tel: 08 9 481 8035 Mobile: 0447 826 166 Further information relating to Tanga Resources Limited and it’s exploration projects can be found at its website: www.tangaresources.com.au

http://www.tangaresources.com.au/


Appendix 1

Tenement Directory

Project Tenement Number Name Beneficial Interest Singida PL7246/2011 Wandela West 99.95% Singida PL7296/2011 Harare 99.95% Singida PL7344/2011 South Garauja 99.95% Singida PL7389/2011 North Garauja 99.95% Singida PL7405/2011 West Garauja 99.95% Singida PL7644/2011 Mbulu 99.95% Singida PL8208/2012 Wandela Renewal 99.95% Geita PL8293/2013 Mimbili 99.95% Singida PL9293/2013 Basuto 99.95% Singida PL9895/2014 Dorirojiki 99.95% Singida PL10570/2015 Singa Kubwa 99.95% Singida PL10572/2015 Mpipiti West 99.95% Singida PL10620/2015 Wandela Central 99.95% Kahama PL10675/2015 Bukombe 99.95% Singida PL10843/2016 Mpipiti East 99.95% Singida PL11073/2016 Haidom West 99.95% Singida PL10865/2016 Iramba West 99.95% Hanang PL10876/2016 Kiboroda 99.95% Hanang PL10889/2016 Gairo 99.95% Hanang PL10940/2016 Getanyambu 99.95% Singida PL10939/2016 Wandela East 99.95% Singida PL11414/2016 Haidom Northwest 99.95% Geita PL11582/2016 Mimbili South 99.95% Singida PL11073/2017 Haidom West 99.95% Geita PL11033/2016 Mimbili South 99.95% Singida PL11057/2017 Mbulu West 99.95% Singida PL11058/2017 Mahaha 99.95% Singida PL11059/2017 Haidom Farwest 99.95% Singida PL11060/2017 Singa North 99.95% Geita PL11504/2016 Mimbili Southeast 99.95% Geita PL11313/2016 Mimbili Southeast 99.95%

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+ See chapter 19 for defined terms 1 September 2016 Page 1

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16

Name of entity

TANGA RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

41 141 940 230 31 March 2017

Consolidated statement of cash flows Current quarter $A’000

Year to date (9 months)

$A’000

1. Cash flows from operating activities 1.1 Receipts from customers

1.2 Payments for

(196) (2,435) (a) exploration & evaluation

(b) development

(c) production

(d) staff costs (34) (34)

(e) administration and corporate costs (183) (766)

1.3 Dividends received (see note 3)

1.4 Interest received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Research and development refunds

1.8 Other (provide details if material)

1.9 Net cash from / (used in) operating activities

(413) (3,235)

2. Cash flows from investing activities

(10)

2.1 Payments to acquire:

(a) property, plant and equipment

(b) tenements (see item 10)

(c) investments

(d) other non-current assets



Consolidated statement of cash flows Current quarter $A’000

Year to date (9 months)

$A’000

2.2 Proceeds from the disposal of:

(a) property, plant and equipment

(b) tenements (see item 10)

(c) investments

(d) other non-current assets

2.3 Cash flows from loans to other entities

2.4 Dividends received (see note 3)


2.6 Net cash from / (used in) investing activities

(10)

3. Cash flows from financing activities 467 467 3.1 Proceeds from issues of shares

3.2 Proceeds from issue of convertible notes

3.3 Proceeds from exercise of share options 63 369

3.4 Transaction costs related to issues of shares, convertible notes or options

3.5 Proceeds from borrowings

3.6 Repayment of borrowings

3.7 Transaction costs related to loans and borrowings

3.8 Dividends paid


3.10 Net cash from / (used in) financing activities

530 836

4. Net increase / (decrease) in cash and cash equivalents for the period

407 2,923 4.1 Cash and cash equivalents at beginning of

period

4.2 Net cash from / (used in) operating activities (item 1.9 above)

(413) (3,235)

4.3 Net cash from / (used in) investing activities (item 2.6 above)

(10)

4.4 Net cash from / (used in) financing activities (item 3.10 above)

530 836

4.5 Effect of movement in exchange rates on cash held

10

4.6 Cash and cash equivalents at end of period

524 524



5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

Current quarter $A’000

Previous quarter $A’000

5.1 Bank balances 174

5.2 Call deposits 350 407

5.3 Bank overdrafts

5.4 Other – Term deposit

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

524 407

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 90

6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Director fees and salary for executive director

7. Payments to related entities of the entity and their associates

Current quarter $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2

7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2



8. Financing facilities available Add notes as necessary for an understanding of the position

Total facility amount at quarter end

$A’000

Amount drawn at quarter end

$A’000

8.1 Loan facilities

8.2 Credit standby arrangements

8.3 Other (please specify)

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter $A’000

9.1 Exploration and evaluation 240

9.2 Development

9.3 Production

9.4 Staff costs

9.5 Administration and corporate costs 180


9.7 Total estimated cash outflows 420

10. Changes in tenements (items 2.1(b) and 2.2(b) above)

Tenement reference and location

Nature of interest Interest at beginning of quarter

Interest at end of quarter

10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced

PL10863/2016 Held by Kudu Resources (TZ) Ltd (subsidiary)

99.95% Nil

10.2 Interests in mining tenements and petroleum tenements acquired or increased

PL11414/2016 PL11582/2016 PL11073/2017 PL11033/2016 PL11057/2017 PL11058/2017 PL11059/2017 PL11060/2017 PL11504/2016 PL11313/2016

Held by Kudu Resources (TZ) Ltd (subsidiary)

Nil 99.95%



Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: ...27 April 2017........

(Company secretary)

Print name: .........Graeme Smith................................................

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

quarterly report - tanga resources limited...• additional tenements have been granted north, west,...

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