Final Results
Jubilee Platinum PLC
28 October 2005
28 October 2005
AIM: JLP
Jubilee Platinum Plc
('Jubilee' or 'the Company')
AUDITED PRELIMINARY RESULTS FOR THE YEAR TO 30 JUNE 2005
HIGHLIGHTS:
• Net assets at 30 June 2005 totalled £7.290m (2004: £3.409m)
• Loss per fully diluted share 0.45p (2004: 1.15p)
• Strategic interest purchased in Tjate's inferred 65 million oz PGM asset
• Drilling at Tjate confirms presence of PGM-bearing reefs
• Geophysics in Madagascar extends PGM-nickel-copper anomalies
• Drilling commenced in Madagascar
POST YEAR END HIGHLIGHTS:
• Developing geological model suggests Londokomanana has the potential to
become a mining region
• Drilling from third hole at Tjate continues to intersect Merensky and UG2
reefs
Commenting on the results, Jubilee Platinum's Chief Executive Officer Colin Bird
said; 'It has been both a productive and exciting year for Jubilee. We are
delighted with our discoveries in Madagascar which we believe have huge
potential and we will progress our activities out there as quickly as possible.
Our results at Tjate have also confirmed our belief that the project could be a
very substantial PGM resource. We are pleased to present a company which has
solid development potential with extensive upside in exploration.'
For further information please contact:
Colin Bird Cathy Malins / Annabel Leather
Jubilee Platinum plc Parkgreen Communications Ltd
Tel 020 7584 2155 Tel 020 7493 3713
CHAIRMAN'S STATEMENT
Dear Shareholder
Your directors take much pleasure in reporting a very successful year of
achievement for your Company. The results we are generating from our lead
projects in Madagascar and South Africa are very promising. A combination of
closely-monitored expenditure and a focussed mission has seen your Company
complete the year with above-average performance from all its properties. We
are now involved in nickel and copper, the key metals driving the robust
resource market on a global scale, as well as platinum group metals. Our
projects are both balanced in country and commodity risk and as an emerging
mining company form an excellent basis for further development.
During the period under review, the Board concluded two successful fund raisings
totalling £4.7 million. The first tranche totalling £3.1 million was completed
in July 2004 followed by a second round of fund raising amounting to £1.6
million in April 2005.
In South Africa, the Company's most significant activity was securing in
December 2004, a 35% interest in the Tjate platinum project in the eastern
Bushveld for ZAR49 million, of which ZAR35 million purchased a direct 25%
interest in the holding company Tjate Platinum Corporation (Pty) Ltd (Tjate). A
further ZAR14 million was committed to a convertible note to earn-in a further
10% interest, part funding towards a full feasibility study. The commencement
of drilling on the flagship Tjate property is yielding substantial results at
the time of writing.
In February 2005, the Company commenced drilling on the Dsjate farm, one of
three contiguous farms comprising the Tjate property (an area of 5143 hectares).
By year- end two boreholes had been drilled on the property, both of which
intersected the Merensky and the UG2 chromitite platinum-bearing reefs. The
pleasing results are reported in the chief executive officer's operating review.
Since the financial year-end, the Company has drilled a third borehole, which
confirmed these results. This prompted management to commence a pre-feasibility
study.
The Tjate property, which is located downdip of Impala Platinum's operating
Marula platinum mine and Anglo Platinum's new Twickenham mine project, is
inferred to host 282 million tonnes of resource containing 65.8 million oz
platinum group metals and gold, of which 22.8 million oz are attributable to
the Company. The Tjate resource is believed to be one of the largest unmined
blocks of platinum group metals in the world, close to infrastructure and mature
mining operations.
During the period under review the Company commenced lithological drilling on
two of its other properties in the Bushveld Complex. The results are reported in
our operating review herein. The Company awaits imminent new-order prospecting
rights for its Bokfontein and Elandsrift properties, which are believed to
contain near surface chromitite reefs, and for several properties near
Groblersdal and Marble Hall in the eastern limb of the Bushveld Complex.
In Madagascar, the Company consolidated its position and increased the pace of
exploration comprising reconnaissance, geochemical soil sampling, trenching and
geophysics on its three main properties Londokomanana, Ambodilafa and Lanjanina
(incorporating Pachoud). All the properties are showing above average results.
In Londokomanana, the area of main activity, the Company completed a very
successful geophysics programme in Lavatrafo (southern Londokomanana) and
Antsahabe (northern Londokomanana); the two areas being some 35 kilometres
apart. In Lavatrafo, the geophysics results identified structural features that
correlated closely with the Company's previous trenching and sampling work and
provided excellent targets for drilling. Since the financial year-end, the
Company has completed drilling two boreholes in Lavatrafo and has started a
third. The Company recently announced a major discovery from its first two
boreholes LAV1 and LAV2, which intersected respectively a 70 and 92 metres-wide
nickel-copper-platinum-palladium formation containing up to 0.26% nickel, 0.14%
copper and between 0.66 to 1.05g/t platinum palladium and gold. The metals
together represent copper equivalents of up to 1.36% copper at current metal
prices.
At Antsahabe, the geophysical programmes identified two new structural anomalies
parallel and close to known PGM-nickel-copper mineralised formation, and a new
area of geophysical anomalies, in all totalling 22 kilometres of strike length.
These anomalies suggest the presence of a potential major new mineralised
system. The structural anomalies have been scheduled for drilling immediately
after completion of the programme at Lavatrafo.
The Company's developing geological model for Londokomanana suggests the
intriguing possibility that the mineralisation at Lavatrafo and at Antsahabe
could be related if not the same, with the implication that we may be looking at
a major regional mining system as opposed to disparate deposits. The potential
for a very large world-class resource is therefore a very exciting prospect.
Reconnaissance in Ambodilafa, south of the capital Antananarivo, identified a
major ultrabasic intrusive some 20 kilometres long by 4 kilometres wide, where
previous limited drilling intersected a 93-metre thickness of disseminated
nickel-copper sulphides with a 1% copper equivalent. In view of the Company's
success with geophysics in Londokomanana, it intends to fast track a geophysics
programme on Ambodilafa closely followed up with a drilling programme in the
coming year.
During this reconnaissance and based on archival data, a visit was made to the
old Bebasy gold mine in the concession. Reconnaissance sampling identified a
possibly significant gold resource with chip samples showing 42g/t and 108g/t
gold.
In Lanjanina, the results of a follow-up soil sampling and geophysics programme,
is being reviewed, with a view to carrying out further infill sampling and
geophysics to target locations for drilling.
The exciting results that continue to emerge from Madagascar support our
conviction that Madagascar is under explored and offers huge potential for major
new discoveries.
In Sierra Leone, in order to establish viable grades, we continued to identify
the platinum-bearing horizons on the York Platinum project, a joint venture in
partnership with AIM-listed Golden Prospect plc.
The success of our activities is generating strong institutional and retail
support for investment in the Company, which has seen its share price and
trading volumes increase steadily during the year. The directors continue to
seek growth in shareholder value by means of focussed exploration activity and
acquisitions.
Finally, I would like to thank my fellow directors and the diligent staff for
their valuable support and loyalty in this our third year since listing on AIM
and I look forward to another successful year of progress and development in all
our exciting and rewarding projects.
Malcolm Burne
Chairman
OPERATING REVIEW 2004 - 2005
MAJOR PROGRESS IN SOUTH AFRICA AND MADAGASCAR
MADAGASCAR
• Geophysics extends platinum group metal-nickel-copper ('PGM-Ni-Cu')
anomalies
• Targets for drilling established and drilling commenced
• Developing geological model suggests Londokomanana has the potential to
become a mining region
Between October and December 2004, the Company completed a geophysical Induced
Polarization (IP) survey over two areas in its Londokomanana concession, namely
Antsahabe (northern Londokomanana) and Lavatrafo (southern Londokomanana), which
are some 35 kilometres apart. The results of this survey confirmed/identified:
• the previously established 15 kilometres strike of geochemical and
trenching anomalies in Antsahabe and extended this anomaly trend in the
area to some 22 kilometres with a width of up to 3 kilometres;
• two new parallel structures, respectively 1.7 and 1.3 kilometres long,
running parallel and directly northeast of the mineralised Antsahabe hill;
and
• in Lavatrafo, a minimum 2.7 kilometres strike length of ultramafic rocks, a
rock type usually associated with nickel and platinum.
This geophysics, which covered areas where the Company had previously recorded
encouraging nickel, copper, PGM and gold values, identified highly prospective
targets for drilling.
The Company followed this up with a second geophysics programme comprising of
gradient and Dipole-Dipole (DPDP) array surveys over Lavatrafo. The geological
model that the Company has developed from these results indicates that the
PGM-Ni-Cu mineralisation could be controlled by and appears to be located at the
contact between zones of near zero chargeability and high chargeability
respectively.
The DPDP array data correlated directly with both high PGM-Ni-Cu values obtained
in previous trenching by the Company and with associated disseminated sulphides
intersected in earlier but incomplete drilling by the Bureau de Recherche
Geologiques et Minieres (BRGM). Similar DPDP array responses were obtained over
the contact zones of four more ultramafic formations investigated in Lavatrafo.
In some cases, both the western and eastern contact zones of these formations
appear to be prospective for disseminated sulphides.
These results have led to a better understanding of the geophysical response
obtained in Antsahabe. The Lavatrafo model has been applied to the
mineralisation and geophysics identified in Antsahabe and the Company now
believes that it and Lavatrafo may be of similar genesis, which would suggest
the intriguing possibility of some 35 kilometres strike of a mineralized
formation leading to a major mining region.
On the basis of the above robust data, Jubilee commenced a total 2000-metre
drilling programme in June 2005, for Lavatrafo and Antsahabe.
Since the financial year-end, the Company has drilled two boreholes, LAV1 and
LAV2A in Lavatrafo and made a major discovery. The two boreholes some 150 metres
apart along strike, intersected a multi-metal (platinum, palladium, nickel and
copper) mineralised formation, 70 metres and 92 metres wide respectively. The
borehole results (including higher grade intercepts) are shown in the tables
below.
Borehole LAV1
From metres To metres Intercept metres Nickel % Copper % 3E* g/t %Cu equiv. **
37.7 108.4 70.7 0.23 0.11 1.05 1.35
72.8 108.4 35.7 0.31 0.19 0.99 1.65
89.4 108.4 19.1 0.34 0.20 1.05 1.78
75.3 83.5 8.3 0.32 0.23 1.15 1.80
102.3 108.4 6.1 0.47 0.24 1.02 2.25
Borehole LAV2A
From metres To Intercept Nickel Copper% 3E* g/t % Cu equiv.
metres metres % **
72.35 164.05 91.7 0.26 0.14 0.66 1.32
82.35 162.05 79.7 0.29 0.16 0.73 1.45
115.0 158.8 43.9 0.40 0.25 0.80 1.93
136.1 156.2 20.1 0.52 0.33 0.92 2.48
* 3E = platinum, palladium and gold ** at gold $465/oz; platinum $918/oz;
palladium $198/oz; nickel $13,250/tonne and copper $3,950/tonne
This formation discovery not only confirmed the Company's developing geological
model, but also provided further support for a potentially large mining region
in Londokomanana, since Antsahabe exhibits very similar characteristics based on
the combination of geophysics and sampling results. The thickness of the
intercepts is considered ideal for bulk open-pit mining.
On the Company's Ambodilafa property, to the south of the capital Antananarivo,
a reconnaissance programme identified a major ultrabasic intrusive some 20
kilometres long by 4 kilometres wide. Previous limited drilling by others in the
area reported a 93-metre intersection of disseminated nickel-copper sulphides
with a 1% copper equivalent assay. In view of the Company's success with
geophysics in Londokomanana, it intends to fast track a geophysics programme on
Ambodilafa followed closely by drilling.
Also in Ambodilafa and based on archival data, the Company visited the old
Bebasy gold mine in the area and identified a possible significant gold
resource. Chip samples, taken during reconnaissance from newly exposed quartz
veins nearby, assayed in the range 42g/t to 108g/t gold.
In Lanjanina, follow-up soil sampling and geophysics, comprising of induced
polarisation and ground magnetometry, identified significant copper and nickel
anomalies of up to 2800 ppm copper and 550 ppm nickel. The Company is reviewing
the data with a view to further infill sampling and geophysiscs to target
drilling.
SOUTH AFRICA
• Strategic interest purchased in Tjate's inferred 65 million oz PGM asset
• Three drill holes intersected Merensky and UG2 reefs
• Pre-feasibility study to be undertaken following encouraging results
During the year, Jubilee purchased a strategic 25% interest in
black-economic-empowered Tjate Platinum Corporation (Pty) Ltd ('Tjate') for
ZAR35 million, with the right to subscribe for a further 10% interest on
expending ZAR14 million towards exploration and a feasibility study.
Tjate holds old-order prospecting rights on three contiguous farms in the
eastern Bushveld Complex, namely Dsjate, Fernkloof and Quartz Hill, which are
located downdip of Impala Platinum's operating Marula mine and Anglo Platinum's
developing Twickenham project. The Tjate property is inferred to contain 65
million oz PGMs plus gold, of which 22.8 million oz are attributable to Jubilee.
An application for conversion of the old-order rights to new-order rights has
been accepted by the Department of Minerals and Energy of South Africa and
granting of the conversion is believed to be imminent.
The Company commenced drilling in February 2005 on the 2162 hectare Dsjate farm.
By year-end it had drilled two boreholes, DT1 and DT2, both of which intersected
the platinum-bearing Merensky and the UG2 chromitite reefs at projected depths
and reef thicknesses, and with grades consistent with expectations.
The full results for the two boreholes are shown in the tables below:
Borehole DT1 Merensky reef
Width 4E Pt g/t Pd g/t Rh g/t Au g/t Ni Cu % Pt:Pd
cm g/t % ratio
Motherhole 99 7.78 4.45 2.49 0.22 0.62 0.33 0.19
First deflection 110 7.37 4.36 2.30 0.19 0.52 0.24 0.05
Second deflection 139 10.95 5.98 3.64 0.28 1.05 0.34 0.25
Weighted average 116 8.91 5.03 2.89 0.23 0.76 0.33 0.16 1.74
Borehole DT1 UG2 reef
Width 4E Pt Pd Rh Au Pt:Pd
cm g/t g/t g/t g/t g/t ratio
Motherhole 96 5.40 2.64 2.10 0.58 0.08
Deflection 90 6.66 2.98 2.95 0.63 0.10
Weighted average 93 6.01 2.80 2.51 0.60 0.10 1.12
Borehole DT2 Merensky reef
Width 4E Pt g/t Pd g/t Rh g/t Au g/t Ni Cu % Pt:Pd
cm g/t % ratio
Motherhole 62 3.44 2.19 0.89 0.13 0.23 0.22 0.11
Deflection 1 60 1.52 1.00 0.34 0.03 0.15 0.11 0.07
Deflection 2 60 6.53 3.80 2.16 0.17 0.40 0.34 0.16
Weighted average 61 3.83 2.33 1.13 0.11 0.26 0.22 0.11 2.1
Borehole DT2 UG2 reef
Width 4E Pt Pd Rh Au Pt:Pd
cm g/t g/t g/t g/t g/t ratio
Motherhole 96 7.34 3.29 3.24 0.67 0.14
Deflection 1 92 7.44 3.43 3.15 0.73 0.13
Deflection 2 97 9.23 3.54 4.82 0.71 0.16
Weighted average 95 8.01 3.42 3.75 0.70 0.14 0.9
Since the financial year-end, the Company has drilled a third step-out borehole,
the results for which are shown in the tables below.
Borehole DT3 Merensky Reef
Width 4E Pt g/t Pd g/t Rh g/t Au g/t Ni Cu % Pt:Pd
cm g/t % ratio
Motherhole 63 5.05 3.18 1.39 0.13 0.35 0.28 0.21
Deflection 1 60 6.85 4.10 2.11 0.20 0.44 0.40 0.19
Deflection 2 61 8.93 5.10 2.96 0.24 0.63 0.36 0.19
Weighted average 61 6.92 4.11 2.14 0.19 0.48 0.35 0.20 1.92
Borehole DT3 UG2 reef
Width 4E Pt Pd Rh Au Pt:Pd
Cm g/t g/t g/t g/t g/t ratio
Motherhole 76 7.54 3.13 3.35 0.77 0.29
Deflection 1 83 7.40 3.27 3.26 0.76 0.11
Deflection 2 87 7.42 4.14 2.62 0.57 0.09
Weighted average 82 7.49 3.55 3.08 0.70 0.16 1.16
The Company is to commence pre-feasibility studies on the Tjate property.
On its Mapochsgronde/Houtenbek property in the eastern Bushveld, the Company
completed its first diamond drill borehole DP001 (final depth 700 metres) on
portion 800 of the Mapochsgronde farm 500JS, to establish the property's
stratigraphic position in the Bushveld Complex. Two intervals of PGMs in
disseminated pyrite and chalcopyrite were intersected in rock comprised
predominantly of gabbronorites. The first intersection, 1.43 metres thick at
285.3 metres depth, assayed a weighted average of 1.31g/t platinum plus
palladium with minor copper and nickel. The second intersection, 0.2 metres
thick at 287.7metres depth, assayed 2.88g/t platinum plus palladium and 0.09%
copper and 0.12% nickel. Strontium isotope analysis on core samples, undertaken
by the University of the Witwatersrand, confirmed that the drilling was in the
Bushveld Complex and close to the Upper Critical Zone, which hosts the Merensky
and UG2 reefs. The Company will be plotting the site for a new borehole in the
area, as suggested by the results.
On its Vlaklaagte/Zwartdoorns property, the Company carried out a shallow
lithological percussion drilling programme to follow up previously identified
chrome-in-soil sample anomalies on Vlaklaagte. The results showed that the
Critical Zone of the Bushveld Complex was not developed on Vlaklaagte, and on
Zwartdoorns the property is underlain by hornfels within the Transvaal sequence.
Following these results, the Company subordinated Vlaklaagte/Zwartdoorns to its
other more encouraging properties.
In respect of its Elandsdrift JQ467 and Bokfontein JQ448 properties in the
western limb of the Bushveld Complex, and Buffelsvallei/Zaaiplaats farms
(Groblersdal) and the Sallie Sloot/Swartkoppies farms near Marble Hall in the
eastern limb, the Company awaits the granting of new-order prospecting rights,
which is believed to be imminent.
SIERRA LEONE
• Focus remains on establishing mineable grades on the York Platinum project
The Company is in a joint venture agreement (80% interest and manager) with
AIM-listed Golden Prospect plc (20% interest) on its 105.3 square kilometre York
Platinum project in Sierra Leone. The project is located around the village of
York some 37 kilometres south of the capital Freetown.
The licence covers the central part of the Freetown Layered Gabbro Complex. This
is a layered sequence of gabbroic and troctolitic rocks with some of the
cyclical units having anomalous platinum, palladium, chromium, vanadium, nickel
and copper mineralisation. Previous exploration by the Company and others have
traced this mineralisation, with anomalous platinum soil sampling values of up
to 0.84g/t over a strike length of 8.5 kilometres.
During the first half of the year, the Company reviewed and evaluated the
exploration data to date and prepared an exploration programme aimed at
establishing the viability of platinum grades at depth. The programme, which was
completed towards the end of the year, comprised of trenching totalling 131
metres in length dug along anomalous soil sample lines and traversed the
anomalous soil sample locations beginning and ending in areas of background
mineralisation. Preliminary results are inconclusive and although the focus on
the project has been subordinated to South Africa and Madagascar, the project
nevertheless remains intriguing.
Colin Bird
Chief Executive Officer
REPORT OF THE DIRECTORS
The Directors present their report together with the financial statements for
the year ended 30 June 2005.
Principal activities
The Group and Company are principally engaged in exploration and exploitation of
natural resources.
Business review
A review of the Group's operations during the year ended 30 June 2005 and future
developments is contained in the Chairman's Statement.
There was a loss for the year after taxation amounting to £334,065 (2004:
£539,071). The Directors do not recommend the payment of a dividend.
Corporate governance
The Board supports the principles of good governance contained in the Combined
Code appended to the Listing Rules of the Financial Services Authority. It
complies where this is commercially justified, allowing for the practical
limitations relating to the Company's size.
The Management Team meets regularly and the Full Board when appropriate in order
to determine the strategy and policy of the Group and the allocation of its
financial resources and has a schedule of matters specifically reserved to it
for decision.
The Company has three non-executive Directors, M A Burne, C Molefe and J D
Parker. Given the size of the Group's operations it is not considered
appropriate to have separate audit, remuneration and nomination committees.
Internal control
The Board is responsible for maintaining an appropriate system of internal
controls to safeguard shareholders' investment and Group assets.
The Directors monitor the operation of internal controls. The objective of the
system is to safeguard Group assets, maintain proper accounting records and
ensure that the financial information used within the business and for
publication is reliable. Any such system of internal control can only provide
reasonable but not absolute assurance against material misstatement or loss.
Internal financial control procedures undertaken by the Board include:
• Review of quarterly financial reports and monitoring performance.
• Prior approval of all significant expenditure including all major
investment decisions.
• Review and debate of treasury policy.
Risk assessment and the review of internal controls are undertaken by the Board
in the context of the Group's overall strategy. The review covers the key
business operational, compliance and financial risks facing the Group. In
arriving at its judgement of what risks the Group faces, the Board has
considered the Group's operations in the light of the following:
• The nature and extent of risks which it regards as acceptable for the Group
to bear within its overall business objective
• The threat of such a risk becoming a reality
• The Group's ability to reduce the incidence and impact of risk on its
performance
• The cost and benefits to the Group of operating the relevant controls.
The Board has reviewed the operation and effectiveness of the Group's system of
internal control for the financial year and the period up to the date of
approval of these financial statements.
Relations with shareholders
Communication with shareholders is given a high priority by the Board and the
Directors are available to enter into dialogue with shareholders. All
shareholders are encouraged to attend and vote at the Annual General Meeting
during which the Board is available to discuss issues affecting the Company.
Going concern
After making enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue its operational existence for the
foreseeable future. For this reason they have adopted the going concern basis
in preparing the financial statements.
Directors
The Directors who served during the year and their interests in the shares of
the Company as at beginning and end of the year were as follows:
Ordinary shares Share options
30 June 2005 30 June 2004 30 June 2005 30 June 2004
C Bird 6,585,048 6,585,048 1,000,000 750,000
M A Burne - - 450,000 200,000
J D Parker - - 100,000 100,000
C Molefe - - 250,000 -
Mr C Molefe was appointed a Director on 23 September 2004.
Directors' responsibilities for the financial statements
Company law in the United Kingdom requires the Directors to prepare financial
statements for each financial year which give a true and fair view of the state
of affairs of the Company and the Group and of the profit or loss of the Group
for that period. In preparing those financial statements, the Directors are
required to:
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
• state whether applicable accounting standards have been followed, subject
to any material departures disclosed and explained in the financial
statements
• prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping proper accounting records, which
disclose with reasonable accuracy at any time the financial position of the
Company and Group and to enable them to ensure that the financial statements
comply with the Companies Act 1985. The Directors are responsible for ensuring
that the Directors' Report and other information included in the Annual Report
is prepared in accordance with Company Law in the United Kingdom and for
ensuring that the Annual Report includes information required by the AIM Rules.
They are also responsible for safeguarding the assets of the Group and hence for
taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The Directors are also responsible for the maintenance and integrity of the
Company's website.
Substantial shareholders
The Directors are aware of the following substantial shareholdings of 3% or more
of the current issued share capital of 69,922,828 shares at 30 June 2005.
Ordinary shares of 1p each Number Percentage
Golden Prospect plc 9,747,388 13.94
Framlington Investment Management 6,674,242 9.54
C Bird 6,585,048 9.41
Gartmore Investment Management 5,020,945 7.66
Fidelity Managed Funds 4,837,821 6.91
JP Morgan Fleming Asset Management 4,730,265 6.76
Artemis Fund Managers 4,276,250 6.11
Resource Capital Group Ltd 4,000,000 5.72
Share issues
Details of the shares issued in the year are detailed in Note 13 to the
Financial Statements.
Post balance sheet events
Details of post balance sheet events are disclosed in Note 26 of the Financial
Statements.
Payment policy and practice
It is the Company's policy to pay suppliers on the terms agreed with them.
There were no trade creditors at the year end.
Auditors
The Directors review the terms of reference for the auditors and obtain written
confirmation that the firm has complied with its ethical guidance on ensuring
its independence. Saffery Champness provides audit and accountancy services to
the Company in connection with its annual audit as well as corporation tax
compliance services. The level of fees charged is reviewed by the Board to
ensure they remain competitive and to ensure no conflicts of interest arise.
A resolution proposing their appointment as auditors in accordance with Section
385 of the Companies Act 1985 will be placed at the forthcoming Annual General
Meeting.
ON BEHALF OF THE BOARD
C Bird
Chief Executive Officer
21 October 2005
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF JUBILEE PLATINUM PLC
We have audited the financial statements of Jubilee Platinum plc for the year
ended 30 June 2005, which comprise the principal accounting policies, the
consolidated profit and loss account, the balance sheets, the consolidated cash
flow statement and notes 1 to 26. These financial statements have been prepared
under the accounting policies set out therein.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The Directors' responsibilities for preparing the annual report and the
financial statements in accordance with United Kingdom law and accounting
standards are set out in the statement of Directors' responsibilities.
Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and United Kingdom auditing
standards.
This report is made solely to the Company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the Company's members those matters we are required to
state to them in an auditors' report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company's members as a body, for our audit work,
for this report, or for the opinions we have formed.
We report to you our opinion as to whether the financial statements give a true
and fair view and are properly prepared in accordance with the Companies Act
1985. We also report to you if, in our opinion, the Directors' report is not
consistent with the financial statements, if the Company has not kept proper
accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding
Directors' remuneration and transactions with the Group is not disclosed.
We read other information contained in the annual report, including the
corporate governance statement, and consider whether it is consistent with the
audited financial statements. This other information comprises only the
Chairman's Statement and the Report of the Directors. We consider the
implications for our report if we become aware of any apparent misstatements or
material inconsistencies with the financial statements. We are not required to
consider whether the Board's statements on internal control cover all risks and
controls, or form an opinion on the effectiveness of the Group's corporate
governance procedures or its risk and control procedures. Our responsibilities
do not extend to any other information.
BASIS OF OPINION
We conducted our audit in accordance with United Kingdom auditing standards
issued by the Auditing Practices Board. An audit includes examination, on a
test basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and
judgements made by the Directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the Group's
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion, we also evaluated the overall
adequacy of the presentation of information in the financial statements.
OPINION
In our opinion the financial statements give a true and fair view of the state
of affairs of the Company and the Group at 30 June 2005 and of the loss of the
Group for the year then ended and have been properly prepared in accordance with
the Companies Act 1985.
SAFFERY CHAMPNESS
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON
25 October 2005
Note
1 The maintenance and integrity of the Jubilee Platinum plc website is the
responsibility of the Directors: the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
financial statements since they were initially presented on the website.
2 Legislation in the United Kingdom governing the preparation and
dissemination of the financial statements may differ from legislation in
other jurisdictions.
Principal Accounting Policies
The financial statements have been prepared under the historical cost convention
and in accordance with applicable Accounting Standards and the Statement of
Recommended Practice 'Accounting for Oil and Gas Exploration, Development,
Production and Decommissioning Activities' (the SORP).
The principal accounting policies, which have been reviewed by the Directors in
the light of FRS 18 and are considered the most appropriate to the Group's
circumstances, are set out below.
Basis of consolidation
The Group financial statements consolidate those of the Company and of its
subsidiary undertakings (see Note 9) for the year ended 30 June 2005.
Goodwill arising on consolidation, representing the excess of the fair value of
the consideration given over the fair values of the identifiable net assets
acquired, is capitalised and is amortised on a straight line basis over its
estimated useful economic life. Goodwill arising on the acquisition of Resource
Development Corporation Limited has been written off on disposal of that
subsidiary.
Depreciation
Depreciation is calculated to write down the cost less estimated residual value
of all tangible fixed assets by equal annual instalments over their expected
useful economic lives. The rates generally applicable are:
Office equipment 25% on cost
Computer equipment 33% on cost
Motor vehicles 25% on cost
Exploration expenditure
In accordance with the full cost method as set out in the SORP, expenditure
including related overheads on the acquisition, exploration and evaluation of
interests in licences not yet transferred to a cost pool is capitalised under
intangible assets. Cost pools are established on the basis of geographic area.
When it is determined that such costs will be recouped through successful
development and exploitation or alternatively by sale of the interest,
expenditure will be transferred to tangible assets and depreciated over the
expected productive life of the asset. Whenever a project is considered no
longer viable the associated exploration expenditure is written off to the
profit and loss account.
Fixed asset investments
Fixed asset investments are carried at cost less provision for diminution in
value.
Current asset investments
Current asset investments are carried at the lower of cost and net realisable
value.
Foreign currencies
Transactions in foreign currencies are translated at the exchange rate ruling at
the date of the transaction. Monetary assets and liabilities in foreign
currencies are translated at the rates of exchange ruling at the balance sheet
date. The financial statements of foreign subsidiaries are translated at the
rate of exchange ruling at the balance sheet date. The exchange differences
arising from the retranslation of the opening net investment in subsidiaries and
certain long-term loans are taken directly to reserves. All other exchange
differences are dealt with through the profit and loss account.
Deferred taxation
Deferred tax is recognised on all timing differences where the transactions or
events that give the Group an obligation to pay more tax in the future, or a
right to pay less tax in the future, have occurred by the balance sheet date.
Deferred tax assets are recognised when it is more likely than not that they
will be recovered. Deferred tax is measured using rates of tax that have been
enacted or substantively enacted by the balance sheet date.
Financial instruments
The Group uses financial instruments to manage exposures to fluctuations in
interest rates. Financial assets are recognised in the balance sheet at the
lower of cost and net realisable value. Provision is made for diminution in
value where appropriate.
Interest receivable and payable is accrued and credited/charged to the profit
and loss account in the period to which it relates.
Liquid resources
Liquid resources comprise funds on deposit at not less than 24 hours notice.
Operating leases
Rentals payable under operating leases are charged on a straight line basis over
the term of the lease.
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 June 2005
Year ended 30 Year ended 30
June June
2005 2004
Note £ £
Administrative expenses (558,563) (431,154)
Operating loss (558,563) (431,154)
Loss on disposal of subsidiary 1 - (191,795)
Interest receivable and similar income 230,401 83,878
Share of operating loss in associate 10 (5,903) -
Loss on ordinary activities before taxation 2 (334,065) (539,071)
Tax on loss on ordinary activities 4 - -
Loss on ordinary activities after taxation 5 (334,065) (539,071)
Minority interests:
Equity 34,210 2,422
Loss on ordinary activities attributable to members of Jubilee (299,855) (536,649)
Platinum Plc
Basic loss per share 6 (0.46p) (1.19p)
Fully diluted loss per share 6 (0.45p) (1.15p)
All of the Group's activities are classed as continuing.
The accompanying accounting policies and notes form an integral part of these
financial statements.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 30 Year ended 30
June 2005 June 2004
£ £
Loss for the financial year (299,855) (536,649)
Translation differences on foreign currency net investments (233,320) 3,476
Total recognised gains and losses for the year (533,175) (533,173)
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2005
Year ended 30 Year ended 30
June 2005 June 2004
Note £ £
Fixed assets
Intangible assets 7 909,204 328,846
Tangible assets 8 24,513 7,694
Investment in associate 10 2,900,438 -
3,834,155 336,540
Current assets
Debtors 11 195,122 54,957
Cash at bank and in hand 4,635,153 3,112,561
4,830,275 3,167,518
Creditors: amounts falling due within one year 12 (1,374,244) (95,225)
Net current assets 3,456,031 3,072,293
Total assets less current liabilities 7,290,186 3,408,833
Minority interests
Equity interests 43,929 2,379
7,334,115 3,411,212
Capital and reserves
Called up share capital 13 699,228 491,600
Share premium account 14 8,256,314 4,007,864
Profit and loss account 15 (1,621,427) (1,088,252)
Shareholders' funds 16 7,334,115 3,411,212
The financial statements were approved by the Board of Directors on 21 October
2005
C Bird
Director
The accompanying accounting policies and notes form an integral part of these
financial statements.
COMPANY BALANCE SHEET AS AT 30 JUNE 2005
Year ended 30 Year ended 30
June 2005 June 2004
Note £ £
Fixed assets
Intangible assets 7 30,925 23,578
Tangible assets 8 2,889 4,584
Investments 9 388 273
34,202 28,435
Current assets
Debtors 11 4,049,453 412,412
Cash at bank and in hand 3,681,894 3,074,330
7,731,347 3,486,742
Creditors: amounts falling due within one year 12 (86,136) (39,397)
Net current assets 7,645,211 3,447,345
Total assets less current liabilities 7,679,413 3,475,780
Capital and reserves
Called up share capital 13 699,228 491,600
Share premium account 14 8,256,314 4,007,864
Profit and loss account 15 (1,276,129) (1,023,684)
Shareholders' funds 16 7,679,413 3,475,780
The financial statements were approved by the Board of Directors on 21 October
2005.
C Bird
Director
The accompanying accounting policies and notes form an integral part of these
financial statements.
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2005
Year ended 30 Year ended 30
June June
2005 2004
Note £ £
Net cash outflow from operating activities 17 (869,591) (303,577)
Returns on investments and servicing of finance
Interest received 230,401 83,878
Foreign exchange difference 9,925 -
240,326 83,878
Capital expenditure and financial investment
Purchase of intangible fixed assets 7 (596,807) (305,202)
Purchase of tangible fixed assets 8 (24,669) (8,026)
Net cash outflow from capital expenditure and financial investment (621,476) (313,228)
Acquisitions and disposals
Investment in associate (2,906,977) -
Movement in liquid resources
Funds placed on deposit (4,079,481) (3,050,000)
Funds removed from deposit 3,050,000 600,000
Sale of current asset investment - 475,882
(1,029,481) (1,974,118)
Financing
Increase in loans 19 1,224,233 27,503
Issue of shares and warrants 13 4,766,295 2,594,800
Expenses of share issues 14 (310,218) (69,740)
Net cash inflow from financing 5,680,310 2,552,563
Increase in cash 18 493,111 45,518
The accompanying accounting policies and notes form an integral part of these
financial statements.
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
1 LOSS ON DISPOSAL OF SUBSIDIARY
During 2004 the Group was restructured and Resource Development Corporation
Limited dissolved giving rise to a loss as follows:
2005 2004
£ £
Acquired goodwill written off - 153,230
Project costs written off - 38,565
-
191,795
2 LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
The loss on ordinary activities is stated after:
2005 2004
£ £
Auditors' remuneration - statutory audit services 10,977 9,896
- tax compliance fees 1,500 1,500
Payments under operating leases - land and buildings 24,500 18,750
Depreciation 7,670 2,845
3 DIRECTORS AND EMPLOYEES
Staff costs during the year were as follows:
2005 2004
£ £
Wages and salaries 225,457 145,971
Social security costs 21,962 15,238
247,419 161,209
Remuneration in respect of Directors was as follows:
2005 2004
£ £
Emoluments 134,118 88,842
The average monthly number of employees during the year was seven including the
four Directors, none of whom participate in company pension schemes.
4 TAX ON LOSS ON ORDINARY ACTIVITIES
2005 2004
£ £
Loss for the year (334,065) (539,071)
Loss for the year multiplied by standard rate of UK corporation tax 30% (100,220) (161,721)
Effect of:
UK expenses not deductible for tax purposes 4,630 18,417
Increase in UK tax losses 71,104 137,374
South African losses at 30% 24,486 5,930
Tax charge - -
Unprovided deferred tax asset:
UK tax losses carried forward multiplied by standard rate of UK corporation 239,576 237,784
tax 30%, recoverable only when the Company has generated taxable profits
5 LOSS FOR THE FINANCIAL YEAR
The Company has taken advantage of Section 230 of the Companies Act 1985 and has
not included its own profit and loss account in these financial statements. The
Company loss for the year was £19,125 (2004: £583,743).
6 LOSS PER SHARE
The calculation of the basic loss per share is based on the loss for the
financial year divided by the weighted average number of shares being 64,687,342
(2004: 45,118,634) in issue during the year.
The fully diluted loss per share is based on the loss for the financial year
divided by the weighted average number of shares and potential shares being
66,463,756 (2004: 48,129,838) in issue during the year.
2005 2004
£ £
Ordinary shares 64,687,342 45,118,634
Effect of options issued at fair value 1,776,414 3,011,204
66,463,756 48,129,838
7 INTANGIBLE FIXED ASSETS
The Group Exploration
Expenditure
£
Cost
At 1 July 2004 328,846
Foreign exchange difference (16,449)
Additions 596,807
At 30 June 2005 909,204
The Company Exploration
expenditure
£
Cost
At 1 July 2004 23,578
Additions 7,347
At 30 June 2005 30,925
8 TANGIBLE FIXED ASSETS
The Group Office
equipment
£
Cost
At 1 July 2004 11,377
Foreign Exchange Difference (180)
Additions 24,669
At 30 June 2005 35,866
Depreciation
At 1 July 2004 3,683
Charge for the year 7,670
At 30 June 2005 11,353
Net book amount at 30 June 2005 24,513
Net book amount at 30 June 2004 7,694
The Company Office
equipment
Cost
At 1 July 2004 7,230
Additions 909
At 30 June 2005 8,139
Depreciation
At 1 July 2004 2,646
Charge for the year 2,604
At 30 June 2005 5,250
Net book amount at 30 June 2005 2,889
Net book amount at 30 June 2004 4,584
9 FIXED ASSET INVESTMENTS
The Company Shares in Shares in
Group Group
undertakings undertakings
2005 2004
£ £
Cost
At 1 July 2004 273 250,000
Additions 141 273
Disposals (26) (250,000)
At 30 June 2005 388 273
At 30 June 2005 the Company held more than 20% of the following subsidiary
undertakings:
Name of undertaking Country of Principal Proportion of equity capital
incorporation activity held
By the Company By the Group
Dullstroom Plats (Pty) Ltd South Africa Mineral 90%
exploration
Maude Mining and Exploration South Africa Mineral - 81%
(Pty) Ltd exploration
Mineral Resources of Madagascar Madagascar Mineral 85% -
Sarl exploration
Windsor Platinum Investments South Africa Mineral 90% -
(Pty) Ltd exploration
Emanuel Mining and Exploration South Africa Mineral 90% -
(Pty) Ltd exploration
Mokopane Mining and Exploration South Africa Mineral 90% -
(Pty) Ltd exploration
10 INVESTMENT IN ASSOCIATE
Tjate Platinum Corporation (Proprietary) Limited 2005
£
Share of turnover -
Share of operating loss for the year (5,903)
Share of Assets
Share of current assets 20
Share of non-current assets 2,941,080
2,941,100
Share of Liabilities
Share of current liabilities 3,718
Share of non-current liabilities 36,944
40,662
Share of net assets 2,900,438
Jubilee Platinum plc owns 25% of the issued ordinary share capital of
Tjate Platinum Corporation (Proprietary) Limited which is engaged in
the exploration and exploitation of natural resources.
The associate has an unsecured loan from Windsor Platinum Investments
(Pty) Limited, a subsidiary within the Jubilee group, of £148,068
with no fixed repayment terms, bearing an interest rate of 2% above
the prime lending rate.
11 DEBTORS
Group Company
2005 2004 2005 2004
£ £ £ £
Amounts due from Group undertakings - - 4,010,748 372,508
Other debtors 176,324 32,280 21,656 19,083
Prepayments and accrued income 18,798 22,677 17,049 20,821
195,122 54,957 4,049,453 412,412
12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group Company
2005 2004 2005 2004
£ £ £ £
Other loan 1,274,325 50,092 - -
Social security and other - 2,288 5,297 2,000
taxes
Other creditors 24,839 18,329 7,981 14,690
Accruals and deferred income 75,080 24,516 72,858 22,707
1,374,244 95,225 86,136 39,397
The other loan represents cash advanced by New Africa Mining Fund (NAMF) and is
unsecured. It is part of a ZAR11,400,000 loan that has been advanced by NAMF to
the South African Group companies for a participation of 10% (at par) of Windsor
Platinum Investments (Pty) Limited (Windsor). From 1 July 2004 Windsor has held
the Group's investments in Maude Mining and Exploration (Pty) Limited and
Dullstroom Plats (Pty) Limited and also holds the 25% stake in Tjate Platinum
Corporation (Pty) Limited (Tjate) acquired during the year. The issued share
capital of Windsor is 100,000 1 cent shares currently issued 90,000 to the
Company and 10,000 to NAMF. NAMF has an option to subscribe for a further 2.52%
of the entire issued share capital of Windsor for ZAR3,800,000. On allotment of
the additional shares, NAMF has a further option to convert its Windsor shares
into the Company's shares in the ratio of 1% of the entire issued share capital
of the Company (on a fully diluted basis) for each 1.252% of the entire share
capital of Windsor. Consequently, NAMF may convert its 12.52% (10% currently
owned plus 2.52% to be allotted to NAMF) of Windsor into a 10% ownership of the
Company (on a fully diluted basis). NAFM has agreed to assign its ZAR
11,400,000 loan to the Company for a nominal consideration of ZAR1 on the
conversion of its Windsor shares to the Company's shares.
13 SHARE CAPITAL
Group and Company
2005 2004
£ £
Authorised
500,000,000 ordinary shares of 1p each 5,000,000 5,000,000
Allotted, called up and fully paid 699,228 491,600
69,922,828 (2004: 49,160,000) ordinary shares of 1p each
The Company made allotments of ordinary 1p shares with an aggregate nominal
value of £207,628 during the year as follows:
Price Number of shares Aggregate
per share consideration
Date of issue
£
30 July 2004 20p 15,500,000 3,100,000
25 February 2005 16p 414,343 66,295
8 April 2005 33p 4,848,485 1,600,000
20,762,828 4,766,295
The Company has granted options to subscribe for ordinary 1p shares as follows:
Date granted Period exercisable Exercise price Number of
per share (pence) options
24 July 2002 24 July 2004 to 24 July 2012 16 1,770,000
24 October 2003 24 October 2005 to 24 October 2013 20 175,000
24 October 2003 24 October 2005 to 24 October 2013 28 100,000
9 February 2004 9 February 2004 to 9 February 2007 31 650,000
2 August 2004 2 August 2004 to 1 August 2009 20 646,600
20 December 2004 20 December 2006 to 20 December 2014 28 1,100,000
414,343 options were exercised during the year and 1,000,000 options lapsed
during the year.
The highest and lowest price of the Company's shares during the year was 46.8p
and 19.5p respectively. The share price at the year end was 34p.
14 SHARE PREMIUM ACCOUNT
Group and Company
2005 2004
£ £
At 1 July 2004 4,007,864 1,586,904
Premium on allotments in the year 4,558,668 2,490,700
Expenses of share issues (310,218) (69,740)
At 30 June 2005 8,256,314 4,007,864
15 PROFIT AND LOSS ACCOUNT
Group Company
£ £
At 1 July 2004 (1,088,252) (1,023,684)
Loss for the year (299,855) (19,125)
Translation differences on foreign currency net (233,320) (233,320)
investments
At 30 June 2005 (1,621,427) (1,276,129)
16 RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
Group Company
2005 2004 2005 2004
£ £ £ £
Loss for the financial year (299,855) (536,649) (252,445) (583,743)
Foreign exchange difference (233,320) 3,476 - -
Issue of shares (net of expenses) 4,456,078 2,525,060 4,456,078 2,525,060
Net increase in shareholders' funds 3,922,903 1,991,887 4,203,633 1,941,317
Shareholders' funds at 1 July 2004 3,411,212 1,419,325 3,475,780 1,534,463
Shareholders' funds at 30 June 2005 7,334,115 3,411,212 7,679,413 3,475,780
17 NET CASH OUTFLOW FROM OPERATING ACTIVITIES
Group
2005 2004
£ £
Operating loss (558,563) (431,154)
Depreciation 7,670 2,845
Amounts written off exploration expenditure - 137,057
Exchange movement (233,320) -
Increase in debtors (140,164) (15,868)
Increase in creditors 54,786 3,543
Net cash outflow from continuing operating activities (869,591) (303,577)
18 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Group
2005 2004
£ £
Increase in cash in the year 493,111 45,518
Increase in liquid resources 1,029,481 2,450,000
Increase in loans (1,224,233) (27,503)
Translation difference - 340
Increase in net funds 298,359 2,468,355
Net funds at 1 July 2004 3,062,469 594,114
Net funds at 30 June 2005 3,360,828 3,062,469
19 ANALYSIS OF NET FUNDS
Group
2005 Cash Movement 2004
£ £ £
Cash at bank 4,635,153 1,522,592 3,112,561
Other loans (1,274,325) (1,224,233) (50,092)
Net funds 3,360,828 298,359 3,062,469
20 FINANCIAL INSTRUMENTS
The Group uses financial instruments, other than derivatives, comprising
borrowings, cash, liquid resources and various items such as sundry debtors and
creditors that arise directly from its operations. The main purpose of these
financial instruments is to raise finance for the Group's operations.
The main risks arising from the Group's financial instruments are liquidity risk
and currency risk. The Directors review and agree policies for managing these
risks and these are summarised below.
Short-term debtors and creditors have been excluded from all the following
disclosures.
Liquidity risk
The Group seeks to manage financial risk, to ensure sufficient liquidity is
available to meet foreseeable needs and to invest cash assets safely and
profitably. This is achieved by placing surplus funds on deposit. At the
balance sheet date the Group had £175,000 on seven-day deposit at an interest
rate of 3.99% and £3,400,000 on monthly deposit at an interest rate of 4.45%.
Currency risk
The Group is exposed to transaction related foreign exchange risk.
Borrowing facilities and interest rate risk
The Group finances its operations through the issue of equity share capital.
There is no significant borrowing and therefore no exposure to interest rate
fluctuations.
Fair values
The fair values of the Group's financial instruments are considered equal to the
book value.
21 CAPITAL COMMITMENTS
Neither the Group nor the Company had any capital commitments at 30 June 2005 or
30 June 2004.
22 FINANCIAL COMMITMENTS
The Company had the following commitments under non-cancellable operating leases
as at 30 June 2005:
Land and buildings
2005 2004
£ £
Within 1 year 18,250 12,500
Between 1 and 2 years - 6,250
23 CONTINGENT LIABILITIES
There were no contingent liabilities at 30 June 2005 or 30 June 2004.
24 TRANSACTIONS WITH DIRECTORS
No Director had, during or at the end of the year, a material interest in any
contract which was significant in relation to the Group's business.
25 CONTROL
The Directors consider the Company to have no ultimate controlling party.
26 POST BALANCE SHEET EVENTS
(1) The Company has granted options to subscribe for ordinary 1p shares as
follows:
Date granted Period exercisable Exercise price Number of
per share options
(pence)
20 July 2005 20 July 2007 to 20 July 2015 38p 110,000
(2) On 5 September 2005, the Company announced the results of its first borehole
LAV1 in Madagascar, drilled on the Lavatrafo property (Londokomanana Project),
which is located approximately 150 kilometres north of the capital Antananarivo.
The borehole intersected a 70-metre wide multi-metal
(nickel-copper-platinum-palladium) mineralised formation at shallow depth (38
metres). The intersection over the entire mineralised width (from 38 metres to
108 metres) grades 0.23% nickel; 0.11% copper and 1.05g/t 3E (platinum,
palladium and gold).
(3) On 6 October 2005, the Company announced the results of its second borehole
LAV2A, which was stepped out 150 metres southeast of borehole LAV1. The
borehole intersected a 92- metre wide mineralization consistent with that
intersected in borehole LAV1.
(4) Since the financial year-end, the Company has drilled a third step-out
borehole on the Dsjate farm , one of three contiguous farms comprising its
Tjate property in South Africa. The borehole showed a weighted average grade of
6.92 g/t 4E (platinum, palladium, rhodium and gold); 0.35% nickel and 0.20%
copper for the Merensky reef and 7.49g/t 4E for the UG2 reef.
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