Final Results
Landore Resources Limited
03 April 2007
Landore Resources Limited
('Landore' or 'the Company')
Final results
for the year ended 31 December 2006
The Board of Landore is pleased to announce its audited results for the year to
31 December 2006.
Chairman's statement
Landore has made significant advances in the development of its mineral
resources in Canada during 2006 with the primary focus being on the Nickel
project at Junior Lake in the province of Ontario.
Financial During the year to 31 December 2006 the Company incurred a loss of
results £1,966,244 (£4,865,860 in 2005). The majority of these expenses are
represented by direct or indirect investments in mineral
exploration. The annual overhead for running expenses of the public
company and administration costs are approximately £200,000 per
annum.
Junior Lake The principal focus of the Group's activities is the Junior Lake
- Nickel Nickel project situated approximately 235 kilometres northeast of
project Thunder Bay in the province of Ontario. During 2006 significant
exploration success has been achieved on this project. This can be
summarised as follows:
- An infill drilling programme completed on the VW Nickel Zone
has established a resource containing 14,300 tonnes of nickel and
2,100 tonnes of copper, as verified by an independent consultant.
- The resource has excellent potential to be increased in size
and improved in grade, being open at both ends and at depth together
with significantly higher grades (+1 per cent. nickel) being
reported at the western end of the drilled resource.
- Metallurgical testing of composite material from the VW Zone
has returned good recoveries of up to 82 per cent. nickel and 90 per
cent. copper.
- The historic B4-7 nickel deposit has been reassessed and shows
the potential to become an economic deposit.
The above successes have encouraged us to aggressively push forward
this project to a scoping study and development plans for early
production in order to take advantage of the current nickel price
boom.
Lessard - The Lessard project is centred on a historic VMS deposit located
Copper-zinc approximately 107 kilometres north of Chibougamau in the province of
project Quebec. A drilling programme in 2006 has confirmed high grade zinc
mineralization, which includes a 0.5 metre section of 48 per cent.
zinc. These results, together with other technical surveys, have
given us encouragement to advance the Lessard deposit towards
possible development.
West Graham This property is optioned to First Nickel Inc. and is situated in
- Nickel the Sudbury basin. First Nickel, having recently completed their
project second substantial drilling campaign on Landore's West Graham
property, continues to demonstrate its strong interest in the
property.
Excellent results were received from the above campaign, extending
the known zone associated with the Conwest Deposit 200m to the east,
together with discovering platinum group element (PGE)
mineralization in the footwall granites.
First Nickel has proposed a $900,000 exploration programme,
primarily drilling, on West Graham this year.
Nickel and Landore is fortunate to be developing three projects whose mineral
metal assets are predominantly in nickel, zinc and copper. All of these
prices metals are enjoying a price boom, driven largely by Chinese demand
and limiting factors on supply. Nickel, which is mainly used in the
manufacture of stainless steel, is performing extremely robustly.
Recent price levels have been in excess of US$40,000 per tonne and
the fundamentals remain strong for the forseeable future.
Funding Funding of Landore's exploration programme for 2006 came firstly,
from funds carried over from 2005 and secondly, by a private
placement to subscribers of 7,343,748 shares for gross proceeds of
£705,000 in November 2006.
Further fund raising will be required in the near future to allow
Landore to continue with its development programme on the highly
prospective Junior Lake and Lessard properties.
Outlook Landore is planning two further significant drilling campaigns both
at the Junior Lake Nickel project and the Lessard copper / zinc
project which will add shareholder value and advance the projects
towards mine development. Shareholders will be kept informed as
results flow from these programmes on a regular basis during 2007.
I would like to thank management and staff at Thunder Bay for their
excellent contribution towards the Company's sound performance this
past year. My thanks are extended to my fellow Directors.
William Humphries
Chairman
3 April 2007
Operations report
Introduction
Landore Resources Limited through its 100 per cent. owned subsidiary, Landore
Resources Canada Inc., is actively engaged in mineral exploration in Eastern
Canada.
Landore owns or has the mineral rights to 11 properties owned 100 per cent. and
option agreements on a further two properties.
Landore's primary focus is the Junior Lake nickel project followed by the
Lessard copper-zinc project. In addition, substantial exploration work is being
carried out on the optioned West Graham nickel project by First Nickel Inc.
The Junior The Junior Lake properties are located in the province of Ontario,
Lake project approximately 235 kilometres north-northeast of Thunder Bay and are
- Nickel situated within the Caribou-O-Sullivan Greenstone Belt in the
Wabigoon Subprovince
During 2006 a diamond drilling campaign significantly advanced both
the VW Zone nickel deposit and the adjacent B4-7 nickel-copper
deposit towards possible mining development.
The VW Zone Discovered only in November 2005, is located at the southeastern
Ni end of the Junior Lake property. The Zone has been drilled with 45
Resource diamond NQ drill holes for a total of 11,366m at a general grid
spacing of 50m x 50m over 300m of strike length x 200m wide and to
an average depth of approximately 250m.
The VW Zone contains 5 sub-zones, the widest and most continuous
being 'Katrina', which lies along the southern contact with the
ultramafic sequence. The westernmost section drilled on the Katrina
horizon has 16 intersections greater than 1 per cent. Ni. The
Katrina zone remains open to the east and west and at depth.
Scott Wilson Roscoe Postle Associates Inc. ('Scott Wilson RPA'),
Toronto, have prepared a resource estimate / NI 43-101 compliant
technical report for the VW Zone.
VW Zone Inferred
Resource Ni Cu Nickel Copper
Tonnes per cent. per cent. tonnes tonnes
4,202,776 0.34 0.05 14,300 2,100
Based on Scott Wilson RPA's review of metal prices, mill recoveries,
generic smelter recoveries and terms, preliminary transport costs and
estimate of preliminary open pit mine operating costs likely to apply
at the VW Zone site, the 0.2 per cent. Ni cut-off grade is reasonable
for the statement of Inferred Resources at this time.
Mineral resources were estimated by Scott Wilson RPA using assumed
long term metal US$ prices of $7.00/lb nickel (Ni), $1.50/lb copper
(Cu), $875/oz platinum (Pt), $300/oz palladium (Pd) and $500/oz gold
(Au).
Current metal prices are significantly higher than the assumed
prices.
These results are very encouraging, particularly as the Inferred
Resource has been delineated on just 300m of strike length and to an
average depth of approximately 250m. The VW Zone remains open along
strike at both ends and to depth where there is potential to develop
additional resources.
Accordingly, Scott Wilson RPA have been engaged to undertake a scoping
study (preliminary assessment) to determine potential economics for
mining the VW and B4-7 Zones and to identify the target resource base
that will support mining at the Junior Lake project.
Scott Wilson RPA has recommended additional exploration drilling to
expand the resources to depth, particularly on the northern side of
the VW deposit where the sub-zones are tested to shallower depths
compared to the southerly sub-zones, and on the west side, following
which the VW Zone modelling and resource estimate should be updated.
Contingent on results from the above drilling and the outcome of the
Scoping Study, Scott Wilson RPA has recommended that we carry out
in-fill drilling where necessary to bring the spacing in the VW Zone
to 25m x 25m in order to upgrade resources to Indicated Resources.
The B4-7 Lies 3 kilometres west of the VW Zone and has been delineated by 63
Ni-Cu diamond drill holes, drilled over a period from 1969 to 2006, for a
deposit total of 14,388m over 520m of strike length and to an average depth of
approximately 250m.
An independent estimate of exploration potential was prepared for the
B4-7 Zone by Scott Wilson RPA in March 2006. 3D computer block
modelling and cut-off grade of 0.25 per cent. nickel equivalent were
used for the estimate.
B4-7 Deposit Tonnes Ni Cu Co Au Pt Pd Nickel Copper
estimate of millions per cent. per cent. ppm ppb ppb ppb tonnes tonnes
potential 1.5 to 0.6 0.40 606 40 90 460 9,000 6,000
tonnage 2.0 0.7 0.48 670 50 95 525 14,000 9,600
and grade
The estimate of the exploration potential in March 2006, assumed
long term metal US$ prices of $3.50/lb nickel (Ni), $1.10/lb
copper (Cu), $750/oz platinum (Pt), $275/oz palladium (Pd) and
$400/oz gold (Au).
Again it should be noted that current metal prices are
significantly higher than the assumed prices.
The potential quantity and grade of the B4-7 Zone is conceptual in
nature and there has been insufficient exploration, primarily
metallurgical work, to permit defining a mineral resource. It is
uncertain if further exploration work will result in the B4-7 Zone
being delineated as a mineral resource.
Scott Wilson RPA recommended at the time that additional drilling
be carried out to in-fill gaps in the zone and to provide material
for modern metallurgical work to improve nickel recovery.
A 7 hole diamond drill programme was completed late last year on
the B4-7 deposit which successfully in-filled several of the gaps
and extended the deposit to the west.
A composite of ore has been submitted for preliminary
metallurgical testing for the recovery of Ni.-Cu.-PGE minerals.
Results are pending.
Proposed A 15,000m NQ diamond drill campaign is scheduled to commence in
works April on the VW and B4-7 deposits, of which: 9,000m is allocated
programme for extension and partial in-fill on the VW deposit; 3,000m for
2007 in-fill on the B4-7 deposit; 2,000m for metallurgical testing on
both deposits and 1,000m for geotechnical work on the VW deposit
for open-pit design requirements.
Additional metallurgical flotation testing is scheduled for the VW
and the B4-7 deposits to optimize recovery and concentrate
grades.
Golder Associates have been retained by Landore to carry out Base
Line Aquatic studies on the lakes and drainage tributaries in the
vicinity of the Junior Lake projects.
Lessard - The Lessard property, located approximately 107 kilometres north
Copper-zinc of the town of Chibougamau, in the province of Quebec, comprising
project 91 claims for 1,456 hectares, hosts a copper-zinc-silver deposit
with a historic resource reported in a feasibility study in 1975
by Selco Mining Corporation Ltd of 1,463,835 tons at 1.73 per
cent. Cu, 2.96 per cent. Zn, 1.1oz/t Ag and 0.019oz/t Au after
allowance for dilution. (The resource is not compliant with
43-101).
A Geotech VTEM penetrating time-domain airborne electromagnetic
and magnetic survey was carried out, in late April 2006, over the
entire property. The survey highlighted possible strike extensions
of the existing resource and also developed new targets for
follow-up exploration.
A drilling campaign consisting of 7 holes of NQ size core for
1,731m has recently been completed along the extent of the
historic resource. The results generally confirmed the previous
drilling carried out by Selco Mining.
Mineralised
intersections Drill-hole From Width Zinc Copper Silver Gold
Include No metres metres per cent. per cent. gpt gpt
0906-02 85.2 0.9 7.13 1.15 107.0 0.46
0906-03 143.8 9.2 5.33 0.89 23.3 0.30
includes 149.1 2.3 16.94
0906-04 286.8 1.6 1.42 2.06 68.3 0.80
0906-05 381.5 2.9 5.61 2.42 122.0 0.60
0906-06 220.7 6.1 5.96 1.89 39.1 0.70
0906-07 337.5 3.4 12.36 0.22 15.6 0.10
includes 381.5 0.5 48.00
In addition, hole 0906-07 which was designed to target a large gap
in the previous drilling, intersected sulphide breccia over 3.4m
including semi massive sphalerite over the lower 0.5m (assayed 48
per cent. zinc). The historical and current drilling results
indicate that the resource is open along strike to the south and
north at depth.
Proposed A second drilling campaign is planned for 2007 in order to drill
works at closer spacing to enable resource estimation, to target
programme possible strike extensions of the existing resource, exploration
2007 of other targets generated by the airborne survey and to provide
core for metallurgical studies.
The positive results from the recent confirmation and infill
drilling, is sufficiently encouraging to advance the Lessard
deposit towards possible development.
West Graham The West Graham property consists of one patented lot owned
/First outright by Landore Resources Inc. of 130 hectares.
Nickel
Option - First Nickel Inc. entered into an option agreement with Landore
Nickel Resources Canada Inc. to acquire a 70 per cent. interest in the
West Graham property which is strategically located immediately to
the south of the East Zone of the Lockerby Mine within the Sudbury
basin. The agreement provides for First Nickel to make cash
payments to Landore of C$150,000 and carry out exploration and
development expenditures of C$6 million over a four-year period.
Should First Nickel fully exercise the option, Landore shall
decide whether it wishes to participate to the extent of its 30
per cent. working interest in the development of the property,
failing which, First Nickel shall have the right to increase its
interest to 85 per cent. by completing a bankable feasibility
study within two years thereafter.
Deposit A resource estimate completed by the Conwest Exploration Company
Limited in the 1960's yielded 4.3 million tons at 0.52 per cent.
nickel and 0.33 per cent. copper. This resource should be
considered non-compliant with Canadian National Instrument
43-101.
2006 In December 2006, First Nickel completed their second drilling
exploration programme on the West Graham Property, consisting of 21 diamond
programme drill holes for a total of 9,731m.
First Nickel's drilling programme was successful in discovering
'no seeum' or low sulphide type platinum group element (PGE)
mineralization, hosted in the footwall granites stratigraphically
below the Conwest deposit and associated with a Subury breccia and
less than 5 per cent. sulphides. Drill hole FNI2020, drilled sub
parallel to the Sudbury Igneous Complex (SIC) contact in the
footwall of the Conwest deposit, intersected several zones of
elevated PGE mineralization including 1.35m of 1.82 gpt Pt, 1.17
gpt Pd and 0.77 gpt Au and 0.57m of 2.7 gpt Pt, 1.93 gpt Pd and
0.13 gpt Au.
In addition, drilling successfully extended the disseminated
sulphide zone associated with the Conwest deposit approximately
200m to the east of the previously interpreted edge. Several holes
intersected significant widths of disseminated nickel-copper
mineralization, including hole FNI2028 that intersected 71.50m of
0.51 per cent. Ni and 0.34 per cent. Cu including 4.80m of 1.04
per cent. Ni and 0.31 per cent. Cu, and FNI2016 that intersected
19.05m of 0.52 per cent. Ni and 0.38 per cent. Cu.
Significant Drill Intercepts in the 2006 West Graham Diamond Drill Hole Programmes
Hole From To Length Ni Cu Co Au Pt Pd Ag
Metres per per per ppm ppm ppm Gpt
cent. cent. cent.
FNI2010 450.00 451.10 1.10 1.79 0.20 0.040 0.05 0.46 0.08 1.00
FNI2011 425.95 426.45 0.50 1.59 0.07 0.030 0.01 0.34 0.09 0.70
FNI2012 297.90 309.10 11.20 0.43 0.36 0.016 0.04 0.08 0.03 1.78
FNI2013 460.60 461.30 0.70 1.98 0.41 0.060 0.15 0.06 0.18 1.60
FNI2015 378.30 379.60 1.30 1.39 0.65 0.040 0.09 0.17 0.37 3.40
FNI2016 430.80 449.85 19.05 0.52 0.48 0.019 0.05 0.09 0.03 2.23
Incl. 447.25 447.60 0.35 3.77 0.36 0.090 0.01 0.36 0.04 2.70
FNI2020 663.60 664.95 1.35 0.18 0.14 0.001 0.77 1.82 1.17 3.31
673.70 674.00 0.30 0.08 0.04 0.001 0.24 1.05 0.56 0.70
675.43 676.00 0.57 0.21 0.07 0.001 0.13 2.70 1.93 2.10
683.95 684.90 0.95 0.06 0.00 0.001 0.04 1.00 0.69 1.00
FNI2028 163.00 234.50 71.50 0.51 0.34 0.018 0.02 0.06 0.02 1.70
Incl. 189.00 203.30 14.30 0.83 0.44 0.029 0.02 0.07 0.03 1.85
Incl. 189.00 189.70 0.70 2.29 0.93 0.080 0.02 0.06 0.06 4.00
Incl. 198.50 203.30 4.80 1.04 0.31 0.033 0.02 0.07 0.03 1.29
FNI2029 157.70 169.70 12.00 0.51 0.31 0.023 0.02 0.06 0.02 1.53
All assay intervals reported are core length and do not represent
true widths (defined as being measured at right angles to the
direction of extension of the sulphide body).
Proposed A $900,000 exploration programme has been proposed for the West
works Graham Property in 2007. The exploration programme will consist
programme primarily of diamond drilling with associated borehole geophysics
2007 and may include a component of surface stripping and trenching.
Miminiska The Miminiska Lake property is located 115 kilometres to the east
Lake project of Pickle Lake, Ontario and 180 kilometres to the southeast of
- Gold the Placer Dome Musselwhite Mine.
The property consists of three blocks:
- Miminiska Lake - 28 patents and two claims for a total of 800
hectares, owned outright.
- Wottam - 20 claims for a total of 4,160 hectares, contiguous
and along strike from Miminiska, owned outright.
- Frond Lake, 24 patents for a total of 485 hectares, owned
outright and purchased in December 2005.
The mineralisation is hosted in iron formation in a similar
setting to the Musselwhite gold deposit which has so far produced
1.4 million ounces with reserves currently estimated at over 2
million ounces.
Landore has completed four drilling campaigns over the past two
years on the Miminiska gold occurrence with 47 NQ diamond drill
holes for 9,349m, focusing on two potential shoots within a known
800m strike length.
Significant drill intersections include:
• 40.2g/t gold over 2.4m; • 9.7g/t gold over 4.3m;
• 9.8g/t gold over 2.2m; • 9.8 g/t gold over 3.5m;
• 132.1 g/t gold over 0.5m
No further work has been carried during 2006 whilst the Company is
focusing all of its efforts on Junior Lake and Lessard projects.
Other The Company has other non-core exploration properties which
properties includes grass roots exploration and defined drill targets. The
Company is actively seeking joint venture partners for these
properties.
Consolidated income statement
for the year ended 31 December 2006
Notes Period from
16 February
2005 to
31 December 31 December
2006 2005
£ £
Exploration costs 3 (1,206,156) (713,986)
Administrative expenses (935,747) (727,709)
Impairment of goodwill - (3,486,377)
__________ ___________
Operating loss (2,141,903) (4,928,072)
Interest receivable and other
income 175,659 62,212
___________ ___________
Loss before income tax (1,966,244) (4,865,860)
Income tax expense 2 - -
Loss for the period 1 (1,966,244) (4,865,860)
___________ ___________
Attributable to:
Equity holders of the Company (1,966,244) (4,865,860)
___________ ___________
Earnings per share for profit
attributable to the equity holders of
the Company during the year (expressed
in £ per thousand shares)
- basic and diluted 4 (0.021) (0.066)
___________ ____________
The Group's operating loss relates to continuing operations.
Consolidated balance sheet
at 31 December 2006
Group Group
At 31 At 31
December December
2006 2005
£ £
Assets
Non current assets
Goodwill - -
Property, plant and equipment 47,505 63,573
Investments - -
____________ ___________
47,505 63,573
____________ ___________
Current assets
Trade and other receivables 13,663 24,653
Cash and cash equivalents 845,704 1,848,807
____________ ___________
859,367 1,873,460
____________ ___________
Total assets 906,872 1,937,033
____________ ___________
Equity
Capital and reserves attributable to the
Company's equity holders
Share capital 1,003,470 930,033
Share premium 6,021,688 5,410,126
Share options 397,905 247,531
Warrants 43,571 43,571
Retained earnings (6,827,581) (4,861,337)
Cumulative translation adjustment 164,664 22,622
____________ ____________
Total equity 803,717 1,792,546
____________ ____________
Liabilities
Current liabilities
Trade payables 103,155 144,487
____________ ____________
Total liabilities 103,155 144,487
____________ ____________
Total equity and
liabilities 906,872 1,937,033
____________ ____________
Consolidated statement of changes in equity
for the year ended 31 December 2006
Period ended
31 December 31 December
2006 2005
£ £
Loss for the financial year (1,966,244) (4,865,860)
Lapse of warrants credited to reserves - 4,523
Translation adjustment on consolidation 142,042 22,622
____________ ____________
Net loss recognised directly in equity (1,824,202) (4,838,715)
Issue of ordinary share capital 73,437 930,033
Share premium arising on issue of
ordinary share capital 631,562 5,875,204
Issue costs (20,000) (465,078)
Issue of warrants - 43,571
Issue of share options 150,374 247,531
____________ ____________
Net (decrease)/increase in shareholders' funds (988,829) 1,792,546
Opening shareholders' funds 1,792,546 -
____________ ____________
Closing shareholders' funds 803,717 1,792,546
____________ ____________
Consolidated cash flow statement
for the year ended at 31 December 2006
31 31
December December
2006 2005
£ £
Cash flows from operating activities
Operating loss (1,966,244) (4,865,860)
Depreciation of tangible fixed assets 16,560 36,696
Impairment of goodwill - 3,486,377
Foreign exchange loss on non-cash items 159,657 -
Share based payment 150,374 169,855
Decrease in debtors 9,167 566
(Decrease)/increase in creditors (42,459) 18,437
____________ ___________
Net cash outflow from operating activities (1,672,945) (1,153,929)
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired - 693,642
Purchase of property, plant and equipment (11,653) (50,078)
____________ ___________
(11,653) 643,564
Cash flows from financing activities
Issue of ordinary share capital 704,999 2,803,084
Issue costs (20,000) (447,829)
____________ ___________
684,999 2,355,255
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year 1,848,807 -
Exchange (losses)/gains on cash and
cash equivalents (3,504) 3,917
____________ ___________
Cash and cash equivalents at end of year 845,704 1,848,807
____________ ___________
Accounting policies
Basis of accounting
The financial statements have been prepared in accordance with those
International Financial Reporting Standards ('IFRS') and interpretations of the
International Financial Reporting Interpretations Committee ('IFRIC')
interpretations in force or adopted early, as at the time of preparing these
financial statements (February 2007).
The financial statements have been prepared on the historical cost basis. The
functional currency for the Group is considered to be UK Sterling. The principal
accounting policies adopted are set out below.
The Directors consider the going concern basis of preparation to be appropriate
as the Company has sufficient cash reserves to permit it to continue trading for
a period of at least twelve months following the date of approval of these
accounts.
Notes to the financial statements
for the year ended 31 December 2006
1. Loss from operations
2006 2005
£ £
Loss from operation is stated after charging:
Impairment of goodwill - 3,486,377
Depreciation of property, plant and equipment 16,560 36,696
Auditors' remuneration - audit services 25,238 27,500
___________ ___________
2. Taxation
Landore Resources Limited is a Guernsey registered company and is eligible for
exemption from income tax in Guernsey under the Income Tax (Exempt Bodies)
(Guernsey) Ordinance 1989 and 1992 as amended. An annual fee of £600 is paid in
this respect.
The Company's subsidiary, Landore Resources Canada Inc., is subject to Canadian
Federal tax. No tax has been provided in the accounts due to losses incurred by
that company to date. That company has estimated non-capital losses of
CA$1,020,000 as at 31 December 2006 which expire between 2006 and 2009.
3. Mineral properties
1 January 2006 Expenditure in Accumulated
the year expenditure at
31 December
2006
£ £ £
Miminiska Lake 1,127,214 2,854 1,130,068
Junior Lake 940,179 971,705 1,911,884
Frond Lake 57,791 10,513 68,304
Wottam 61,558 - 61,558
Lamaune 271,362 28,117 299,479
Seeley Lake 80,431 6,232 86,663
Lessard 2,455 170,702 173,157
Other 9,537 16,033 25,570
----------------- ---------------- ------------------
2,550,527 1,206,156 3,756,683
----------------- ---------------- ------------------
3.1 Miminiska Lake
Miminiska Lake, wholly owned by the Company, is a gold exploration project
located approximately 115 kilometres east of Pickle Lake in Northern Ontario,
Canada. The property consists of 28 patented and 2 staked claims.
3.2 Junior Lake
Junior Lake is a nickel, copper, platinum group metals and gold exploration
project located approximately 250 kilometres north of Thunder Bay in Northern
Ontario, Canada. The property consists of two leased claims wholly owned by the
Company.
In addition, Junior Lake includes Auden, a nickel, copper, platinum group of
metals and gold exploration project. The property consists of 34 staked mining
claims surrounding the two Junior Lake leases and is wholly owned by the
Company, except for a portion that is subject to a 2 per cent. net smelter
return ('NSR').
3.3 Frond Lake
Frond Lake is a gold property located about 125 kilometres east of Pickle Lake,
Ontario. The property is comprised of 24 patented claims contiguous to the east
of the Wottam property. On 22 December 2005, the Company purchased the property
outright subject to underlying 2 per cent. NSR agreements.
3.4 Wottam
The Wottam property is a gold exploration project located 120 kilometres east of
Pickle Lake in Northern Ontario, Canada. The property is wholly owned by the
Company and includes claims contiguous to the east of the Miminiska Lake
property.
3.5 Lamaune Lake
Effective 5 September 2002, the Company entered into an Option Agreement with
Michael Stares, Stephen Stares, James Dawson and Stares Contracting Corp.
relating to eight mining claims located near Lamaune Lake, Ontario. The Lamaune
Lake property is contiguous with the Auden and Junior Lake property claims held
by the Company. The Company earned 51 per cent. interest in the Lamaune Lake
property and has the ability to earn a further 29 per cent. subject to the
conditions set forth in the Option Agreement.
3.6 Seeley Lake
Seeley Lake is an industrial minerals nepheline-syenite property, located 250
kilometres to the east of Thunder Bay, Ontario, on the north of Lake Superior.
The property is comprised of 18 leased claims wholly owned by the Company.
3.7 Lessard
Lessard is a zinc, copper property comprised of 103 mining claims located
approximately 107 kilometres north of the town of Chibougamau, in the province
of Quebec, Canada. The property is wholly owned by the Company.
3.8 Swole Lake
Included in other properties is an amount of $7,566 for Swole Lake, which is a
nickel, copper, platinum group element property comprised of one claim totalling
144 hectares, contiguous to the north of the Auden claims. The property was
optioned from Stares Corp. on 19 June 2006. The Company can earn 100 per cent.
interest in the property by making payments of $50,000 over three years.
4. 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 93,767,865
in issue during the year.
Diluted loss per share
The potential ordinary shares which arise as a result of the options in issue
are not dilutive under the terms of IAS33 because they would not increase the
loss per share. Accordingly there is no difference between the basic and
dilutive loss per share.
5. Reconciliation of net cashflow to movement in net funds
2006 2005
£ £
Opening net funds 1,848,807 -
(Decrease)/increase in cash (999,599) 1,848,807
------------- --------------
Change in net funds resulting from cash flows 849,208 1,848,807
Exchange losses (3,504) -
------------- --------------
Closing net funds 845,704 1,848,807
------------- --------------
6. Analysis of net funds
At 1 January Cashflow Exchange At 31 December
2006 £ losses 2006
£ £ £
Cash at bank
and in hand 1,848,807 (999,599) (3,504) 845,704
------------ ------------ ------------ --------------
Total 1,848,807 (999,599) (3,504) 845,704
------------ ------------ ------------ --------------
7. Publication of non statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts.
The balance sheet at 31 December 2006 and the profit and loss account, cash flow
statement and associated notes for the year then ended have been extracted from
the Company's 2006 statutory financial statements upon which the auditors'
opinion is unqualified.
8. Annual Report
The Annual Report for the year ended 31 December 2006 will be posted to
shareholders shortly. The Annual General Meeting of the Company will be held at
the Cavalry & Guards Club, 127 Piccadilly, London W1V 0PX, on 1 May 2007 at
11.00 a.m.
This information is provided by RNS
The company news service from the London Stock Exchange
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