QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2016 ... · 7/29/2016 · Updated Resource Estimate...

ABN 67 140 164 496 Level 16, AMP Building, 140 St Georges Terrace, Perth WA 6000

T: 08 9220 9890 F: 08 9220 9820 E: [email protected] W: www.ausgoldlimited.com

29 July 2016

QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2016

ASX CODE AUC DIRECTORS & MANAGEMENT Mr Richard Lockwood Non-Executive Chairman Mr Denis Rakich Executive Director & Company Secretary Mr Neil Fearis Independent Non-Executive Director Mr Geoff Jones Non-Executive Director Miss Melanie Sutterby Geology Manager Ms Elsie Lee Financial Controller REGISTERED OFFICE Level 16, AMP Building 140 St Georges Terrace Perth WA 6000 SHARE REGISTRY Security Transfer Registrars 770 Canning Highway Applecross WA 6153 ISSUED CAPITAL (29.07.16) Ordinary shares: 327.5m Unlisted options: 26.5m INVESTOR RELATIONS Mr Denis Rakich T: +61 (0)8 9220 9890 M: +61 (0)409 209 882 E: [email protected]

OVERVIEW Exploration Air Core (“AC”) drilling was completed during the quarter at the Katanning Gold Project (“KGP”), 100% owned by Ausgold Limited (ASX: AUC) (“Ausgold” or “the Company”). The drilling program was undertaken at high priority targets at White Dam, Jackson, Datatine and Jinkas West. Assay results were very encouraging and affirm predictive aspects of the geological model, which is anticipated to contribute to an increase in the Global Mineral Resource at the KGP. HIGHLIGHTS Drilling completed at the KGP during the Quarter

Results of drilling and exploration efforts during the Quarter demonstrated that

the exploration model applied at the KGP is valid. With confidence that the

exploration model is valid, Ausgold can actively progress exploration efforts at

the KGP

Assay results received during the Quarter confirm a new discovery at Datatine

with high grade gold intersected, with intersections including:

o 22m @ 3.67 g/t (from 4m to the end of hole), including 4m @ 16.90 g/t from 4m in BSAC1343

o 17m @ 1.00 g/t (from 16m to the end of hole), in BSAC1344 o 18m @ 0.86 g/t (from 0m to the end of hole), including 4m @ 3.41 g/t

from 8m in BSAC1340 o 18m @ 0.44 g/t (from 0m to the end of hole), including 1m @ 5.67 g/t

from 17m in BSAC1341 o 12m @ 0.71 g/t (from 12m to the end of hole), including 1m @ 3.00 g/t

from 23m in BSAC1342

Ausgold plans to systematically follow up various targets at the KGP, including:

o Regional aeromagnetic survey across the KGP o RC drill testing of high grade intercepts at Datatine (approximately

500m) o RC drilling at White Dam to extend the high grade shoot o Wider AC drilling at Datatine during the September Quarter

(approximately 5000m) o AC drilling of priority target areas over the wider KGP (approximately

8000m)

CORPORATE During the Quarter Mr Neil Fearis was appointed to the Board as Non-Executive Director of the Company, following the resignation of Mr Stephen Thomas. Subsequent to the Quarter end Mr Geoffrey Jones was appointed to the Board as a Non-Executive Director of the Company. Mr Jones, a civil engineer, is the current Managing Director of GR Engineering Services Limited. Subsequent to the Quarter end, Ausgold completed a placement of 21,000,000 ordinary fully paid shares at an issue price of $0.05 per share to raise $1.05m before costs. Proceeds are to be used to fund the Company’s exploration and resource development programs at the KGP and to provide additional working capital.

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JUNE 2016 QUARTERLY REPORT 2

KATANNING GOLD PROJECT, WESTERN AUSTRALIA (AUC 100%) The Katanning Gold Project (“KGP”) is located 275 kilometres southeast of Perth and approximately 40km northeast of the wheatbelt town of Katanning. Ausgold holds a dominant ground position in this relatively under-explored greenstone belt (Figure 1), an area highly prospective for Archaean gold deposits. During 2015 Ausgold announced an updated Global Resource following extensive geological and mineralisation modelling, developed in accordance with the JORC 2012 Code (Table 1). The Mineral Resource, which is reported at a 0.5 g/t Au cut-off grade and restricted to approximately 150 metres below surface, is estimated at 16.4 million tonnes at 1.21 g/t for a total of 637,330 contained ounces. Ausgold believes that there is significant scope to increase the grade and size of the current Mineral Resource at the KGP. Ausgold aims to become a mid-sized Western Australian gold producer through successful development and exploitation of the KGP, in particular the flagship deposits at Jinkas and Dingo (Figure 2). For further details, please refer to the “Scoping Study Katanning Gold Project” released to ASX on 25 November 2015.

Figure 1. Regional location map showing KGP, mineralised greenstone belts and major structures.

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Figure 2. Mineral Resource locations at the KGP

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Table 1. Updated Resource Estimate – SRK Consulting (September-October 2015) Notes:

The Mineral Resource is reported at a lower cut-off grade of 0.50g/t gold.

For the Jinkas Main Lodes, a top cut of 50g/t has been applied (with top-cuts of 15g/t and 20g/t applied for the Jinkas HW Lodes). For the Dingo Main Lode a top cut of 20g/t has been applied.

The topographic surface at the KGP is at approximately 360mRL with the updated Mineral Resource estimate stated to a depth of 210mRL (approximately 150 metres below land surface).

Quarterly Drilling Program During the quarter to 30 June 2016, the Company undertook exploration at the KGP with a focus on resource expansion and new discovery. Systematic AC drilling was completed across multiple high priority gold exploration targets at Jinkas West and Datatine.

Datatine The Datatine prospect is located approximately 7km north of the Jinkas deposit and is an example of a new and prospective exploration target emerging from the new exploration model and targeting. During a hiatus in exploration activity at the KGP between 2013 and 2015, a thorough re-interpretation using the data available (including open pit exposures, diamond core, drill logs, geophysical and geochemical datasets) revealed the complexity of controls on mineralisation and highlighted the presence of high grade pipe-like shoots. Datatine represents a high priority target with a coherent geochemical anomaly and a coincident Jinkas magnetic “look-alike” geophysical signature. The magnetic anomaly at Datatine is orientated east-west, rather than north-north-west, as at Jinkas. Historic drilling at Datatine was undertaken on an east-west orientation, which in light of the subsequent geophysical analysis was deemed to be sub-optimal. The recent AC drilling was re-oriented on a north-south direction (335° azimuth) to intersect any potential mineralised structures. This AC program identified significant gold anomalism extending over 400m in strike, which appears to be open in all directions, including at depth (Figure 4). This anomalism corresponds to existing coherent gold-in-soil anomalies and a prospective fold structure as interpreted from airborne magnetics (Figure 3). Significant results are included in Table 2, with intercepts of note including:

Lode

Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz

Jinkas Main Lodes 2.37 2.15 164 1.00 1.13 36 0.75 0.89 21 4.13 1.67 221

Jinkas HW Lodes 0.22 1.10 8 0.76 1.02 25 0.49 0.91 14 1.47 1.00 47

Jinkas Total 2.59 2.06 171 1.77 1.08 62 1.24 0.90 36 5.59 1.49 268

Dingo Main Lodes 0.44 1.22 17 2.95 1.11 106 0.38 0.77 9 3.77 1.09 132

Dingo HW Lodes - - - 0.63 0.72 15 0.31 0.64 6 0.94 0.69 21

Dingo Total 0.44 1.22 17 3.58 1.05 120 0.69 0.71 16 4.70 1.01 153

Jackson Main - - - 0.32 1.50 16 0.04 0.94 1 0.37 1.43 17

Jackson HW & FW - - - 0.47 1.02 15 0.19 0.95 6 0.66 1.00 21

Jackson Total - - - 0.79 1.22 31 0.24 0.95 7 1.02 1.15 38

Lone Tree Total - - - 0.17 0.93 5 1.19 0.76 29 1.37 0.78 34

White Dam Total - - - 0.38 1.00 12 3.28 1.24 131 3.66 1.22 143

GRAND TOTAL 3.0 1.94 188 6.7 1.07 230 6.6 1.02 219 16.4 1.21 637

Measured Indicated Inferred Totals

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22m @ 3.67 g/t (from 4m to the end of hole), including 4m @ 16.90 g/t from 4m in BSAC1343

17m @ 1.00 g/t (from 16m to the end of hole), in BSAC1344



12m @ 0.71 g/t (from 12m to the end of hole), including 1m @ 3.00 g/t from 23m in BSAC1342 Gold mineralisation intersected (Figure 3, Figure 4 and Table 2) is associated with saprolitic sheared and altered biotite-sericite-chlorite mafic granulites (+\- quartz veining) and felsic adamellites, indicating similar geology to that at Jinkas.

Figure 3. Datatine prospect AC plan showing gridded max DH Au, mineralisation trends, and planned RC holes

An anomalous in-situ lateritic gold halo overlies the deeper saprolitic gold mineralisation. The AC drilling results are suggestive of broader and more extensive mineralised zones. The ore grade tenor of the assay results suggests that both primary gold mineralisation and supergene anomalism have been intersected. The dip and strike of the mineralised zones remain subject to confirmation with further drilling.

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Figure 4. Datatine prospect AC cross-section showing schematic interpreted geology and mineralisation

112 AC holes for 3,312m were drilled to test a 1 x 1 kilometre coherent gold anomaly defined from surface soil geochemistry, which is coincident with a structural target identified by geophysical data.

Proposed Follow up Program The assay and geological data derived from the AC drilling has assisted in modelling the major mineralised trends at the Datatine North target area. The aim of the planned RC drilling is to better define the lateral and vertical extents of this mineralisation.

The initial phase of follow-up reverse circulation (RC) drilling has been planned to commence in the September Quarter 2016. This program will comprise 5 RC holes for approximately 500m. A number of RC holes will be designed to re-confirm the high-grade AC intercepts, while other holes will test mineralisation down dip and approximately 50m along strike to the east-north-east.

Further reconnaissance AC drilling across priority targets (Figure 5) is planned to commence in the September Quarter, in addition to further follow-up RC drilling, subject to the availability of funding. A Program of Works (POW) has been submitted and approved by the Department of Mines and Petroleum (DMP).

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Figure 5. Datatine prospect location, IVD Aeromagnetic image, priority target areas and recent AC drill hole lines.

Other Activities

An active, multi-faceted exploration and development strategy will systematically identify, develop and progress new mineral resources, exploration targets and realise the value of the KGP asset.

There are several important considerations for the exploration strategy at the KGP: 1. Ausgold has a very large tenement holding, therefore it is important to identify techniques that can

rapidly improve information to enable the Company to focus on exploration in areas of high potential

2. The 3D geological and structural depth architecture of the area is poorly defined due to the limited depth of drill hole information in regional areas.

Therefore, Ausgold plans to fly detailed airborne magnetics data on a more regional scale at the KGP. The existing aeromagnetics dataset proved to be an important tool to assist with the delineation of structures that control mineralisation.

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Ausgold has engaged SRK Consulting (SRK) as part of its exploration and research strategy to target high-grade gold mineralisation at the KGP. Using these new geoscience concepts, initially developed with the assistance of SRK, has already enabled Ausgold to recognise the exploration and discovery potential at the KGP. It is anticipated that the continuing development of these new geological concepts with SRK will give Ausgold a competitive edge in identifying further opportunities at the KGP.

During the coming Quarter, Ausgold will undertake a 1000m RC drilling program at the White Dam deposit to extend the high grade shoot up-plunge and at depth. Ausgold will embark on a Mineral Resource update for the White Dam deposit, to incorporate results from the planned RC program and the recently announced exceptional drilling results (refer ASX announcement “Drilling confirms high grade shoot extensions at KGP” dated 7/4/16).

In addition, a scoping study update is proposed which will include the Jackson and White Dam Mineral Resources. Market changes and recent drilling results at these deposits have improved their viability for inclusion in preliminary mining development studies.

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Figure 6. Regional map showing selected new targets, anomalous geophysical responses, geochemical anomalism and potentially anomalous geochemical trends.

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DOOLGUNNA STATION, WESTERN AUSTRALIA (AUC 100%) Ausgold’s 100%-owned Doolgunna Project E52/3031 covers an area of 203 square kilometres and is located 125km NNE of Meekatharra (Figure 7), 20km ENE of the historic Peak Hill mining centre and 13km WNW of the DeGrussa copper-gold deposit. The tenement is contiguous with Sandfire Resources NL (SFR)’s Doolgunna project tenements to the east and contains both the Narracoota Volcanics and the faulted contact between the Marymia Inlier and Capricorn orogeny, making the region prospective for mesothermal lode gold deposits, volcanic hosted massive sulphide (“VMS”), shear zone-hosted copper, sedimentary hosted lead, supergene enriched manganese, banded-iron-formation iron ore and talc mineralisation.

Figure 7. Location plan of Ausgold’s Doolgunna Station tenement in the Bryah Basin

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Ausgold commissioned Precision Geophysics Pty Ltd to carry out an independent review of geophysical surveys carried out at its Doolgunna Project. Based on recommendations from the review, Ausgold proposed future follow-up work, including a high energy fixed loop (“FLEM”) geophysical survey of the south east corner of the Doolgunna tenement adjacent to SFR’s Noonyereena VMS prospect. Modern FLEM geophysical technology has been successful in leading SFR to favourable stratigraphy hosting the Monty discovery and Homer prospect, and in identifying drill targets. The discovery holes at SFR’s Monty project include diamond drill holes TLDD0004 (16.5m grading 18.9% Cu and 2.1 g/t Au, from 409.5m) and TLDD0005 (9.2m grading 11.8% Cu and 2.9 g/t Au, from 417m) and highlight the potential for discovery of high grade copper-gold sulphide mineralisation in favourable VMS stratigraphy throughout the entire Bryah Basin and outside the immediate DeGrussa mine environment.

YAMARNA, WESTERN AUSTRALIA (AUC 100%)

The Yamarna Project is located approximately 125 kilometres north-east of Laverton in central Western Australia on Exploration Licences E38/2129 and E38/2863. The exploration licences comprise approximately 300 square kilometres of prospective ground over the easternmost Yamarna Archaean greenstone belt of the Yilgarn Craton. The historic Jutson Rocks and Chapman’s Reward gold mines are situated southeast of the Project (E38/2129) and copper and nickel sulphide mineralisation was discovered by Ausgold at the Winchester prospect in 2010, when a number of electrical geophysical anomalies were tested by RC drilling. A review of the VTEM targets established that further drilling at the Winchester prospect is warranted.

CRACOW, QUEENSLAND (AUC 100%)

Ausgold holds one tenement over approximately 250 square kilometres in the Cracow region, approximately 375km north-west of Brisbane. The tenements cover extensive areas of prospective Camboon Volcanics, which host the high-grade epithermal +1 million ounce Au-Ag Cracow gold system. Exploration to date at Cracow has included geological mapping, stream sediment sampling and follow-up by soil sampling of target areas. Table 2. Significant drill intersections from first pass AC drilling at the Datatine Prospect, KGP.

Hole ID Northing* Easting* From (m) To (m) Interval (m) Au (ppm)

DATATINE PROSPECT

BSAC1281 6295040 581165 0 2 2 0.15

BSAC1282 6295039 581154 0 2 2 0.22

6 7 1 0.11

12 15 3 0.23

25 27 2 0.91

BSAC1283 6295048 581153 0 2 2 0.32

15 16 1 0.28

BSAC1284 6295087 580959 No Sig Int

BSAC1285 6295034 580986

No Sig Int

BSAC1286 6294980 581013 No Sig Int

BSAC1287 6294927 581041 32 33 1 0.17

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BSAC1288 6294873 581068 32 40 8 0.24

BSAC1289 6294820 581095 4 8 4 0.31

32 35 3 0.76

BSAC1290 6294767 581122 No Sig Int

BSAC1291 6295044 581087

No Sig Int

BSAC1292 6295026 581097

No Sig Int

BSAC1293 6295015 581102 No Sig Int

BSAC1294 6295000 581107 24 28 4 1.25

BSAC1295 6294985 581114 33 34 1 0.11

BSAC1296 6294967 581125 28 30 2 0.23

BSAC1297 6294937 581134 No Sig Int

BSAC1298 6294920 581145 No Sig Int

BSAC1299 6294899 581153 40 41 1 0.12

BSAC1300 6294879 581166 No Sig Int

BSAC1301 6295145 581082

No Sig Int

BSAC1302 6295134 581087

No Sig Int

BSAC1303 6295124 581091

No Sig Int

BSAC1304 6295113 581096

No Sig Int

BSAC1305 6295099 581102

No Sig Int

BSAC1306 6295091 581106 No Sig Int

BSAC1307 6295080 581110 0 4 4 0.10

26 27 1 0.70

BSAC1308 6295068 581115 No Sig Int

BSAC1309 6295058 581121 No Sig Int

BSAC1310 6295048 581127 0 4 4 0.18

BSAC1311 6295036 581135 20 27 7 0.16

BSAC1312 6295026 581142 0 4 4 0.18

24 25 1 0.17

BSAC1313 6294970 581165 No Sig Int

BSAC1314 6294961 581171

No Sig Int

BSAC1315 6294951 581179

No Sig Int

BSAC1316 6294929 581189 No Sig Int

BSAC1317 6294912 581199 36 37 1 0.33

BSAC1318 6294902 581206 No Sig Int

BSAC1319 6294886 581215

No Sig Int

BSAC1320 6295118 581143 No Sig Int

BSAC1321 6295112 581147 0 4 4 0.10

BSAC1322 6295104 581151 0 4 4 0.18

BSAC1323 6295095 581155 0 4 4 0.21

BSAC1324 6295088 581159 No Sig Int

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BSAC1325 6295078 581164 0 4 4 0.11

16 24 8 0.18

BSAC1326 6295069 581168 0 4 4 0.12

20 26 6 0.29

BSAC1327 6295057 581174 0 4 4 0.14

24 28 4 0.12

BSAC1328 6295046 581180 28 34 6 0.27

BSAC1329 6295017 581197 No Sig Int

BSAC1330 6295005 581204 35 36 1 0.26

BSAC1331 6294990 581207 No Sig Int

BSAC1332 6294972 581214

No Sig Int

BSAC1333 6294959 581225

No Sig Int

BSAC1334 6294946 581231

No Sig Int

BSAC1335 6294925 581242

No Sig Int

BSAC1336 6294906 581252 No Sig Int

BSAC1337 6295137 581187 0 4 4 0.18

BSAC1338 6295127 581192 0 4 4 0.18

BSAC1339 6295120 581194 0 12 12 0.13

BSAC1340 6295113 581197 0 18 18 0.86

Including 8 12 4 3.41

BSAC1341 6295104 581201 0 18 18 0.44

17 18 1 5.67

BSAC1342 6295097 581205 0 4 4 0.28

12 24 12 0.71


BSAC1343 6295086 581211 4 26 22 3.67



BSAC1344 6295074 581217 0 8 8 0.13

16 33 17 1.00


BSAC1345 6295064 581222 0 4 4 0.11

BSAC1346 6295052 581227 28 32 5 0.12

BSAC1347 6295038 581235 No Sig Int

BSAC1348 6295025 581241

No Sig Int

BSAC1349 6295010 581249 No Sig Int

BSAC1350 6294833 581200 24 28 4 0.29

36 41 5 0.25

BSAC1351 6294790 581222 36 40 4 0.18

BSAC1352 6294757 581205 No Sig Int

BSAC1353 6294739 581150

No Sig Int

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BSAC1354 6294932 581293

No Sig Int

BSAC1355 6294918 581301 No Sig Int

BSAC1356 6294898 581314 32 36 4 0.16

BSAC1357 6294886 581322 32 36 4 0.14

BSAC1358 6295033 581291 No Sig Int

BSAC1359 6295017 581298

No Sig Int

BSAC1360 6295003 581306

No Sig Int

BSAC1361 6294979 581316

No Sig Int

BSAC1362 6294965 581324

No Sig Int

BSAC1363 6295058 581379 No Sig Int

BSAC1364 6295008 581406 0 4 4 0.21

BSAC1365 6294950 581433 0 4 4 0.10

BSAC1366 6294897 581457 No Sig Int

BSAC1367 6294847 581485

No Sig Int

BSAC1368 6294794 581509

No Sig Int

BSAC1369 6295064 581474

No Sig Int

BSAC1370 6295005 581505

No Sig Int

BSAC1371 6294953 581528

No Sig Int

BSAC1372 6294897 581559

No Sig Int

BSAC1373 6294842 581591

No Sig Int

BSAC1374 6294795 581611

No Sig Int

BSAC1375 6295035 581588

No Sig Int

BSAC1376 6294980 581618

No Sig Int

BSAC1377 6294929 581643

No Sig Int

BSAC1378 6294875 581669

No Sig Int

BSAC1379 6295063 581674

No Sig Int

BSAC1380 6295011 581701

No Sig Int

BSAC1381 6294914 581746

No Sig Int

BSAC1382 6294846 581784

No Sig Int

BSAC1383 6294792 581809

No Sig Int

BSAC1384 6295087 581761

No Sig Int

BSAC1385 6295032 581786

No Sig Int

BSAC1386 6294981 581813

No Sig Int

BSAC1387 6294926 581842

No Sig Int

BSAC1388 6295114 581844

No Sig Int

BSAC1389 6295062 581873

No Sig Int

BSAC1390 6295012 581900

No Sig Int

BSAC1391 6294960 581929

No Sig Int

BSAC1392 6294898 581954 No Sig Int

JINKAS WEST PROSPECT

BSAC1393 6287990 583745 No Sig Int

BSAC1394 6288026 583816

No Sig Int

BSAC1395 6288060 583884 No Sig Int

BSAC1396 6288099 583960 12 16 4 0.12

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BSAC1397 6288352 583580 No Sig Int

BSAC1398 6288384 583644

No Sig Int

BSAC1399 6288411 583706

No Sig Int

BSAC1400 6288449 583779

No Sig Int

BSAC1401 6288772 583529

No Sig Int

BSAC1402 6288805 583596

No Sig Int

BSAC1403 6288565 583557

No Sig Int

BSAC1404 6288596 583614

No Sig Int

BSAC1405 6288616 583659

No Sig Int

BSAC1406 6288231 583779

No Sig Int

BSAC1407 6288274 583850 No Sig Int

Notes to Table 2. For AC assay results the intervals reported are thickness weighted averages (ie. XXm grading XX grams per tonne gold content). Reported intervals are calculated using ≥ 0.1g/t Au cut-off grade and using a ≤ 4m minimum internal dilution (unless otherwise stated).

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Competent Persons’ Statements The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Miss Melanie Sutterby who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience relevant to the style of mineralisation under consideration and to the activity which she undertakes to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Miss Sutterby is an employee of Ausgold Limited and consents to the inclusion in this report of the matters based on that information in the form and context in which it appears. The information in this report that relates to the Mineral Resource Estimates is based on work done by Mr Rod Brown of SRK Consulting (Australasia) Ltd and Miss Melanie Sutterby of Ausgold Limited. Miss Sutterby takes responsibility for the integrity of the exploration results including sampling, assaying, and QA/QC, and the preparation of the geological interpretations. Mr Brown takes responsibility for the Mineral Resource Estimate. Mr Rod Brown and Miss Melanie Sutterby are members of the Australasian Institute of Mining and Metallurgy (AusIMM) and have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity that they are undertaking, to qualify as Competent Persons as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. They consent to the inclusion of that information in this report in the form and context in which it appears.

CONTACT DETAILS

For further information, please contact Mr Denis Rakich on

T: +61 (0)8 9220 9890 M: +61 (0)409 209 882 W: www.ausgoldlimited.com

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http://www.ausgoldlimited.com/


INTEREST IN MINING TENEMENTS

State Lease Lease status Project Interest %

Western Australia Tenements

WA E38/2129 Granted Yamarna 100%

WA E38/2863 Granted Yamarna 100%

WA E52/3031 Granted Doolgunna Station 100%

WA E70/3952 Granted Katanning Regional 100%












WA E70/2928 Granted Katanning Gold Project 100%

WA M70/210 Granted Katanning Gold Project 100%



WA G70/84 Granted Katanning Gold Project 100%

WA G70/85 Granted Katanning Gold Project 100%

WA L70/13 Granted Katanning Gold Project 100%



Queensland Tenements

QLD EPM17054 Granted Cracow 100%

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Ausgold Limited Appendix 5B

Mining Exploration Entity Quarterly Report

+ See chapter 19 for defined terms. 18

Rule 5.5

Appendix 5B Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10, 17/12/10, 1/5/13

Name of entity

AUSGOLD LIMITED

ABN Quarter ended (“current quarter”)

67 140 164 496 30 June 2016

Consolidated statement of cash flows

Current quarter

$A’000

Year to date 12 months

$A’000

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors - - 1.2 Payments for:

(a) exploration & evaluation (b) development (c) production (d) administration

(336)

- -

(177)

(1,166)

- -

(811) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 1 4 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid / R&D tax credit refund (net) - - 1.7 Other (provide details if material) - -

Net operating cash flows

(512)

(1,973)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

- - -

-

(41) -

1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets

-

- -

-

- -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (security deposit / bond) 31 31

Net investing cash flows

31

(10)

1.13

Total operating and investing cash flows (carried forward)

(481) (1,983)

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Current quarter

$A’000

Year to date 12 months

$A’000

1.13

Total operating and investing cash flows (brought forward)

(481) (1,983)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. - 1,443 1.15 Proceeds from sale of shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if material) - -

Net financing cash flows - 1,443

Net increase / (decrease) in cash held

(481) (540)

1.20 Cash at beginning of quarter/ year to date 602 661 1.21 Exchange rate adjustments to item 1.20 - -

1.22

Cash at end of quarter

121

121

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter $A'000

1.23 Aggregate amount of payments to the parties included in item 1.2

61

1.24 Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

Fees paid to related entities

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in

which the reporting entity has an interest

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

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

-

-

3.2 Credit standby arrangements

-

-

Estimated cash outflows for next quarter

$A’000

4.1 Exploration and evaluation

490

4.2 Development

-

4.3 Production

-

4.4 Administration

200

Total

690

Reconciliation of cash

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

Current quarter

$A’000

Previous quarter

$A’000

5.1 Cash on hand and at bank

121 602

5.2 Deposits at call

- -

5.3 Bank overdraft

- -

5.4 Other

- -

Total: cash at end of quarter (item 1.22)

121 602

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Changes in interests in mining tenements

Tenement

reference Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of

quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

EPM17059 E70/4061

100% 100%

100% 100%

0% 0%

Tenement reference

Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of

quarter

6.2 Interests in mining tenements acquired or increased

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted

Issue price per security (see note 3)

Amount paid up per

security (see note 3)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

306,500,807 306,500,807

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

7.5 +Convertible debt securities (description)

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

14,000,000 2,900,000 9,579,235

- - -

Exercise price $0.09 $0.07 $0.08

Expiry date 31 Jan 2017 31 Dec 2017 30 Nov 2019

7.8 Issued during quarter

7.9 Exercised during quarter

7.10 Expired during quarter 2,420,765 - 0.08 30 Nov 2019

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)

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Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement gives a true and fair view of the matters disclosed.

Sign here: .............. ............................................ Date: .....29 July 2016...............

Director Print name: ..........Denis Rakich……………............

Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for

the past quarter and the effect on its cash position. An entity wanting to disclose additional information is

encouraged to do so, in a note or notes attached to this report.

2. The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements

acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement

and there are conditions precedent which will change its percentage interest in a mining tenement, it should

disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully

paid securities.

4. The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107:

Statement of Cash Flows applies to this report.

5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign

entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be

complied with.

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QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2016 ... · 7/29/2016 · Updated Resource Estimate...

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Transcript of QUARTERLY REPORT FOR THE PERIOD ENDED 30 JUNE 2016 ... · 7/29/2016 · Updated Resource Estimate...