TIDMGSR
RNS Number : 4457C
Golden Saint Resources Ltd
28 June 2016
28 June 2016
Golden Saint Resources Ltd
("GSR" or the "Company")
Audited results for the financial year ended 31 December
2015
The Board of Directors of Golden Saint Resources Ltd is pleased
to announce the audited results for the financial year ended 31
December 2015.
Highlights within the 12 months to 31 December 2015
-- The bulk sampling programs in the Tongo and Baja license
areas produced promising results in its early stages and this was
evidenced by the recovery of some good quality rough diamonds as
announced previously; notably nine clear white diamonds of 9.475
carat, 9.65 carat, 2.77 carat, 1.82 carat, 1.0 carat, 0.8 carat,
0.775 carat, 0.53 carat and 0.325 carat in the Tongo license area;
two light coloured purple diamonds of 2.45 carat and 0.525 carat
and two white diamonds of 0.970 carat and 0.820 carat in the Baja
license area.
-- In the Zimmi areas (where the Company actively sponsored
artisanal mining operations until the second half of 2015), the
Company also announced the recovery of six rough diamonds
comprising 2.54 carat, 1.3 carat, 0.73 carat, 0.69 carat, 0.30
carat and 0.26 carat.
-- During the year ended 31 December 2015 the Company raised a
total of GBP1,073,678 (before expenses) through the issue of
1,646,732,486 ordinary shares of no par value ("Ordinary Shares")
as a result of market placings and subscriptions.
-- On 5 March 2015, all outstanding convertible loan notes were
converted by Darwin Strategic terminating the agreement made with
Darwin Strategic Limited in October 2014 to issue further unsecured
convertible bonds.
-- The Company appointed Rock Forage Consulting Services ("Rock
Forage"), part of the Rock Forage Mining Limited group, as its
Technical and Exploration Consultant, to guide the Company's
technical team on the exploration and bulk sampling of diamond and
gold bearing deposits on its licenses held in Sierra Leone.
-- On 3 July 2015, the Company announced further diamond
recoveries pursuant to the bulk sampling programs in Baja and
Tongo.
-- From the site visit in August 2015, Rock Forage observed
remnant potential alluvial gold and diamond deposits in the more
inaccessible places and they recommended various mining methods
including robust dredging techniques to be assessed in order to
optimise extraction from accurately mapped and prioritised
targets.
-- During their second site visit, Rock Forage oversaw and
advised on the implementation of the necessay improvements and
modifications to to the Dove Explorer 1 at Tongo with a view to
improve productivity when gravel washing resumed.
-- On 8 December 2015, the Company announced a further recovery
of 3.58 ounces of gold from bulk sampling operations which was
subsequently sold locally for Sierra Leonean leone 16,711,500
(approximately GBP2700).
-- The Diamond Club generated approximately USD $26,000 in
confirmed sales during the financial year.
Highlights of operations post 31 December 2015
-- From 1 January to date the Company has raised a further
GBP1,086,930 (before expenses) through the issue of 2,030,232,142
Ordinary Shares as a result of market placings and
subscriptions.
-- Licence renewal applications for all three exploration
licences were submitted on 23 March 2016 to the National Minerals
Agency ("NMA").
-- The Company participated in the Myanmar International Gems,
Jewellery and Watch Expo from 1(st) to 4(th) April 2016.
-- On 16 May 2016 , the Company received written confirmation
from NMA that its three licence renewal applications had been
approved by the Minister of Mines. Details of the terms of the
renewal are pending.
A copy of the Annual Report and Accounts has been posted to
Shareholders today together with a Notice of the Annual General
Meeting ("AGM") to be held at Gledden Building, Level 3, 731 Hay
Street, Perth, WA 6000 on 28 July 2016 at 11.00a.m. (WST) and
copies of both documents are available on the Company's website
www.goldensaintresources.com
Set out below are extracts of the Company's audited results for
the year ended 31 December 2015.
For further information please contact:
Golden Saint
Resources +618 6145
Ltd Keng Hock Seah 4400
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Beaumont Cornish Roland Cornish / Emily +44 (0) 20
Limited Staples 7628 3396
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SVS Securities +44 (0) 20
Plc Tom Curran/Ben Tadd 3700 0093
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Cassiopeia +44 (0) 79
Services Ltd Stefania Barbaglio 4969 0338
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Executive Chairman's Review
Overview
I am pleased to report that despite the extremely challenging
operating conditions presented by the continuation of the Ebola
outbreak during the period under review, the Company made
significant progress in its ongoing exploration and bulk sampling
operations. Early recoveries of diamonds and gold from our Tongo
and Baja licence areas were positive indicators of the further
diamond and gold deposits as we continue with our exploration
operations. The Company also recovered some diamonds in the Zimmi
areas where the Company actively sponsored artisanal mining
operations during the main part of 2015. With the appointment of
the new technical consultants, Rock Forage Consulting Services
("Rock Forage"), the Company has been able to improve the
efficiencies of the gravel washing processes by modifying the
configuration of the Dove Explorer.
During the period under review, the Company also negotiated an
exit from its convertible loan facility which it entered into with
Darwin Strategic Limited on 20 Octoner 2015, leaving the Company
virtually free of debt.
Financial review
The Group's net loss of USD 2.063 million for the full financial
year ended 31 December 2015 was a significant reduction of USD
1.672 million (44.8%) compared to the previous financial year
(2014:USD 3.735 million). Operating expenses comprise mainly
exploration expenses and general administrative costs of a
corporate and management level. The large reduction in expenses
from last year was due primarily to the lower operating activity
level resulting from the disruptions and stoppages caused by the
outbreak of Ebola in 2014 which continued into 2015. The Group also
rationalised and restructured its operations to cut costs and
optimise efficiencies where possible. The Group's mining operations
during the year under review continue to be focussed on bulk
sampling and exploration activities.
As at 31 December 2015, the Group had USD 13,000 available for
continuing exploration and working capital purposes. However
subsequent to the year end and up to the date of this report, the
Group had managed to raise approximately USD 1.5 million in cash to
continue to support its bulk sampling operations.
Audit opinion
The consolidated annual financial statements were audited by the
Company's auditors, Greenwich & Co Audit Pty Ltd. The auditors'
report contains an emphasis of matter with regard to the
continuation as a going concern as follows:
Emphasis of matter - Inherent uncertainty regarding continuation
as a going concern
Without modifying our opinion, we draw attention to the notes to
the financial report, which describes that the ability of the
company to continue as a going concern is dependent on capital
raisings via equity issues to the market, and the successful
realization of a commercial mining operation in Sierra Leone. As a
result there is material uncertainty related to events or
conditions that may cast significant doubt on the company's ability
to continue as a going concern, and therefore whether it will
realise its assets and extinguish its liabilities in the normal
course of business and at the amounts stated in the financial
report.
Board and Senior Management Changes
On 7 August 2015, the Company announced a Board restructuring
with Mr. Cyril D Silva stepping down from his current Executive
Chairman position and taking on the role of full time CEO and
Executive Director in order to provide more focus and direction on
the daily operational aspects of the business in Sierra Leone. Mr.
David McDonald, assumed the role of Executive Chairman as a result
of the restructuring.
The Company appointed Mr Alimamy Wurie as Executive Director to
the Board of Golden Saint Resources Ltd with effect from 10
February 2016. Mr Wurie is a member of each of the Audit Committee,
the Remuneration Committee and the AIM Rules Compliance Committee.
Mr Wurie brings a wealth of experience to the Board, in terms of
his mining engineering qualifications and his advisory role as a
member of the Minerals Advisory Board in Sierra Leone.
The Company would like to thank Mr Cyril D' Silva, Mr Steve
Ledger and Mr Simon Lawton for their contributions to the Company
when they resigned from the Board on 10 February 2016, 23 November
2015 and 28 February 2015 respectively. Mr D' Silva also resigned
from his position as non Board CEO of the Company with effect from
1 April 2016 but has entered into a consultancy agreement with the
Company to assist the Board on raising funds from investors. Mr
Ledger also stepped down from his position as Company Secretary on
8 December 2015. Mr David McDonald, the Company's Executive
Chairman is currently acting as the Company's interim Company
Secretary until the Company appoints a replacement.
Outlook
The mining industry in Sierra Leone experienced a challenging
2015 calendar year as evidenced by the well-publicised difficulties
faced by two of the largest companies London Mining and African
Minerals and of several other mining companies faced with the
cancellation of their mining licences. The Directors are cognisant
of the fact that the contribution of the mining industry to Sierra
Leone's post Ebola economy remains significant and hence are
cautiously optimistic that junior explorers like Golden Saint
Resources who are looked upon favourably by the Ministry of Mines
will find themselves in a good position to take advantage of
opportunities to grow the Company's interest.
Looking forward, the Directors believe that with its firm
footing and focus on its existing exploration and alluvial mining
operations in Baja, Tongo and Moa, the outlook remains positive and
we aim to deliver the results that will enhance shareholder value
to our loyal shareholder base who have continued to show strong
support for the Company throughout the difficulties faced by the
Company over the past two years.
The Company is encouraged by the exploration results to date and
this note of confidence is reinforced by the recent approval by the
Minister of Mines (on the recommendation of the Minerals Advisory
Board) in relation to the renewal of the existing three exploration
licences by the local Sierra Leone Government National Minerals
Agency, for which as at the date of this report, the Company has
already notified the NMA of its acceptance to renew all three
exploration licences and are awaiting to receive the final renewal
terms.
Finally, I wish to thank my fellow Directors, shareholders,
business associates and staff for their unstinting support and I
look forward to the further development and expansion of our
business over the coming years.
David McDonald
Executive Chairman
Operations Update
LOCATIONS
Golden Saint Resources Limited (GSR) has three main projects in
Sierra Leone; Tongo, Baja and Moa. All three projects, for which
GSR is renewing its exploration licences, are located in the Bo and
Kenema districts of the Southern and Eastern provinces of the
country. The Tongo and Baja licence areas are located within the
Tongo Diamond Field, which is considered highly prospective for
diamonds. Within the Baja project, there is a section of the Sewa
River, which is known to contain alluvial diamonds and gold and is
locally worked by artisanal miners. The Moa project is also
prospective for gold as well as diamonds as the licence area
extends into the foothills of the Kambui Hills, which is part of
the greenstone belt of Sierra Leone.
Tongo (Licence number EL86/2011 (currently under renewal)) is
located close to Lowuma Village, which is approximately 56km east
of Kenema Town in the Lower Bambara Chiefdom of Kenema District and
approximately 356km east of Freetown. From Freetown to Kenema there
is approximately 300km of well paved bitumen surfaced road with an
unmade but graded road between Kenema and the licence area.
Baja (Licence number EL87/2011 (currently under renewal)) is
located approximately 52km northeast of Bo in the Kando Lekpeama
and Simbaru Chiefdoms in the Kenema District of the Eastern
Province and in the Komboya, Badjia and Baoma Chiefdoms in the Bo
District of the Southern Province. It is approximately 292km east
of Freetown. From Freetown to Baoma is approximately 273km of well
paved bitumen surfaced road. The distance from Baoma to the licence
area is approximately 19km of unmade but graded road.
Moa (Licence number EL07/2012 (currently under renewal)) is
situated approximately 46km southwest of Kenema City in the Koya
and Dama Chiefdoms in the Kenema District of the Eastern Province.
It is approximately 316km east of Freetown. There is approximately
290km of bitumen road between Freetown and Blama and approximately
26km of unmade but graded lateritic road between Blama and the
licence area.
In addition to the above three projects, until late 2015 GSR,
through Golden Saint Diamonds (SL) Ltd (GSR's 75 per cent owned
subsidiary), actively sponsored a number of artisanal mining
operation in the Zimmi and Rowaka areas. The Zimmi project is
located in the Southern Province close to the border with the
Republic of Liberia. The Zimmi area has a history of diamond
occurrences along the rivers and streams. The GSR Zimmi project
area has produced a number of coloured diamonds to date although
this does not necessarily reflect on their value.
GENERAL GEOLOGY OF PROJECT AREA
The three projects lie within the stable Man craton of West
Africa, which covers two-thirds of Sierra Leone. The Man craton is
geologically subdivided into the Leonean and Liberian events, which
comprise tectonothermal events leading to the emplacement of
synkinematic granites, the greenstone belts and other late
kinematic events. The Tongo and Baja projects lie within the known
diamond fields of Sierra Leone (P. K. Hall, 1960); these cover most
of the Eastern Province and the eastern half of the Southern
Province. Diamonds occur in the primary host rock of kimberlite
pipes or dykes intruded along fissure shears, such as those of the
Koidu mine kimberlite deposit. The Koidu kimberlite dykes and pipes
have been dated to the Jurassic period.
Alluvial diamonds also occur in Sierra Leone as a result of the
weathering and erosion of diamondiferous kimberlites, though the
diamonds are usually smaller and in much lower concentration than
those found in the kimberlites. Alluvial diamonds have been mined
in both the Woa stream in the Tongo licence area and in the Sewa
River that passes through the Baja licence area.
Hall (1968) noted that alluvial diamond deposits are almost
invariably located on the river terraces (which he referred to as
the coastal plains) and in the active channels of the rivers and
stream; as per standard rules of deposition in alluvial
environments, bends in rivers are also important sedimentary traps
for alluvial diamonds.
The Moa project is located to the southern end of the Kambui
hills, which is part of the Archaean greenstone belt. The
greenstone belt is known to host gold deposits in Sierra Leone and
across the Man Shield. These gold deposits are largely associated
with ductile deformation and high strain zones adjacent to or
within crustal scale shear zones and also at the contacts between
the granite and the greenstones, such as found at the Baomahun
deposit in the Kangari Hills - Sula Mountains greenstone belt of
Sierra Leone.
Alluvial gold in Sierra Leone is found within the rivers and
streams across the country, particularly in the watershed around
the Kangari Hills - Sula Mountains and the Kambui Hills immediately
to the northwest of the Moa licence area.
EXPLORATION WORK DURING REPORTING PERIOD UNDER REVIEW
Exploration continued to progress well throughout the reporting
period.
The strategy of the ongoing exploration for both diamond and
gold has always been to:
1. Identify the regional shear structures beneath the
transported cover where potential diamondiferous kimberlites could
be located.
2. To identify hard rock gold deposits in Archean terrain and in
placer accumulations in alluvial deposits.
3. To target areas where artisanal workings are evident with a
view to identifying economic alluvial deposits that could be worked
in the near term thus generate a cash flow to support longer term
exploration for hard rock gold and diamond deposits.
To achieve the above, the work plan was organised to
include;
1. geological mapping;
2. follow up on airborne magnetic survey targets;
3. artisanal mapping; and
4. bulk sampling.
GEOLOGICAL MAPPING
Regional geological mapping continued throughout the exploration
period. This mapping is in an effort to identify the various
geological stratigraphy, structural controls and mineralisation of
the project areas.
In both Tongo and Baja project areas, baselines were created
within the concessions running from west to east at 2km spacing.
These baselines were traversed from start to end and outcrops were
mapped at 50m intervals where possible. A total of 580 rock samples
were collected and are stored for any petrographic analysis if
required.
Based on the preliminary assessment, most of the rocks found in
the Baja and Tongo projects were ultramafic including
tremolite-chlorite schist, talc-chlorite schist and anthophyllite
schist interceded with amphibolite and rarely with metasediments.
The mafic group was represented mainly by the amphibolite.
In Moa, the licence area has been mapped to a scale of 1:10,000
along a 10km baseline with a total of 10km of transects cross
cutting the baseline. During the course of the geological mapping
some surface samples were taken.
FOLLOW UP ON AEROMAGNETIC SURVEY TARGETS
Aeromagnetic survey was completed by Geotech Airborne Ltd in
November, 2013 over the three project areas of Tongo, Baja and
Moa.
Core Geophysics Pty (Core) was commissioned by GSR to quality
control, process image and generate a structural interpretation
from the three aeromagnetic surveys completed over the
projects.
The aeromagnetic surveys have greatly improved the geology and
structural understanding of the projects. Within the Tongo and Baja
projects, the processed data have identified strong ENE -WSW
structural trends beneath transported cover, consistent with the
regional structures hosting kimberlite dykes and known diamond
resources located within the neighbouring tenements. At Moa, the
data have identified a number of major structures and finer scale
fabrics which may control or host gold mineralisation.
At Tongo, a total of 37 dyke targets, 14 pipe targets and 5
alluvial targets were selected from the processed data of which 12
dykes, 3 pipes and 2 alluvial targets have been given a high
priority.
At Baja, 79 dyke targets, 4 pipe targets and 5 alluvial targets
were selected from the processed data of which 17 dykes, and 2
alluvial targets have been given a high priority.
At Moa 6 broad target areas for gold mineralisation have been
defined, of which 2 are given a high priority along with 3 sites
for alluvial diamonds selected along the Moa River.
Follow up ground programmes including sampling and further
mapping continued in the reporting period. A team of GSR geologists
and geo technicians have been engaged in identifying and mapping of
all geophysical targets.
ARTISANAL MAPPING
Artisanal mapping has continued in all licence areas throughout
the reporting period. The reason for this is to have a fair
knowledge on how much of the gravels in the terraces are still
intact and how much has been mined. Mining in the licence areas is
mainly by locals. Such mining is mostly observed to be haphazard
and unplanned. The geo technicians have been engaged in mapping out
all artisanal pits within the concessions.
BULK SAMPLING OF ALLUVIAL GRAVELS.
Bulk sampling of alluvial gravels continued in the Tongo and
Baja licence areas during the reporting period. This programme was
carried out in order to identify valuable alluvial resource with an
economic grade for small scale mining as a faster means of income
generation for the company.
This process was carried out after the amendment of the
exploration work plan. The National Mineral Agency of Sierra Leone
authorised the company to carry out the exercise as part of their
exploration programme.
Gravel was extracted mechanically, using a D8 Bulldozer and a
330 Cat excavator. Casual labour was used in some areas where the
excavator reach was found to be too short to extract basal
gravels.
In Baja, gravels were extracted and put on stockpiles at Baja
site 1 and Baja site 2. Though conditions were difficult, gravels
were processed using the Dove Explorer at Baja site1. Baja site 2
still holds two stockpiles of gravel of about 2,500 tonnes each to
be processed in the coming months. The expected processing rate of
washing is about 4 tonnes per hour over the next 6 months subject
to weather conditions.
Washing continued with positive finds at Baja site 1. A total of
637 stones amounting to 233 carats were recovered from 2500 tonnes
of gravel between January 2015 and February 2015. Varying colours
have also been exhibited, with whites to yellows displayed.
In Tongo, a total of 202 stones amounting to 154 carats were
recovered in 1000 tonnes of gravel processed at site 1 between
April 2015 and May 2015. This was done in very strong collaboration
with the communities in the vicinity of the project. There are
about 500 tonnes of gravels left in the stockpile for
processing.
From the diamonds recovered in Baja and Tongo, 125.37 rough
carats have been shipped from Sierra Leone to Perth in August 2015
and arrangements are being made for them to be cut, polished and
graded if necessary. The remaining rough diamonds are kept in a
safe in our office in Sierra Leone and when we have accumulated the
economic quantity to ship to Perth, a secured logistics provider
will be engaged to manage the export to Perth.
In August 2015, 3.58 ounces of gold were also recovered from
both the bulk sampling operations in Tongo and the Makali area and
these were sold locally for 16,711,500 Sierra Leonean Leone as the
quantity was not deemed sufficient for export.
Positive developments and milestones continued to be reached in
the exploration and bulk sampling programmes, despite some
difficulties encountered. This has been made possible as a result
of the strong effort of the local team that is implementing the
project on the ground.
In the Moa licence's bulk sampling is yet to commence. Much
planning is required due to little terrace development within the
concession and thus the active channel may be targeted by
dredging.
APPOINTMENT OF ROCK FORAGE MINING CONSULTANTS
With the objective of advancing GSR's work in the field, in July
2015, Rock Forage Mining Consultancy (A South Africa based
consultancy) was appointed to work with the local team by
integrating data previously generated by GSR from its soil sampling
analysis and data from neighbouring licences in order to provide an
ongoing work programme for its exploration operations and to
supervise the bulk sampling programme.
The Rock Forage team, including the CEO, Mr Pierre Fourie and
Lead Geologist, Dr. John Ward, visited the projects in August of
2015.The visit was to look at the potential that exists in all the
licence areas and to give advice on sampling and future mining
methods. The bulk sampling site at Tongo was also visited.
Based on observations made by the consultants, a modification of
the wash plant was recommended. It was advised that a scrubber be
added to the Dove plant. This was to ensure that the clay content
of the gravel is thoroughly treated and removed, so that the clean
gravel feeds into the Dove plant. A gold tray was to be attached to
the improvised scrubber to collect the gold.
These recommendations were followed by the technical team on
ground. A new wash plant setup (Golden Dove setup) has been
installed at Tongo site 1 for gravel processing. Washing of gravels
is due to commence as the Rock Forage team make their return to
observe the new plant setup.
For the Moa project, dredging was best recommended by the
consultants and a soil sampling programme for gold at the margins
of the Kambui greenstones belt. This programme is set to commence
in the early dry season.
In addition, following consultations with Rock Forage and due to
the reasons detailed below, the Board announced on 10 February 2016
that it had decided to reduce the Baja licence area from
240.11km(2) to approximately 59.51km(2) , relinquishing
approximately 180.6Km(2) :
Ø results of the stream sediment samples collected in the areas
to be relinquished did not show any traces of diamond or gold
deposits;
Ø active and recent artisanal workings are found close to the
Sewa river which is within the area to be retained;
Ø the grade of diamonds found in the Bawa upstream, which is
within the area to be relinquished, is not economical for
mechanised mining;
Ø historical data, in the area to be retained, reported
mineralisation close to the Sewa river; and
Ø the aeromagnetic survey interpretation, in the area to be
retained, showed high priority target with rank 1 in the Sewa
terraces and few kimberlite targets within the area to be
relinquished.
Hence, on submission of the licence renewal request to the
National Minerals Agency, the Board applied for a renewal of this
reduced area only.
Outlook
With the renewal of the three exploration licences expected to
be in place in the coming months, the operations will continue to
be focussed on geological mapping, following up on airborne
magnetic survey targets, artisanal mapping, and bulk sampling. Bulk
sampling activities will include the completion of the gravel
washing of existing stockpiles at both Tongo and Baja site 2. We
expect to also embark on a new work programme for further gravel
extraction at Baja, Tongo and Moa subject to the recommendations by
Rock Forage after their site visit at the end June 2016.
Competent Person Statement
The information in this release that relates to the general
geology of the area is based upon information previously compiled
by Wardell Armstrong International Ltd and has been reviewed by Dr
John D Ward (Pr. Sci. Nat; PhD) of Rock Forage. Dr John D Ward is
an independent consultant employed by Rock Forage Mining Limited
and is a Fellow of The Geological Society of South Africa. Dr Ward
has sufficient experience relevant to the style of mineralisation
and type of deposit under consideration and the activity in which
he is undertaking to qualify as a Competent Person under the 2012
Edition of the Australasian Code for Reporting Exploration Results,
Mineral Resources and Ore Reserves (JORC Code).
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the year 1 January 2015 to 31 December 2015
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
Notes US $'000 US $'000
Net operating income
Sales 26 52
Foreign exchange gain/(loss) 116 (54)
Other income 110 -
------------- -------------
252 (2)
Net operating expenses
Continuing operations 2 (2,315) (3,733)
Operating loss (2,315) (3,735)
Net loss for the period (2,063) (3,735)
------------- -------------
Other comprehensive income
Foreign currency (loss)/gain (187) 59
------------- -------------
(187) 59
Total comprehensive loss
for the period (2,250) (3,676)
------------- -------------
Net loss for the period
attributable to:
Equity holders of the
parent (1,891) (3,425)
Non-controlling interest (172) (310)
------------- -------------
(2,063) (3,735)
------------- -------------
Total comprehensive loss
for the period attributable
to:
Equity holders for the
parent (2,078) (3,366)
Non-controlling Interest 17 (172) (310)
------------- -------------
(2,250) (3,676)
------------- -------------
Basic loss per share-cents 5 0.16 0.78
Diluted loss per share-cents 5 0.13 0.78
Consolidated Statement of Financial Position
As at 31 December 2015
31 December 31 December
2015 2014
Notes US $'000 US $'000
ASSETS
Current assets
Cash and cash equivalents 7 13 856
Trade and other receivables 8 50 348
Deposits paid 9 - 25
Inventories 10 331 353
------------ ------------
Total current assets 394 1,582
Non-current assets
Property plant and equipment 11 1,177 285
Exploration and evaluation
assets 12 132 132
Intangible assets 13 6 6
------------ ------------
Total non-current assets 1,315 423
------------ ------------
TOTAL ASSETS 1,709 2,005
------------ ------------
EQUITY
Share capital 16 52,860 50,080
Reserves 16 (42,747) (42,560)
Retained earnings (8,759) (6,696)
------------ ------------
Total equity 1,354 824
Equity attributable to
owners of the parent 1,975 1,273
Non-controlling equity
interest 17 (621) (449)
------------ ------------
TOTAL EQUITY 1,354 824
------------ ------------
LIABILITIES
Current liabilities
Trade and other payables 18 342 135
Financial liabilities 19 13 1,046
------------ ------------
Total Current Liabilities 355 1,181
------------
TOTAL LIABILITIES 355 1,181
------------
TOTAL EQUITY AND LIABILITIES 1,709 2,005
------------ ------------
Consolidated Statement of Cash Flow
For the year 1 January 2015 to 31 December 2015
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
Notes US $'000 US $'000
Cash Flows from operating
activities
Loss before taxation from
operations (2,064) (3,735)
------------- -------------
Adjustments to add non-cash
items:
Depreciation of property,
plant and equipment 99 39
Unrealised foreign exchange
loss (187) 59
(2,152) (3,636)
Operating loss before working
capital changes
Decrease in inventories 22 139
Decrease/(Increase) in prepayments
and other receivables 299 (223)
Increase in trade and other
payables 207 73
------------- -------------
Net cash flow from operating
activities (1,624) (3,647)
Cash flows from investing
activities
Payments to acquire property
plant and equipment (991) (174)
Payments for exploration
assets - (34)
-------------
Net cash flow from investing
activities (991) (208)
Cash flows from financing
activities
Proceeds of ordinary share
issue 2,780 1,326
Proceeds from convertible
notes (1,008) 1,021
Net cash inflow from financing
activities 1,772 2,347
------------- -------------
Net decrease in cash and
cash equivalents (843) (1,510)
Net foreign exchange difference - -
Cash and cash equivalents
at beginning of period 856 2,366
------------- -------------
Cash and cash equivalents
at end of period 13 856
------------- -------------
Consolidated Statement of Changes in Equity
For the period 1 January 2015 to 31 December 2015
Attributable to equity
holders of the parent
Merger Total
Reserve Attributable
Foreign to Owners
Share Currency Retained Total of the Non-Controlling
Capital Reserve Earnings Equity Parent Interest Total
US
US $'000 US $'000 US $'000 US $'000 US $'000 US $'000 $'000
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Opening Balance
as at 1 January
2015 50,080 87 (42,647) (6,696) 824 1,273 (449) 824
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Comprehensive
income
Loss of the
period - - - (2,063) (2,063) (1,891) (172) (2,063)
Foreign exchange
gain on
translation - (187) - - (187) (187) - (187)
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Total
comprehensive
income for
the period - (187) - (2,063) (2,250) (2,078) (172) (2,250)
Transactions
with owners,
in their capacity
as owners
Shares issued
during the
period 2,780 - - - 2,780 2,780 - 2,780
Cost of capital - - - - - - - -
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Total
transactions
with owners 2,780 - - - 2,780 2,780 - 2,780
Balance at
31 December
2015 52,860 (100) (42,647) (8,759) 1,354 1,975 (621) 1,354
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Consolidated Statement of Changes in Equity
For the period 1 January 2014 to 31 December 2014
Attributable to equity
holders of the parent
Merger Total
Reserve Attributable
Foreign to Owners
Share Currency Retained Total of the Non-Controlling
Capital Reserve Earnings Equity Parent Interest Total
US
US $'000 US $'000 US $'000 US $'000 US $'000 US $'000 $'000
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Opening Balance
as at 1 January
2014 48,754 28 (42,647) (2,961) 3,174 3,313 (139) 3,174
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Comprehensive
income
Loss of the
period - - - (3,735) (3,735) (3,425) (310) (3,735)
Foreign exchange
gain on
translation - 59 - - 59 59 - 59
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Total
comprehensive
income for
the period - 59 - (3,735) (3,676) (3,366) (310) (3,676)
Transactions
with owners,
in their capacity
as owners
Shares issued
during the
period 1,326 - - - 1,326 1,326 - 1,326
Cost of capital - - - - - - - -
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Total
transactions
with owners 1,326 - - - 1,326 1,326 - 1,326
Balance at
31 December
2014 50,080 87 (42,647) (6,696) 824 1,273 (449) 824
--------- ---------- --------- ---------- -------- -------------- ---------------- --------
Notes to the Financial Statements
Accounting Policies
1.1 Corporate information
The consolidated financial statements of Golden Saint Resources
Ltd for the financial year ended 31 December 2015 were authorised
for issue in accordance with a resolution of the Directors on 27
June 2016.
The registered office of Golden Saint Resources Ltd, the
ultimate parent of the Group, is 171 Main Street, Road Town Tortola
VG 1110 British Virgin Islands.
The principal activity of the Group is early stage diamond and
gold exploration with three Exploration Licenses in Sierra
Leone.
1.2 Basis of preparation
The consolidated financial statements of Golden Saint Resources
Limited and its controlled entities ("the Group") have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and adopted by the European Union (EU) as
they apply to the financial statements of the Group for the period
1 January 2015 to 31 December 2015.
The consolidated financial statements have been prepared on a
historical cost convention basis, except for certain financial
instruments that have been measured at fair value. The consolidated
financial statements are presented in US dollars and all values are
rounded to the nearest thousand except when otherwise
indicated.
1.3 Basis of consolidation
The consolidated financial statements comprise the financial
statements of the Group as at 31 December 2015, and for the period
then ended.
Subsidiaries are fully consolidated from the date of
acquisition, being the date on which the Group obtains control, and
continue to be consolidated until the date when such control
ceases.
The financial statements of the subsidiaries are prepared for
the same reporting period as the parent company, using consistent
accounting.
All intra-group balances, transactions, unrealised gains and
losses resulting from intra-group transactions and dividends are
eliminated in full.
Total comprehensive income within a subsidiary is attributed to
the non-controlling interest even if it results in a deficit
balance. A change ownership interest of a subsidiary, without a
loss of control, is accounted for as an equity transaction.
Pooling of Interests on Incorporation of Parent Entity
On incorporation of the entity, subsidiaries have been
consolidated using the pooling of interests method on the basis
that the entities being combined are ultimately controlled by the
same parties, both before and after the combination.
Under this method the assets and liabilities of the acquiree are
recorded at book value and intangible assets and contingent
liabilities are only recognised if they were previously recognised
by the acquiree. No goodwill is recorded and expenses of the
combination are written off immediately in profit or loss.
The excess of consideration over the value of the acquiree's net
assets is recognised in the merger reserve, a negative reserve
within equity.
Any non-controlling interest in the acquiree is recognised as
the proportion of the assets and liabilities of the acquiree at the
date of acquisition. From the date of acquisition forward, a
proportionate share of profits, or losses, in the related
subsidiary is then attributed to the non-controlling interest.
Subsequent Business Combination
Business combinations occur where an acquirer obtains control
over one or more businesses. A business combination is accounted
for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business
combination will be accounted for from the date that control is
attained, whereby the fair value of the identifiable assets
acquired and liabilities (including contingent liabilities) assumed
is recognised (subject to certain limited exceptions).
When measuring the consideration transferred in the business
combination, any asset or liability resulting from a contingent
consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not
re-measured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or
liability is re-measured in each reporting period to fair value,
recognising any change to fair value in profit or loss, unless the
change in value can be identified as existing at acquisition
date.
All transaction costs incurred in relation to business
combinations are expensed to the statement of comprehensive income.
The acquisition of a business may result in the recognition of
goodwill or a gain from a bargain purchase.
1.4 Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements
requires management to make judgements, estimates and assumptions
that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities at the date of the
consolidated financial statements, and the reported amounts of
revenues and expenses during the reporting period. Estimates and
assumptions are continuously evaluated and are based on
management's experience and other factors, including expectations
of future events that are believed to be reasonable under the
circumstances. However, actual outcomes would differ from these
estimates if different assumptions were used and different
conditions existed.
In particular, the Group has identified the following areas
where significant judgements, estimates and assumptions are
required, and where actual results were to differ, may materially
affect the financial position or financial results reported in
future periods. Further information on these and how they impact
the various accounting policies is located in the relevant notes to
the consolidated financial statements.
1.4.1 Key Judgements
In the process of applying the Group's accounting policies,
management has made the following judgements, which have the most
significant effect on the amounts recognised in the consolidated
financial statements.
Going concern
This report has been prepared on the going concern basis, which
contemplates the continuation of normal business activity and the
realisation of assets and the settlement of liabilities in the
normal course of business.
At 31 December 2015, the Group held cash reserves of USD 13,000.
Subsequent to year end, the Group raised USD 1,586,000 (GBP
1,087,000) via placement of equity instruments.
The Directors are confident the Group will generate revenue from
alluvial diamond and gold sales in second half 2016 and into 2017
which will contribute to cashflow. In addition the Company intends
to raise additional equity finance during the course of the year to
contribute towards its working capital requirements.
On this basis, the Directors believe that there are sufficient
funds to meet the Group's working capital requirements.
The Group recorded a loss of $2,250,000 for the year ended 31
December 2015 and had net assets of $1,354,000 as at 31 December
2015 (Dec 2014: loss of $3,676,000 and net assets of $824,000).
Should the Group be unable to obtain sufficient funding as
advised above, there is a material uncertainty which may cast doubt
as to whether or not the Group will be able to continue as a going
concern and whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts
stated in the financial statements.
The financial statements do not include any adjustments relating
to the recoverability and classification of recorded asset amounts
nor to the amounts and classification of liabilities that might be
necessary should the Group not continue as a going concern.
Accruals
Management have used judgement and prudence when estimating
certain accruals for contractor claims. The accruals recognised are
based on work performed but are before settlement.
Contingencies
By their nature, contingencies will only be resolved when one or
more uncertain future events occur or fail to occur. The assessment
of the existence, and potential quantum, of contingencies
inherently involves the exercise of significant judgement and the
use of estimates regarding the outcome of future events. Please
refer to Note 20 for further details.
Impairment of assets
The Group assesses each asset or cash generating unit (CGU)
every reporting period to determine whether any indication of
impairment exists. Where an indicator of impairment exists, a
formal estimate of the recoverable amount is made, which is
considered to be the higher of the fair value less costs to sell,
or the value in use. These assessments require the use of estimates
and assumptions such as long-term commodity prices (considering
current and historical prices, price trends and related factors),
discount rates, operating costs, future capital requirements,
closure and rehabilitation costs, exploration potential, reserves
and operating performance (which includes production and sales
volumes). These estimates and assumptions are subject to risk and
uncertainty. Therefore, there is a possibility that changes in
circumstances will impact these projections, which may impact the
recoverable amount of assets and/or CGUs. Please refer to Note 11
for further details.
Goodwill and intangible assets that have an indefinite useful
life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other assets
are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by
which the asset's carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset's fair value less
costs to sell and value in use.
1.4.2 Key estimates and assumptions
The key assumptions concerning the future and other key sources
of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are described below. The Group based its assumptions and estimates
on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or
circumstances arising beyond the control of the Group. Such changes
are reflected in the assumptions when they occur.
Exploration and evaluation expenditure
The application of the Group's accounting policy for exploration
and evaluation expenditure requires judgement in determining
whether future economic benefits will arise either from future
exploitation or sale or where activities have not reached a stage
which permits a reasonable assessment of the existence of reserves.
The determination of a Joint Ore Reserves Committee (JORC) resource
is itself an estimation process that requires varying degrees of
estimation depending on sub-classification and these estimates
directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make
certain estimates and assumptions about future events or
circumstances, in particular whether an economically viable
extraction operation can be established. Estimates and assumptions
made may change if new information becomes available. If, after
expenditure is capitalised, information becomes available
suggesting that the recovery of expenditure is unlikely, the amount
capitalised is written off in the consolidated statement of
comprehensive income in the period when the new information becomes
available. Exploration and evaluation assets are carried at
historical cost less any impairment losses recognised. (Please
refer to Note 12 for further details).
1.5 New standards and amendments and interpretations adopted by the Group
The accounting policies applied are consistent with those
adopted and disclosed in the Group financial statements for the
year ended 31 December 2014, except for changes arising from the
adoption of the following new accounting pronouncements which
became effective in the current reporting period:
-- Annual Improvements to IFRSs 2010-2012 cycle;
-- Annual Improvements to IFRSs 2011-2013 cycle.
The adoption of these new accounting pronouncements has not had
a significant impact on the accounting policies, methods of
computation or presentation applied by the Group. The Group has not
early adopted any other amendment, standard or interpretation that
has been issued but is not yet effective. It is expected that where
applicable, these standards and amendments will be adopted on each
respective effective date.
1.6 New standards and amendments and interpretations not yet adopted
A number of new standards and amendments to standards and
interpretations are effective for annual periods beginning after 1
January 2015, and have not been applied in preparing these
consolidated financial statements. None of these is expected to
have a significant effect on the consolidated financial statements
of the Group, except the following set out below:
-- IFRS 9 - 'Financial instruments', addresses the
classification, measurement and recognition of financial assets and
financial liabilities. The complete version of IFRS 9 was issued in
July 2014. It replaces the guidance in IAS 39 that relates to the
classification and measurement of financial instruments. IFRS 9
retains but simplifies the mixed measurement model and establishes
three primary measurement categories for financial assets:
amortised cost, fair value through OCI and fair value through
P&L. The basis of classification depends on the entity's
business model and the contractual cash flow characteristics of the
financial asset. Investments in equity instruments are required to
be measured at fair value through profit or loss with the
irrevocable option at inception to present changes in fair value in
OCI not recycling. There is now a new expected credit losses model
that replaces the incurred loss impairment model used in IAS 39.
For financial liabilities there were no changes to classification
and measurement except for the recognition of changes in own credit
risk in other comprehensive income, for liabilities designated at
fair value through profit or loss. IFRS 9 relaxes the requirements
for hedge effectiveness by replacing the bright line hedge
effectiveness tests. It requires an economic relationship between
the hedged item and hedging instrument and for the 'hedged ratio'
to be the same as the one management actually use for risk
management purposes. The standard is effective for accounting
periods beginning on or after 1 January 2018. Early adoption is
permitted. The group is yet to assess IFRS 9's full impact. At this
stage, the directors of the Company have not evaluated the impact
of the changes to IFRS 9 on their financial statements going
forward. They will do so at an appropriate time in the future.
-- IFRS 15 - 'Revenue from contracts with customers' deals with
revenue recognition and establishes principles for reporting useful
information to users of financial statements about the nature,
amount, timing and uncertainty of revenue and cash flows arising
from an entity's contracts with customers. Revenue is recognised
when a customer obtains control of a good or service and thus has
the ability to direct the use and obtain the benefits from the good
or service. The standard replaces IAS 18 'Revenue' and IAS 11
'Construction contracts' and related interpretations. The standard
is effective for annual periods beginning on or after 1 January
2017 and earlier application is permitted. The group will be
assessing the impact of IFRS 15.
-- IFRS 16 - 'Leases' replaces the following standards and
interpretations: IAS 17 Leases and IFRIC 4 Determining whether an
Arrangement contains a Lease. The new standard provides a single
lessee accounting model for the recognition, measurement,
presentation and disclosure of leases. IFRS 16 applies to all
leases including subleases and requires lessees to recognise assets
and liabilities for all leases, unless the lease term is 12 months
or less, or the underlying asset has a low value.
Lessors continue to classify leases as operating or finance.
IFRS 16 was issued in January 2016 and applies to annual reporting
periods beginning on or after 1 January 2019. The Group will
evaluate the potential impact of IFRS 16 on the financial
statements and performance measures. This will include an
assessment of whether any arrangements the Group enters into will
be considered a lease under IFRS 16.
-- There are no other IFRSs or IFRIC interpretations that are
not yet effective that would be expected to have a material impact
on the Group.
1.7 Summary of significant accounting policies
Exploration and evaluation assets
It is the Group's policy to capitalise the cost of acquiring
rights to explore areas of interest. All other exploration and
evaluation expenditure is expensed to the statement of profit or
loss and other comprehensive income.
The costs of acquisition are carried forward as an asset
provided one of the following conditions are met:
-- Such costs are expected to be recouped through the successful
development and exploitation of the area of interest, or
alternatively, by its sale; or
-- Exploration activities in the area of interest have not yet
reached a stage which permits a reasonable assessment of the
existence of otherwise of recoverable reserves, and active and
significant operations in relation to the area are continuing.
When the technical feasibility and commercial viability of
extracting a mineral resource have been demonstrated then any
capitalised exploration and evaluation expenditure is reclassified
as capitalised mine development. Prior to reclassification,
capitalised exploration and evaluation expenditure is assessed for
impairment.
Impairment
An impairment exists when the carrying amount of an asset or
cash-generating unit exceeds its estimated recoverable amount. Any
impairment losses are recognised in the statement of profit or loss
and other comprehensive income.
The carrying value of capitalised exploration and evaluation
expenditure is assessed for impairment at the cash generating unit
level whenever facts and circumstances (from an impairment review)
suggest that the carrying amount of the asset may exceed its
recoverable amount.
Impairment reviews for exploration and evaluation costs are
carried out on a project-by-project basis, as each project has the
potential to be an economically viable cash generating unit. An
impairment review is undertaken when indicators of impairment arise
but normally when one of the following conditions applies:
-- unexpected geological occurrences render a deposit uneconomic
-- title to an asset is compromised
-- variations in commodity prices render the project uneconomic
-- variations in the currency of operation
-- variations to the fiscal and tax legislation in the country of operation.
Property, plant and equipment
Plant and equipment are shown at cost less accumulated
depreciation and impairment losses. The initial cost of an asset
comprises its purchase price or construction cost, any costs
directly attributable to bringing the asset into operation, any
incidental cost of purchase, and associated borrowing costs. The
purchase price or construction cost is the aggregate amount paid
and the fair value of any other consideration given to acquire the
asset. Directly attributable costs include employee benefits,
professional fees and costs of testing whether the asset is
functioning properly. Capitalised borrowing costs include those
that are directly attributable to the construction of mining and
infrastructure assets.
Property, plant and equipment relate to plant, machinery,
fixtures and fittings and are shown at historical cost less
accumulated depreciation and impairment losses.
The depreciation rates applied to each type of asset are as
follows:
Plant and machinery 10%
Motor Vehicles 15%
Fixtures and fittings 10-20%
Lease Improvements 5 years
Subsequent expenditure is capitalised when it is probable that
future economic benefits from the use of the asset will be
increased. All other subsequent expenditure is recognised as an
expense in the period in which it is incurred. Assets that are
replaced and have no future economic benefit are derecognised and
expensed through profit or loss. Repairs and maintenance which
neither materially add to the value of assets nor appreciably
prolong their useful lives are charged against income. Gains/
losses on the disposal of fixed assets are credited/charged to
income. The gain or loss is the difference between the net disposal
proceeds and the carrying amount of the asset.
The asset's residual values, useful lives and methods of
depreciation are reviewed at each reporting period, and adjusted
prospectively if appropriate.
Inventories
Inventories are valued at the lower of cost and net realisable
value.
Convertible Note
Convertible Notes issued by the Group comprise of convertible
notes that can be converted to share capital at the option of the
holder and a convertible note derivative whose fair value changes
with the Company's underlying share price. The convertible note
liability and corresponding discounts are removed from the
Statement of Financial Position when the obligations specified in
the contract are discharged, this can occur upon the option holder
exercising their option or the option period lapses requiring the
company to discharge the obligation.
Financial instruments: initial recognition and measurement
a. Financial assets
The Group's financial assets include trade and other
receivables, and cash and cash equivalents.
Trade and other receivables
Trade and other receivables are stated at amortised cost less
provision for doubtful debts. Trade and other receivables are
non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market.
Trade receivables are generally due for settlement between 30
and 90 days. They are presented as current assets unless collection
is not expected for more than 12 months after reporting date.
Collectability of trade receivables is reviewed on an ongoing
basis. Debts which are known to be uncollectible are written off by
reducing the carrying amount directly. A provision for impairment
of trade receivables is used when there is objective evidence that
the Group will not be able to collect all amounts due according to
the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value, based on
the relevant exchange rates at balance sheet date. Cash and cash
equivalents comprise cash, cash at hand and short-term deposit
amounts with original maturity of less than three months. For the
purpose of the consolidated statement of cash flows, cash and cash
equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
Impairment
The Group assesses at each reporting date whether there is any
objective evidence that a financial asset is impaired. A financial
asset is deemed to be impaired if there is objective evidence of
impairment as a result of one or more events that has occurred
after the initial recognition of the asset (a loss event) and that
loss event has an impact on the estimated future cash flows of the
financial asset that can be reliably estimated.
b. Financial liabilities
The Group's financial liabilities include trade and other
payables and interest-bearing loans and borrowings. All financial
liabilities are recognised initially at fair value and in the case
of loans and borrowings, less directly attributable transaction
costs.
Trade and other payables
Trade and other payables are non-derivative financial
liabilities that are not quoted in an active market. It represents
liabilities for goods and services provided to the Group prior to
the year end and which are unpaid. These amounts are unsecured and
have 7-30 day payment terms. Trade and other payables are presented
as current liabilities unless payment is not during within 12
months from the reporting date. They are recognised initially at
their fair value and subsequently measured at amortised cost using
the effective interest method.
Interest-bearing loans and borrowings
Interest-bearing loans and borrowings are recognised initially
at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost using the effective interest
(EIR) method. The fair value implies the rate of return on the debt
component of the facility. This rate of return reflects the
significant risks attaching to the facility from the lenders'
perspective.
Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income
in profit or loss.
Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or
sale are capitalised as part of the cost of the respective assets.
All other borrowing costs are expensed in the period they occur.
Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds e.g. arrangement
fees.
The Group capitalises borrowing costs for all eligible assets.
Where funds are borrowed specifically to finance the project, the
amount capitalised represents the actual borrowing costs incurred.
Early repayment of borrowings, specifically for reasons of
refinancing do not qualify for capitalising as borrowing costs
under IAS 23 and are recognised as a loss on de-recognition in the
statement of comprehensive income.
c. Fair value of financial instruments
The following methods and assumptions are used to estimate the
fair values:
-- Cash and short-term deposits, trade and other receivables,
trade and other payables and other current liabilities approximate
their carrying amounts largely due to the short-term maturities of
these instruments.
-- Initial fair value of interest-bearing borrowings is normally
the transaction price, i.e. the fair value of the consideration
received. When part of the consideration is for something other
than the loan, the fair value is estimated using an appropriate
valuation technique.
-- For disclosure purpose only, the fair value of unquoted
instruments, such as loans and other financial liabilities, is
estimated by discounting future cash flows using rates currently
available for debt on similar terms, credit risk and remaining
maturities.
d. Other accounting policies
Provisions
Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax amount that
reflects current market assessments of the time value of money, and
the risks specific to the liability. The increase in the provision
due to the passage of time is recognised as interest expense.
Finance income
Interest income is made up of interest received on cash and cash
equivalents.
Deferred taxation
Deferred income tax is provided using the balance sheet method
on temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences.
Deferred income tax assets are recognised for all deductible
temporary differences, carry forward of unused tax credits and
unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused
tax losses, can be utilised, except:
-- In respect of deductible temporary differences associated
with investments in subsidiaries, deferred income tax assets are
recognised only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary
differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at
the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to
be utilised. Unrecognised deferred income tax assets are reassessed
at the end of each reporting period and are recognised to the
extent that it has become probable that future taxable profit will
be available to allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of
the reporting period.
Deferred income tax assets and deferred income tax liabilities
are offset if a legally enforceable right exists to set off current
tax assets against current income tax liabilities and the deferred
income taxes relate to the same taxable entity and the same
taxation authority.
Foreign currencies
i) Functional and presentation currency
The consolidated financial statements are presented in US
dollars, which is the Group's presentation currency.
ii) Transaction and Balances
Transactions in foreign currencies are initially recorded in the
functional currency at the respective functional currency rates
prevailing at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are retranslated at
the spot rate of exchange ruling at the reporting date. All
differences are taken to the profit or loss, should specific
criteria be met.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate as at
the date of the initial transaction. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
iii) Group Companies
The results and financial position of foreign operations (none
of which has the currency of a hyperinflationary economy) that have
a functional currency different from the presentation currency are
translated into the presentation currency as follows:
-- Assets and liabilities for each statement of financial
position presented as translated at the closing rate at the date of
the statement of financial position.
-- Income and expenses for each income statement and statement
of profit or loss and other comprehensive income are translated at
average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transactions dates, in which case income and expenses are
translated at the dates of the transactions), and
-- All resulting exchange differences are recognised in other comprehensive income
Revenue Recognition
Revenue is measured at the fair value of the consideration
received or receivable.
The Group recognises when the amount of revenue can be reliably
measured, it is probably that future economic benefits will flow to
the entity and specific criteria have been met as described
below.
i) Interest Income
Interest income is recognised using the effective interest
method. When a receivable is impaired, the Group reduces the
carrying amount to its recoverable amount, being the estimated
future cash flow discounted at the original effective interest rate
of the instrument, and continues unwinding the discount as interest
income.
2. Net Operating Expenses
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
US $'000 US $'000
From continuing
operations
Depreciation of property
plant and equipment 99 40
Amortisation expenses 97 63
Cost of Goods Sold 22 189
Occupancy costs 154 170
Employee costs 4 809 1,059
General expenses 220 309
Advertising and
promotion expenses 37 121
Exploration expenses 416 930
Administration expenses 418 629
Lease expenses 6 5
Travel expenses 37 218
------------- -------------
Total net operating
expenses 2,315 3,733
------------- -------------
Net operating expenses
Include:
Auditors remuneration:
Audit of the annual
financial statements 19 19
Other non-audit
services - -
------------- -------------
19 19
3. Key Management Personnel
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
US $'000 US $'000
Directors' emoluments 402 505
Superannuation 23 18
------------- -------------
425 523
------------- -------------
-- Key Management personnel comprise the Directors.
4. Employee Costs
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
US $'000 US $'000
Wages and salaries 645 972
Superannuation 41 43
Other employee costs 123 44
------------- -------------
Total 809 1,059
------------- -------------
5. Earnings per share
1 January
2015
to 31 1 January
December 2014 to
2015 31 December
US 2014
$'000 US $'000
Loss for the period attributable
to members of the parent 1,891 3,425
Basic loss per share is calculated by dividing
the loss attributable to owners of the parent
by the weighted average number of ordinary shares
on issue during the period.
Basic weighted average number
of common shares in issue 1,169,492,134 430,453,019
Basic Loss per share-cents 0.16 0.78
Warrants outstanding 275,351,720 -
Diluted loss per share 0.13 0.78
6. Segment Information
The consolidated entity's operating segments have been
determined with reference to the monthly management accounts used
by the chief operating decision maker to make decisions regarding
the consolidated entity's operations and allocation of working
capital.
Due to the size and nature of the consolidated entity, the Board
as a whole has been determined as the chief operating decision
maker.
The consolidated entity operates in one business segment and one
geographical segment, namely mineral exploration industry in Sierra
Leone.
The revenues and results of this segment are those of the
consolidated entity as a whole and are set out in the statement of
profit and loss and other comprehensive income. The segment assets
and liabilities of this segment are those of the consolidated
entity and are set out in the Statement of Financial Position.
7. Cash and Cash Equivalents
31 December 31 December
2015 2014
US $'000 US $'000
Current accounts 13 856
------------ ------------
13 856
------------ ------------
There are no restrictions on the cash currently held by the
Group.
8. Trade and Other Receivables
31 December 31 December
2015 2014
US $'000 US $'000
Trade receivables - 1
Prepayments 50 31
Other receivables - 316
------------ ------------
Total receivables 50 348
------------ ------------
Prepayments relate to payments made in advance for services from
the AIM Nomad and Broker as well as a legal retainer for GSR
Africa.
Other receivables include deposits made for the purchase of
plant and machinery for use in Sierra Leone.
9. Deposits Paid
31 December 31 December
2015 2014
US $'000 US $'000
Current deposits - 25
Current deposits relate to mining equipment leased in Sierra
Leone to be used for gold and diamond exploration and
production.
10. Inventories
31 December 31 December
2015 2014
US $'000 US $'000
Opening stock 353 492
Polishing costs during
the year - 48
Cost of diamond sales (22) (43)
Provision for discount
on Diamond Club Selling
discounts - (144)
------------
Finished goods 331 353
------------ ------------
Inventories consist of 98.66 carats of cut, gem quality
diamonds.
GSR also has an additional 125.37 carats of rough diamonds which
have been shipped from Sierra Leone and arrangements are currently
being made to send them to Mumbai for cutting and polishing and
subsequently for sale in the GSR Diamond Club. After cutting and
polishing the diamonds will be individually and objectively
appraised for market value (reflected in its sale price) and then
recorded at the lower of cost or market value.
11. Property, Plant and Equipment
Plant Furniture Lease Motor
and Machinery and Fixtures Improvements Vehicles Total
US $'000 US $'000 US $'000 US $'000 US $'000
Period 1 January
2015 to 31 December
2015
Opening net book
value 199 39 7 40 285
Additions 989 1 - 1 991
Disposals - - - - -
Depreciation
charge (81) (9) (1) (8) (99)
Closing Net Book
Value 1,107 31 6 33 1,177
--------------- -------------- -------------- ---------- ---------
At 31 December
2015
Cost 1,211 50 8 51 1,320
Accumulated depreciation (104) (19) (2) (18) (143)
--------------- -------------- -------------- ---------- ---------
Net book value 1,107 31 6 33 1,177
--------------- -------------- -------------- ---------- ---------
Plant Furniture Lease Motor
and Machinery and Fixtures Improvements Vehicles Total
US $'000 US $'000 US $'000 US $'000 US $'000
Period 1 January
2014 to 31 December
2014
Opening net book
value 79 20 9 43 151
Additions 140 29 - 5 174
Disposals - - - - -
Depreciation
charge (20) (10) (2) (8) (40)
Foreign currency
translation differences - - - - -
--------------- -------------- -------------- ---------- ---------
Closing Net Book
Value 199 39 7 40 285
--------------- -------------- -------------- ---------- ---------
At 31 December
2013
Cost 220 50 9 50 329
Accumulated depreciation (21) (11) (2) (10) (44)
--------------- -------------- -------------- ---------- ---------
Net book value 199 39 7 40 285
--------------- -------------- -------------- ---------- ---------
12. Exploration and Evaluation Assets
Mineral Total
Exploration
Licenses
US $'000 US $'000
Cost
At 1 January 2015 132 98
Additions - 34
------------- ----------
As at 31 December 2015 132 132
Provision for Amortisation
and Impairment
At 1 January 2015 - -
Amortisation charge
for the period - -
------------- ----------
As at 31 December 2015 - -
Net book value
------------- ----------
At 31 December 2015 132 132
------------- ----------
The board of directors regularly assesses the potential of each
mineral licence. There was no impairment during the 2015 Financial
Year.
Mineral Total
Exploration
Licenses
US $'000 US $'000
Cost
At 1 January 2014 98 98
Additions 34 34
------------- ----------
As at 31 December 2014 132 132
Provision for Amortisation
and Impairment
At 19 March 2014 - -
Amortisation charge
for the period - -
------------- ----------
As at 31 December 2014 - -
Net book value
------------- ----------
At 31 December 2014 132 132
------------- ----------
The board of directors regularly assesses the potential of each
mineral licence. There was no impairment during the 2014 Financial
Year.
13. Intangible Assets
Trade Mark Total
US $'000 US $'000
Opening net book value
at 1 January 2015 6 6
Additions - -
Amortisation charge - -
----------- ----------
Closing net book value
at 31 December 2015 6 6
----------- ----------
There was no impairment recorded during the 2015 Financial
Year.
14. Subsidiaries
Details of the Company's subsidiaries at 31 December 2015 are as
follows:
Name of Subsidiary Place of Incorporation Proportion Proportion
of of Voting
Ownership Power
Interest
Golden Saint
Resources
(Australia)
Pty Ltd Australia 100 100
Golden Saint
Resources
(Africa) Ltd Sierra Leone 75 75
Golden Saint
Diamonds (Singapore)
Pte Ltd Singapore 100 100
Golden Saint
Diamonds (SL)
Limited Sierra Leone 75 75
15. Taxation
Unrecognised tax losses
Where the realisation of deferred tax assets is dependent on
future taxable profits, losses carried forward are recognised only
to the extent that business forecasts predict that such profits
will be available to the companies in which losses arose.
The parent, GSR, is not liable to corporation tax in BVI, so it
has no provision for deferred tax. However, GSR (Australia) Pty Ltd
is liable to tax in Australia and GSR (Africa) is liable to tax in
Sierra Leone, so potential deferred tax in respect of those
companies is noted as follows:
As at 31 December 2015, GSR (Australia) Pty Ltd had losses of
USD 2,167,925 (2014: USD 910,833), while GSR Africa had losses of
USD 2,457,261 (2014: USD 1,240,697) upon which deferred tax assets
are not recognised. These losses are available indefinitely for
offset against future taxable profits.
16. Share Capital and Reserves
The share capital of the Company is denominated in Pounds
Sterling. Each allotment during the period was then translated into
the Group's functional currency, US Dollars at the spot rate on the
date of issue.
Number
of Shares US $
Authorised
Common shares of GBP 0.01
each 420,172,001 0.01
Issued and Fully Paid-Common
Shares
At 1 January 2013
19 March 2013 GBP 0.01 1 0.01
1 July 2013 at GBP 0.12 378,750,000 69,122,178
1 July 2013 at GBP 0.08 6,250,000 760,420
12 July 2013 at GBP 0.10 200,000 30,232
19 July 2013 at GBP 0.10 1,000,000 152,022
19 July 2013 at GBP 0.10 33,972,000 5,163,757
Cost of Capital (share based
payment) - (26,475,000)
-------------- -------------
At 31 December 2013 420,172,001 48,753,609
Shares issued during the period
1 January 2014 to 31 December
2014
24 September 2014 Share Placements
GBP 0.02 29,499,702 973,610
23 October 2014 Share Placements
GBP 0.02 1,221,754 39,627
Darwin Convertible Note Conversions
25 November 2014 at GBP 0.007389 20,300,447 235,035
29 December 2014 at GBP 0.005493 9,102,494 77,735
-------------- -------------
At 31 December 2014 480,296,398 50,079,616
Shares issued during the period
1 January 2015 to 31 December
2015
27 January 2015 Share placement
GBP 0.00325 53,846,154 264,556
31 March 2015 Share placement
GBP 0.0015 300,000,000 697,266
12 May 2015 Share placement
GBP 0.0015 15,785,600 36,682
27 July 2015 Share placement
GBP 0.0008 312,500,000 388,350
24 November 2015 Share placement
GBP 0.00025 680,000,000 264,078
23 December 2015 Share placement
GBP 0.00035 14,285,714 7,767
Darwin Convertible Note Conversions
1 January 2015 at GBP 0.00546 18,315,018 155,728
4 March 2015 at GBP 0.0025 252,000,000 965,670
-------------- -------------
At 31 December 2015 2,127,028,884 52,859,713
Reserves
Foreign Currency Reserve - Balances held in
Foreign Currency Reserve relate to foreign
exchange gain/loss that arises when converting
the group entities to the presentation.
Merger Reserve - Balances held in Merger Reserve
represent the excess of consideration paid
for GSR Africa over the fair value of net assets
acquired.
31 December
2015
US $'000
As at 1 January 2015 87
Foreign Currency Translation
Reserve (187)
Merger reserve (42,647)
-------------
As at 31 December 2015 (42,747)
31 December
2014
US $'000
As at 1 January 2014 28
Foreign Currency Translation
Reserve 59
Merger reserve (42,647)
As at 31 December 2014 (42,560)
17. Non-Controlling Equity Interest
31 December 31 December
2015 2014
US $'000 US $'000
Balance brought forward
from prior year (449) (139)
Share of net assets at
acquisition date - -
Share of losses in period
to 31 December (172) (310)
------------ ------------
(621) (449)
------------ ------------
On 1 July 2013, the Group acquired a 75% interest in GSR Africa.
At this date, the Group recognised a non-controlling interest of
USD 21,646, which represented the non-controlling interest's share
of net assets in GSR Africa at that date.
For the year ended 31 December 2014, the non-controlling
interest's share of losses in GSR Africa was USD 310,174.
For the year ended 31 December 2015, the non-controlling
interest's share of losses in GSR Africa was USD 171,575.
18. Trade and Other Payables
31 December 31 December
2015 2014
US $'000 US $'000
Trade payables 132 9
Accruals 170 86
Other payables 40 40
------------ ------------
Total accruals 342 135
------------ ------------
Trade payables are non-interest bearing and are normally settled
on 7 - 30 day terms.
Accruals relate to end of the financial period audit and
accounting services.
Other payables relate to superannuation and tax withheld from
salaries payable to the tax office.
19. Financial liabilities
31 December 31 December
2015 2014
US $'000 US $'000
Convertible Note - 1,143
Discount on Convertible
Note - (97)
Hire purchase loan 13 -
Total Financial liabilities 13 1,046
------------ ------------
On the 20(th) October 2014, Golden Saint Resources had entered
into an agreement with Darwin Strategic Limited (Darwin) where the
Company had agreed to issue Darwin up to GBP 2,000,000 of senior
unsecured zero coupon convertible bonds. Please refer to Note 21
for further information.
The value of the convertible note liability has been recorded at
its fair value therefore, there is no difference between its fair
value and its carrying value.
20. Commitments and Contingencies
The Group is subject to minimum expenditures under the three
exploration licences . The amount for each licence can only be
determined upon receipt of the renewal terms from the National
Minerals Agency.
Aside from those mentioned above, the Group is subject to no
commitments or contingent liabilities.
21. Subsequent Events
-- The Company carried out capital raisings by way of issue of
new Ordinary Shares of no par value on the following dates :
Date Capital raised Placement price No. of new Ordinary shares
GBP GBP per share of no par value
12 Feb 2016 150,000 0.00030 500,000,000
17 May 2016 536,930 0.00056 958,803,571
10 June 2016 400,000 0.00070 571,428,571
-- On 3 March 2016, the Company obtained Shareholder approval to raise capital and issue up to 10,700,000,000 Ordinary shares, such approval to be renewed annually by its Shareholders.
-- On 14 March 2016, the Company gave notice to terminate the
joint broker agreement with Cornhill Capital limited with effect
from 14 June 2016.
-- Licence renewal applications for all three exploration
licences were submitted on 23 March 2016 to the National Minerals
Authority ("NMA").
-- Under an arrangement announced on 30 March 2016, the Company
agreed to pay the salaries of both David McDonald (Executive
Chairman) and Cyril D'Silva (CEO) accruing from 1 August 2015 to 31
March 2016 in shares. David McDonald and Cyril D'Silva were issued
with 74,200,000 and 207,762,222 respectively of new ordinary shares
of no par value in the Company in settlement of accrued salaries of
GBP33,390 and GBP93,493 respectively. The said shares were issued
at a price of GBP0.00045 per share which was a premium of 20 per
cent to the closing middle market price per ordinary share on 29
March 2016.
-- On 17 May 2016, the Company agreed with a consultant to issue
62,500,000 new ordinary shares of no par value in lieu of services
rendered and to be rendered ( totalling GBP35,000) up to 31 March
2017. The shares were issued at a price of 0.056 pence per share,
being the same as the placing price given to other placees who
participated in the Placing of GBP536,930 on the same date.
On 16 May 2016 , the Company received written confirmations from
NMA that its three licence renewal applications were approved by
the Minister of Mines.
22. Related Party Transactions
During the financial year to 31 December 2015, fees totalling
USD 1,203 (2014: USD 7,913) were invoiced from David McDonald
Legal, a company controlled by Mr David McDonald, a director of the
Company, in relation to professional services rendered.
During the period of appointment for Mr Steve Ledger (covering
the period 1 January 2015 to 23 November 2015), fees totalling USD
58,400 (2014: USD 8,788) were invoiced from Ledger Corporate in
relation to professional services rendered. Ledger Corporate is an
entity controlled by Mr Steve Ledger, a director of the Company
during 2015.
23. Financial risk management objectives and policies
The Group's activities expose it to a variety of financial
risks. The Group's Board provides certain specific guidance in
managing such risks, particularly as relates to credit and
liquidity risk. Any form of borrowings requires approval from the
Board and the Group does not currently use any derivative financial
instruments to manage its financial risks. The key financial risks
and the Group's major exposures are as follows:
Credit risk
The maximum exposure to credit risk is represented by the
carrying amount of the financial assets. In relation to cash and
cash equivalents, the Group limits its credit risk with regards to
bank deposits by only dealing with reputable banks. In relation to
sales receivables, the Group's credit risk is managed by credit
checks for credit customers and approval of letters of credit by
the Group's advising bank for offtake customers. The Group does not
have any significant concentrations of credit risk.
Foreign Currency Risk
Currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign exchange rates.
The table below indicates the currencies to which the Group had
significant exposure at 31 December 2014 on its monetary assets and
liabilities. The analysis calculates the effect of a reasonably
possible movement of the currency rate against the US dollar, with
all other variables held constant on the statement of comprehensive
income. A positive amount in the table reflects a potential net
increase in the consolidated statement of comprehensive income.
Currency Held 2015 Change Effect
in Currency on Statement
rate in of Comprehensive
10% Income
$'000
British Pound Sterling 3 +10 -
Australian Dollar - +10 -
Singaporean Dollar - +10 -
Sierra Leonean Leone 10 +10 1
Liquidity risk
Liquidity risk is the risk that the Group will not be able to
meet its financial obligations as they fall due. Numbers in the
table below represent the gross, contractual, undiscounted amount
payable in relation to the financial liabilities. The Group
monitors its risk to a shortage of funds using a combination of
cash flow forecasts, budgeting and monitoring of operational
performance.
On Demand Less than Three One to Total
three to twelve five years
months months
USD USD USD USD USD
$'000 $'000 $'000 $'000 $'000
As at 31 December
2015:
Trade and
other payables 355 - - - 355
Convertible
notes - - - - -
24. Capital management
Capital includes equity attributable to the equity holders of
the parent. Refer to the statement of changes in equity for
quantitative information regarding equity.
The Group's primary objectives when managing capital are to
safeguard its ability to continue as a going concern in order to
provide returns for shareholders. For details of the capital
managed by the Group as at 31 December 2015, please see Note
16.
The Group is not subject to any externally imposed capital
requirements.
25. Interest rate risk
Interest rate risk is the risk that the fair value or future
cash flows of a financial instrument will fluctuate because of
changes in market interest rates. A sensitivity analysis is not
presented, as all borrowing costs have been capitalised as at 31
December 2015; therefore profit or loss and equity would have not
been affected by changes in the interest rate.
26. Parent Company Information (Golden Saint Resources Ltd)
1 January 1 January
2015 to 2014 to
31 December 31 December
2015 2014
US $'000 US $'000
Loss for the period 693 1,591
Balance Sheet as at 31 December
Current assets 5,894 4,919
Non-current assets 69,406 69,154
Equity 75,221 73,289
Current liabilities 79 783
Non-current liabilities 0 0
Glossary of Technical Terms
The following glossary of terms applies throughout this
announcement, unless the context otherwise requires:
aeromagnetic An airborne geophysical survey technique
used to measure the magnetic susceptibility
of rocks
alluvial detrital material which is transported
by a river and deposited at points
along the course and in flood plain
of a river
amphibolite a faintly foliated, metamorphic
rock developed during regional metamorphism
and composed mainly of amphibole
(a silicate mineral)
Archean Geological eon (period) between
4,000 and 2,500 million years ago
when Earth's crust formed
bedrock mining/geological term for the un-weathered
rock below the soil or loose sedimentary
cover
bulk sampling the process of taking very large
samples, commonly as a composite
from several areas of a defined
deposit, as part of the general
procedure for the exploration and
evaluation of a mineral deposit
carat standard measure of diamond weight
(0.2grams)
diamond a precious stone consisting of a
clear and typically colourless crystalline
form of pure carbon; the hardest
naturally occurring substance
diamond field a zone of concentration of diamond
occurrences
diamondiferous containing diamonds
dredging excavation activity carried out
partly underwater with the purpose
of gathering up bottom sediments
and extracting diamonds through
pumping and screening on a barge
ductile deformation behaviours in which rocks, at a
critical stress, do not rupture
but instead become permanently deformed
by plastic changes
E East direction
eon period of geological time or distance
fissure breakage line made by cracking or
splitting in rock and earth
granite coarse-grained igneous rock dominated
by light-coloured minerals, consisting
of about 50% orthoclase, 25% quartz,
and balance of plagioclase feldspars
and ferromagnesian silicates
greenstone Archean (geological period before
2,500 million years ago) and Proterozoic
(1,600-2,500 million years ago)
volcanic- sedimentary rock sequences
high strain an area of material over which a
zone high strain rate is applied; often
resulting in a shear zone
igneous said of a rock or mineral that solidified
from molten or partly molten material,
i.e., from a magma
intrusive of or pertaining to intrusion, both
the processes and the rock so formed
Jurassic geologic period of time from 190
to 135 million years
kimberlite a rare, blue-tinged, coarse-grained
potassic intrusive igneous rock
sometimes containing diamonds
kimberlite a vertical "carrot-shaped" intrusive
pipe/dyke volcanic structure which hosts kimberlites
kinematic branch of mechanics that deals with
pure motion, without the inclusion
to masses or different forces involved
lateritic soil and rock type rich in iron
and aluminium, and is commonly considered
to have formed in hot and wet tropical
areas.
mafic a dark coloured igneous rock which
has a high proportion of pyroxene
and olivine minerals
metamorphism process whereby rocks undergo physical
or chemical changes or both to achieve
equilibrium with conditions other
than those under which they were
originally formed (excluding process
of weathering). Agents of metamorphism
are heat, pressure and chemically
active fluids
mineralisation process of formation and concentration
of elements and their chemical compounds
within a mass or body of rock
N North direction
olivine any of a group of olive green magnesium-iron
silicate minerals that crystallize
in the orthorhombic system
outcrop area over which a particular rock
type occurs at the surface whether
visibly exposed or not
potassic containing potassium
prospective an area of land suitable and considered
warranting mineral exploration
resources Measured: a mineral resource intersected
and tested by drill holes, underground
openings or other sampling procedures
at locations which are spaced closely
enough to confirm continuity and
where geoscientific data are reliably
known. A measured mineral resource
estimate will be based on a substantial
amount of reliable data, interpretation
and evaluation which allows a clear
determination to be made of shapes,
sizes, densities and grades
Indicated: a mineral resource sampled
by drill holes, underground openings
or other sampling procedures at locations
too widely spaced to ensure continuity
but close enough to give a reasonable
indication of continuity and where
geoscientific data are known with
a reasonable degree of reliability.
An indicated resource will be based
on more data, and therefore will
be more reliable than an inferred
resource estimate
Inferred: a mineral resource inferred
from geoscientific evidence, underground
openings or other sampling procedures
where the lack of data is such that
continuity cannot be predicted with
confidence and where geoscientific
data may not be known with a reasonable
level of reliability
S South direction
schist metamorphic rock dominated by fibrous
or platy minerals
shear zone a zone of strong deformation (with
a high strain rate) surrounded by
rocks with a lower rate of finite
strain
shield a shield is generally a large area
of exposed Precambrian crystalline
igneous and high-grade metamorphic
rocks that form tectonically stable
areas
soil sampling testing of soil for mineral content
from samples selected at strategic
points over the sampled areas; usually
in a grid pattern
structure term used to describe the relationship
between rock masses, implying structure
feature
synkinematic family of granite that occurs first
granites in relation to deformative events
in the earth's lithosphere
target area of the deposit which is the
focus of exploration
tectonothermal involving both the movement of the
earth's crust and geothermal activity
terrace remnant of the former floodplain
or older course of a stream or river
transported alluvial material or sediments that
cover have been transported to their present
location and cover bedrock
W West direction
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGUPWQUPQUAR
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