RNS Number : 8672C
Maghreb Minerals PLC
05 September 2008
FINAL RESULTS FOR THE YEAR ENDED 30 JUNE 2008
Maghreb Minerals Plc ('Maghreb' or 'the Company'; stock code: MMS), the AIM-listed
exploration company developing base and industrial
mineral deposits in Tunisia, announces its results for the year ended 30 June 2008.
HIGHLIGHTS
Bou Jabeur - Gite de l'Est
* Maghreb acquired its 90 per cent interest in Bou Jabeur
* Phase 1 verification drilling was completed. The results confirm, verify and enhance
the previous Office National des Mines
("O.N.M.") drilling results. In some cases considerably higher zinc grades and thicknesses
were found.
* MBJ6 intersected 18.9metres ("m") grading 10.61 per cent Zn and 0.8 per cent Pb
within an intersection of 42.2m grading 7.47 per
cent Zn and 0.70 per cent Pb.
* Phase 2, infill and step-out drilling produced excellent results. MBJ24 intersected
46.25m grading 9.12 per cent Zn and 1.72 per
cent Pb at 311m depth while step-out drill hole MBJ28 found 14m considerably richer in lead
with 2.01 per cent Zn and 6.94 per cent Pb and
substantially deeper below the known resource at 480m.
* The re-assay of drill cores and pulps from earlier O.N.M. drilling showed a
significant increase in reported zinc grades,
particularly at higher grades.
* The Phase 1 and Phase 2 drilling programmes together with the results of the
re-assays of O.N.M. drill cores and pulps give the
Group confidence that the deposit's resources will be higher both in terms of tonnage and
grade than the audited resource statement prepared
by Wardell Armstrong International in December 2007.
* Mining and metallurgical scoping studies are in progress and expected to be
completed early in the last quarter of 2008.
Fej Lahdoum
* The Group has qualified, and applied for its right to a 90 per cent earn-in.
* Drilling re-commenced, principally targeted at testing possible extensions to the
north-west of the known Zn-Pb resource at the
Dar N'Hal Nord deposit. All drill holes to date (MFL31 - MFL33) have intersected strong
mineralisation.
Zaghouan Fluorspar Permits
* The verification drilling programme on Zriba - Guebli was completed.
* An independent preliminary study on the fluorite potential concluded that it was a
project worth advancing.
* Discussions with prospective partners to accelerate the programme are progressing.
Other
* Further exploration and data compilation and assessment were completed on the Djebel
Lorbeus, Koudiat Louatia and Ouled Moussa
exploration permits.
* The Group has net cash resources of approximately £1.2 million (2007 - £1.9
million).
Gordon Riddler, Chairman, Maghreb Minerals commented:
"I am pleased to release the final results for the year ended 30 June 2008. The
exploration results for the portfolio as a whole were
encouraging, particularly at Bou Jabeur where we await the results of a scoping study in the
last quarter of 2008."
ENQUIRIES:
Maghreb Minerals Plc
Gordon Riddler, Chairman Tel: 0207 556 0940
Hanson Westhouse Limited
Tim Metcalfe / Anita Ghanekar Tel: 0207 601 6100
Lothbury Financial
Michael Padley / Libby Moss Tel: 0207 011 9411
Notes to editors:
Maghreb Minerals Plc is an AIM listed exploration company developing base metal deposits
in Tunisia where it holds the rights to several
licence areas. The Company is targeting base metals, mainly lead and zinc, but has also
identified areas containing barite and fluorite in
Tunisia. For further information, please visit www.maghrebminerals.co.uk
The technical content of this press release has been reviewed by the Executive Chairman of
Maghreb Minerals plc, Gordon Riddler, BSc,
MBA, FIMMM, CEng, CSci. who has 40 years of experience in the mining sector and is a Fellow of
the Institute of Materials, Minerals and
Mining, a recognised professional association.
CHAIRMAN'S STATEMENT
Maghreb Minerals Plc (the "Group" or "Maghreb") has greatly accelerated its exploration
and evaluation programme, produced excellent
results and strengthened and focused its exploration permit ("EP") portfolio in Tunisia during
this financial year. As a result, the Group
has ten EP's with a strong exploration pipeline of zinc, lead, fluorite and associated silver
projects at various stages ranging from
scoping studies (such as Bou Jabeur - Gite de l'Est), through advanced exploration (such as
Fej Lahdoum) to exploration (such as Djebel
Lorbeus).
A detailed review of the EP's is included in the Operations Report.
Maghreb acquired the rights for 90 per cent of the Bou Jabeur EP which covers the
past-producing mine at Gite de l'Est and has applied
to exercise its similar 90 per cent participation right covering the past producing mines at
Fej Lahdoum.
The work programme focused entirely in Tunisia for the discovery, exploration and
development of zinc, lead, and fluorite deposits with
associated silver and barite mineralisation has proceeded apace and produced excellent
results. Four drilling rigs have been in operation
for most of the reporting period.
At the Bou Jabeur - Gite de l'Est deposit, an audited resource statement, based on
existing O.N.M. data, verified and increased the
original O.N.M. estimate. Verification and step out drilling programmes have since been
completed. The Group anticipates that the inclusion
of these drilling results and re-analyses of old O.N.M. cores will result in a significant
increase in both grade and tonnage to the audited
resource at Gite de l'Est. As a result, mining and metallurgical scoping studies, by the Scott
Wilson Mining Group and SGS Lakefield Europe
respectively, were commissioned and are in progress. On completion, which is anticipated to be
early in the last quarter of 2008, these will
include an updated resource estimate of Gite de l'Est and establish the economic viability of
the deposit.
At Fej Lahdoum, step-out drilling is in progress to the north-west of the past producing
Dar N'Hal Nord mine located within the EP.Indications from cores of the holes drilled in this north-west sector in 2008 are positive.
At Zriba - Guebli, the first phase of verification drilling has been completed,
principally at Guebli. An independent geological study
was commissioned and indicated the Zriba - Guebli deposits have interesting potential.Discussions are continuing with a number of
prospective partners to take this project forward.
Continuing exploration on all other permits was undertaken. In the Djebel Lorbeus EP
geological mapping, check geochemistry and gravity
surveys were completed. The results indicated interesting potential in geological terms and
the Group believes Djebel Lorbeus to be a highly
prospective area for zinc and lead.
A review of the Corporate Strategy was completed during the first half of 2008. The
outcome of this review supported as the top
priority, an immediate start of a mining and metallurgical scoping study for Bou Jabeur - Gite
de l'Est, where step-out drilling has
produced some spectacular combined zinc and lead results.
The Group has approximately £1.2 million in net cash resources as at 1 July 2008 (2007 -
£1.9 million). These funds are earmarked for
the completion of scoping studies at Bou Jabeur - Gite de l'Est, to progress exploration and
deposit evaluation at other EP's and to provide
the financial resources for corporate development over the next financial year. The Group will
seek industry partners for certain of its
exploration and development activities as and when appropriate to provide additional funding
to accelerate project development on the Bou
Jabeur and other EP's. Other corporate development opportunities are also being sought.
There have been changes to the Group's Board of Directors. Richard Collier was appointed
Chief Executive on 1 April 2008. I am pleased
to welcome Anthony Allen who brings to the Maghreb Board a long track record of corporate
finance and advisory experience. Chris Clayton and
his alternate, Alastair Baird, resigned from the Board in April 2008. Ms Robyn Storer has
announced that she will retire from the Board at
the forthcoming Annual General Meeting. I thank them all for their contributions. In parallel,
recent staff appointments have considerably
strengthened the operations team, given the current focus on deposit assessment and
development.
I take this opportunity to thank all Group staff for their hard work over the last year to
deliver the excellent results from our work
programme in Tunisia. The continuing co-operation and support of the government authorities in
Tunisia is acknowledged and is greatly
appreciated.
Gordon P Riddler
Chairman
OPERATIONS REPORT
EXPLORATION PERMITS
Maghreb has strengthened and focused its Tunisian exploration permits ("EPs") portfolio
during the year which now comprises ten EPs.Through its wholly owned subsidiary, High Marsh Holdings ("HMH"), the Group holds a 100 per
cent interest in the Jebel Fej Lahdoum, Djebba,
Djebel Goraa, Djebel Lorbeus, Hamman Zriba - Djebel Guebli, Jebel el Kohol, Sidi et Taia and
Jebel el Mecella permits. Wholly owned
subsidiaries have the right to a 90 per cent earn-in for the Fej Lahdoum EP (covering the Dar
N'Hal Nord and Dar N'Hal Sud deposits) and a
90 per cent interest in the Bou Jabeur EP.
The renewal of the Djebba EP has been approved by the Tunisian Mining Council and is being
gazetted. Koudiat Louatia and the Ouled
Moussa EPs were explored and regarded to have limited potential and therefore dropped on 12
May 2008.
WORK PROGRAMME AND RESULTS
All exploration and evaluation work during the year has been undertaken in Tunisia. With
the objective to re-start mining operations as
soon as practicable, focus has been on the EP's covering past-producing mines. The accelerated
exploration and evaluation programme has
involved the continuous operation of four core drill rigs, including Maghreb's own Longyear
LF70, for most of the reporting period.
The main emphasis of work during the year has been on the Bou Jabeur - Gite de l'Est EP,
at Fej Lahdoum and on the Zaghouan fluorite
EPs, details of which are included in the review set out below.
Further exploration and data compilation and assessment were completed on the Djebel
Lorbeus, Koudiat Louatia and Ouled Moussa EPs.
Bou Jabeur (Gite de l'Est Mine)
During the year the Group completed its acquisition of a 90 per cent interest in the Bou
Jabeur EP, formerly known as the Bou Jabeur
mine concession, which covers a significant area of mineralisation including the Gite de l'Est
zinc-lead barite-fluorite mine. Maghreb
received written confirmation of the transfer to it of a 90 per cent interest in the Bou
Jabeur EP on 7 February 2008, and this was
officially gazetted on 1 July 2008.
Excellent results have continued to emerge from the exploration work undertaken at Bou
Jabeur - Gite de l'Est. These results have
provided the necessary confidence for Maghreb to give this EP top priority as it moves forward
to achieving its goal of establishing an
economically mineable resource. On the basis of the success of the Phase 1 and Phase 2
drilling programmes, the Company has commissioned
mining and metallurgical scoping studies. A positive outcome to the mining and metallurgical
scoping studies, will result in the Board
seeking discussions with industry partners with a view to the early development of the
resource.
Drilling results
The drilling undertaken at Gite de l'Est not only confirmed earlier O.N.M. drilling
results but also intersected additional high-grade
mineralisation over substantial widths. These intersections had higher zinc grades than
previously reported and high-grade barite and
fluorite associated with zinc mineralisation. In addition, the re-assaying of drill cores and
pulps from the earlier O.N.M. drilling show a
significant increase in reported zinc grades versus the grades reported by the O.N.M.,
particularly at higher grades.
Phase 1, verification drilling, was completed at Bou Jabeur - Gite de l'Est in September
2007. Six further verification drill holes
(MBJ5 - MBJ10) were drilled during this reporting period for a total of 2,057metres ("m").Four drill holes, MBJ5, MBJ6, MBJ7 and MBJ8, were
twinned with previous O.N.M. drill holes, BJ10, BJ31, BJ18 and BJ26, respectively, while MBJ9
and MBJ10 were gap infill drill holes. Zinc
and lead assay results from the complete MBJ series drill holes confirm and verify the
previous O.N.M. drilling results, with some assays in
MBJ cores reporting considerably higher zinc grades. Principal results are as follows:
DRILL HOLE * FROM TO INTERVAL Zn Pb COMBINED
(m) (m) (m) (%) (%) Zn%+Pb%
MBJ5 257.70 286.20 28.50 5.85 1.05 6.901
including 257.70 263.45 5.75 15.05 0.74 15.792
Including 267.20 271.10 3.90 8.32 1.17 9.49
288.50 292.75 4.25 2.96 1.58 4.54
300.90 301.95 1.05 1.40 2.69 4.09
335.50 338.35 2.85 1.32 5.93 7.25
Including 335.50 336.80 1.30 1.69 11.43 13.12
* Total 36.65 5.04 1.54 6.58
*
MBJ6 253.10 255.60 2.50 7.46 0.84 8.30
258.60 300.80 42.20 7.47 0.70 8.17
Including 278.50 297.40 18.90 10.60 0.80 11.40
of which 294.25 297.40 3.15 15.72 1.39 17.11
Total 44.70 7.47 0.71 8.18
MBJ8 304.60 315.20 10.60 5.22 0.87 6.09
including 306.10 309.50 3.40 7.03 0.88 7.91
including 310.50 314.30 3.80 7.03 0.37 7.40
Total 10.60 5.22 0.87 6.09
MBJ10 76.20 77.80 1.60 12.11 2.43 14.54
192.10 204.40 12.30 2.90 1.13 4.03
including 201.10 203.40 2.30 6.19 0.23 6.42
Total 13.90 3.96 1.28 5.24
Notes: Sections of poor core recovery at the Aptian (chrono-stratigraphic Lower
Cretaceous) contact require to be considered in drill
hole MBJ5 - over 11.4m (Note 1) and 4.2m (Note 2). These sections are well mineralised in
intervals above and below the poor recovery zones
and also in adjacent drill holes. Ba and F assays and intervals are posted on the Maghreb
website.
Several drill holes in the MBJ series, including MBJ1, MBJ4 and MBJ6, previously reported,
assayed high-grade zinc mineralisation over
significant widths. These include: drill hole MBJ6 (twinned with O.N.M. drill hole BJ31) which
shows high-grade zinc mineralisation over a
wide interval: 42.2m grading 7.47 per cent Zn and 0.7 per cent Pb, which includes 18.9m
grading 10.61 per cent Zn and 0.8 per cent Pb. MBJ
series verification drill holes also confirm the presence of significant thicknesses of
high-grade barite and fluorite mineralisation
(reported on the Maghreb website). These barite and fluorite intersections are generally
associated with the high-grade zinc-lead assay
intervals reported above and potentially add significant value to the resource.
Mineralised core and pulps from the former drilling programmes completed by the O.N.M. at
the Bou Jabeur - Gite de l'Est deposit between
1977 and 1986 were sent for re-assaying at an accredited laboratory. A comparison between new
assay results for zinc, lead, barite and
fluorite with the original Tunisian assays and from each drill hole that the O.N.M. drilled
and for which core pulps were available, show
significantly higher zinc grades in the new assays, by between 33 per cent and 43 per cent,
with the greatest increase at the higher grades.
Phase 2 step-out and infill drilling, at and around Bou Jabeur - Gite de l'Est deposit,
has been completed and has produced excellent
results. 23 drill holes (MBJ11 to MBJ34) totalling 9,256m have been completed using three
rigs operating continuously between January and
July 2008.
MBJ20 and MBJ24 are infill holes which confirmed the continuity of mineralisation over
critical gaps in the previous O.N.M. drill
programme. Most of the other drill holes in the series are step-out holes systematically
testing the deposit laterally and to depth below
the previously known resource.
Drill holes MBJ11 through to MBJ26 (except MBJ16) intersected zinc-lead mineralisation,
with occasional sub-massive intervals. Two
ore-shoots are commonly present, and the average true width for the strongly mineralised zones
ranges between 10m and 25m. The step-out
drill holes targeted mineralisation below the previously known O.N.M. resource to provide new
information and determine extensions in volume
and grade for the deposit. The results of Phase 2 drilling demonstrate that mineralisation
extends from 50m to 150m below the known resource
and is still open at depth. The drill holes cover a 500m strike length and the deposit is open
laterally, with potential for fault-offset at
the north-east end, suggested from recent geological modelling work. Drill testing of this
area to the north-east, (MBJ33) did not locate
mineralisation and this target area will be reviewed. Noteworthy silver mineralisation values
accompany the stronger lead mineralisation in
MBJ12.
MBJ13 and MBJ15 were drilled to test the mineralisation on the north-west side of the Bou
Jabeur EP where significant adit mining had
been undertaken in the past by COMINO. MBJ13 intersected 10m of strong galena (lead)
mineralisation before the drill string stuck. MBJ15
reached 200m and was temporarily stopped to move the rig to higher priority drill locations at
Bou Jabeur - Gite de l'Est. Both these drill
holes are in the process of being extended. MBJ34 was drilled to test geologic Unit 7 some 2km
to the south-west of Gite de l'Est on the
opposite side of the ridge from MBJ13 and MBJ15 but did not intersect significant
mineralisation.
At Bou Jabeur - Gite de l'Est, MBJ16 did not contain significant mineralisation and may
define a local limit to mineralisation having
drilled between mineralised lenses. Sampling and assaying is currently in progress for MBJ29
to MBJ32 and silver assays are awaited for the
mineralised sections of most drill holes. MBJ28 and MBJ30 have intersected substantially
deeper mineralisation, with MBJ28 showing a marked
increase in lead grades at depth and where silver assays when received could be expected to
reflect the lead content as in MBJ12.
Some of the best intersections for Phase 2 drill holes are as follows.
DRILL HOLE FROM TO INTERVAL Ag Zn Pb COMBINED
(m) (m) (m) (g/t) (%) (%) Zn%+Pb%
MBJ12 348.60 352.90 4.30 0.85 3.13 3.98
357.80 360.10 2.30 1.34 4.01 5.35
368.60 369.60 1.00 2.25 1.55 3.80
371.60 393.45 21.85 15.60 5.51 2.62 8.13
including 375.30 380.45 5.15 9.12 4.08 13.20
including 382.90 386.20 3.30 7.74 6.56 14.30
including 387.20 388.35 1.15 1.35 10.27 11.62
395.45 402.40 6.95 21.01 0.01 3.04 3.05
including 401.50 402.40 0.90 0.01 9.07 9.08
MBJ17 256.15 273.10 16.95 7.13 1.98 9.11
including 256.15 258.25 2.10 16.16 1.63 17.79
including 259.45 260.45 1.00 10.50 0.90 11.40
including 263.55 268.80 5.25 13.32 0.65 13.97
of which 263.55 264.65 1.10 18.04 1.00 19.04
of which 267.65 268.80 1.15 21.18 1.27 22.45
including 270.80 271.60 0.80 0.04 17.00 17.04
including 272.30 273.10 0.80 0.78 10.26 11.04
MBJ20 144.60 172.00 27.40 3.10 2.29 5.39
including 153.60 157.50 3.90 7.10 2.93 10.03
including 162.65 165.85 3.20 5.05 1.81 6.86
176.80 185.90 9.10 3.19 1.38 4.57
MBJ24 311.25 357.50 46.25 9.12 1.72 10.84
including 311.25 319.35 8.10 14.14 1.45 15.59
of which 314.35 319.35 5.00 17.18 2.05 19.23
including 331.40 341.40 10.00 15.74 1.07 16.81
of which 337.40 341.40 4.00 22.49 1.03 23.52
including 352.40 355.20 2.80 12.26 6.89 19.15
MBJ27 222.10 258.00 35.90 6.99 1.28 8.27
including 224.50 228.90 4.40 11.20 1.45 12.65
including 236.00 240.00 4.00 9.61 0.88 10.49
including 243.10 245.30 2.20 9.97 1.96 11.93
including 246.65 249.50 2.85 9.88 2.48 12.36
including 253.20 255.40 2.20 7.95 1.69 9.64
270.00 286.40 16.40 2.81 2.55 5.36
including 274.40 282.00 7.60 4.66 3.75 8.41
MBJ28 383.75 386.40 2.65 4.25 0.63 4.88
389.60 391.50 1.90 4.04 0.77 4.81
458.80 460.80 2.00 0.07 1.79 1.86
473.90 478.00 4.10 0.11 2.02 2.13
480.50 494.60 14.10 2.01 6.94 8.95
including 480.50 482.60 2.10 0.14 16.87 17.01
including 483.80 486.60 2.80 8.70 9.30 18.00
Resource estimate
Wardell Armstrong International ("WAI") assisted with the preparation of a resource
statement and had oversight of the programme to
upgrade the Gite de l'Est zinc-lead-fluorite-barite resource at Bou Jabeur - Gite de l'Est in
Tunisia to JORC Compliant standards. WAI
produced an audit report in December 2007 that confirmed that the Mineral Resource estimation
methodology used by Maghreb complied with the
requirements of JORC (2004). As such, to the best of WAI's knowledge, the summary of the
audited JORC Compliant Inferred Mineral Resources
for Gite de l'Est at 1 per cent, 2 per cent, and 4 per cent combined Zn+Pb cut off grade,
dated 12 December 2007, given in the table below
was an accurate estimation of the Inferred Mineral Resource.
Table of the estimated JORC Compliant Inferred Mineral Resources for Gite de l'Est at various
combined Zn+Pb Cut Off Grade percentages
("COG"):
Zn+Pb combined Volume (m3) Tonnage Density Zn Pb
BaSO4 CaF2 Zn Contained
Pb
COG (t) (g/cm3) (%) (%)
(%) (%) Metal
Contain
(%)
(t)
ed
Metal
(t)
1 2,561,949 8,836,000 3.34 2.17
0.99 21.66 5.06
191,741 87,476
2 1,465,159 5,172,000 3.45 3.15
1.25 27.76 6.42
162,918 64,650
4 608,848 2,195,000 3.54 5.05
1.48 33.12 7.34
110,941 32,464
The results of the verification drilling, the significantly higher zinc grades following
the re-assaying of the original O.N.M. core
pulps, the excellent results from the Phase 2 step out and infill drilling and the fact that
the deposit remains open laterally and at
depth, provides the Group with confidence that the deposit's Inferred Mineral Resource is
substantially greater both in terms of tonnage and
grade. As a result in June 2008, the Group commissioned a scoping study with the objective of
establishing the deposit's economic
viability.
Scoping Study
The mining and metallurgical scoping study is being completed by the Scott Wilson Mining
Group and SGS Lakefield Research Europe
respectively.
Scott Wilson Mining Group is providing services for resource database management and
estimation and taking the overall lead for the
scoping study required to determine the economic viability of the deposit based on the results
to date. This study is scheduled to be
completed early in the final quarter of 2008. SGS Lakefield Research Europe is completing the
scoping flotation metallurgical test work on
zinc and lead circuits along with Net Smelter Returns and bottom line potential revenue, for
incorporation in the overall scoping study.
Fej Lahdoum - Dar N'Hal Nord deposit exploration
The Group has achieved the qualifying expenditure set out in the earn-in agreement dated
January 2007 for what was the former Fej
Lahdoum mining concession, which covers the past-producing area at Dar N'Hal Nord. Maghreb
has submitted its application for its 90 per
cent interest through its wholly-owned subsidiary, North African Mining and Minerals Limited.
The drilling programme at Fej Lahdoum is one of the Company's main priorities. Drilling
re-commenced at Fej Lahdoum in mid-October 2007.Three drill holes (MFL25 - MFL27) were completed totaling 711m along the eastern edge of the
known Dar N'Hal Nord deposit to search for the
pinch out of the deposit. MFL27 was drilled south of the Fernana quarry mineralised outcrop. No significant mineralisation was found, but
the results provided valuable geologic information.
Drill holes MFL31 - MFL32 (including one repeat MFL31A) have been completed and one is in
progress (MFL33) for a total of 1,330m to test
for an extension to known mineralisation to the north-west segment of the Dar N'Hal Nord
deposit. Strong mineralisation was found in all
these drill holes, cores have been sampled and results are awaited.
Geological mapping was completed over an area of potential mineralisation near the old
Bulgarian adit entrance north-west of Dar N'Hal
Nord mine.
Of relevance to the Fej Lahdoum EP, it is worth noting that work on the Djebba EP has
largely been completed and a resource identified
which can complement those that may be identified at Fej Lahdoum. The renewal of this EP has
been approved by the Tunisian Mining Council
and is being gazetted.
Djebel Fej Lahdoum - Regional Exploration
Drill holes MFL28 - MFL30 totaling approximately 701m were targeted at testing the
possible northern extension of the known Dar N'Hal
Nord deposit mineralised transition zone around Bou Kcherida, but did not find mineralisation.These drill holes encountered bad ground
thought to be due to small karst zones or old unrecorded workings. Shallow mineralisation has
been visually recorded in fractures in the
core.
Zaghouan (Zriba - Guebli)
The verification drilling on the Zriba - Guebli EP was completed between May and September
2007. Fifteen drill holes (MG series) were
completed for a total of 2,150m over the Guebli deposit, to the west of Zriba mine. The
drilling results indicated significant variations in
thickness of the flat lying fluorite bearing beds, between 0.6m and 10.45m, even between
nearby twinned drill holes, with fluorite grades
varying between 4 per cent and 48 per cent (average of 25 per cent) CaF2.
Results for Barite and Fluorite are as follows:
DRILL HOLE FROM TO INTERVAL BaSO4 % CaF2 %
(m) (m) (m)
MG1 84.00 87.10 3.10
29.19 13.69
MG2 103.30 105.50 2.20 39.03 23.98
129.90 130.90 1.00 16.30 47.78
137.45 139.80 2.35 15.56 33.54
144.20 145.60 1.40 0.53 25.69
MG3 72.75 74.15 1.40 21.62 27.13
75.00 77.30 2.30 26.27 37.59
80.10 83.90 3.80 5.56 37.81
MG4 29.70 30.30 0.60 17.34 39.05
39.30 40.15 0.85 5.97 32.14
MG5 77.40 78.60 1.20 19.41 32.43
MG6 66.10 67.10 1.00 42.48 19.09
MG7 67.75 70.85 3.10 42.38 11.08
MG8 Not Mineralised
MG9 61.00 63.25 2.25 23.82 32.06
MG10 98.70 101.40 2.70 16.37 32.57
104.90 107.20 2.30 18.19 18.47
119.80 120.80 1.00 4.30 11.86
MG11 77.30 87.75 10.45 39.24 25.32
MG12 Not Mineralised
MG13 76.10 77.95 1.85 41.55 8.10
MG14 110.60 112.55 1.95 11.14 4.21
MG15 54.00 55.50 1.50 20.42 31.24
The drilling results are useful in proving the overall considerable extent of the fluorite
deposit but are less successful in assessing
available mineable thickness. As a consequence, Maghreb commissioned an independent study that
was completed by FWS Consultants Ltd. The
study concluded that the exploration of these fluorspar deposits was worth pursuing,
especially given the current and prospective situation
of high demand and high prices in the fluorspar market.
In their opinion the fluorspar deposit at Zriba - Guebli is large in terms of
fluorite-barite deposits worldwide and it has only been
partially exploited. There are indications that large, potentially workable, tonnages may
remain which could support a new mining operation.Localised pinching and swelling occurs and its effect on the mineability of the unworked
deposit has not been resolved and is critical to
the determination of the feasibility of mining. However, there are good indications that
unworked areas are essentially similar to those
that were mined successfully for around 25 years or so prior to closure in 1992. Mine closure
occurred during a prolonged period of static
world fluorite prices and falling world fluorspar demand and this is thought to have been the
prime reason for closure, rather than
exhaustion of workable mineral.
Conventional statistical analysis of drilling data to drive a resource quantity is
unlikely to be as reliable as an engineering
examination of existing pillar and stall workings. The recommendation was that an evaluation
of the most recent workings at Zriba, which are
likely to be most readily accessible, should provide a better understanding of the pinch/swell
and its effect on the mineability of the
resource under modern conditions. Secondly, the trial workings at Guebli (which may be a prime
target for a new mining operation) should be
mapped and results compared with computer-generated isopachs.
Other targets are thought to occur in the area, such as vein style fluorite - barite
mineralisation and, tracing back to the Zaghouan
boundary fault, base metals (zinc and lead) if suitable traps can be identified.
Discussions are taking place with potential partners interested in taking this project
forward with Maghreb.
Zaghouan (Djebel el Kohol)
An appraisal of geological and historic production data from the Djebel el Kohol EP was
undertaken by FWS Consultants Ltd. The study
concluded that the Djebel el Kohol fluorspar deposits are more complicated geologically than
at Zriba. Additional work is required to
understand thoroughly the results of historic mining and exploration work on this deposit. A
significant amount of exploration has been done
historically on the EP. Some significant intersections, of up to 26m @ 17.5 per cent CaF2 have
been reported, but below significant cover
(up to 80m of Cretaceous rocks). There has been some production historically, and there are
records of three unworked "reserve" blocks.Several fluorspar deposit types are present and the occurrences are "pockety" with most
considered to be accessible by open cast mining and
others by underground mining.
A drilling target on cross-fault structures acting as feeders for mineralisation has the
potential to prove larger tonnages in Lower
Jurassic limestone, and such vein type mineralisation may provide the higher grades necessary
to support viable underground mining.
This EP also has interesting zinc-lead mineralisation potential which has still to be
assessed.
Djebel Lorbeus
At Djebel Lorbeus, close to the old Bou Grine Mine, re-interpreted O.N.M. soil geochemical
survey data (from 1997, 130 samples over 11
traverses) showed strong, positive zinc and lead anomalies coinciding with areas of rock
hydrofracturing. As a consequence, the area was
re-mapped to define stratigraphy and structure and to understand the major fracture system
within the Abiod limestones. A general gravity
survey was completed (June 2007) and a field survey with a NITON XRF analyser (February 2008)
confirmed the presence of anomalous metal
(zinc) contents near surface.
A residual gravity anomaly coincident with the largely co-extensive zinc-lead geochemistry
anomalies 1,000m long crosses over the top of
a hill and is open at both ends. The geochemistry anomalies follow dominant lineament trends
derived from satellite imagery.
Additional ground geochemical surveys and a number of scout drill holes need to be
completed to refine the understanding of the geology
and the zinc-lead mineralisation potential.
Koudiat Louatia
From an assessment of existing information, field surveys (geology and gravity) and one
Maghreb drill hole to the north of the EP, it
was considered that stronger exploration potential for zinc-lead deposits lay in the area to
the south-west covered by the Djebel Lorbeus
EP. As a consequence this permit was not renewed.
Ouled Moussa
The Ouled Moussa EP is located immediately to the east of Bou Jabeur - Gite de l'Est.Drill hole MOM3 (to a depth of 467m) was completed
to test a residual gravity anomaly that may have indicated a possible extension of zinc-lead
mineralisation in a north-west trending
structure. The source of the gravity anomaly was not confirmed, but could be explained by a
north-westerly displacement of the reef
limestone. Consequently a vertical hole MOM4 at Ouled Moussa (199m) to test this concept was
completed but the continuity of the north-west
trending structure from Bou Jabeur - Gite de l'Est was not confirmed. In consequence, the
exploration potential of this EP was considered to
be limited and it was decided it should be dropped.
OUTLOOK
Maghreb will continue to focus on progressing its Tunisian projects, particularly Bou
Jabeur, Fej Lahdoum and the fluorite deposits,
along the pipeline from exploration, scoping and pre-feasibility studies and into production
as soon as practicable. It will seek partners
and corporate development opportunities to fund and accelerate its work programme. Coupled
with this, Maghreb has the finance, management
and technical resources in place to build on its considerable progress so far and create
shareholder value.
While the zinc and lead prices have come off recent highs they are still well above the
historic levels at the time Maghreb started its
principal exploration programmes in Tunisia.
Maghreb has a strong, focused EP portfolio in Tunisia. Its strong pipeline of projects,
with the potential to introduce sector partners
to resume mining operations and/or monetize the value of its underlying EP's give confidence
that Maghreb will be well placed to benefit
from the anticipated shortfall in supply and consequent increase in metal prices, particularly
zinc, forecast by sector analysts to occur
between 2010 and 2012.
FINANCIAL REVIEW
Use of Funds
The Group's resources have been used predominantly in the pursuit of the Group's
exploration activities in Tunisia as summarised below:
Operating Expenditure 2008 2007
£'000 £'000
Fixed assets purchased 55 48
Exploration expenditure 1,218 825
Tunisia 1,253 544
Algeria - discontinued operations (35) 281
Administration expenditure 593 561
Total 1,866 1,434
At the commencement of this financial year, the Group had net cash resources of
£1,952,000 which was increased by an additional £242,000
in early July 2007 which completed the Company's fund-raising following its Extraordinary
General Meeting on 28 June 2007. At 30 June 2008,
the Group's cash resources were £1,219,000.
Under the International Financial Reporting Standard 2 ("IFRS2") for providing for share
based payments relating to the Employee
Unapproved Share Option Plan, the Company has provided an additional £43,000 with respect to
share based payments relating to the
outstanding employee options. In 2007, the Company provided £167,000 under the IFRS2, of
which £106,000 arose in prior years.
As reported upon in the Chairman's Statement and Operations Report, the Company is
focusing its resources on the Bou Jabeur prospect and
the completion of its Scoping Study with ongoing exploration at Fej Lahdoum and the
Zaghouan/Zriba-Guebli permits. The Group's cash
resources of approximately £1.2 million should be sufficient to fund its activities through
the current phase of project evaluation over the
next financial year.
CONSOLIDATED INCOME STATEMENT
For the year ended 30 June 2008
2008 2007
£'000 £'000
Continuing operations
Revenue - -
Exploration expenses (1,253) (544)
Gross loss (1,253) (544)
Administrative expenses (636) (881)
Operating loss (1,889) (1,425)
Investment income 107 25
Income tax expense - -
(Loss) for the year on continuing operations (1,782) (1,400)
Discontinued operations
Profit (loss) for the year from discontinued operations 35 (281)
Total (loss) for the year (1,747) (1,681)
Earnings per share
Basic loss per share on continuing operations (pence) (1.96) (2.81)
Basic profit (loss) per share from discontinued 0.04 (0.56)
operations (pence)
CONSOLIDATED BALANCE SHEET
As at 30 June 2008
2008 2007
£'000 £'000
Non-current assets
Intangible assets 82 82
Property, plant and equipment 137 156
Investments - -
219 238
Current assets
Trade and other receivables 36 737
Cash and cash equivalents 1,219 1,952
1,255 2,689
Current liabilities
Trade and other payables (159) (95)
Provisions (10) (65)
(169) (160)
Net current assets 1,086 2,529
Net assets 1,305 2,767
Equity
Share capital 546 526
Share premium account 6,474 6,252
Share option reserve 210 167
Retained loss (5,925) (4,178)
Total equity 1,305 2,767
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2008
Restated
2008 2007
£'000 £'000
Cash flows from operating activities
Operating loss before interest and tax (1,854) (1,706)
Add : Depreciation charges for the year 74 69
Add : Movement in Share option reserve 43 167
Operating loss before working capital change (1,737) (1,470)
Decrease in trade and other receivables 1 5
Increase in trade and other payables 9 105
Net cash flow from operating activities (1,727) (1,360)
Cash flows from investing activities
Purchases of plant and equipment (55) (48)
Interest income received 107 25
Net cash from investing activities 52 (23)
Cash flows from financing activities
Proceeds on issue of share capital 242 3,474
Decrease (Increase) in receivables with respect to issue 700 (700)
of share capital
Net cash from financing activities 942 2,774
Net (decrease) increase in cash and cash equivalents (733) 1,391
Cash and cash equivalents at the beginning of the year 1,952 561
Cash and cash equivalents at the end of the year 1,219 1,952
NOTES TO THE ACCOUNTS
1. General information
Maghreb Minerals Plc is a public limited company and was incorporated in England and Wales
on 7 June 2004. The Company was admitted to
the Alternative Investment Market of the London Stock Exchange on 23 December 2004. The
address of its registered office and principal place
of business are disclosed on the last page of the annual report. The principal activities of
the Company and its subsidiaries (the Group)
are described in the Chairman's Statement.
2. International Financial Reporting Standards
The Group follows the Standards and Interpretations issued by the International Accounting
Standards Board ("IASB") and the
International Financial Reporting Interpretations Committee of the IASB and endorsed by the
European Union that are relevant to its
operations. At the date of authorisation of these financial statements, the Group is aware of
the following International Financial
Reporting Standards ("IFRSs") which were in issue but have not been applied in these financial
statements as they are not mandatorily
effective:
* IFRS 8 Operating segments
* IAS 27 (Revised) Consolidated and separate financial statements
* IFRS 3 (Revised) Business combinations
* IAS 1 Presentation of financial statements (revised)
* IFRS 2 (Amendment) Share based payment
The Directors do not anticipate that the adoption of these statements and interpretations
will have a material impact on the Group's
primary financial statements. However, future application of these standards is likely to
significantly increase the disclosures required in
the financial statements. The effect of revision to IAS 27 will depend on the extent of
relevant future transactions.
IFRS 6 Exploration for and Evaluation of Mineral Resources permits an entity on adopting
IFRS to change its accounting policies for
exploration and evaluation expenditures if the change makes the financial statements more
relevant to the economic decision making needs of
the users. Equally, IFRS 6 permits an entity to continue to use the accounting policies
applied immediately before adopting the IFRS if this
is considered more relevant. The Directors believe it was and is more relevant to continue
with the accounting policies then prevailing and
apply United Kingdom generally accepted accounting practices for exploration and evaluation
expenditures.
Certain prior year information has been reclassified to conform to the current year
presentation. Movement on receivables in respect of
the money due on shares issued in the preceding financial year and previously included within
"Cash flows from operating activities" is now
included within "Cash flows from financing activities" in the Cash flow statement. As a
result, receivables with respect to issued share
capital have been reclassified in the comparative figures.
3. Significant accounting policies
The financial statements have been prepared in accordance with IFRS as adopted for use in
the European Union, therefore complying with
Article 4 of the EU IAS Regulation. The financial statements have been prepared on the
historical cost basis.
The principal accounting policies set out below have been applied consistently by Group
entities:
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company
and entities controlled by the Company (its
subsidiaries). Control is achieved where the Company has the power to govern the financial and
operating policies of an entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired during the year are included in the consolidated
Income Statement from the effective date of
acquisition.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring
their accounting policies into line with
those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Going concern
The Directors have formed a judgment at the time of approving the financial statements
that there is a reasonable expectation that the
Company has adequate resources to continue in operational existence for the foreseeable
future. The Group has approximately £1.2 million in
cash reserves which is sufficient to fund the Group's activities for at least the next twelve
months.
The financial information has been prepared on the going concern basis, the validity of
which in the longer term depends principally on
the discovery of economically viable mineral deposits and the availability of subsequent
funding to extract the resource or alternatively
the availability of funding to extend the Group's exploration activities. The financial
information does not include any adjustment that
would arise from a failure to complete either option.
Revenue
Other than interest income, the Group has not generated any revenue in the year ended 30
June 2008.
4. Earnings per ordinary share (basic and diluted)
The calculation of the basic loss per share attributable to the ordinary equity holders of
the parent has been calculated on the net
loss after tax of £1,747,000 (2007 - £1,681,000), using the weighted average number of
ordinary shares of 91,033,981 (2007 - 49,802,752).
All warrants and share options in issue at the year end decrease the loss per share for
the year, and as such are deemed anti-dilutive.Therefore the diluted loss per share is the same as the basic loss per share for both 2008 and
2007.
2008 2007
Pence Pence
Loss from continuing operations for the purposes of basic and (1.96) (2.81)
diluted loss per share
Profit (loss) from discontinued operations for purposes of 0.04 (0.56)
basic and diluted loss per share
The Annual Report will be posted to shareholders on 15 September 2008 and will also be
available on the Company's website in due course.Copies will also be available from Maghreb Minerals Plc's head office: Blackwell House,
Guildhall Yard, London EC2V 5AE
This information is provided by RNS
The company news service from the London Stock Exchange
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