Artemis Res Regulatory News (ARV)

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

30 September 2022

Artemis Resources Limited

("Artemis" or the "Company")

(ASX/AIM: ARV, FRA: ATY, US: ARTTF)

Annual Report for Year Ended 30 June 2022

The Directors of Artemis Resources Limited are pleased to announce the Company's audited annual results for the year ended 30 June 2022.

An extract of the audited results are included below and the full Annual Report is available on the Company's website at www.artemisresources.com.au/investors/#asx-reports.

For further information, please contract:

Competent Persons Statement

The information in this announcement that relates to Exploration Results and Exploration Targets is based on information compiled or reviewed by Mr. Steve Boda, who is a Member of the Australasian Institute Geoscientists. Mr. Boda is an employee of Artemis Resources Limited. Mr. Boda has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Boda consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

About Artemis Resources

Artemis Resources (ASX/AIM:ARV; FRA:ATY; US: ARTTF) is a Perth-based exploration and development company, led by an experienced team that has a singular focus on delivering shareholder value from its Pilbara gold projects - the Greater Carlow Gold Project in the West Pilbara and the Paterson Central exploration project in the East Pilbara.

Chairman's Letter

Dear Shareholders,

On behalf of the Directors of Artemis Resources Limited, I am pleased to report on the activities of the Group for the year ended 30 June 2022.

The Group continues to focus on its core projects, the Paterson Central gold and copper project and the Carlow Castle gold, copper and cobalt project, in the Pilbara region of Western Australia.

 Artemis' 100% owned Paterson Central gold and copper project covers 605km2 and is located approximately 40km east of Newcrest Mining's multi-million-ounce Telfer Gold-Copper mine and is contiguous to the Havieron gold and copper discovery by Greatland Gold Plc. A number of compelling magnetic and gravity anomalies have been identified by the Artemis exploration team which are now being systematically drill tested. Drilling at Paterson during the period focused on the Apollo and Atlas targets, with planning well advanced for drill testing the Enterprise, Juno and Voyager targets. The Artemis team continues to be optimistic in its assessment of the prospects of the Paterson project and continues its exploration drill campaign in earnest.

At Carlow Castle, a further 24,641m of RC and diamond drilling was completed during the period. Drill results continued to expand the high grade gold-copper footprint of the deposit, in particular to the North and at depth. The high grades of gold and copper received from drill results were particularly welcome especially in an environment of high cost inflation. An updated resource estimate is expected to be completed shortly. Substantial exploration potential on a regional level remains at the Carlow Castle Project which will be further investigated over the coming months.

During the year the Company completed its programme of disposing of non-core assets. In particular, the spin-off of non-core base metals assets into GreenTech Metals Limited (ASX: GRE) which raised $5m on a successful ASX IPO in January 2022 was a successful endeavour, as well as the completion of the sale of the 70% interest in the Munni Munni PGM project to AIM listed Alien Metals (AIM: UFO) for $4.9m in March 2022.

In February 2022, the Company successfully completed a secondary listing on the AIM market of the London Stock Exchange and raised £5m. This listing provides more scope for London and European based institutional and retail investors to invest in Artemis and is expected to increase liquidity.

In July 2022, the Company welcomed Vivienne Powe as a Non-Executive Director. Vivienne is a metallurgical engineer and highly experienced senior executive with a strong track record of creating shareholder value in top tier, global mining and oil & gas companies.

I would like to take this opportunity to thank my fellow directors, the Artemis team and our shareholders for their ongoing commitment and support as we strive for a successful year ahead.

Mark Potter

Chairman

Operations Report

Artemis Resources Limited ("Artemis" or the "Company") is pleased to outline the progress the Company has made at its projects for the financial year ended 30 June 2022. Artemis is a gold and copper focused resources company with two major projects, Paterson Central and Greater Carlow Castle, both located in the Pilbara region of Western Australia, as shown in Figure 1. The Company owns 100% of Paterson Central and Greater Carlow and also owns 100% of the strategically located Radio Hill processing plant (on care and maintenance) and associated infrastructure, located approximately 30km south of Karratha.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 1: Project map highlighting Artemis' Greater Carlow Castle project in the West Pilbara and the location of the Paterson Central Tenement in the East Pilbara.

During the financial year, the Company made significant progress with its Paterson Central and Greater Carlow Castle projects. All this work was completed despite a very challenging setting of Covid restrictions, acute industry wide personnel and rig shortages and extensive assay turnaround times.

The following review is an update and summary of the key work programs completed during the current financial year, with a breakdown of the drilling statistics by Project for the year included in Table 1.

Table 1: Drilling Statistics by Project

PATERSON CENTRAL GOLD-COPPER PROJECT

Background to the Paterson Central Project

The Paterson Central Gold-Copper Project covers ~605 km2 and is located in the Yaneena Basin of the Paterson Province, which hosts large scale mineral deposits, such as the World class Telfer Gold- Copper Mine, recently discovered Winu copper-gold deposit, Nifty Copper Mine, and the rapidly growing Havieron gold and copper deposit. Figure 2 shows the location of major deposits in the region along with Havieron. Artemis' tenement is highlighted in yellow and is strategically positioned in relation to the Havieron deposit.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 2: Paterson Central Tenement E45/5276 (yellow outline) overlying main geological units, and showing locations of major gold and base metal deposits. Green; Anketell Sediments, Blue; Paterson Formation.

The Company's Paterson Central project forms a 100% owned exploration tenement E45/5276, which surrounds the Havieron gold deposit on three sides, and covers the same continuous geological domain as shown in Figure 3.

The geology of the project area consists of Canning Basin sediments, primarily Permian siltstones in this part of the basin, which overlie Proterozoic meta-sedimentary basement rocks which form the main host rocks to large mineral deposits in the region. The sedimentary cover is 300m thick in the western part of the project area and is interpreted to deepen to over 800m in the far east. The Havieron gold and copper deposit is associated with a strong magnetic anomaly and sits under about 450m of Permian sedimentary cover.

Mineralisation at Havieron is an ovoid shaped zone of variable brecciation, alteration and sulphide mineralisation with dimensions of 650m x 350m trending in a northwest orientation. Mineralisation in this system extends 1,200m below the base of sedimentary cover and continues to remain open at depth. The Company is exploring the Paterson Central Project for both Havieron and Telfer styles of gold and copper mineralisation.

Summary of Geology at Paterson Central

The procedure for targeting and drill planning has been to follow structural trends in Neoproterozoic bedrock, sitting below thick Permian cover sediments, interpreted from geophysical data sets, including a deep penetrating 2D seismic reflection survey line acquired for oil and gas exploration in the 1980s by BHP, and subtle gravity and magnetic highs from features occurring below the sedimentary cover.

Figure 3 shows how the interpretation of geological structures occurring in bedrock below the Canning Basin Permian siltstone cover has likely identified a non-magnetic and low density granitic intrusive body, which would have likely been intruded during the regional Crofton Granite event (650-600 Ma).

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 3: Paterson Central Tenement E45/5276 (yellow outline), interpreted bedrock geology units and structures, on top of a merged magnetic anomaly image and location of 2D seismic reflection survey line. Nimitz Prospect as marked as red, was previously drilled in 2020.

This interpreted NW-SE trending granitic intrusion is in close proximity to Havieron and could be the main source of heat for driving hydrothermal alteration and local skarn-like metamorphism associated with gold and copper mineralisation. Low angle, west-dipping thrust faults and late brittle cross faults have also been interpreted in the 2D seismic reflection data as well as in both gravity and magnetic data sets to offset folded Neoproterozoic (850-820 Ma) metasediments of the Lamil Group.

This years' exploration activity at Paterson Central commenced to the north of Havieron at the Atlas and Apollo Prospect areas. Collar positions are shown in Figure 4.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 4: Location of drill collars at Apollo and Atlas in relation to the Havieron deposit.

These drill holes were planned to test the various magnetic and gravity anomalies and had encountered a variety of rock types and encouraging geological units including granodiorites, diorites gabbros and associated breccias and veining. Typical alterations styles included very intense silica-calcite-chlorite-actinolite +/- biotite with abundant pyrite and minor chalcopyrite in veins, halos and minor breccia infill. Figures 5 and 6 show some of the styles of breccia encountered in the drilling of Apollo.

The drill holes had encountered encouraging geology indicating that the Apollo and Atlas areas are well located for making a discovery with further drilling.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 5: GDRCD007 - 547m, example of a large quartz calcite vein in altered diorite with semi-massive sulphides pyrite +/- chalcopyrite as well as chlorite actinolite infill and alteration halo.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 6: GDRCD007 - 559m, example of a quartz qalcite vein in altered diorite with pyrite +/- chalcopyrite, chlorite 'jigsaw' infill.

Artemis is now focussing on testing its 6 higher priority drill targets with the intention to execute about 8,000m of diamond drilling to test these targets during the 2022 -2023 field season.

CARLOW CASTLE GOLD-COPPER-COBALT PROJECT

The Carlow Castle gold, copper and cobalt project is located in the West Pilbara region of Western Australia, ~45 km by road east of the city of Karratha (Figure 7). Access is via the Northwest Coastal Highway and then by the unsealed Cherratta public road, which passes through the Project area. Carlow Castle is on the granted exploration license E47/1797 and is ~35 km from Artemis' 100% owned Radio Hill Processing Plant.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 7: West Pilbara project map highlighting Artemis' current tenement holdings.

Following a multifaceted strategy, multiple drilling campaigns at Carlow Castle have returned several significant results, which continues to highlight the potential of the deposit. The Main Carlow Castle zone returned positive results especially from the Crosscut Zone, where the majority of the drilling during the year was completed.

Additional holes on the Quod Est Zone has further extended this high-grade mineralised shoot at depth. 

Targeting geophysical anomalies, drilling discovered the new Crosscut Zone that lies east of Quod Est and to the north of the Main Eastern Zone by approximately 300m.

During the report year, a total of 106 holes were drilled for 24,641.3 metres of which two holes for 269.3 metres was diamond and 104 holes for 24,372 metres was RC. A total of 28,316 samples were collected, which included QAQC samples as well. Table 3 below summarised the breakdown of drilling according to prospects, with Figure 8 showing the prospect locations in relation to Carlow Castle.

Table 2: Number of holes and drilled metres for the various prospects at Carlow tenement E47/1797

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 8: Location of drill collars in the various prospects within the Carlow tenement E47/1797.

The additional drilling completed during the year has significantly added crucial information regarding the structural, alteration and mineralogical controls at Carlow Castle. The new interpretation and modelling for Carlow has allowed for accurate target generation, which has been instrumental to improving the ounce discovered per metre drilled.

Carlow Castle Program

Crosscut Zones

The Crosscut Zone (XCZ) is defined by a series of parallel NW structure, hosting en echelon dilation structures that host mineralisation. The recent drilling in this area has indicated that these dilation features are striking north-south and have steep dips, usually to the east. Drilling had intersected significant sulphide zones at interpreted pierce point target zones at Crosscut, which is an encouraging result with respect to the interpretation of the model. Drill collar locations are shown in Figure 9.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 9: Location of drill holes at Crosscut and section lines. Note that only holes ARC403 and ARC404 were completed during the quarter period. Other holes are referenced in section figures.

A diamond hole, 22CCRD008 was drilled in response to the high-grade intersection in ARC344 which returned 22m @ 2.23g/t Au, 1.39% Cu, 0.457% Co from 247m (refer to ASX Announcement 19th November, 2021). Significant results for 22CCRD008 are shown in Table 3 with the section showing the mineralised intervals shown in Figure 10.

Table 3: Significant intersections for diamond hole 22CCRD008, based on >0.3% Cu, 2m internal dilution.

Mineralisation style encountered in hole 22CCRD008 is quartz-carbonate infill breccias and veining with sporadic agglomerations of sulphides and massive sulphide infills. The visible sulphides include chalcopyrite, pyrrhotite and pyrite. These are shown in Figure 11 and Figure 12.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 10: Section 9,960mE showing significant intersections for hole 22CCRD008. High grade intersections for ARC344 included for comparisons. Hole ARC392 drilled updip from the massive sulphide occurrence is pending assay results. Refer to Figure 8 for section location.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 11: Part of the upper zone of the broader 16.6m showing the massive sulphide interval with brecciated upper contact which returned a result of 1.18m @ 15.65% Cu, 5.40g/t Au, 0.090% Co from 256.84m.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 12: 22CCRD008 (263-273.5m) lower interval of significant vein hosted sulphide forming part of the broader 16.6m interval with a significant grade of 3.14m @ 6.38% Cu, 3.61% Cu, 0.059% Co from 265.92m

Mineralisation continues till end of hole, as shown in Figure 13. Hole was not continued as driller had run out of rods.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 13: 22CCRD008 mineralisation occurrence at EOH 315.3m.

Two additional holes, ARC387 and ARC389 drilled on section 9,920mN Loc (40m to the south of 22CCRD008) had intersected mineralisation near the proposed pierce points. These holes are shown in Figure 14.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 14: Section 9920mE looking Northwest showing additional holes that had intersected mineralisation 40m to the south of section 9960mE. This shows the continuation of what is the massive sulphide interval to the south through the sections. The intersection of 4m @ 1.02% Cu, 0.76g/t Au, 0.016% Co from 135m occurs in the Crosscut 2 zone. Refer to Figure 8 for section location.

Northern Extension of Crosscut

The mineralised structure of Crosscut is known to extend and continue to the northwest and a series of holes were drilled to test the structure.

Six holes to the north (ARC363 to 365 and ARC395 to 397) were drilled based on extending the Crosscut mineralisation to the north from the high-grade intersections encountered in hole ARC366 and ARC367 which returned grades of 8m @ 2.35% Cu, 5.01g/t Au, 0.400% Co from 80m and 8m @ 0.98% Cu, 1.08g/t Au, 0.020% Co from 167m, respectively as shown in Figure 15, with Figure 16 showing a cross section.

Holes ARC363, 364 and 365 encountered massive basalts and returned no significant results.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 15: Showing the location of the holes to test the mineralisation to the north. ARC403 encountered sulphides but assays are pending. Interpretation of the magnetics have identified similar NW structures to the west and NW along strike. These are north of the cataclasite ridge which is considered prospective for mineralisation.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 16: Section through 10,200mE Local Grid showing high-grade intersections for ARC366 and ARC376. Refer to Figure 15 for section location.

Logging of holes ARC395, 396 and 367 showed that the NE holes encountered a major fault zone and intersected pelites and black shales. Hole ARC395 showed presence of sulphides associated with fuchsite with silicification and sericite alteration.

An additional hole ARC403 had intersected sulphides (Figure 17) consistent with those in the high-grade zones to the south, meaning that the mineralised envelops had 'stepped' over to the west, in true en echelon form.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 17: Sulphide occurrence in ARC403 comprising pyrite and pyrrhotite.

Not only is it common for mineralised structures to anastomose downdip, they also tend to stagger or step sideways within the confined margins of the NW zones.

It appears that the Crosscut Zone is copper-rich, with zones of higher-grade Au. Table 4 shows the results for the Crosscut Zone.

Table 4: Significant assay results for the Crosscut Zone for drill holes received during the reporting period.

Additional holes drilled to test SAM Survey

A series of holes were drilled to the east of Crosscut to test additional structures identified from magnetic interpretation and SAM survey anomalies. These are shown in Figure 18.

No significant results were reported from holes ARC368, ARC370, ARC371, ARC379, ARC380 and ARC381. It is noted that ARC370 and ARC371 had intersected unusually high magnetite occurring as very fine layers within what has been noted as a komatiite. Ni values are unusually consistent through this unit at an average of around 0.14% Ni, with Cr showing a zonation, with high values of around 0.125%

Ni and Cr shows a distinct segregation to the NE and indicates the presence of ultramafics in the system, however not economically mineralised.

SAM was successful in identifying highly magnetic and conductive units to the east of the Crosscut Zone.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 18: Drill collar location on background of SAM survey. Note the strong to intense SAM anomaly to the east which has defined conductive ultramafic rocks.

Carlow East Zone Drilling

These recent results have shown that the potential of the eastern zone lies in depth extensions while further discoveries of offset high-grade shoots to the south of the main East Zone will widen the mineralised area at depth.

Figure 19 shows the location of the collars for the programme along with sections lines for the cross-sections presented in this announcement.

Reinterpretation of the Carlow Castle deposit suggests that high-grade steeply-plunging shoots occur in the East Zone, which in turn potentially identifies the East Zone as the feeder to the Carlow system. This interpretation has enabled Artemis to plan drill targets with accuracy, with the majority of the targets intersecting mineralisation returning excellent results.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 19: Section lines and collar locations of holes for the East Zone.

Most of these results extend existing mineralised trends downward in the East Zone, such as the results for ARC355 Section 507360mE as shown in Figure 20. These results extend the current mineralised envelops 80 metres below the 2021 optimised pit outline.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 20: Hole ARC355 Section 507360 showing a series of mineralised intervals down along the drill trace, well below the 2021 optimised pit outline. This remains open at depth. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.

Other holes, such as ARC356, shown on Section 507400mE; in Figure 21, intersected another zone of high-grade of 6m @ 4.61g/t Au, 0.44% Cu, 0.02% Co from 294m that effectively extends the current mineralised envelope 60 metres below the 2021 optimisation pit.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 21: Hole ARC356 Section 507400mE showing significant intersections well below the 2021 optimised pit outline, with mineralisation open at depth. This section of the East Zone is near the Crosscut Zone, as shown by the significant intersection in hole ARC344. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.

A thick interval of 20m @ 2.06g/t Au, 0.40% Cu, 0.254% Co from 258m is particularly interesting, not just for the Au and Cu, but significant Co values as well as shown in Figure 22.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 22: Hole ARC359 Section 507540mE highlighting the thick mineralised intersection outside of the 2021 optimised pit outline. This mineralised trend remains open down dip. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.

Continuation of the mineralised trend can be seen in Figure 23 and Figure 24, with significant values extending below the 2021 optimised pit outline. These mineralised trends remain open at depth.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 23: Hole ARC357 Section 507570mE showing the wide interval of mineralisation below the 2021 optimised pit. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 24: Hole ARC358 Section 507600mE showing the continuation of the mineralisation at depth and well below the 2021 optimised pit outline. The line traces highlight the low grade halo with orange outlining the >0.25g/t Au trace and green outlining >0.25% Cu as defined by implicit modelling. Refer to Figure 11 for location of the section.

Figure 25 places the sections into context, showing the various lodes that make up the Carlow mineralised trend.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 25: Oblique view of the Carlow System looking northeast, displaying its typical vein splay. New shoot developments occur on the western side of the East Zone pit. Further drilling is required to extend these systems along strike and down dip. Grid scale is approximately 300m.

Mineralisation on the East Zone is enveloped by a low-grade Cu-Au halo which is likely a result of fracturing of the host rock during high-grade shoot development. Grades of this halo are typically >0.25g/t Au and >0.25% Cu but seem to be more confined than that of the West Zone.

Carlow West Zone Drilling

Five holes were drilled in the western zone, as shown in Figure 26 to test the high-grade shoots geometry and assays for these holes are pending.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 26: Location of Carlow West drill holes. Note trend of a NW structure in the vicinity of ARC401. Yellow solids are Carlow mineralised polygons.

All holes except ARC400 intersected significant sulphide mineralisation with, Figure 27, Figure 28 and Figure 29 showing some of the sulphide intervals for the series of holes.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 27: Sulphide mineralisation in Hole ARC398 from 99 to 103m

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 28: Mineralisation occurrence in ARC401 showing some 'massive' style of sulphides

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 29: Additional mineralisation in hole ARC401 from 159 -160m

It is possible that hole ARC401 has intersected mineralisation obliquely that is related to the NW structure as interpreted from magnetics.

Table 5 shows the significant intersections for the drilling competed in the East and West Zones of the Carlow Main Area.

Table 5: Significant intervals for drill holes in the East and West Zone of the Carlow Main Zone

Quod Est Zone

The Quod Est Zone mineralisation trends north-northeast, with a steep plunge dipping to the southeast, controlled by a gabbro/basalt contact. Collar locations are shown in Figure 30.

Results for this drilling have returned 5m @ 2.90g/t Au, 0.62% Cu, 0.010% Co from 79m which includes 1m @ 7.14g/t Au, 1.26% Cu, 1.095% Co from 80m (Hole ARC323) and 4m @ 2.02g/t Au, 0.72% Cu, 0.263% Co which includes 1m @ 3.27g/t Au, 1.12% Cu, 0.365% Co from 104m (Hole ARC333). Additional results are shown in Table 6.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 30: Drill collar locations for the drilling at Quod Est Zone.

Table 6: Significant Intersections for the Quod Est Drill Holes

DRILLING AT CHAPMAN PROSPECT

Chapman lies ~1km southeast of Carlow Castle as shown in Figure 8. The drilling at Chapman was completed as part of the last phase of the 14,725 metre RC program, which was completed in September 2021. These holes are prefixed with 'GLC' and are shown in Figure 31.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 31: Location of drill collars and simplified geology for the Chapman Prospect. Direction of drill label does not reflect the drill direction. Q3 2021 drilling is prefixed GLC, Q1 2022 drilling prefixed ARC.

These holes were planned to test various Versatile Time Domain Electromagnetic (VTEM) plates with several holes intersecting low levels of copper and nickel.

 GLC007 was targeting a VTEM plate that was isolated and seemed 'off-trend'. Significant sulphides (up to 15%) were intersected, comprising predominately of pyrite and pyrrhotite, hosted in quartz veining. GLC007 has returned values of 10m @ 3.40% Cu, 1.75g/t Au, 24.65g/t Ag from 116m, including: 5m @ 6.23% Cu, 3.01g/t Au, 45.32g/t Ag, from 117m and 3m @ 1.73% Cu, 1.04g/t Au, 12.67g/t Ag from 138m.

The significant intersection in GLC007 and coincident VTEM plate is shown in Figure 32 with Table 7 showing significant results.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 32: Slight oblique section looking northeast along the drill trace of GLC007 showing the location of the high-grade intersections in relation to the VTEM plates.

Table 7: Significant intersections for holes drilled in the Chapman Prospect.

In addition to the drilling, 52 x Ultrafine Fraction (UFF) soils were taken on a 200 x 50m grid to assist in identifying the structures that may host mineralisation as illustrated in Figure 33.

It can be seen that the higher Cu values in the UFF soils fall within an interpreted structural corridor that trends to the northwest.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 33: Image showing the first pass UFF soil sampling for Cu values, which are highlighting a NW trend. Note that the significant Cu values occur within the two inferred bounding structures, also trending to the NW. Hole GLC007 is highlighted with its significant result, using a 0.3% Cu cut off. Image is mag 2VD with draped satellite image.

Additional holes were planned to test not only the VTEM targets but also the structural trend as interpreted from magnetics. A total of 11 holes for 2,878m was completed, of which one hole was diamond core for 132.9m. A total of 2,784 samples, including QAQC was sent for analysis.

These are shown in Figure 35 and are prefixed ARC.

A total of 11 holes for 2,507m was completed, of which one hole was diamond core for 103.8m. A total of 2,784 samples, including QAQC was sent for analysis.

Post period the assay results were released in ASX release dated 13 September 2022 "Chapman Prospect - Copper Nickel System Identified".

Little Fortune Prospect

Drilling here is also targeting VTEM plates, along with trends as defined by geological exposure. A total of 7 holes for 2,017 metres was drilled. Location of the collars are shown in Figure 34.

Several holes were cased with PVC to enable any future downhole geophysics.

Sulphides were also encountered downhole, coincident with VTEM plates, however no significant results were encountered in these holes.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 34: Diagram showing collar locations and simply geology for the Little Fortune Prospect.

Geophysical Surveys

Downhole Electromagnetic Surveys (DHEM)

Downhole EM surveying was carried out in one drillhole at the Chapman (Good Luck) Prospect (GLCC005, Figure 35) two drillholes at the Thorpe (Little Fortune) Prospect (drillholes LFRC002 and LFRC005, Figure 36) and to follow-up copper mineralisation intersected in these drillholes as well as EM sources related to modelled VTEM conductor plate targets.

The DHEM surveys were designed by Resource Potentials, and Gap Geophysics Pty Ltd were awarded the survey contract, with the DHEM survey successfully completed in November 2021.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 35: Location of drillhole GL005 and LF005 at the Chapman prospect, which was DHEM surveyed. The location of the transmitter loop used for the survey is also shown, in blue. The drillhole trace is coloured according to Cu (ppm).

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 36: Location of drillholes LF005 and LF005 at the Thorpe prospect, which were DHEM surveyed. The location of the transmitter loop used for the survey is also shown. The drillhole trace is coloured according to Cu (ppm).

Results

Downhole electromagnetic surveying in drillholes LFRC002 and LFRC005 resolved anomalous off-hole DHEM responses which was modelled with a steep NW dip and a moderate conductance of 850 siemens.

The up-dip projection of the modelled EM conductor plate coincides with elevated copper intersections in drillhole LFRC006, as well as modelled DDIP chargeability anomaly responses, and this zone has not been intersected by existing drilling.

A very small in-hole DHEM anomaly response was resolved in drillhole LFRC002, but no follow-up drill targeting is recommended for this this very small conductor source. DHEM data from drillhole LFRC002 also suggest that there could be an off-hole and far-field conductor source located to the northeast of the drill trace. DHEM conductor plate modelling was attempted, but not finalised due to the anomaly response only being by one receiver component, and EM conductor plate modelling could not be reliably completed. Interpretation of VTEM data and other ground-based EM surveys could be carried out to look for the source of this far-field EM anomaly.

Surface Sampling

A total of 339 soil samples were analysed during the reporting period.

A survey comprising 75 soil samples was undertaken on tenement P47/1622, just east of the Sing Well prospect, just prior to the reporting period. Samples were collected at 50m intervals along north-south orientated traverses spaced 150m apart (Figure 37).

Samples comprised 100-200g material that was collected at a depth of 15cm below the ground surface and sieved to minus 2mm. These samples were analysed early in the 2021-22 reporting year.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 37: Soil sampling localities on tenement P47/1622. Location of the tenement is shown in Figure 7.

A soil sampling program using Ultrafine+ Fraction (UFF) methodology was completed over the Carlow Castle Main zone (52 samples), Chapman (Good Luck, 104 samples), Thorpe (Little Fortune, 35 samples) and Carlow West (69 samples).

A total of 264 samples have been collected, as shown in Figure 38. Samples have been collected over the Carlow Castle Main Zone as an orientation survey to compare the assay variability with the previously obtained results from the ionic leach method of ALS.

Results

The survey undertaken on tenement P47/1622 returned one sample (GB378) with a spectacular result of 10.9ppm Au. This sample also returned 1.02ppm Ag. Samples GB372 and GB373 to the west-southwest of this sample also returned highly anomalous gold of 0.109ppm and 0.508ppm, respectively.

The ultrafine soil sampling results define regional structures responsible for hosting mineralisation and appears coincident with a regional magnetic trend. The survey over the Carlow Main grid (200 x 50m grid), highlights elevated copper within an interpreted northwesterly trending structural corridor.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 38: Overview map showing the distribution of UFF soil sampling that cover the Carlow Castle, Chapman and Thorpe (Little Fortune) areas.

MINERAL RESOURCE ESTIMATIONS

The current mineral resource as released by CSA Global is shown in Table 8 below.

Table 8: Carlow Main Mineral Resources by classification reported above a cut-off of 0.3g/t AuEq and within an optimised shell (as of 19th of May 2021).

Work has commenced on updating the interpretation for Carlow Castle which will allow for effective geological control through definition of high-grade shoots and structures. The aim of this reinterpretation is to increase the tonnage and grade through effective drill targeting and Artemis releasing an updated robust mineral resource. The new model will enable target generation, adding additional drill targets, to allow step out drilling while adding ounces to a currently increasing resource base. Figure 39 shows the Carlow lodes currently being updated.

The recent drill program centred on the Carlow Main, Quod Est and Crosscut Zones was designed to test the new interpretation, with assays results reflecting the interpretation.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 39: Plan view of the various lodes for the Carlow system, which is currently in progress.

In accordance with Listing Rule 5.23.2, Artemis confirms that it is not aware of any new information or data that materially affects the information included in the Annual Mineral Resources Statement above, and that in the case of mineral resources that all material assumptions and technical parameters underpinning the estimates in the Annual Mineral Resources Statement continue to apply and have not materially changed.

Material Changes and Resource Statement Comparison

The Company during this year has continued to review and report its mineral resources at least annually and provide an Annual Mineral Resources Statement. The date of reporting is 30 June each year, to coincide with the Company's end of financial year balance date. If there are any material changes to its mineral resources over the course of the year, the Company is required to promptly report these changes. In completing the annual review for the year ended 30 June 2022, the historical resource factors for Projects were reviewed and found to be relevant and current, as at that date.

Governance Arrangements and Internal Controls

Artemis has ensured that the mineral resources quoted are subject to good governance arrangements and internal controls. The mineral resources reported have been generated by independent external consultants who are experienced in best practices in modelling and estimation methods. The consultants have also undertaken reviews of the quality and suitability of the underlying information used to generate the resource estimation. In addition, Artemis' management carries out regular reviews of internal processes and external contractors that have been engaged by the Company.

The Carlow Castle mineral resource was compiled in accordance with the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code) 2012 Edition.

RADIO HILL

Downhole Electromagnetic Surveys

Downhole electromagnetic surveying was undertaken during November-December 2021 by Gap Geophysics Australia Pty Ltd. Two historical diamond holes at Radio Hill were selected for surveying, these being 07RHDD080 and 08RHRCD103 (Figure 40). The latter was replaced by drillhole 08RHRCD108 when a pre-survey check showed that the hole 07RHDD080 was blocked at 70m downhole. A total of 1,157.12m was surveyed.

Drillhole 07RHDD080 was drilled in 2007 and intersected 0.68m at 3.66% Ni from 324m. Downhole EM surveying was originally completed in 2007 in this drillhole using a high transmitter frequency of 5Hz and a low-power system compared to modern standards. The historic DHEM survey identified a small in-hole anomaly response at 325m downhole, coincident with the nickel sulphide intersection. A very subtle deeper response was also observed within the noise envelope that may be associated with a far-field conductor located east of the drillhole.

Drillhole 08RHRCD108 was drilled in 2008. The drillhole did not intersect any significant nickel sulphide mineralisation and was not historically DHEM surveyed.

The new DHEM survey in drillhole 07RHDD080 identified a short wavelength anomaly at 325m downhole, coincident with the known nickel sulphide mineralisation intersected in the drillhole but did not detect a far-field anomaly. The modelled conductor plate has approximate dimensions of 20m by 15m.

No follow-up work is recommended based on the DHEM results in drillhole 07RHDD080. No anomalies of interest were identified in the DHEM survey data from drillhole 08RHRCD108, and no follow-up is recommended based on these DHEM survey data.

Radio Hill mine and plant remain on care and maintenance.

http://www.rns-pdf.londonstockexchange.com/rns/2067B_1-2022-9-29.pdf

Figure 40: Downhole electromagnetic survey loops and drill hole locations that underwent the survey.

WHUNDO

The Whundo Project is located approximately 40 kilometres south-southwest of Karratha in the West Pilbara Region of Western Australia and is approximately 12.5 kilometres southeast of the Radio Hill nickel plant.

In the March quarter, a total 3,768m was drilled at Whundo, with 25 holes completed.

The drilling was focused on testing for lateral and deeper extensions to the eastern and western lobes of the Whundo deposit and including untested magnetic and conductor targets in proximity to the Whundo Mine.

To assist with future drill targeting at Whundo the deeper drill holes have been prepared for Down Hole EM Surveying (DHEM). GreenTech moved to 100% ownership of Whundo during the June quarter following satisfaction of the earn-in expenditure commitments.

Tenements

Artemis current tenement listing are shown in Table 9. Refer to Figure 7 for locations.

Table 9: Tenement holdings for Artemis Resources as of June 2022

Corporate

AIM-listing

On 7 February 2022 the company was admitted to the aim market of the London stock exchange and its shares commenced trading under the symbol AIM:ARV. The company maintains its primary listing on the ASX.

Capital Raising

On 27 January 2022, as part of its listing on the AIM market of the London Stock Exchange, the Company raised, in aggregate, gross proceeds of £5 million (~A$9.5m) through the placing of 133,333,333 Placing Shares and Subscription Shares to certain institutional and other investors at a price of 3.75 pence (~7.1 cents) per share.

Project Sales and Tenement Agreements

GreenTech Metals Limited (GreenTech) exercised its Option to acquire certain non- core projects from Artemis in December 2021 and listed on the ASX on 4 January 2022.

GreenTech acquired the Elysian Project, Ruth Well Project, Nickol River Project and Weerianna Project from Artemis for a consideration of 6,750,000 shares in GreenTech or 14.84% of the ordinary shares and a $250,000 reimbursement in cash of exploration expenses.

In addition, the Company entered into the following farm-in agreements. Farm-In and JV Agreement with Artemis Resources Limited subsidiary KML No 2 Pty Ltd: GreenTech can earn up to 51% interest and establish an unincorporated joint venture in the Osborne Nickel Project.

Farm-In and JV Agreement with Artemis Resources Limited subsidiary Fox Radio Hill Pty Ltd: GreenTech can earn up to 100% interest in the Whundo Project. If GreenTech earn less than 100% interest in the Whundo Project, an unincorporated joint venture will be established.

On 22 March 2022 Artemis completed the sale of its 70% interest in the Munni Munni JV.

Artemis received A$250,000 in cash and was issued 358,617,818 ordinary shares in Alien Metals PLC (LSE AIM:UFO) (A$4,650,000 worth of shares at a deemed VWAP of 0.699p per share).

Board Changes

The Board welcomed Dr Simon Dominy as a Director on 1 July 2021. Dr Dominy is Adjunct Professor at the Western Australian School of Mines (WASM), Curtin University, and a Visiting Associate Professor at the Camborne School of Mines (CSM), University of Exeter, UK.

A mining geologist-engineer with over 25 years' experience, Dr Dominy has since 2015 been working with a number of private and listed entities developing/operating gold projects including: MG Gold Ltd; Novo Resources Corporation (TSV: NVO); Scotgold Resources Ltd (AIM: SGZ) and OCX Gold Group.

Between 2004-2014 he was an Executive Consultant/General Manager with the Snowden Group based in Australia and UK, including two years contracted out to LionGold Corporation (SGX: A78).

Simon is a Fellow of the Australasian Institute of Mining and Metallurgy ("FAusIMM") and the Australian Institute of Geoscientists ("FAIG").

Mr Guy Robertson, Company Secretary, was appointed a Director on 17 January 2022.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022

The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

The consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022  

· potential voting rights held by the Company, other vote holders or other parties; rights arising from other contractual arrangements; and

· any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholder meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Changes in the Group's ownership interest in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in subsidiaries. Any difference between the amount paid by which the non-controlling interests are adjusted, and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between:

· The aggregate of the fair value of the consideration received and the fair value of any retained interest; and

· The previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.

All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by the applicable AASBs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under AASB 139, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

Business Combinations

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 exemptions).

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 remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured 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 the business combination are expensed to the consolidated statement of comprehensive income.

The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Adoption of New a Revised Accounting Standards or Interpretations

In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and therefore, no material change is necessary to Group accounting policies.

Any new, revised or amending Accounting Standards or Interpretations that are yet to be mandatory have not been early adopted.

The Directors have also reviewed all the new and revised Standards and Interpretations in issue not yet adopted for the year ended 30 June 2022. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted by the Company.

Going Concern

For the year ended 30 June 2022, the Group recorded a loss of $7,529,345 (2021: Loss of $10,483,611) and had net cash outflows from operating activities of $3,864,822 (2021: $1,934,593) and has a net working capital surplus of $9,657,329 as at 30 June 2021 (2021: $8,879,608).

The Directors believe that it is reasonably foreseeable that the Company and Group will continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following factors:

· The Group has cash at bank of $6,106,222 and net assets of $59,322,552 as at 30 June 2022;

· The Company has raised $9,508,026 in new capital during the year and Directors are of the view that should the Company require additional capital it has the ability to raise further capital to enable the Group to meet scheduled exploration expenditure requirements and future plans on the development assets;

· The ability of the Group to scale back certain parts of their activities that are non-essential so as to conserve cash; and

· The Group retains the ability, if required, to wholly or in part dispose of interests in mineral exploration and development assets, and liquid investments.

These factors indicate a material uncertainty which may cast significant doubt as to whether the Company and Group will continue as a going concern and therefore whether they will realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report.

Income taxes

The income tax expense (benefit) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to the statement of profit or loss and other comprehensive income is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses. Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Exploration and evaluation costs

Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

· the rights to tenure of the area of interest are current; and

· at least one of the following conditions is also met:

Ø the exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; or

Ø exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.

In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.