Clontarf Regulatory News (CLON)

27 Jun 2007 07:00

Persian Gold PLC27 June 2007 Persian Gold plc Preliminary Results for the year ended 31 December 2006 Persian Gold plc, the AIM listed minerals explorer focused on Gold and Iran(AIM:PNG), is pleased to announce Preliminary Results for the year ended 31December 2006. Highlights • Significant progress made on evaluating the Chah-e-Zard gold discovery in Iran. • A second round of drilling and trenching will commence in weeks on Chah-e-Zard. • Discussions are at an advanced stage to acquire a majority interest in a gold/porphyry late stage exploration project in Central Iran. • Early stage prospecting has identified a gold in silica - alunite prospect in North Western Iran. Persian Gold is negotiating a concession on the area. John Teeling, Executive Chairman of Persian Gold, Commented: "We continue to make good progress in Iran. As one of the few companiesexploring in a highly prospective country we see a flow of projects. We arebuilding a portfolio of gold interests stretching from early to advanced stageexploration. The potential is good." 27th June 2007 For further information please contact Persian Gold PLC John Teeling, Executive Chairman +35318332833 College Hill Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes Blue Oar Securities Plc John Wakefield +44 (0) 1179 330 020 Chairman's Statement The past year has seen solid progress in Iran. We drilled our Chah-e-Zard goldproperty and recovered gold in thirteen of the sixteen holes. Three of theholes produced particularly good results. The coming months will see a secondphase of drilling and trenching on the ground as we attempt to zero-in on acommercial gold deposit. Our activities in Takestan, northwestern Iran, werecurtailed while we sought trenching and drilling permits but in the interim, weevaluated a series of potential gold and precious metals projects. Some ofthese have promise and I expect to be able to report on them in the near future. Let me refresh your memory as to why we explore in Iran. The central volcanicmineral belt of Iran is one of the last places on earth with the potential toproduce large multi-million ounce gold deposits. Exploration in Turkey andAzerbaijan to the northwest and in Pakistan to the southeast has discovered newlarge gold occurrences. Over the past 28 years, there has been littleexploration in Iran. World-class companies such as Rio Tinto, Anglo Americanand BHP were active but they only covered a small area of the 2000 km x 100 kmbelt, two thirds of which is desert. These companies have all but exited thecountry. In 2003 Persian Gold was established to prospect for large scale low grade "Yanacocha type" gold deposits. Our first target was, and remains the onebillion ton alunite deposit in northwestern Iran. We currently hold fourlicences covering 160 sq kms in the area. The work is early stage prospecting.Our presence in Iran attracted other projects in Iran. The first project weaccepted was in Chah-e-Zard, about 350 kms south of Tehran near the city ofYazd. We joint ventured the property with the local concession holder on a 70/30 option basis where Persian Gold paid 100% of all costs up to BankableFeasibility Study. We undertook detailed sampling which outlined an anomalousgold deposit of 1.25 km x 0.75 km. We trenched to estimate consistency acrossthe deposit and drilled to identify the depth of the deposit. We subsequentlytested the drill core to estimate the depth of the oxide and mixed oxide/sulphide zone. The latter test estimated the suitability of the ore for largescale heap leaching. As the review of operations below shows, the overall results were positive.While there was widespread gold the overall grade was below 1 gram per tonne (g/t). The southwest section of the anomaly does contain good grades. Shallowdrilling and more trenching will be carried out in this area in the comingmonths. We have re-negotiated the joint venture with our partner. The newagreement involves no cash commitment until a decision to mine is made afterwhich Persian Gold will pay the first $6m of our partners' capital expenditureon the mine. The percentage ownership remains 70/30 Persian Gold. Other Projects: We continue to evaluate other gold opportunities that have been offered to thecompany. Currently we are analysing: • A porphyry gold/copper project south of Tehran. • A porphyry gold/copper project in northeast Iran. • A volcanic hosted alunite gold project in northwest Iran. We anticipate acquiring at least two of these projects. The first project issimilar to our Chah-e-Zard venture in that it is at an advanced stage. Earlierwork done by a multinational identified a significant zone of gold. PersianGold has sampled the ground and awaits results. If the results replicate theearlier findings, we will endeavour to complete a deal with the concessionholder. We have identified a large area in the northwest of Iran where soil samplingsome decades ago indicated a significant gold bearing anomaly. This areacontains significant quantities of silica-alunite. We are in discussions withthe relevant people to obtain a license over the area. Operating in Iran There is widespread ignorance and uncertainty about operating in Iran. Thecountry is very large (1.65m sq. kms) with a population of over 70 millionpeople. Tehran, the capital, has 14 million people. Infrastructure isextremely good with plentiful power and transport links. People are welleducated with experienced geologists, engineers and miners available. The ruleof law operates while the terms for prospecting and exploration are clear. Are there negatives? Certainly. Two thirds of the country is desert so watercan be a problem. We ship water by tanker to the drilling sites at Chah-e-Zard.In the northern mountainous region snow is a problem in winter. There is anextensive bureaucracy which takes time to navigate. Finding experiencedcommercial managers is difficult. But explorers must go where discoveries canbe made. Iran is likely to contain many gold zinc copper and other deposits.The trick is to find them. Future With some of the largest natural resource deposits in the world Iran is theplace to be for explorers. Persian Gold is building a team of professionalsboth inside and outside Iran who can find, evaluate and analyse opportunities ingold. The Chah-e-Zard project has real near term potential to become acommercial gold mine. The Takestan, Zaajkan and Mashroom licences are at anearlier stage of exploration but potential still exists. The new projects underevaluation are exciting. We believe that we are the only junior Western mining company currently activein Iran. As such, we have an early mover advantage. The authorities arewelcoming and facilitating. The opportunities are there. It is up to us to grabthem. John Teeling, Chairman 27th June 2007 CONSOLIDATED PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 £ £ TURNOVER - - Cost of sales - - GROSS PROFIT - - Cost of admission to AIM - (100,474) Administrative expenses (310,321) (75,343) OPERATING LOSS - continuing operations (310,321) (175,817) Interest receivable and similar income 25,057 14,395 Interest payable and similar charges (1,008) (782) LOSS ON ORDINARY ACTIVITIESBEFORE TAXATION (286,272) (162,204) Tax on loss on ordinary activities - - LOSS ON ORDINARY ACTIVITIES AFTERTAXATION FOR THE FINANCIAL YEAR (286,272) (162,204) LOSS PER SHARE (0.51p) (0.30p) LOSS PER SHARE - diluted (0.51p) (0.30p) The group has no recognised gains or losses other than those disclosed in theprofit and loss account for the year. The results arise from continuingactivities. CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006 2006 2005 £ £ FIXED ASSETS Intangible assets 819,203 258,606 CURRENT ASSETS Debtors 3,529 3,283Cash at bank 309,260 924,878 312,789 928,161CREDITORS:(Amounts falling due within one year) (199,855) (25,346) NET CURRENT ASSETS 112,934 902,815 TOTAL ASSETS LESS CURRENT LIABILITIES 932,137 1,161,421 CAPITAL AND RESERVES Called-up share capital 139,507 139,482Share premium 1,246,034 1,244,359Profit and loss account - (deficit) (508,692) (222,420)Share based remuneration reserve 55,288 - SHAREHOLDERS' FUNDS - ALL EQUITY 932,137 1,161,421 CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2006 2006 2005 £ £ NET CASH OUTFLOW FROMOPERATING ACTIVITIES (136,057) (173,752) RETURNS ON INVESTMENTS ANDSERVICING OF FINANCE Interest paid and similar charges (1,008) (782) Interest received and similar income 25,057 14,395 NET CASH INFLOW FROMRETURNS ON INVESTMENTSAND SERVICING OF FINANCE 24,049 13,613 CAPITAL EXPENDITURE ANDFINANCIAL INVESTMENT (112,008) (160,139) Payments to acquire intangible assets (505,310) (177,187) NET CASH OUTFLOW BEFORE FINANCING (617,318) (337,326) FINANCING: Issue of ordinary share capital for cash (net of expenses) 1,700 992,521 NET CASH INFLOW FROM FINANCING 1,700 992,521 (DECREASE)/INCREASE IN CASH (615,618) 655,195 Note: 1. The results set out above are not full accounts as defined in S.254 of the Companies Act 1985. The auditors have made an unqualified non-standard report on the accounts for each of the years ended 31 December 2005 and 2006 under S.236 of the Companies Act 1985 which have been and will be filed with the registrar of Companies. 2. A copy of this announcement will be available at the offices of the Company 20 - 22 Bedford Row, London, WC1R 4J5 for 14 days from the date of this announcement. www.persiangoldplc.com This information is provided by RNS The company news service from the London Stock Exchange