Last checked at 20 Jun 2014 07:00
Great Western Mining Corporation PLC
("Great Western Mining", "GWM" or the "Company")
Preliminary Results for the year ended 31 December 2013.
Great Western Mining, the AIM (AIM:GWMO) and ESM quoted mineral exploration company with 73 sq. kilometres of mineral claims in south-west Nevada USA, is pleased to report its Preliminary Results for the year ended 31 December 2013.
Results Highlights:
· Completion of maiden 2580 feet drilling programme on the M2 copper target
· JORC compliant Phase 1 Report produced
· Loss for the year: €448,319 (2012: €369.186)
· Basic and Diluted loss per share (cent): 0.69 (2012: 0.76)
· Company fully funded to fulfill its current plans
Post year-end Highlights:
· Phase 2 drillingprogramme, with the objective of establishing a JORC compliant Inferred Resource, initiated over the M2-Smith copper target
· Phase 1 drilling programme initiated over Target 4 copper-gold prospect
Chief Executive, David Fraser commented: "Following a year of progress in 2013, I am pleased to report that the company started 2014 in the strongest financial position in its corporate history, and is in the process of executing a funded programme designed to demonstrate the value in its extensive bank of Federal land leases in Nevada."
ENQUIRIES:
Great Western Mining Corporation Plc
David Fraser, Chief Executive +44 207 933 8795
Davy (Nomad, ESM Adviser & Joint Broker) +353 1 679 6363
John Frain john.frain@davy.ie
Roland French roland.french@davy.ie
Hume Capital Securities plc (Joint Broker) +44 203 693 1470
Jon Belliss
Abigail Wayne
Walbrook (UK PR and IR) +44 207 933 8795
Paul Cornelius
Guy McDougall greatwesternmining@walbrookpr.com
Chief Executive's Report:
During the first half of the year the Company completed the first ever drill programme on its 73 sq. kilometres claim block in southwest Nevada. A total of nine reverse circulation holes, for 2580 ft, were drilled. Samples were taken every five feet and analysed by Florin Analytical Laboratories, Reno, Nevada. In all, some 1500 sample points were examined for copper, silver and gold. Encouraging copper grades were encountered in eight out of the nine holes drilled; holes 4 and 5 intersected 30 feet of oxide copper at 1.13% Cu and 0.84%Cu respectively, and Hole 1 contained 40 feet of oxide copper at 0.2% Cu. Significant gold was also noted in Hole 4. The resulting JORC compliant report, produced by GWM's independent consulting geologist, Donald Strachan, Consulting Geologist QP CPG, indicated that mineralisation had a known width of 120m and strike length 1200 metres long.
The M2 target, located on the eastern flank of the Huntoon Valley consists of Mesozoic sediments and volcanics, where the mineralisation is associated with the contact with intermediate intrusives. The target was defined using ASTER spectral analysis, airborne and ground magnetics, induced polarisation (IP), soil and rock geochemistry and geological mapping.
Following these highly encouraging results the Great Western management team carried out detailed analysis to devise a drillprogrammewith the aim of establishing a JORC Inferred Resource over the M2 target, and to test the hypothesis that the mineralisation is a stratiform deposit extending southwards and to the east side of Bass mountain to the former Smith mine. Hence the company now refers to the target as M2-Smith.
The management team conducted a series of presentations and an institutional road show in the City of London, from late October to early December 2013, to raise awareness and support for the planned programme. In January 2014 the company was able to successfully complete two institutional placings, raising total gross proceeds of £2.3 million.
As we go to press the company is in the process of executing a 14,000 feet programme of Reverse Circulatory drilling, in approximately 30 drill holes, designed to appraise and evaluate the extent of the resource at the M2-Smith target.
In addition to the drill programme at M2-Smith, the proceeds from the placing have enabled the company to initiate a drilling programme on its Target 4 copper-gold prospect. Target 4 is potentially a larger prospect approx. three miles from M2-Smith. Significant work has already been completed on Target 4. This work includes remote sensing using aero-magnetics, ASTER infrared imagery and followed up with an Induced Polarisation study. Surface exploration has included a magnetometer survey, soil sampling, outcrop mapping and sampling, and trenching. Target 4 is now "drill ready", and the company has appointed Environscientists Inc., based in Reno, Nevada, to provide project management services, conduct baseline studies, and produce a Plan of Operations for submittal to the US Forestry Service in order to obtain the necessary drilling permits.
The company anticipates being in a position to initiate a 6 to 9 hole reverse circulatory discovery level drill programme in the autumn of 2014. Once the extent of the outcropping oxide copper mineralisation is clearer, and the relationship with the intermediate intrusives is better understood, deeper drilling may be justified to test the extensive IP anomaly which may be indicative of buried
primary sulphide mineralistation.
On the west side of the valley is the former Huntoon mine (Target M1) where copper-gold ore was mined intermittently from 1906 to 1925. Extensive outcropping copper mineralisation and widespread propylitic alteration occur in and around the old mine. A limited programme of mapping and sampling is planned to identify the extent of the mineralised zone(s) and drill targets.
To the south The Golconda Thrust Group, containing the four claim groups: Tun Group; EM group; RH Group and JS group have all been identified as interesting anomalies by both ASTER and IP surveys. An initial field programme of soil and outcrop sampling is planned to identify the mineralised zones.
Following a year of progress, I am pleased to report that the company started 2014 in the strongest financial position in its corporate history, and is in the process of executing a funded programme designed to demonstrate the value in its extensive bank of Federal land leases in Nevada.
David Fraser
Chief Executive
Great Western Mining Corporation PLC
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2013
Continuing Operations | 2013 | 2012 | ||
Notes | € | € | ||
Administrative expenses | (442,579) | (365,386) | ||
Finance costs | 5 | (5,740) | (3,800) | |
Loss for the year before tax |
(448,319) |
(369,186) | ||
Income tax expense |
7 |
- |
- | |
Total Comprehensive Loss for the year | (448,319) | (369,186) | ||
Loss attributable to: Equity holders of the Company |
(448,319) |
(369,186) | ||
(448,319) | (369,186) | |||
Total Comprehensive Loss attributable to: Equity holders of the Company |
(448,319) |
(369,186) | ||
(448,319) | (369,186) | |||
Earnings per share from continuing operations Basic and Diluted loss per share (cent) |
8 |
(0.69) |
(0.76) |
Great Western Mining Corporation PLC
Company Statement of Cash Flows
for the year ended 31st December 2013
Cash flows from operating activities
Loss for the year |
(333,439) |
(342,305) | ||
Movement in trade and other receivables |
(272,461) |
(321,133) | ||
Movement in trade and other payables | (22,777) | 71,450 | ||
Finance costs | (3,800) | (3,800) | ||
Cash flows from operating activities | (632,477) | (595,788) | ||
Cash flows from investing activities Fixed Asset Investment Additions/Disposals |
(1) |
- | ||
(1) | - | |||
Cash flows from financing activities Proceeds from the issue of new shares |
- |
671,337 | ||
Net cash used in financing activities | - | 671,337 | ||
Movement in cash and cash equivalents in the year |
(632,478) |
75,549 | ||
Cash and cash equivalents at the beginning of year |
12 |
704,283 |
628,734 | |
Cash and cash equivalents at the end of year | 12 | 71,805 | 704,283 |
Great Western Mining Corporation PLC
Consolidated Statement of Financial Position as at 31 December 2013 | ||||
2013 | 2012 | |||
Notes | € | € | ||
Assets | ||||
Non-Current Assets | ||||
Intangible assets | 9 | 1,661,816 | 1,564,210 | |
Total Non-Current Assets | 1,661,816 | 1,564,210 | ||
Current Assets | ||||
Trade and other receivables | 11 | 80,037 | 12,254 | |
Cash and cash equivalents | 12 | 82,860 | 712,501 | |
Total Current Assets | 162,897 | 724,755 | ||
Total Assets | 1,824,713 | 2,288,965 | ||
Equity | ||||
Capital and Reserves | ||||
Share capital | 14 | 648,238 | 648,238 | |
Share premium | 14 | 3,978,260 | 3,978,260 | |
Retained loss | 17 | (3,085,018) | (2,636,699) | |
Attributable to owners of the Company | 1,541,480 | 1,989,799 | ||
Total Equity | 1,541,480 | 1,989,799 | ||
Liabilities | ||||
Current Liabilities | ||||
Trade and other payables | 13 | 283,233 | 299,166 | |
Total Liabilities | 283,233 | 299,166 | ||
Total Equity and Liabilities |
1,824,713 |
2,288,965 | ||
Great Western Mining Corporation PLC
Consolidated Statement of Changes in Equity
for the year ended 31 December 2013
Share Capital €
Balance at 1 January 2012 464,904
Total comprehensive income for the year Loss for the year -
Total comprehensive income for the year - | Share Premium € | Retained Losses € |
Total € | |||
3,490,257 |
(2,267,513) |
1,687,648 | ||||
- |
(369,186) |
(369,186) | ||||
- | (369,186) | (369,186) | ||||
Transactions with owners, recorded directly in equity Shares issued |
183,334 |
488,003 |
- |
671,337 | ||
Total transactions with owners | 183,334 | 488,003 | - | 671,337 | ||
Balance at 31 December 2012 |
648,238 |
3,978,260 |
(2,636,699) |
1,989,799 | ||
Balance at 1 January 2013 |
648,238 |
3,978,260 |
(2,636,699) |
1,989,799 | ||
Total comprehensive income for the year Loss for the year |
- |
- |
(448,319) |
(448,319) | ||
Total comprehensive income for the year | - | - | (448,319) | (448,319) | ||
Transactions with owners, recorded directly in equity Shares issued |
- |
- |
- |
- | ||
Total transactions with owners | - | - | - | - | ||
Balance at 31 December 2013 |
648,238 |
3,978,260 |
(3,085,018) |
1,541,480 | ||
Net equity is attributable to the holders of the ordinary shares in the Group.
Notes to the accounts. PDF Link.