Ovoca Bio Regulatory News (OVB)

14 Sep 2007 16:24

Ovoca Gold PLC14 September 2007 Ovoca Gold plc Interim Results for the Half Year Ended 30th June 2007 Ovoca Gold Plc (AIM: OVG; IEX: OVX) ("Ovoca" or "the Company") is pleased toreport its interim, unaudited, results for the six months ended 30th June 2007. Highlights • Goltsovoye reserve increased to 78m oz silver from 74m oz silver by Wardell Armstrong International JORC statement. • Bankable Feasibility study scheduled for completion in Q4 of 2007. • 4,950 metres of drilling carried out on Kola properties. Goltsovoye Wardell Armstrong International (WAI) completed a JORC reserve statement inFebruary 2007, increasing the reserve body to 78m oz. Goltsovoye is beingdesigned as an underground operation at a rate of 260,000 tonnes a year of ore.Detailed mining and development schedules are underway with an emphasis on apre-production schedule to enable an early mining contract to be placed. SWMhave a detailed physical model of the orebody and recommend a mechanisedoperation with some manual mining techniques in narrow orebodies. The BFS is onschedule for completion before the end of this year. The Environmental Impact Study by WAI is progressing and GBM MineralsEngineering have designed a process plant to produce flotation and gravityconcentrates without the use of a cyanide circuit. A project implementation schedule and details of planned staffing, sources oflabour and contractors is nearing completion. The road from the main highway 38kilometres away is being upgraded by our own equipment, which we recentlypurchased. Kola After mapping and planning work the Company started a summer drilling programmein May. To date 4,950 metres of drilling have been completed and over fifteenhundred samples have been sent for assay. 7 further holes and four trenches areplanned to complete the program. From the assay results received to date the deep core drilling has confirmed theextension of the Oleninskoye orebody #3 to a depth of over 300m. Nyalm drillinghas intersected extensive zones of mineralised quartz stockwork intersected overthicknesses of 7-15 meters with gold grades of 1.0 to 1,5 grammes per tonnewithin which are high grade veins with gold grade of from 4,7 to 11,2 grammesper tonne. Drilling on the Pellapahk molybdenum, copper deposit has defined anextensive mineralised zone with the potential to be very large. The mineralisedzone remains open along strike. There is a potentially similar sized satellitedeposit to the north outline by a similar geochemical anomaly to that ofPellapahk which is as yet unexplored. Commenting on the results, Ovoca Gold's Chairman, Roger Turner, said "TheGoltsovoye silver deposit continues to gather pace with the reports of theconsulting team, and the completion of the Bankable Feasibility Study scheduledbefore the end of the year. This project will transform Ovoca Gold into aglobal silver producer within the next 18 months. Our team is on target tobring the mine to production. On the other side of Russia, the results from theKola exploration are encouraging and we are eagerly awaiting the assays from thework done to date and the completion of the current drilling program there". Consolidated Profit and Loss Account 30 June 30 June for the six months to 30 June 2007 2007 2006 • • Administration expenses (397,784) (325,629) Other operating income Operating loss - continuing operations (397,784) (325,629) Investment income (net) 25,813 25,193 Loss on ordinary activity before tax (371,971) (300,436) Tax Retained (loss) for the period (371,971) (300,436) Profit and loss at beginning of period (12,032,227) (8,314,063) Profit and loss at end of period (12,404,198) (8,614,499) Attributable to Equity holders of the parent (12,365,973) (8,166,411) Minority interest (38,225) (448,088) (12,404,198) (8,614,499) Basic loss per ordinary share (0.16)c (0.19)c Consolidated Balance Sheet 30 June 30 June at 30 June 2007 2007 2006 • •Fixed Assets Intangible assets 29,504,995 8,748,834 Tangible assets 182,747 85,818 Financial assets Minority interest (38,225) (448,088) 29,649,517 8,386,564 Current Assets Debtors 443,452 1,091,973 Bank 1,014,586 6,209,636 1,458,038 7,301,609 Creditors: Amounts falling due within one year 651,144 1,439,573 Net current assets 806,894 5,862,036 Net Assets 30,456,411 14,248,600 Financed byCapital and Reserves Called up share capital 7,947,650 7,870,325 Share premium 34,381,041 14,981,292 Other reserves 11,482 11,482 Share Based Reserve 520,436 - Profit & loss account (12,404,198) (8,614,499) 30,456,411 14,248,600 Consolidated Cash Flow Statement 30 June 30 June for the six months to 30 June 2007 2007 2006 • • Net cash inflow/(outflow) from operating activities (744,649) 443,780 Returns on investment and servicing of finance Investment income (net) 25,813 25,193 Sale of tangible asset Net cash (outflow)/inflow from returns on investment and servicing of finance (718,836) 25,193 Tax Paid Capital expenditure and financial investment Purchase of tangible assets - (79,874) Purchase of intangible assets (1,717,613) (594,549) Net cash (outflow) from capital expenditure and financial investment (1,717,613) (674,423) Acquisition and Disposals Purchase of subsidiaries - (2,505,140) Net cash outflow from acquisitions and disposals - (2,505,140) Net cash outflow before financing and management of liquid resources (2,436,449) (2,710,590) Financing and management of liquid resources Proceeds from issue of share capital 37,125 6,850,688 Net cash transferred from liquid resources - - Net cash inflow from financing and use of liquid resources 37,125 6,850,688 Decrease/Increase in cash in the period (2,399,323) 4,139,729 Group Recognised Gains and Losses 30 June 30 June for the six months to 30 June 2006 2006 2005 • • Loss for the period (371,971) (300,436) Exchange loss on foreign currency net investments - (35,984) (371,971) (336,420) Notes 1. No dividend is proposed in respect of the period. 2. The calculations of loss per share have been based on the retained losses after taxation and on a weighted average of 315,725,761 ordinary shares (2005 -155,605,257 ordinary shares) in issue during the period. 3. The Unaudited results have been prepared on a going concern basis and on the basis of the accounting policies adopted in the Annual accounts for the year ended 31 December 2006. 4. The interim report is Unaudited and does not constitute Statutory Accounts as defined in S.148 of the Companies Act 1963. A copy of the Group's 2006 Statutory Accounts has been filed with the Irish authorities. The auditors' opinion on these Statutory Accounts was unqualified. 5. The interim report for the six months to 31 August 2007 was approved by the Directors on 14 September 2007. For further information contact Mr. John O'Connor + 353 1 633 0523 Ovoca Gold Plc is an international exploration company quoted in London (OVG.L) and Dublin (OVX.IR), exploring for precious and base metals in Russia, Sweden and Ireland This information is provided by RNS The company news service from the London Stock Exchange