Petra Diamonds Regulatory News (PDL)

1 Aug 2006 07:02

Petra Diamonds Ld01 August 2006 PETRA DIAMONDS LIMITED QUARTERLY ACTIVITIES REPORT FOR THE THREE MONTH PERIOD ENDED 30 June 2006 (dateline 31 July 2006) Petra Diamonds Limited ("Petra" or "the Company" or "the Group"), the AIM-quotedand ASX-listed diamond mining group (AIM and ASX: PDL), announces its quarterlyactivities report (unaudited) for the three month period ended 30 June 2006. Highlights • The South African mines generate an operating cash inflow of £732,000 for the quarter (quarter to March 2006 outflow: £210,000) • Production of 175,000 carats from the South African mines for the year to June 2006 (June 2005: 144,000 carats) • Exploration progress at Alto Cuilo continues to make solid progress, with further increases in the number of kimberlites identified and analysis of drill core revealing exceptional indicator mineral chemistry • Petra enters into Strategic Cooperation Agreement with AIM-quoted Xceldiam Limited with regards to Project Luangue • Kono project in Sierra Leone delivers first production in June 2006 • Petra's operations in Botswana make solid exploration progress Post Quarter End Highlights • Identification of the 50th kimberlite at Alto Cuilo • Bulk sample drill and DMS plant arrive in Luanda - bulk sampling set to commence shortly Angola - Project Alto Cuilo • Alto Cuilo's potential as a major diamond project is further substantiated, with 50 kimberlitic occurrences now confirmed by drilling (March Quarterly Activities Report: 38 kimberlitic occurrences) out of 60 targets drilled, an exceptional success rate of 83% • Laboratory analysis of drill core revealed a favourable mantle geotherm conducive for diamond formation in conjunction with some highly encouraging diamond stability field mineral grain counts and compositions, consistent with some of the world's economic kimberlite deposits • Approximately 26,000 metres of core drilling has now been completed, illustrating the effectiveness of the three drills now working on site. A total of 190 holes have been drilled to date. • Budget of circa US$20 million for the year to June 2007, to be funded by BHP Billiton, has been approved Botswana - Kalahari Diamonds • 655 line kilometres of ground geophysical follow up carried out on Xcalibur (gradient magnetics) and Falcon targets in the Gope area (5 known kimberlites on Petra's license areas) • Re-gridding of all previous Falcon data completed • Re-interpretation of Falcon data in progress, starting with the Orapa South area • 196 line kilometres of ground geophysical follow up carried out on Falcon anomalies in the Orapa South area • Trenching of magnetic targets in the Orapa North area in progress • Drilling scheduled before December in the Gope area Sierra Leone - Kono project • Diamond recovery from the first bulk samples achieved in June 2006 • Sound bulk sampling infrastructure in place alongside the commissioning of the production plant. • Sinking of first two bulk sampling shafts on diamondiferous fissure well underway with the deepest shaft being 16 metres away from stoping profile. • Aggressive exploration trenching activities reveal additional and very promising diamondiferous fissure strikes. • Continuous exploration and information processing activities are providing a clearer picture of the multiplicity of fissures and their potential within the Kono license area South Africa - Helam, Sedibeng and Star mines • Revenue recorded of £3.3 million for the quarter (quarter to March 2006: £2.9 million); revenue for the year to June 2006 £11.7 million (year to June 2005 (Crown operations): £10.0 million) • Production from the South African mines of 43,378 carats for the quarter, 175,012 carats for the twelve months to June 2006 (twelve months to 30 June 2005: 143,673) • Operating profit before depreciation for the South African operations amounted to £0.6m for the quarter; and £1.2m for the year ended June 2006. • South African mining activities generated £0.7m cash inflow for the quarter which resulted in the South African operations ending the year with a positive cash flow from operating activities of £0.4m. DIAMOND SALES SUMMARY Quarter to; Carats sold Price per carat Sales (average) US$ US$ M 30 June 2006 37,387 151.6 6.031 March 2006 45,349 115.1 5.231 December 2005 33,985 134.4 4.630 September 2005 44,135 118.6 5.212 Months to;30 June 2006 160,856 130.9 21.730 June 2005 141,977 131.1 18.6 DIAMOND PRODUCTION SUMMARY Quarter to; Tonnes Total Diamonds Carats per Treated Recovered 100 tonnes (carats) treated 30 June 2006: ROM 72,295 37,566 51.9630 June 2006: Tailings 56,518 5,812 10.2831 March 2006: ROM 66,409 38,452 57.9031 March 2006: Tailings 40,635 4,542 11.1731 December 2005: ROM 77,799 37,588 48.3131 December 2005: Tailings 49,801 5,554 11.1530 September 2005: ROM 71,894 42,007 58.430 September 2005: Tailings 45,132 3,491 7.712 Months to:30 June 2006: ROM 288,397 155,614 53.930 June 2006: Tailings 192,086 19,398 10.130 June 2005: ROM & tailings 269,947 143,673 53.2 CORPORATE CASH FLOW SUMMARY 3 months to 3 months to 3 months to 12 months to 30 June 2006 31 March 2006 31 December 2005 30 June 2006 £'000 £'000 £'000 £'000 Net operating cash (inflow)/outflow - South African mines (732) 210 271 (373)Net operating cash outflow, excluding exploration activities - Group 171 466 388 2,188Exploration activity outflows- Botswana 255 474 422 1,151- Sierra Leone 396 586 1072 2,607Capex 539 892 629 2,358Net Group cash outflow 1,003 2,166 1,047 11,535 CASH AND STOCK SUMMARY 30 June 2006 31 March 2006 £ million £ million Cash balance 3.7 4.9Diamond stock 1.1 1.2Total 4.8 6.1 Diamond stock is recorded at production cost; REVIEW OF OPERATIONS ANGOLA, PROJECT ALTO CUILO Kimberlite Exploration Ongoing drilling of the anomalies identified by the Midas low level helicopteraeromagnetic survey resulted in the exploration at Alto Cuilo reaching a specialmilestone during July 2006 with the discovery of the 50th kimberliticoccurrence. This is a substantial increase in the number of kimberlites (38) aspreviously reported in the 31 March quarterly report and illustrates the solidprogress being made on a regular basis. The third core drill rig which arrived on site during the quarter hasaccelerated the exploration programme significantly and core drilling now totals26,000 metres on 190 holes. Drilling has also commenced in the north east of theproject area where 4 kimberlites have been identified. The importance of this accelerated drilling programme is evident when it isconsidered that of the total 249 magnetic anomalies, 60 have now been drilledand a total of 50 have been confirmed as kimberlitic. This success ratecontinues to surpass the norms for global kimberlite exploration. The large diameter drill rig has arrived in Luanda and will be operational onsite at Alto Cuilo in August when it will commence drilling on the targetsselected for mini bulk sampling. The 10 tonne per hour mobile dense mediaseparation ("DMS") sample plant and drill rig had been delayed due to componentdelivery constraints, however the drill rig was delivered 4 weeks ahead of therevised schedule and the DMS plant is on schedule to begin processing bySeptember 2006. The drill rig will initially stockpile 200 tonne bulk samplesfrom the most prospective anomalies, and the plant, which is a custom madeclosed circuit unit designed specifically for kimberlite bulk sampling, willstart treating these once it is commissioned. Analysis of kimberlite core from 11 of the kimberlites identified so fardelivered some highly encouraging diamond indicator mineral results. Key datarevealed was as below: (i) Chrome diopside analysis returned a favourable mantle geotherm, indicating that there is a high probability that the kimberlite will have sampled material derived from the earth's diamond stability field at a temperature favourable for the formation of diamonds; (ii) Peridotitic garnet analysis revealed pressure-temperature conditions compatible with the presence of diamond stability field G10 garnets derived from well within the diamond stability field; and (iii) Eclogitic garnet analysis also gave excellent results, with an abundance of high sodium eclogitic garnets in some samples, further increasing the potential for quality diamondiferous kimberlite. Diamond indicator mineral chemistry is crucial in terms of assessing akimberlite's likelihood of hosting diamonds. It is accepted by the world'skimberlite experts that the higher the count of the acknowledged diamondstability field indicators, the higher the likelihood of the kimberlite hostingeconomic grades. The results at Alto Cuilo are very exciting and are comparableto other economic kimberlite deposits around the world. Alluvial Exploration The alluvial pitting and trenching programme continues in order to furtherevaluate the potential for economically viable alluvial deposits, with 507 pitsand 7 trenches having been completed. Trial mining on a section of the Luangueriver is due to commence shortly using the existing 65 tonne per hour DMS plantand earthmoving equipment. It is expected that the trial mining programme willcontinue for 24 months in the area of specific alluvial interest. It is believedthat apart from production of diamonds, invaluable exploration information willalso be gleaned from this alluvial programme. BHP Billiton Joint Venture As at 30 June 2006, BHP Billiton had advanced funding of US$22.8 million (31March 2006: US$16.1 million) to Petra Diamonds Alto Cuilo Limited in respect ofexploration at Alto Cuilo. Xceldiam - Strategic Cooperation On 30 May 2006 Petra entered into a Strategic Cooperation Agreement withXceldiam Limited with regards to Project Luangue. Petra notes with interest theearly drilling success at Project Luangue as announced on 25 July. Core drillingat Project Luangue returned excellent first results, with drilling on the firsttarget intersecting kimberlite. This news supports Petra's belief that ProjectLuangue may host kimberlite geology similar to that of Project Alto Cuilo andPetra looks forward to further developments from Project Luangue. Botswana, Kalahari Diamonds The exploration field effort has gathered momentum with the change in focus fromprimarily large kimberlites (> 20 hectares), to also include smaller kimberlites(approx 10 hectares) that would not necessarily be detectable by Falcon airbornegravity under deep (> 50 metres) Kalahari cover. Gope Geophysical targets from Xcalibur and Falcon surveys in the Gope area have beenprioritised by their geophysical response compared to the known kimberlites fromthe orientation survey conducted last quarter, and their spatial relationshipcompared to the known kimberlitic indicator minerals ("KIM") anomaly that hasbeen compiled from data collected by previous exploration companies. This KIMhalo is offset from the known Gope kimberlites by at least 12 kilometres, and istherefore probably not related to the known bodies, implying that there could bepotentially large, undiscovered kimberlites in the Gope field. A total of 41 targets have been investigated in the Gope area by follow upground geophysics this quarter, identifying a number of co-incident gravity andmagnetic anomalies with similar characteristics to known Gope kimberliteswithin, and directly adjacent to, the KIM halo. A drilling program to test theseanomalies will commence in the latter part of this year. Orapa South Fieldwork has commenced in the northern portions of our Orapa South area,following up targets identified from the re-gridded Falcon magnetic and gravitydata. A total of 13 anomalies have been investigated by ground follow-upgeophysics, starting with targets in the north of the Orapa South flight blocks- directly south of the Orapa kimberlite field, and some short distance awayfrom AK6, currently being evaluated by De Beers and African Diamonds. Thislocality has a Kalahari sand cover of up to 30 metres and thus a dedicated KIMsurvey will also be undertaken, so as to assist in selection and interpretationof anomalies. Orapa North A total of 9 anomalies selected from ground and airborne magnetic and groundgravity data were investigated by trenching in the Orapa North area. Trenchingwas chosen as the preferred method of ground follow-up as Kalahari cover isnegligible, and calcrete horizons seldom exceed 3 metres in thickness. Alltrenches (but one) intersected bedrock (Stomberg Basalts in all cases). Sampleswere taken from all trenches for heavy mineral extraction at Petra's preparationlaboratory at Swartruggens, South Africa. Mabutsane / Thswaane A ground gravity survey was carried out over the large (diameter 1.5 kilometre)gravity-only anomaly that was drilled during the quarter to December 2005. Thiswas done as specific gravity determinations on cuttings recovered from this holefailed to explain the cause of the anomaly and to facilitate geophysicalmodelling of the causative body. Modelling was carried out by the BHP BillitonFalcon unit in Melbourne, and the 3D SolidEarthTM model produced indicates alarge pipe-like 'unit' extending from about 200 metres depth to about 1800metres depth. The top of this unit is deeply concave and was not penetrated bythe borehole drilled in 2005. If a kimberlite model is to be assumed, the modelsuggests about 4 lobes of low density material, coalescing at depth. One mayexpect these lobes to form one very large crater, which, given absence of KIM'sin the drill hole and surrounds, could have been infilled by late Karoo grouprocks and later, covered again by the Kalahari beds seen today. A decision willbe made this quarter as to whether to deepen the existing hole in the centre ofthe anomaly, or to drill on the edge of the anomaly where the causative bodycould be closer to surface. The final Tshwaane data has been received from BHP Billiton and anomalies are inthe process of being selected for ground follow-up work. Sierra Leone - Kono Project The plant was commissioned and first diamonds recovered from the Kono project onschedule in June 2006. The recovery of 5.6 carats of diamonds, including a 1.4carat stone, from the small amount of material processed was highly encouraging.Sinking of the production shafts is on track and we look forward to furtherdevelopments at Kono over the coming months. Infrastructure Development Since the last quarterly report the construction of the production plant at thecentral base camp in Yengema Village was completed on schedule in May 06. Theplant was successfully commissioned in early June 2006. The treatment of samplesthen commenced, with a very positive macro and micro diamond recovery rate onthe grease table. Sample Treatment As at 30 June, 44 diamonds totaling 5.6 carats had been recovered, the largestbeing a stone of 1.4 carats. The samples processed to date comprise mixed anddiluted material from exploration and shaft sinking operations. The results,whilst very encouraging, are not large enough to arrive at any representativegrade. Sample treatment is ongoing. Exploration Development Shaft sinking operations are proceeding well and a sound infrastructure is inplace alongside the DMS plant. Two shafts, both of which are on kimberlitefissure, are in progress with the deepest (Black Rock) being at a depth of 13.5metres and the second (Lost Shaft) at a depth of 9 metres. The shafts will besunk to a depth of around 30 metres before stopes are prepared to accessproduction test tons of fissure. Exploration trenching uncovered two very promising diamondiferous fissurestrikes at Levuma on the Lion 5 dyke extensions and Yendema south west of theoriginal Lion 2 dyke strike. Exploration trenching is underway at Bundofulahan,a fissure strike north of Lion 4. At Bardu, a south-west extension of the Lion 5dyke extension also exists, with exploration results expected by September 2006. With the multiplicity of diamondiferous fissures available and the informationat hand, the short term bulk sampling and exploration focus was reviewed inorder to continuously improve the efficiency and effectiveness of the project. The short term objectives for the next six months are as follows: • to aggressively step up the sinking operations at Black Rock and Lost Shaft in order to access production test tons of diamondiferous fissures by mid October 2006; • the roll out of three test shafts up to a depth of 20 metres in order to access mini bulk sample test tons on three of the most promising diamondiferous fissure strikes which were recently uncovered during exploration trenching; and • to maintain the aggressive exploration activities using numerous rolling exploration trenches in order to uncover additional diamondiferous fissure strikes and to create a better understanding of the characteristics of the diamondiferous fissures available. The shaft sinking programme will be aggressively stepped up by theimplementation of a second shift supported by additional shaft sinkingspecialists from Petra's South African operations. The aim is to phase over fromshaft sinking to stoping activities as soon as possible in order to gain accessto production test tons in the quarter to December. This is necessary in orderto accurately determine the grade of the deposit and to get a sample of diamondslarge enough to ascertain the quality of the diamonds by December 2006. The roll out of three test shafts on the most promising diamondiferous dykestrikes recently uncovered by exploration trenching will enable Petra to gainaccess to mini-bulk samples in order to identify and determine the mostpromising kimberlite dykes. If the results are favourable the test shafts couldbe seamlessly converted into bulk sampling shafts. The aggressive rolling exploration trenching method has proven to be a veryeffective and cost efficient method of quickly exploring the fissuressurrounding the central base camp and processing infrastructure. It isenvisaged that six additional trenches will be opened, the fissure penetratedand the result evaluated by December 2006. The integrated result of the above mentioned activities will provide Petra witha better understanding of the diamondiferous fissures available, their potentialand the project strategy ahead. South Africa The combined operations produced a total of 43,378 carats for the quarter. Asnoted in the previous quarterly report dated 30 April 2006, the productionbuild-up was affected by severe flooding following the unusually high rainfallexperienced in South Africa for the period mid-February to mid-April inconjunction with power interruptions due to these unusual weather conditions. Star Mine A total of 7,964 ROM fissure tonnes was delivered to the plant for 2,788 carats,yielding a grade of 35 carats per hundred tonnes ("cpht") for the quarter. Inaddition 10,051 tonnes of tailings were processed for 1,105 carats. Thisresulted in a total of 3,893 carats for the combined Star operations. During the quarter the sealing and support of the 1.4 diameter raise-boreventilation shaft was completed. The final shaft inspection indicated thatadditional support was required in the area where the shaft intersects the shaleformations and this was completed by the contractor during July. The requiredreturn-ventilation airways have been completed on 13 level and ventilationdistricts in the Burns operational sections will be established during the firstquarter of FY 2007 to improve the underground ventilation conditions. Theimproved conditions will assist in increasing production from undergroundoperations. In the Wynandsfontein section the 3 new panels on 15 level continue to producewell. The difficult 10 level haulage is contributing to hauling problems and anincrease in loco maintenance. Replacement of the 10 level haulage by the 14level haulage has been rescheduled and will be commissioned by June 2007 In the Burns section, all 15 level panels are producing well. Further, theprimary development on this level will be fast tracked (because of betterventilation) to establish multiple production stopes to assist the productionbuild-up in the 2nd quarter of FY 2007. The three panels being mined intraditional fashion on 14 level east are still producing well and with theimproved ventilation conditions additional production from this historicallyhigh grade area is anticipated. With the raise-bore shaft now completed the deepening of the main shaft between12 and 14 levels will be fast-tracked so as to reduce ore handling problems. The plant front-end washing and crushing section was commissioned during thequarter. Helam Mine A total of 31,060 ROM fissure tonnes was delivered to the plant for 26,460carats, yielding a grade of 85 cpht for the quarter. In addition 2,153 caratswere produced from the tailings operation. This resulted in a total of 28,613carats for the combined operation. The slyping and equipping of John Main Shaft to 20 level and the pilot raisingof the main shaft between 21 and 20 level was completed. The break-away fromthe west-sub shaft to the 22 level main shaft station positioning commencedduring the quarter. The Second Lease incline project has progressed well with the loadingarrangement on 17 level now complete. Production from 17 level stope and therequired development waste to establish multiple stopes on this level, which hasup to now been trammed along the traditional route, will henceforth be hoistedvia this route to John Main Shaft. This will relieve pressure on the east subvertical shaft and allow more total tons to be hoisted. The John Main Shaft skip hoisting and loading arrangements were completed andcommissioned. This additional hoisting capacity will be utilized for productionfrom Second Lease and waste development to open-up required productionresources. At Edward Shaft the establishment of 25 level is progressing well. On surface,the manufacturing of the ore handling upgrade system (similar to John Shaft) hasbeen completed and will be commissioned shortly. This will result in a furtherreduction of labour cost. Sedibeng Mine A total of 33,271 ROM fissure tonnes was delivered from the mining operation,which yielded 8,318 carats at a ROM grade of 25 cpht. In addition 2,554 caratswere produced from the Dancarl tailings operation at a grade in excess of 7cpht. This resulted in a total of 10,872 carats for the combined operation. At Sedibeng production is going well but was beneath original call due todifficult ground conditions on 23 level that has delayed proper stopedevelopment by nine months. However, these bad conditions have now beennegotiated and stope establishment is now continuing as planned. The deepeningof the west sub shaft to 24 level is progressing well and is eight metres shortof level. The 20 South drive into the Dancarl section is now 50 metres short of beingvertically beneath Dancarl main shaft. The planning to initiate a raise-boreholing to the bottom of Dancarl main shaft is progressing as scheduled. Capex has been approved for the construction of a complete new DMS diamondrecovery plant incorporating all modifications that will be of benefit tooperations. This plant will cater for all production (present and future) fromthe Sedibeng mining and tailings. It is anticipated that when this plant iscommissioned in the quarter to March 2007 it will result in a dramatic reductionin operating cost and a significant improvement in diamond security. JOHAN DIPPENAARCHIEF EXECUTIVE OFFICER Notes 1. The information in this report that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Jim Davidson, Pr.Sci Nat (reg No 400031/06), who is a Member of the Geological Society of SouthAfrica, a 'Recognised Overseas Professional Organisation' ('ROPO'), included ina list promulgated by the ASX from time to time. Jim Davidson is a full-timeemployee of the Company and has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person as defined inthe 2004 Edition of the 'Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves'. Jim Davidson has given his written consentto the inclusion in this report of the matters based on his information in theform and context in which it appears. 2. It should be noted that the potential quantity in this report is conceptualin nature, there has been insufficient exploration to define a Mineral Resourceand it is uncertain if further exploration will result in the determination of aMineral Resource. For further information, please contact: Cathy Malins / Annabel Leather Telephone: +44 (0) 20 7493 3713Parkgreen Communications, London Rule 5.3 Appendix 5B Mining exploration entity quarterly report* Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98,30/9/2001. Name of entityPetra Diamonds Limited ACN or ARBN Quarter ended ("current quarter") 114474574 30 June 2006 Consolidated statement of cash flows* Current quarter Year to dateCash flows related to operating activities £'000 £'000 12 Months 1.1 Net loss before taxation (6,113) (6,518)1.2 Adjustments for: - Depreciation and amortisation 793 2,887 - Foreign exchange loss/(gain) 5,205 2,107 - Other non cash items 29 1241.3 Operating profit /(loss) before working capital changes (86) (1,400)1.4 (Increase)/Decrease in trade and other receivables (106) (174)1.5 (Decrease)/Increase in trade payables (194) 2411.6 (Increase)/Decrease in inventories 291 (546) Cash generated/(utilised) in operations (95) (1,879)1.7 Interest paid (76) (309) Net Operating Cash Flows (171) (2,188) Cash flows related to investing activities 1.8 Payment for a) development expenditure (651) (3,758) b) instalment for equity and subsidiary investments (3,134) c) property plant and equipment (539) (2,358)1.9 Proceeds from sale of: (a) prospects investments (b) equity (c) other fixed assets 461.10 Acquisition of subsidiary net cash 3,1541.11 Interest received 41 2511.12 Other Net investing cash flows (1,149) (5,799) 1.13 Total operating and investing cash flows (carried forward) (1,320) (7,987) 1.13 Total operating and investing cash flows (brought forward) (1,320) (7,987) Cash flows related to financing activities 1.14 Proceeds from issue of shares - net of costs 215 3161.15 Proceeds from sale of forfeited shares1.16 Proceeds from borrowings 128 2,8841.17 Repayment of borrowing - Convertible Notes and other group borrowings (26) (6,579)1.18 Dividends paid1.19 Transaction deal costs (169) Net financing cash flows 317 (3,548) Net (decrease) increase in cash held (1,003) (11,535)1.20 Cash at beginning of quarter/year to date 4,857 15,3751.21 Exchange rate adjustments to item 1.20 (82) (68)1.22 Cash at end of quarter 3,772 3,772 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the relatedentities Current quarter £'000 1.23 Aggregate amount of payments to the parties included in item 1.1 N/A 1.24 Aggregate amount of loans to the parties included in item 1.17 N/A 1.25 Explanation necessary for an understanding of the transactions N/A Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows N/A 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest N/A Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used £'000 £'0003.1 Loan facilities 900 1253.2 Credit standby arrangements Nil Nil Estimated cash outflows for next quarter £'0004.1 Exploration and evaluation 3204.2 Development 560 Total 1,280 Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current quarter Previous quartershown in the consolidated statement of cash flows) £'000 £'000to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 34 8075.2 Deposits at call 3,863 4,5205.3 Bank overdraft (125) (470)5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 3,772 4,857 Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference (note (2)) beginning of end of quarter quarter6.1 Interests in mining tenements relinquished, reduced or lapsed N/A 6.2 Interests in mining tenements acquired or increased N/A Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total number Number quoted Issue price per Amount paid up security per security (see note 3) (see note 3) (pence) (pence)7.1 Preference +securities (description)7.3 +Ordinary securities 148,825,098 148,825,098 - -7.4 Changes during quarter 595,559 595,559 (a) Increases through new issue - - (b) Decreases through returns of capital, buy-backs - - 7.5 +Convertible debt securities - - - - 7.6 Changes during quarter (a) Increases through issues (b) Decreases through conversion and repayment - - - - 7.7 Options (description and conversion factor - see details below) 6,896,375 - See below 7.8 Issued during quarter 1,500,000 - 7.9 Exercised during quarter - Various 7.10 Expired during quarter 262,813 - Various 538,437 Various Options 400,000 Director incentive Options expiring 11 April 2007 with exercise price (average) of 37.5p each 238,875 Employee Incentive Options expiring various dates, exercisable at $A1.12 each 72,500 Employee Incentive Options expiring various dates, exercisable at $A1.36 each 1,500,000 Director incentive Options expiring 5 September 2013 with exercise price of 44p each 2,250,000 Director incentive Options expiring 16 June 2015 with exercise price of 85p each 385,000 Employee incentive Options expiring 5 September 2013 with exercise price of 44p each 50,000 Employee incentive Options expiring 13 September 2014 with exercise price of 56.75p each 500,000 Employee incentive Options expiring 27 November 2015 with an exercise price of 65.75p 1,000,000 Director incentive Options expiring 31 May 2016 with an exercise price of 79.5p 500,000 Employee incentive Options expiring 31 May 2016 with an exercise price of 79.5p Warrants over ordinary shares Exercise Expiry Price 1,500,000 30p 31 December 2007 1,000,000 100p 31 December 2007 1,666,666 55.85p 14 August 2006 200,843 85p 17 June 2008 This information is provided by RNS The company news service from the London Stock Exchange