Patagonia Gold Regulatory News (PGD)

29 Sep 2005 07:00

Patagonia Gold PLC29 September 2005 29 September 2005 Patagonia Gold Plc Interim Results for the Six Months ended 30 June 2005 CHAIRMAN'S STATEMENT For the six months ended 30 June 2005 Patagonia Gold Plc ("PGD") reported a losson ordinary activities before tax of £1,520,517 (0.6p per share), in line withits budgets and cash forecasts. We are successfully pursuing our dual strategyof developing the company by exploring our existing properties and evaluatingopportunities to add to the business through acquisition. OPERATIONS Exploration PGD is maintaining a high level of exploration activity in southern Argentinaand Chile with up to eleven geologists and supporting technical staff, includingconsultants Nick Callan, Damien Koerber and Chris Cooper, operating in theChubut, Rio Negro and Santa Cruz Provinces of Argentina and across the border inChile. The services of internationally renowned consultants Dick Sillitoe andGreg Corbett are also available to the company for specific projects. We are pleased to report that Quayle Lusty, previously Project Director of theEsquel Gold Project under Brancote's ownership, has been appointed ChiefOperations Officer of PGD. He is resident in Argentina and is responsible forall of our activities in South America. Argentina Crespo Project: Located in south-western Chubut 200 kilometres southeast ofEsquel. The nearest town is Gobernador Costa immediately to the north of theproject. The Project area consists of 6 cateos, plus four minas under option,covering an area of 587 square kilometres. The Crespo Project area contains a number of veins other than Cabana and Jasperveins which were drilled in 2004, and exploration is continuing withinterrogation of the newly acquired high definition 'Quickbird Landsat' imagery,in association with the BLEG anomalies generated from last season's streamsediment survey. This, combined with field investigation has revealed many newtargets. These include the Northern veins which extend over 2.2 kilometres andhave returned surface sample values up to 7.57g/t Au. To the south of the Northern Veins, the El Lazo area is continuing to expand,with several newly discovered vein systems some 1.2 kilometres to the south ofthe original (4.2g/t Au and 497g/t Ag) discovery. These new multiple veinsystems show extreme silicification and alteration, extending over areas of 200mby 200m each, and are presently being mapped and sampled. Our West Veins prospect, with surface samples of up to 14.2g/t Au and 14g/t Ag,may well continue through to the north. This high-prospective area will bemapped and sampled in the fourth quarter of 2005. Environmental Impact Studies (EIS) are currently being prepared and submitted inadvance of drill testing several of the above targets, anticipated early in theforthcoming field season. The Gastre Block: This block of 10 cateos covering 950 square kilometres, islocated in north central Chubut within the proven mineralised belt extendingfrom IMA's Navidad Silver Project in the south east to Aquiline's Calcatreu GoldProject in the northwest, and is considered extremely prospective to host bothbase metal and precious metal mineralization. Mapping and sampling of the area surrounding and between the Copper Hill area(values >3% Cu and 170g/t Ag) and the Copper Dome area (values >1% Cu and >50g/tAg) continues to identify other targets, including a siliceous stockwork zonelocated north of Copper Hill with chip-channel values of up to 0.292g/t Au, 4g/tAg, and 0.75% Cu. This is the same general area where previous rock chip sampleshave returned values up to 5.1g/t Au and 53g/t Ag. Five new trenches over theseanomalous structures are being mapped and sampled to better define their extentand grades. A soil sampling grid over the entire Copper Dome - Copper Hill trendis being expanded to include some previously inaccessible areas, and in-filledover previously identified anomalous areas. New sampling within the Copper Domearea has returned values up to 0.55g/t Au and 11g/t Ag. An EIS is currentlybeing prepared and submitted in advance of drill testing several of the abovetargets, anticipated early in the forthcoming field season. A comprehensive stream sediment survey has been initiated over the entire GastreBlock, targeting possible Navidad style Ag-Pb-Zn mineralization, since therobust Navidad structural trend extends from Navidad to the NW through ourentire block. General: PGD is actively exploring the Patagonia regions of Argentina and Chilewith a large experienced team of competent geologists. In association with the'field exploration' PGD is also pursuing acquisition opportunities by option orjoint venture: Currently four Confidentiality Agreements are in force in orderthat PGD can review data on other companies' properties. Considerable effort by PGD staff continues to be exerted in community relations,and this has produced more efficient co-ordination with provincial authoritiesas well as enhancing landowner relations. We look forward to the results of this season's exploration programmes withanticipation and excitement. In addition we are evaluating a number ofacquisition proposals which could lead to some very interesting opportunities. Sir John CravenChairman 29 September 2005 Unaudited Consolidated Profit and Loss AccountFOR THE SIX MONTHS ENDED 30 JUNE 2005 Six months to Six months to 30 June 30 June 2005 2004 £ £Administrative expenses (426,562) (432,107)Exploration costs (788,391) (902,343)Amortisation of goodwill (378,760) (378,760)Other operating income/(expense) 10,073 (5,063) ----- -----TOTAL OPERATING LOSS (1,583,640) (1,718,273) Interest receivable:- Group 63,123 29,705 ----- -----LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (1,520,517) (1,688,568)TAX ON LOSS ON ORDINARY ACTIVITIES ----- -----RETAINED LOSS FOR THE PERIOD (1,520,517) (1,688,568 __________ __________ LOSS PER SHARE (0.60p) (0.76p)DILUTED LOSS PER SHARE (0.60p) (0.76p) LOSS PER SHARE Weighted Weighted average Six months to average Six months to number of 30 June 2005 number of 30 June 2004 £ shares per share £ shares per shareLoss attributabletoshareholders (1,520,517) 252,281,435 (0.60p) (1,688,568) 221,710,192 (0.76p) Unaudited Consolidated Balance SheetAT 30 JUNE 2005 30 June 30 June 2005 2004 £ £FIXED ASSETSIntangible fixed assets 14,513,583 14,666,071Tangible fixed assets 62,610 54,962Investments 85,210 85,210 ----- -----TOTAL FIXED ASSETS 14,661,403 14,806,243 ----- ----- CURRENT ASSETSDebtors: amounts falling due in less than one year 396,301 102,765amounts falling due in more than one year 16,912 167,197 ----- ----- 413,213 269,962 Cash at bank and in hand 2,245,785 1,591,268 ----- ----- 2,658,998 1,861,230CREDITORS: AMOUNTS FALLING DUEWITHIN ONE YEAR (618,782) (174,089) ----- -----NET CURRENT ASSETS 2,040,216 1,687,141 ----- -----TOTAL ASSETS LESS CURRENT LIABILITIES 16,701,619 16,493,384Provision for deficit of associates (61,341) _________ __________NET ASSETS 16,640,278 16,493,384 __________ __________CAPITAL AND RESERVESCalled up share capital 2,522,814 2,242,814Share premium account 20,577,439 18,092,675Profit and loss account (6,459,975) (3,842,105) ----- -----EQUITY SHAREHOLDERS' FUNDS 16,640,278 16,493,384 __________ __________ Unaudited Consolidated Statement of Total Recognised Gains and LossesFOR THE SIX MONTHS ENDED 30 JUNE 2005 Six months to Six months to 30 June 30 June 2005 2004 £ £ Loss attributable to shareholders of PatagoniaGold PLC (1,520,517) (1,688,568)Unrealised exchange rate movements 370,623 (49,865) ----- -----Total recognised losses for the period (1,149,894) (1,738,433) ----- ----- Unaudited Consolidated Cash Flow StatementFOR THE SIX MONTHS ENDED 30 JUNE 2005 Six months to Six months to 30 June 30 June 2005 2004 £ £ Net cash outflow from operating activities (995,639) (1,520,003)Returns on investments and servicing offinance (54,303) 29,705Capital expenditure (4,190) (2,603)Acquisitions and disposals ----- -----Net cash outflow before use of liquidresources and financing (1,054,132) (1,492,901)Management of liquid resources 1,128,738 (1,459,970)Financing 750 ----- -----(Decrease)/ increase in cash in the period 74,606 (32,181) ----- ----- Notes This report is prepared on the basis of the accounting policies set out in themost recent set of annual financial statements. The report was approved by the Board of Directors on 29 September 2005 The interim statement is unaudited and does not constitute statutory accountswithin the meaning of S240 of the Companies Act 1985. The comparative figuresfor the period ended 30 June 2004 are derived from the Group's statutoryaccounts for the year ended 31 December 2004. Those accounts have been reportedon by the Group's auditors and delivered to the registrar of companies. Thisreport of the auditors was unqualified and did not contain a statement underSection 237(2) or (3) of the Companies Act 1985. Copies of this interim statement are available from the Company's registeredoffice at 15 Upper Grosvenor Street, London W1K 7PJ. This information is provided by RNS The company news service from the London Stock Exchange