TIDMMTL
RNS Number : 5739L
Metals Exploration PLC
20 April 2018
METALS EXPLORATION PLC
QUARTERLY UPDATE TO 31 MARCH 2018
Metals Exploration plc (AIM: MTL) ("Metals Exploration" or "the
Company"), the natural resources exploration and development
company with assets in the Pacific Rim region, today provides a
quarterly update on matters relating to the construction and
development of its Runruno gold-molybdenum project (the "Project")
in the Philippines.
AIM Code: MTL Summary:
At: 20 April 2018
Shares in Issue: 2,071,334,586 The Company is pleased to report that
Warrants: 100,000,000 subsequent to the period end and within
the last week, the Company has achieved
Directors: and maintained 100% design throughput
Ian Holzberger, Executive at its BIOX(R) circuit. While clearly
Chairman early days, this is a significant achievement
Timothy Dean for the Company and maintaining this
Guy Walker level of throughput will facilitate
Julian Wilson achieving higher gold recoveries.
Eduard Simovici
Mining Operations
Management:
Ian Holzberger, Executive * Mining operations begin to benefit from the
Chairman commissioning of the Tullingan waste dump.
Liam Ruddy, Company Secretary
Andrew Rodgers, CFO
Peter Storey, GM Operations * Komatsu mining equipment is approaching its first
Ian Moller, Country Manager scheduled major components replacement stage
Roland Taganas, Legal requiring a progressive work through program.
Counsel
Tommy Alfonso, Financial
Controller
For further Information Processing Operations
please contact:
* 10,593 ounces of gold were poured during the quarter.
Metals Exploration plc
Ian Holzberger: +61 41
888 6165 * The Runruno Process Plant team has taken full control
Liam Ruddy; +44 7911 of the BIOX(R) ramp-up and implemented its own
719 960 working protocols.
Andrew Rodgers; +61 412
429 856
* The BIOX(R) circuit had achieved a throughput of 45%
Nominated Adviser & Broker: in ramp-up at the end of the quarter; subsequent to
Canaccord Genuity Limited the end of the quarter, the BIOX(R) circuit reached a
Martin Davison; James milestone event achieving and maintaining 100% of the
Asensio +44 (0) 207 523 4689 design throughput rate.
Public Relations:
Tavistock * The BIOX(R) circuit bio-mass has demonstrated strong
Jos Simson; Barnaby Hayward resilience and excellent health.
+44(0) 207 920 3150
Finance
* 11,338 ounces of gold were sold during the quarter at
an average realised gold price of US $1,328.14 per
ounce.
* Poured gold doré inventories at 31 March 2018
totalled 1,242 ounces.
* Cash at bank at 31 March 2018 was US$1.74 million.
* Total interest-bearing liabilities as at 31 March
2018 were US$90.8 million.
Recent photographs of the project have
been uploaded onto the website and can
be accessed by clicking on the following
link:
http://metalsexploration.com/overview.html
Production Summary
Mining Operations
Key Metric Unit of measure Quarter ended Year to date Period to 31 Dec Period to 31 Dec
31 Mar 2018 2018 2017 2016
Mining
activities
Ore mined tonnes 353,960 353,960 1,815,669 490,558
Waste mined tonnes 1,472,217 1,472,217 7,644,821 7,920,205
----------------- ---------------- ----------------- -----------------
Total material movements 1,826,177 1,826,177 9,460,490 8,410,763
---------------- ----------------- ----------------- -----------------
Strip ratio waste/ore 4.16 4.16 4.05 15.15
Au grade mined grams/tonne 1.60 1.60 1.62 1.42
----------------- ---------------- ----------------- -----------------
Ctd(1). ounces
gold mined ounces 18,250 18,250 92,363 22,396
----------------- ---------------- ----------------- -----------------
S(2) grade % 0.99 0.99 0.82 0.29
----------------- ---------------- ----------------- -----------------
Processing activities
Tonnes milled tonnes 435,775 435,775 1,688,254 468,170
S(2) feed grade % 0.96 0.96 0.82 0.53
----------------- ---------------- ----------------- -----------------
Au feed grade grams/tonne 1.38 1.38 1.38 1.29
----------------- ---------------- ----------------- -----------------
Gold recovery % 54.7% 54.7% 47.9% 51.0%
----------------- ---------------- ----------------- -----------------
Gold poured ounces 10,593 10,593 36,006 8,166
----------------- ---------------- ----------------- -----------------
Gold sold ounces 11,338 11,338 35,697 6,489
----------------- ---------------- ----------------- -----------------
Notes: (1) 'Ctd.' means 'contained' (2) 'S' represents the
element Sulphur
Mining operations are benefitting from being able to use the
Tullingan waste dump which provides shorter haul distances combined
with dumping flexibility and capacity during wet weather. The
Komatsu equipment has reached mid-life and requires a program of
maintenance, during which major components are either changed out
or re-manufactured to ensure its ongoing reliability. Two
additional trucks have been sourced on a short term hire bases to
ensure production during this period.
Productivity during the quarter was impeded with mechanical
breakdowns and further preparatory and safety works to the
Tullingan waste dump. The benefits of these works are now being
delivered at Runruno.
Process Plant
Significant advances have been made in the Processing Plant with
the BIOX(R) circuit having achieved 100% of design throughput rate
after the end of the quarter within the last week. The circuit will
now be stabilised before the remainder of the processing circuit is
brought into balance with the now performing BIOX(R) circuit. A
corresponding improvement in the overall gold recovery circuit,
building towards the design recovery of 91%, is expected.
Contemporaneous with the commencement of the quarter the FCF
site operating team took full control of the BIOX(R) ramp-up. At
that time the physical and chemical parameters used to operate the
circuit were significantly adjusted and a new site developed
control philosophy instituted with positive effect. Further fine
tuning of these parameters over the quarter underwrote the ramp-up
which commenced from a zero base. As the quarter progressed the
bio-mass demonstrated increasing strength and resilience behaving
in a manner hitherto unseen. During the ramp-up two power
interruptions external to the Runruno operation but impacting its
power supply and consequently the BIOX(R) air supply occurred. It
is management's view that if both of these events were to have
occurred previously they would likely have set the circuit back 6
weeks for each event. However, with the newly established strength
and resilience the circuit was quickly re-established and ramp-up
continued. The circuit has shown evidence of further strengthening
the closer it got to design throughput. The circuit is also now
demonstrably more resilient.
A detailed assessment by the processing team identified that
some of the reagents used in the processing circuit which were
present in the BIOX(R) circuit, when combined were acting to impede
the BIOX(R) processes either physically or chemically. These
specific reagents have now been isolated and where possible
replaced to the operating benefit of the BIOX(R) circuit.
Additional initiatives to further mitigate the impacts of
unscheduled power outages have been identified and are being
continuously implemented.
Residual Storage Impoundment ("RSI")
RSI construction works in stage 4 are near complete while stage
5 works are well established.
The Tullingan overflow waste dump has been established and the
dumping of waste commenced. The dump's availability has improved
the efficiency of the mining fleet cycle and provides flexibility
to the mining operations.
Occupational Health & Safety
The Runruno gold mine has an impressive occupational health and
safety record since commencement of operations and this continued
throughout the quarter ended 31 March, with no lost time accidents
reported. The Company is fully committed to providing a safe and
healthy workplace for everyone at Runruno engaged in mining and
support services at all times.
Environment and Compliance
The operation remains compliant with all environment and
regulatory requirements with no incidents recorded.
It maintains very high environmental standard.
Community & Government Relations
Productive relations with both the community and the government
have been maintained.
Finance (Unaudited)
-- 11,338 ounces of gold were sold during the quarter at an
average realised gold price of US $1,328.14 per ounce;
-- Poured gold inventories as doré at 31 March 2018 totalled 1,242 ounces;
-- Interest payments of US $1.174 million were made to the senior lenders in the quarter;
-- Capital payment due to senior lenders on 29 December 2017 and
29 March 2018 totalling of US $12.96 million have been agreed to be
deferred until 30 June 2018;
-- The Company is in discussions with financial lenders to
restructure the Group debt facilities;
-- The Company secured a US$2 million standby loan facility from
its major shareholders of which US$1 million has been drawn to
date;
-- Total interest-bearing liabilities as at 31 March 2018 were US $90.80 million; and
-- Cash at bank at 31 March 2018 was US $1.74 million. The
movement in cash balances during the quarter is summarised as
follows:
Cash movements & balances (unaudited) Quarter ended
31 March
2018 US$M
Receipts from gold sales 14.945
Operating expenditure (13.393)
Standby loan facility proceeds 1.000
Corporate costs/receipts (0.136)
Cash flows before finance costs 2.416
Interest and financing costs
paid (1.174)
Net movement for quarter 1.242
Cash balance at start of quarter 0.502
Cash balance at end of quarter 1.744
--------------
- END -
Mr Ian Holzberger, a director of the Company, who has been
involved in the mining industry for more than 45 years, is a Member
of the Australasian Institute of Mining and Metallurgy and the
Australian Institute of Geoscientists, has compiled, read and
approved the technical disclosure in this regulatory
announcement.
Forward Looking Statements
Statements relating to the estimated or expected future
production, operating results, cash flows and costs and financial
condition of Metals Explorations, planned work at the Company's
projects and the expected results of such work are forward-looking
statements. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by
words such as the following: expects, plans, anticipates,
forecasts, believes, intends, estimates, projects, assumes,
potential and similar expressions. Forward-looking statements also
include reference to events or conditions that will, would, may,
could or should occur. Information concerning exploration results
and mineral reserve and resource estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what
might be found to be present when and if a project is actually
developed.
These forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable at the time they are made, are inherently subject to a
variety of risks and uncertainties which could cause actual events
or results to differ materially from those reflected in the
forward-looking statements, including, without limitation:
uncertainties related to raising sufficient financing to fund the
planned work in a timely manner and on acceptable terms; changes in
planned work resulting from logistical, technical or other factors;
the possibility that results of work will not fulfil
projections/expectations and realize the perceived potential of the
Company's projects; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold
reserves and resources; risk of accidents, equipment breakdowns and
labour disputes or other unanticipated difficulties or
interruptions; the possibility of environmental issues at the
Company's projects; the possibility of cost overruns or
unanticipated expenses in work programs; the need to obtain permits
and comply with environmental laws and regulations and other
government requirements; fluctuations in the price of gold and
other risks and uncertainties.
For further information please visit or contact
www.metalsexploration.com
Ian R. Holzberger (Executive Chairman) +63 (0) 9189 795 992
+61 (0) 418 886 165
Liam A. Ruddy (Company Secretary) +63 (0) 918 979 2931
+44 (0) 7911 719 960
Andrew Rodgers (Chief Financial Officer) +61 412 429 856
Nominated Adviser and Broker: CANACCORD GENUITY LIMITED
Martin Davison, James Asensio +44 (0) 207 523 4689
Public Relations: TAVISTOCK
Barnaby Hayward, Jos Simson +44 (0) 207 920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLFKKDQPBKKNQB
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April 20, 2018 02:00 ET (06:00 GMT)
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