ASX Announcement
QUARTERLY REPORT
COMPANY DETAILS
ABN: 94 088 488 724
PRINCIPAL AND REGISTERED OFFICE
Level 2
23 Ventnor Avenue West Perth WA 6005
T +61 8 9214 9727 / 9214 9700
F +61 8 9214 9701
W www.strikeresources.com.au
E [email protected]
ASX CODE
SRK
SECURITIES ON ISSUE
145,334,268 listed shares
6,500,000 unlisted options
BOARD OF DIRECTORS
Malcolm Richmond
(Non-Executive Chairman)
William Johnson
(Managing Director)
Matthew Hammond
(Non-Executive Director)
Samantha Tough
(Non-Executive Director)
Victor Ho
(Non-Executive Director)
Farooq Khan
(Non-Executive Director)
COMPANY SECRETARY
Victor Ho
[email protected]
FOR FURTHER INFORMATION
William Johnson
Managing Director [email protected]
30 October 2015
QUARTERLY ACTIVITIES
Strike Resources Limited (Strike or Company) is pleased to present its Quarterly Report for the period ended 30 September 2015.
As at 30 September 2015, Strike had net assets of ~$7.1 million (comprising ~$8.1 million gross cash less provisions/accruals/trade creditors of ~$1 million) (30 June 2015: ~$7.6 million net assets comprising ~$8.4 million cash less provisions/accruals/trade creditors of ~$0.8 million).
During the quarter, Strike continues to examine a range of new strategies for the Company in light of the poor outlook for the iron ore sector and the resources sector in general. In this regard, Strike has been investigating a number of technology related ventures which could form the foundation for a new strategy for the Company. Any such change will necessarily be subject to Strike shareholder approval and compliance with the ASX Listing Rules and Corporations Act.
As reported in the June 2015 Quarterly Report, Strike has consolidated its holding of mineral concessions (over the Apurimac and Cusco Iron Ore Projects in Peru) to the core concessions where JORC Resources have been delineated as well as a number of neighbouring concessions which have strategic value associated with the projects - this has reduced Strike's holding costs in Peru and provides Strike with the flexibility to pursue opportunities to realise value from these iron ore assets in the future if and when favourable market conditions return
On 2 September 2015, Bentley completed its off-market 5.5 cent per share cash takeover bid for Strike, with acceptances received totalling 52,553,493 Strike shares (representing a 36.16% relevant interest in Strike).
There has been a number of Board and corporate changes recently:
-
Farooq Khan was appointed a Director with effect on 1 October.
-
Victor Ho was appointed Company Secretary with effect on 30 September, replacing David Palumbo (a representative of Mining Corporate).
-
Mining Corporate's engagement for the provision of outsourced accounting and company secretarial services to the Company will cease at the end of October. The Board thanks David Palumbo and Mining Corporate for their professionalism and support to Strike.
-
Strike changed its offices on 1 October as a consequence of the transition out of Mining Corporate.
Samantha Tough has advised the Board that she intends to retire and not seek re- election at the upcoming Annual General Meeting (to be held on 30 November 2015), to focus on her other non-executive director roles.
About Strike Resources Limited (ASX:SRK)
Strike Resources is an ASX listed resource company, owner of the high grade Apurimac Magnetite Iron Ore Project and Cusco Magnetite Iron Ore Project in Peru. Strike retains significant cash reserves and is presently reviewing alternative options
PROJECTS
Apurimac Iron Ore Project
Between 2006 and 2014, Strike's primary focus was on the development of its Apurimac magnetite project in Peru, recognised as one of the highest grade, large scale magnetite projects in the world with the potential to support the establishment of a significant iron ore operation.
Current adverse market conditions however have led the Company to suspend all development activities on this and its other iron ore projects in Peru.
Nevertheless, the nature of the Apurimac deposit and the development work undertaken to- date define this project as a potentially strategic asset in Peru which may, when market conditions improve, provide opportunity for the Company to recover value.
The exceptionally high grade 57% Fe is almost twice as high as magnetite deposits developed in Australia; ore bodies are coarse grained and soft, resulting in cheaper processing costs once in production.
A prefeasibility study completed in 2008 and updated in 2010 on the Apurimac Project indicated clear potential for development of a world class iron ore project:
-
JORC Resource of 269Mt of iron ore at Apurimac of 57.3% Fe (142 Mt Indicated at 57.84% Fe and 127 Mt Inferred at 56.7% Fe).
-
Mineralisation predominantly high-grade, coarse-grained magnetite providing comparatively high mass recoveries (>60%) at coarse grind size (>500 microns).
-
Excellent exploration potential within current concessions with several targets containing ironstones grading >60%Fe in similar geological settings to main Opaban concessions.
-
Base case of 20Mtpa of concentrate produced by open pit mining and processing 20 - 27Mtpa of ore with transport of the high grade (>66%Fe) product to the coast via a slurry pipeline for drying and shipment to customers.
-
Attractive life-of-mine operating expenses (2010) of US$ 17 - 20 per tonne of product.
-
Estimated capital expenditure (2010) of US$ 2.6 - 2.9 billion, competitive with other major iron ore projects at the time.
An initial drilling program at Apurimac established 269 Mt resources of high grade, coarse grained magnetite with an average grade of 57.3% iron. Of this, potentially 67 million of Direct Shipping Ore (DSO) at an average grade of 61.5% Fe has been identified.
Cusco Iron Ore Project
The Cusco project lies approximately 150km to the south - east of Apurimac and forms a potential secondary development target for the Company in Peru with an initial inferred resource estimate of 104Mt at 32.6% Fe.
Like Apurimac, iron ore mineralisation at the project is coarse grained and dominated by magnetite, with high grades recorded. Preliminary metallurgical tests indicate a concentrate grade of >65% Fe could be produced from this ore using conventional grinding and magnetic separation processes.
JORC MINERAL RESOURCES
The following JORC Code compliant (2004 and 2012) Mineral Resources estimates are as at the end of the quarter and currently:
Apurimac Iron Ore Project (Peru) (Strike - 100%)
The Apurimac Project has a JORC Code (2012 Edition) compliant Mineral Resource of 269.4 Mt, consisting of:
-
a 142.2 Mt Indicated Mineral Resource at 57.8% Fe; and
-
a 127.2 Mt Inferred Mineral Resource at 56.7% Fe.
Category
|
Concession
|
Density t/m3
|
Mt
|
Fe%
|
SiO2%
|
Al2O3%
|
P%
|
S%
|
Indicated
|
Opaban 1
|
4
|
133.71
|
57.57
|
9.46
|
2.54
|
0.04
|
0.12
|
Indicated
|
Opaban 3
|
4
|
8.53
|
62.08
|
4.58
|
1.37
|
0.07
|
0.25
|
Inferred
|
Opaban 1
|
4
|
127.19
|
56.7
|
9.66
|
2.7
|
0.04
|
0.2
|
Total Indicated and Inferred
|
269.4
|
57.3
|
9.4
|
2.56
|
0.04
|
0.16
|
The information in this JORC Resource table was prepared and first disclosed under the 2004 JORC Code (in Strike's ASX announcement dated 11 February 2010: Peruvian Apurimac Iron Ore Project Resource Increased to 269 Million Tonnes) and has subsequently been upgraded to comply with the 2012 JORC Code and disclosed in Strike's ASX Announcement dated 19 January 2015: Apurimac Mineral Resources Updated to JORC 2012 Standard.
Cusco Iron Ore Project (Peru) (Strike - 100%)
The Cusco Project has a JORC Code (2004 Edition) compliant Mineral Resource of 104.4 Mt Inferred Mineral Resource at 32.62% Fe.
Category
|
Concession
|
Density t/m3
|
Mt*
|
Fe%
|
SiO2%
|
Al2O3%
|
P%
|
S%
|
Inferred
|
Santo Tomas
|
4
|
104.4
|
32.62
|
0.53
|
3.19
|
0.035
|
0.53
|
The information in this JORC Resource table was prepared and first disclosed under the 2004 JORC Code (in Strike's ASX announcement dated 17 June 2011: Cusco Project - Resource Estimate). It has not been updated since to comply with the 2012 JORC Code on the basis that the information has not materially changed since it was last reported.
LIST OF MINERAL CONCESSIONS
The following mineral concessions were held as at the end of the quarter and currently:
Apurimac Iron Ore Project (Peru) (Strike - 100%)
Name
|
Area (Ha)
|
Province
|
Code
|
Title
|
File No
|
(1) Opaban I
|
999
|
Andahuaylas
|
5006349X01
|
No 8625-94/RPM Dec 16, 1994
|
20001465
|
(2) Opaban III
|
990
|
Andahuaylas
|
5006351X01
|
No 8623-94/RPM Dec 16, 1994
|
20001464
|
(3) Ferrum 1
|
965
|
Andahuaylas
|
010298304
|
No 00228-2005-INACC/J Jan 19, 2005
|
11053798
|
(4) Ferrum 4
|
1,000
|
Andahuaylas/ Aymaraes
|
010298604
|
No 00230-2005-INACC/J Jan 19, 2005
|
11053810
|
(5) Ferrum 8
|
900
|
Andahuaylas
|
010299004
|
No 00232-2005-INACC/J Jan 19, 2005
|
11053827
|
(6) Cristoforo 22
|
379
|
Andahuaylas
|
010165602
|
RP2849-2007-INGEMMET/PCD/PM Dec 13, 2007
|
11067786
|
(7) Ferrum 31
|
327
|
Andahuaylas
|
010552807
|
RP 1266-2008-INGEMMET/PCD/PM May 12, 2008
|
11076509
|
(8) Ferrum 37
|
695
|
Andahuaylas
|
010621507
|
RP 1164-2008-INGEMMET/PCD/PM May 12, 2008
|
11076534
|
(9) Wanka 01
|
100
|
Andahuaylas
|
010208110
|
TBA
|
TBA
|
(10) Sillaccassa 1
|
700
|
Andahuaylas
|
010212508
|
RP 5088-2008-INGEMMET/PCD/PM Nov 19, 2008
|
11084877
|
(11) Sillaccasa 2
|
400
|
Andahuaylas
|
010212608
|
RP 3183-2008-INGEMMET/PCD/PM Sept 8, 2008
|
11081449
|
Cusco Iron Ore Project (Peru) (Strike - 100%)
Name
|
Area (Ha)
|
Province
|
Code
|
Title
|
File No.
|
(1) Flor de María
|
907
|
Chumbivilcas
|
05006521X01
|
No 7078-95-RPM Dec 29, 1995
|
20001742
|
(2) Delia Esperanza
|
1,000
|
Chumbivilcas
|
05006522X01
|
No 0686-95-RPM Mar 31, 1995
|
20001743
|
(3) El Pacífico II
|
1,000
|
Chumbivilcas
|
05006524X01
|
No 7886-94/RPM Nov 25, 1994
|
20001746
|
Paulsens East Iron-Ore Project (Western Australia) (Strike - 100%)
Tenement No
|
Status
|
Grant Date
|
Expiry Date
|
Area (blocks/Ha)
|
Area (km²)
|
Retention Licence RL 47/7
|
Granted
|
4/12/14
|
4/12/19
|
~381 Ha
|
~3.81
|
Other matters:
-
In light of the uncertainty around the status of Cuervo Resources Inc., the parent of the Peruvian subsidiary that holds the concessions for the Cerro Ccopane Iron Ore Project (over which Strike has partial security for C$5.25 million advanced to Cuervo), Strike has determined not to recognise its interest in the Cerro Ccopane Project.
-
No other mineral concessions were acquired or lapsed during the quarter.
-
No farm-in or farm-out agreements are in effect.