FOR THE PERIOD ENDING
30 Sep 2016
CORPORATE
Cash and Cash Equivalents
As at 30 September 2016, the Company had cash of $ 6,782,002.
Joint Venture with Northern Star Resources Limited
As previously announced, the Company and Northern Star Resources Limited ("NST") have formed an unincorporated joint venture
("JV") to advance the Company's Central Tanami Project ("CTP").
In accordance with the JV, management of the exploration activities at the Company's CTP have been handed over to NST who will sole fund all JV expenditure including all CTP exploration and evaluation costs, assessment and development costs, mining of the JV tenements and refurbishing the CTP process plant and associated infrastructure, during the Sole Funding Period.
The Sole Funding Period will expire on the date on which the process plant at the CTP has been refurbished to operating condition and has operated for a continuous 30 day period or has produced 5,000 ounces of gold ore (whichever occurs first). On the expiry of the Sole Funding Period, NST will have earned a further 35% undivided interest in the CTP (taking NST's total JV Interest to 60%).
Sale of Northern Star Resources Limited Shares
During the quarter, the Company sold 250,000 shares in NST at an average price of $5.53 per share receiving approximately $1.37 million (net of transactions costs).
As at 30 September 2016, the Company has 750,000 NST shares remaining.
Litigation with Metals X Limited
On 23 September 2016, the Company announced that it had reached agreement with Metals X Limited ("MLX") that ends the legal proceedings (the "Proceedings") between the parties. The terms of the settlement were:
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each party provides and receives a full discharge and release from any and all claims in respect of, or arising out of or in connection with the subject matter of the Proceedings;
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each party will no longer pursue its claims against the other;
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the Proceedings will be dismissed on a no admission of liability basis; each party will bear its own legal costs; and
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the Company will (jointly and severally with Tanami (NT) Pty Ltd) make payment to MLX of $3,000,000.
In reaching this settlement with MLX, the Company has taken into account its legal advice together with the significant costs and inherent uncertainty of litigation, and the substantial time commitments and distraction that the litigation presents for the board and management.
FOR THE PERIOD ENDING
30 Sep 2016
Coyote Plant Agreement with ABM Resources NL
On 14 July 2016, the Coyote Plant Agreement with ABM Resources NL Initial Lease Term expired and on that date, the management and maintenance of Coyote was handed back to the Company. The Company intends to continue with care and maintenance activities for the foreseeable future.
EXPLORATION
Central Tanami Project (75% Tanami)
During the quarter, compilation of all historical exploration and drill hole information progressed with the generation of composite GIS data sets for the entire project area. Field reconnaissance activities have commenced on identified regional targets within the Joint Venture area.
Commencement of planned drilling programs on the Groundrush-Ripcord and Hurricane-Repulse trends is pending completion of statutory approvals for the programs.
Western Tanami Project (100% Tanami)
Aircore drilling commenced over previously defined surface arsenic anomalies at Rabid South and the Nugget Patch. Results from Rabid South are encouraging with intercepts including 1m @ 14.4 g/t and 1m @ 7.5 g/t coinciding with interpreted NW trending structures. Results were less encouraging from drilling at the Nugget Patch even through surface gold has been detected over the area with the best intersection returning 1m @ 2.4 g/t. A general indication of increasing background grades with depth at both prospects suggests the presence of a 20 - 30m depleted surface zone. Fifty-three aircore holes totalling 3,591 metres were completed during July and drilling is set to resume in November 2016 with an RC rig for greater depth. Samples were taken at 3 metre composites and intervals returning greater than 0.4 g/t have been resampled on 1 metre intervals.
FOR THE PERIOD ENDING 30 SEPTEMBER 2016
Figure 1: Rabid South and Nugget Path Drilling Locations
Figure 2: Rabid South Plan Showing Drill Hole Traces
FOR THE PERIOD ENDING 30 SEPTEMBER 2016
Figure 3: Rabid South Drill Section 7789800 North
Figure 4: Nugget Patch Plan Showing Drill Hole Traces