Tungsten APT USD 19,500 / tonne (26
October 2016)
King Island Scheelite Limited (KIS)
through its 100% Dolphin Project on King Island, Tasmania is one of the world's richest tungsten deposits and could
meet a significant proportion of the world's tungsten requirements over a minimum 13 years.
King Island Scheelite Limited ABN 40 004 681 734
Level 26, 259 George Street Sydney NSW 2000
GPO Box 5154
Sydney NSW 2001 P. +61 2 8622 1400 F. +61 2 8622 1401
www.kingislandscheelite.com.au
Chairman
Director Director
Board of Directors
Johann Jacobs Allan Davies Chris Ellis
ASX: KIS
Market Capitalisation $8.1 million Shares on Issue 165.3 million
52 Week High 11.0 cents
52 Week Low 4.9 cents
Share Price 4.9 cents
Report for the Quarter Ended 30 September 2016
HIGHLIGHTS
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Studies were completed during the Quarter to satisfy EPA requirements for the Revised Environmental Assessment Report
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This final Environmental Assessment Report will be submitted to EPA in November 2016
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Pumping of water out of the open cut void continues so as to maintain a consistent level in the sump
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Tungsten markets remain depressed with limited potential for significant increase in prices
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As a result of current tungsten market the Board is examining the potential of producing a lesser amount of concentrate at a lower grade - a "Start-up Option"
31 October 2016
King Island Scheelite (ASX: KIS)
Report for the Quarter Ended 30 September 2016
King Island Scheelite Limited (Company) is pleased to present its activity report for the quarter ended 30 September 2016.
Environmental Approvals
Additional studies, which include all up to date data, have now been completed and included within a Revised Environmental Assessment Report which will be submitted to the EPA for their review in November 2016. It is expected that amended EPA conditions, reflecting the revised mining operations will be issued early in 2017. These amended conditions will not impact upon the overall approval for the mine.
Definitive Feasibility Study ("DFS") and Start up Option
Work continued on the consolidation of recent studies into a Definitive Feasibility Study. This work can only be completed when the final environmental approvals have been obtained.
Following attendance at the annual International Tungsten Industry Association Annual General Meeting in Stockholm, in September, the Board has decided to examine the potential of staging the development of the Dolphin Mine commencing with a lower production profile producing a lower grade concentrate.
It is anticipated that the preliminary findings of this exercise will be completed within the current Quarter.
Pit Pumping
Consistent with our previous plans, the inflow of water from predominantly rain water runoff, is being managed with the installed smaller pump utilized on a regular basis to maintain a consistent water level in the sump. After a relatively dry second calendar quarter, heavy rains were experienced at Grassy from May through to September. Relatively continuous pumping was required to keep water levels in check.
APT Market
Ammonium Paratungstate prices (APT), the product used as a benchmark price for the sale of WO3concentrate, as it is regularly quoted in industry journals, fell to an 11 year low of $160-170/mtu in November last year -after having reached a high of $460-500/mtu in May 2011. Since then prices have been in decline before gradually rebounding to $215-225/mtu in May 2016. However, prices have slipped back, due to low levels of demand, to around $180-195/mtu in October 2016.
Although this price is above our anticipated production costs, financing the project - both debt and equity - would be extremely difficult and risky. The major impact on the market has been from the drop in specialty steel demand.
Finance
Cash Balance
As at 30 September 2016 the Company's cash balance was $1.95 million.
King Island Scheelite (ASX: KIS)
Report for the Quarter Ended 30 September 2016
KIS group activities have related to exploration, there have been no activities relating to production or development.
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Tenement reference
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Nature of interest
|
|
Mining tenements held at the end of the quarter
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Exploration Licence EL 19/2001 at Grassy, King Island, TAS (91 sq kms)
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100% ownership
|
|
Mining Lease Application MLA 1M/2006 at Grassy, King Island, TAS (544 hectares)
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100% ownership
|
|
Mining tenements acquired during the quarter
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Nil
|
Nil
|
|
Mining tenements relinquished during the quarter
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Nil
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Nil
|
|
Beneficial percentage interests held in farm- in or farm-out agreements at the end of the quarter
|
Nil
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Nil
|
|
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed during the quarter
|
Nil
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Nil
|
|
Following is a summary of the expenditure incurred on exploration activities during the quarter:
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$'000
|
|
Dewatering
|
32
|
|
Project management
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15
|
|
Mine planning & geological work
|
25
|
|
Environmental
|
17
|
Other Feasibility Study work 2
TOTAL 91
Johann Jacobs
Chairman
31 October 2016
King Island Scheelite Limited
Level 26, 259 George Street Sydney NSW 2000
Phone (02) 8622 1400
Fax (02) 8622 1401
Email [email protected]
For further information go to the company's website www.kingislandscheelite.com.au
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Appendix 5B
+Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
KING ISLAND SCHEELITE LIMITED
ABN Quarter ended ("current quarter")
40 004 681 734
30 September 2016
|
Consolidated statement of cash flows
|
Current quarter
$A'000
|
Year to date (3 months)
$A'000
|
|
1.
|
Cash flows from operating activities
|
-
|
-
|
|
1.1
|
Receipts from customers
|
|
1.2
|
Payments for
|
|
(a) exploration & evaluation
|
(91)
|
(91)
|
|
(b) development
|
-
|
-
|
|
(c) production
|
-
|
-
|
|
(d) staff costs
|
-
|
-
|
|
(e) administration and corporate costs
|
(256)
|
(256)
|
|
1.3
|
Dividends received (see note 3)
|
-
|
-
|
|
1.4
|
Interest received
|
4
|
4
|
|
1.5
|
Interest and other costs of finance paid
|
-
|
-
|
|
1.6
|
Income taxes paid
|
-
|
-
|
|
1.7
|
Research and development refunds
|
-
|
-
|
|
1.8
|
Other (provide details if material)
|
19
|
19
|
|
1.9
|
Net cash from / (used in) operating
|
(324)
|
(324)
|
|
activities
|
-
Cash flows from investing activities
-
Payments to acquire:
-
property, plant and equipment
(1) (1)
-
tenements (see item 10) - -
-
investments - -
-
other non-current assets - -
-
+ See chapter 19 for defined terms
1 September 2016 Page 1