Trading Update
12 Dezembro 2003 - 9:14AM
UK Regulatory
RNS Number:1977T
Angus & Ross PLC
12 December 2003
ANGUS & ROSS PLC ("ANGUS & ROSS" OR "THE COMPANY")
12th December 2003
ANGUS & ROSS MAKES ENCOURAGING PROGRESS IN BRAZIL,
DRILLING TO START IN AUSTRALIA,
PREPARATION FOR ALLUVIAL PRODUCTION,
NEW FUNDS RAISED AND
OTHER CORPORATE DEVELOPMENTS
BRAZIL
Gold and tantalum mining company Angus & Ross plc is pleased to announce
encouraging results from recent reconnaissance field work and geological studies
on two blocks of exploration licences located in the state of Rio Grande del
Norte in north-east Brazil.
Brazilian geological consultants Aurisearch Ltda have produced a positive
appraisal of the potential for discovery of significant shear-hosted quartz vein
or skarn-hosted gold mineralisation within Angus & Ross's 100% owned licences in
the Serido Schist Belt, Rio Grande del Norte. The Aurisearch report highlights
the nearby Bonfim discovery by Canadian-based Verena Minerals Corp within the
same Schist belt as evidence for this potential. Verena have reported that the
resource at Bonfim now exceeds one million ounces and exploration continues.
CVRD, one of Brazil's major mining companies, has also recently staked a large
area of land on the same belt.
In response to the recommendations, Angus & Ross plc have commissioned
Aurisearch to commence a two-month regional stream-sediment sampling programme
throughout the licence blocks.
Also in Rio Grande del Norte, a gold-bearing quartz-breccia outcrop has been
discovered on Angus & Ross's 51% owned Mineracao Condessa licences at the
southern end of the Schist Belt, which is suspected to be the source of the
previously reported Acari gold-tantalum alluvials. Trenching and sampling of
both the breccia and alluvials is being carried out by Auriseach concurrently
with the regional survey of the licence blocks.
DRILLING TO START IN AUSTRALIA
The recent boom of mining exploration in Australia has produced a large increase
in demand for drilling rigs and experienced drillers. This high demand and
expansion of programmes has resulted in unavoidable delays to a proposed
drilling programme at the company's Top Camp gold - copper prospect in the
Cloncurry area of north-west Queensland. We expect this programme to commence
early next week.
The programme of 4 holes for 800 metres is designed as an initial test of an
anomalous gold zone defined by geochemical soil and rock chip sampling. Coarse
nugget gold seems to be sourced from this zone. Assay results from this
programme should be available in January.
PREPARATION FOR ALLUVIAL PRODUCTION
At Rutherford's Table bulk sampling has encouraged the company to treat the gold
bearing gravels on an alluvial flat - flanking the "mesa" (from which the
prospect and the old mine gets its name). Water supply dams are being repaired
and enlarged in preparation for the monsoonal wet season. We expect to commence
small-scale production as soon as an adequate water supply is available and the
ground dry enough to commence mining. The end of the wet season is unpredictable
but is generally around late March.
Also at Rutherfords Table preparations are underway for drilling of two defined
targets; a potential shallow deposit peripheral to, and including, previous
underground workings, and a conceptual primary source for the shallow deposit
and the alluvial gold.
NEW FINANCING
Angus & Ross announces that 4,000,000 new ordinary shares have been placed with
a single institutional investor, RAB Capital Limited, at a price of 7.5p per
share. The placing is conditonal upon the admission of the new shares to AIM. It
is intended to apply for the admission of these new shares to AIM on or before
13th January 2004. The placing will raise the company #300,000. In addition RAB
Capital has been given an 18 month warrant to subscribe for a further 4 million
shares at 10 pence. This association with a major investment fund demonstrates
the increasing confidence being shown by investors in the company's new business
plan based on expected gold production and exciting exploration in Australia and
Brazil.
ISSUED CAPITAL FOLLOWING COMPLETION OF TRANSACTIONS
In recent days completion of the various previously reported deals with parties
in Australia and Cabot in Boston have triggered the issue of 5.4 million new
shares. In addition, a fee of #4,000 ( payable in shares ) has been paid to Mr
Paul Williams in recognition of his services in introducing the Australian
shareholders to Angus & Ross plc.
After the issue of four million shares to RAB Capital on 13th January 2004 there
will be 50,949,403 shares of Angus & Ross in issue. (Under the terms of the
agreement with the Australians a further 5 million shares will be issued to them
when the company's market capitalisation exceeds #10 million; and another 5
million will be issued when positive cash flow starts from the Australian
properties.)
NEW APPOINTMENTS TO BOARD
As indicated when the Australian deal was announced and now that it is formally
completed, Professor Ian Plimer and Mr Adrian Day have joined the board of Angus
& Ross plc.
Ian Plimer is currently Professor of Geology at the University of Melbourne and
a non-executive director of Consolidated Broken Hill Limited, a lead/zinc/silver
mining company listed on the Australian Stock Exchange. He is a renowned expert
in economic geology and has been associated with the identification and
development of several economic mineral deposits, including those of
Consolidated Broken Hill Limited.
Adrian Day is Managing Director of Queensland Tantalite Limited, the company's
wholly owned Australian subsidiary. Mr Day brings extensive experience in
exploration and project management within the Australian mining industry, having
been closely involved in the Dianne Copper project in Queensland, the Cracow
gold mine in Queensland and the Mount Kasi goldmine in Fiji.
Robin Andrews, executive chairman of Angus & Ross, said:
"We are making good progress on a number of fronts. In particular the Brazilian
fieldwork is looking promising. After several months of frustrating delays
drilling is now about to start at Top Camp, and preparation for production at
Rutherfords Table has started to be followed up with more exploration drilling.
Your board is aware of the company's modest size and is actively looking at
other opportunities to enhance shareholder value. We expect 2004 to be a year of
continuing progress and indeed excitement."
Enquiries, please contact:
Robin Andrews Neil Boom
Executive Chairman Managing Director
Angus & Ross plc Gresham PR Ltd.
01751 430 988 020 7404 9000
.
This information is provided by RNS
The company news service from the London Stock Exchange
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