Announcement of Annual Results
GLENCAR MINING PLC
Announcement of Annual Results
30 May 2008
Glencar Mining plc ("Glencar" or the "Company") today announces its
results for the year ended 31 December 2007.
Highlights from the Chairman's statement:
* 2008 saw the emergence of the Komana East deposit which has the
potential to grow in size rapidly
* Results of drilling at Komana East show the mineralised zone to
extend over a strike length of at least 1,600 metres and the
deposit is open along strike in each direction and also at depth
* Significant increase in Komana resource anticipated
* Komana West drilling has been carried out to improve resource
estimate and results are awaited
* 4 metres at 155 grams/tonne intersected in drilling at Badogo
Malikila on Solona exploration licence
* Sankarani Joint Venture with Gold Fields subsidiary progressing
well.
* Audited results for the financial year ending December 2007 show
a reduced loss of US$579,992.
Introduction
Glencar's progress has been quite remarkable in the period under
review. We have completed a total of 43,682 metres of drilling on
our Mali properties and, in particular, we have advanced the Komana
property to the point where we can clearly anticipate the development
of a producing mine between Komana East and West deposits, with the
possible addition of other nearby deposits in this highly prospective
region of southern Mali.
A preliminary JORC compliant resource of 520,000 ounces has already
been reported in October 2007 for the Komana West deposit, and the
drilling carried out since then at both the Komana East and West
deposits leads us to believe that the next resource update for Komana
will show a significant increase over that initial figure. The
drilling campaign at Komana East during 2008 has demonstrated the
presence of a gold deposit which, at this relatively early stage,
displays the potential to grow in size rapidly, given the consistent
nature of the thickness and grades being encountered in the current
drilling programme.
We are now very well established in Mali, with offices in the
capital, Bamako, a bustling city straddling the Niger River. We have
two main field camps, at Komana and Kabaya, the latter being the base
camp for our joint venture with a subsidiary of Gold Fields Limited.
Our largest camp is at Komana which provides accommodation and
catering facilities for approximately fifty staff. Mali is a good
country to work in, with a stable democratic government which firmly
supports the exploration and mining industry as a fundamental and
important component of the Nation's economy.
Komana Licence
We are satisfied with the progress on the Komana West deposit arising
from our drilling programmes there, but it's the recent results from
the Komana East target which have been really exciting. The style of
mineralisation there is very consistent with good grades and widths
being intersected over the entire strike length of 1.6 kilometres
drilled to date. The deposit is entirely open both to north and south
and also at depth. Within the Komana Licence, Glencar controls a
further 23 kilometres of strike length along this highly prospective
Sankarani Shear Zone. An additional nine kilometers of strike length
to the north is contained within Glencar's Sanioumale Licence, which
is one of the three licences being operated in joint venture with a
subsidiary of Gold Fields Limited. We regard the Sankarani region,
containing as it does, the major Sankarani Shear Zone, to be one of
the most prospective areas in West Africa for the discovery of new,
potentially world class gold deposits. Glencar holds a strategic
ground position in the area and is particularly well placed to
benefit from the emergence of this relatively new mining centre.
Assays have been received for fifteen further drillholes at Komana
East, which are referred to in the 2007 Annual Report to be posted to
shareholders today and which have not been previously reported. Seven
of the holes were drilled across the projected main ore zone and the
main mineralised intersections are detailed in the annual report.
These intersections confirm the continuity of the main ore zone in
the area drilled to date. These holes are KERC 366, 371, 386, 391,
418 and KEDD392 and 417.
Seven holes were drilled outside the projected main mineralised zone
and did not encounter any significant mineralisation. These holes are
KERC367, KERC370, KERC372, KERC373, KERC385, KERC387 and KERC390.
One hole, KEDD346, was drilled across the projected ore zone but did
not encounter significant mineralisation due to the encroachment of a
metavolcanic intrusive body into the mineralised shear zone at this
location.
Once we have received all the outstanding assays from our current
drilling campaign from the laboratory, we will commission an update
from SRK Consulting of the resource study for the Komana area as a
whole to include both Komana West and East deposits. We expect this
study to be completed by September next. We do expect that it will
show a significant increase in the resource for the Komana area.
Solona Licence
We have completed aircore drilling programmes totaling 9,400 metres
of drilling on our Solona Licence, adjacent to the Komana Licence. We
have drilled three targets, at Faliko, Niechilela and Badogo
Malikila. We have intersected gold mineralisation in all three
targets, and at Badogo Malikila in particular, some excellent results
have been obtained from our initial drilling programmes there.
We will be following up each of these three targets with more
detailed reverse circulation drilling programmes during the next
drilling season.
Gold Fields Joint Venture
Our joint venture with a subsidiary of Gold Fields Limited is
progressing well. The Gold Fields subsidiary has spent in excess of
US$3.5 million on exploration to date, and it is expected that before
the end of 2008, it will have expended over US$4 million, thereby
entitling it to a 51% interest in the Sankarani Project covering the
three licences of Bokoro, Sanioumale and Farasaba. An aeromagnetic
survey has recently been flown over all five of the licence areas and
the results of the survey have provided valuable additional
information which will assist in the interpretation of the structural
controls on gold mineralisation in the region and will also assist in
the delineation of new drill targets. Aircore lithogeochemical
drilling on the Sanioumale licence commenced in mid April 2008 and
drilling on targets in Farasaba and Bokoro will continue until the
rains in mid June 2008.
Ghana
We have been in active discussions with a number of parties in
relation to joint venturing our Asheba Project in Ghana. There is
considerable interest in the project and we expect to agree a
mutually attractive deal in the near future.
Uganda
We have recently announced the signing of a Letter of Intent with
Grey Crown Resources Limited, a company affiliated with the Canadian
company, IBI Corporation. IBI Corporation (TSX-Venture), is engaged
in the exploration and development of the vast and largely untapped
high-value minerals wealth of Uganda and East Africa. The Letter of
Intent provides for an all-share transaction under which, in
consideration of the issue of Can$100,000 worth of shares in Grey
Crown to Glencar, Grey Crown would secure an exclusive 30 month
option to explore/develop Glencar's Makina gold project in southeast
Uganda.
The Letter of Intent also provides that within the 30-month option
period, Grey Crown would have a further option to acquire a 60%
controlling interest in the Makina property for an additional
Can$400,000 worth of Grey Crown shares, issued at the then current
price.
Glencar would then have the option to contribute its 40% share of
further exploration costs or to sell its 40% interest to Grey Crown
for Can$200,000 worth of Grey Crown shares plus a 2% NSR royalty on
any production from the property.
Community Affairs
We are proud of the strength of our relationship with the local
communities in the areas in which we operate. We work closely with
all stakeholders and we have implemented many initiatives including
the provision of teachers in local schools and the recruitment of
resident fulltime, medically trained nurses for each of four of the
local villages in our exploration area in Mali. We will continue to
provide an increasing level of support for our local communities
commensurate with the pace and progress of our exploration and
development programmes there.
Financial
The audited accounts for the financial year show a reduced loss for
the period of US$579,992 (2006 US$1,450,961), notwithstanding the
decline of the US Dollar over the period which has resulted in an
increase in US Dollar terms of those of our costs denominated in
Euro.
The gold price has maintained its relatively high levels of late and
there is nothing in the immediately foreseeable future which is
likely to contribute to a significant decline in the gold price.
Global production has fallen, and importantly, so also has the level
of global gold reserves held by the major producers. There has been a
relative dearth of significant new gold discoveries and there is
increasing competition amongst the major producers to acquire
interests in any new, emerging exploration targets which have the
potential to grow to world class size.
I am very appreciative of the hard work and diligence displayed by
our staff and, in particular, by our exploration teams in Mali. They
have worked tirelessly to bring our projects there to their current
advanced and successful stage. Our Project Manager, Mr. Lazare Par�,
a geologist and metallurgist, is in overall supervision of all day to
day exploration and drilling activities on the Komana and Solona
projects. He has done a remarkable job over the last three years and
I offer him our congratulations and gratitude for all that has been
achieved there in that time.
With the recent very successful drilling campaigns at Komana East,
and with the already established success at Komana West, we are well
advanced towards the discovery of our third commercial gold deposit
in Africa. It is our intention to ensure that the shareholders
benefit to the maximum possible extent from this notable success.
Our Annual General Meeting will be held at the Conrad Dublin Hotel at
11.30 a.m. on 27 June 2008.
Sean Finlay
Chairman
29 May 2008.
GLENCAR MINING
PLC
GROUP INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007 (AUDITED)
2007 2006
US$ US$
ADMINISTRATIVE EXPENSES (755,888) (630,492)
COST OF SHARE AWARDS - (643,328)
GAIN ON EXCHANGE 26,814 214,001
------------- --------------
OPERATING LOSS (729,074) (1,059,819)
EXCEPTIONAL ITEM - (455,198)
BANK INTEREST RECEIVABLE 179,181 90,612
INTEREST PAYABLE (28,284) (24,822)
------------- --------------
LOSS ON ORDINARY
ACTIVITIES BEFORE TAXATION (578,177) (1,449,227)
Taxation (1,815) (1,734)
-------------- ------------
LOSS FOR THE FINANCIAL YEAR (579,992) (1,450,961)
========= =========
LOSS PER SHARE (CENTS) (0.23) (0.64)
========= ========
DILUTED LOSS PER SHARE (0.22) (0.62)
(CENTS) ========= =========
GLENCAR MINING PLC
GROUP BALANCE SHEET AS AT 31 DECEMBER 2007 (AUDITED)
2007 2006
US$ US$
ASSETS
Non current assets
Property, plant and 525,932 410,203
equipment
Intangible assets 9,331,764 5,536,924
------------- -------------
9,857,696 5,947,127
------------- -------------
Current assets
Debtors 19,407 9,465
Cash 3,313,251 1,635,395
------------- -------------
3,332,658 1,644,860
------------- -------------
Total assets 13,190,354 7,591,987
======== ========
EQUITY
Capital and reserves
attributable to the Group's
Equity holders
Share capital 9,457,194 8,507,021
Share premium 41,617,993 38,009,726
Capital conversion reserve 82,092 82,092
fund
Retained losses (41,536,426) (40,956,434)
--------------- ----------------
9,620,853 5,642,405
Minority interest 2,881,231 1,159,531
--------------- ----------------
Total equity 12,502,084 6,801,936
--------------- ----------------
LIABILITIES
Non-current liabilities
Creditors and accrued 330,853 342,818
expenses
------------ ------------
Current liabilities
Trade and other payables 357,417 447,233
------------- -------------
Total liabilities 688,270 790,051
------------- -------------
Total equity and 13,190,354 7,591,987
liabilities
======== ========
GLENCAR MINING
PLC
GROUP CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007
(AUDITED)
2007 2006
US$ US$
Cash flows from
operating activities
Cash used in operations (859,783) (560,954)
Corporation tax paid (1,815) (1,755)
------------ -----------
Net cash used in (861,598) (562,709)
operating activities
------------- -----------
Cash flows from
investing activities
Purchases of property, (200,367) (389,289)
plant and equipment
Purchases of intangible (1,997,800) (1,113,300)
assets
Interest received 179,181 90,612
------------ -----------
Net cash used in (2,018,986) (1,411,977)
investing activities
------------ -----------
Cash flows from
financing activities
Proceeds from the 4,558,440 2,457,679
issuance of ordinary
shares
------------- ------------
Net cash generated from 4,558,440 2,457,679
financing activities
------------ ------------
Net increase in cash 1,677,856 482,993
Cash at beginning of the 1,635,395 1,152,402
year
------------- -------------
Cash at end of the year 3,313,251 1,635,395
------------ -------------
Hugh McCullough, EurGeol., PGeo, Managing Director of Glencar, is a
member of the Institute of Geologists of Ireland. He is a qualified
person as defined in the Guidance Note for Mining, Oil and Gas
Companies, March 2006, of the London Stock Exchange. He has reviewed
and approved the technical information contained in this
announcement.
Notes to Editors
Glencar is a Dublin-based exploration company with a focus on
exploration and development of gold deposits in Africa. Glencar has
found major gold deposits in Ghana, West Africa in both the 1980s and
in the 1990s. The Company has operations in Mali and Ghana in West
Africa and in Uganda in East Africa
For further information please contact:
Glencar Mining plc
Hugh McCullough, Managing Director
Tel: +353 1 661 9974
e-mail: info@glencarmining.ie
Bishopsgate Communications
Nick Rome/Michael Kinirons
Tel: +44 20 7562 3350
e-mail: nick@bishopsgatecommunications.com
Davy Corporate Finance
Brian Corr, Associate Director
Tel: +353 1 679 6363
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