NEWS RELEASE: 3mo results
Antares Mining and Exploration Corp (ANZ:TSE)
shares issued 18,992,219 Jul 6 close $0.315
Tue 7 Jul 98
Company Review:
Mr. Dennis Gray reviews the company.
RAPPA HOLDINGS (PTY.) LTD.
During the quarter ended April 30, 1998 Antares agreed to divest its 24.75
per cent indirect beneficial interest in South Africa based Rappa for
pretax proceeds of approximately R12,600,000 ($3,400,000) consisting of
about $2,100,000 in cash and about $1,300,000 in shares of the acquiring
company. Antares' cash outlay to acquire this investment in 1996 was
$1,800,000. The purchaser of Antares' interest in Rappa is a currently
privately owned South African based waste management company to be listed
on the Johannesburg Stock Exchange in the fall of 1998. Antares' indirect
beneficial interest in Rappa is represented by a 49.5 per cent interest in
Cangold (Proprietary) Limited which owns a 50 per cent interest in Rappa.
The proceeds payable by the waste management company to Cangold will be
paid on the listing of the waste management company. The waste management
company which is acquiring Rappa will include, in addition to Rappa's
operations, ferrous and non-ferrous scrap recycling, together with domestic
and export trading, harbour facilities and shipping services. The above
agreement is subject to regulatory approval, the approval of the boards of
Rappa and the waste management company, the purchase by the waste
management company of certain additional operating assets and the agreement
to the aforementioned transaction by the owners of the remaining 50 per
cent of Rappa.
TOODOGGONE GOLD PROPERTY
The 1998 exploration program on the Toodoggone property in north central
British Columbia commenced on May 29 with the drilling of seven holes
involving 1,032 metres on the promising Creek zone. Complete assays from
these holes are currently awaited and, following interpretation, will be
announced shortly, together with further plans for the exploration of this
property.
OJOLALI SILVER AND GOLD PROPERTY
Following the completion of 17,378 metres of core drilling on the Ojolali
silver and gold property in Indonesia, the preliminary resource identified
to date has risen to 35,793,837 ounces of silver and 351,316 ounces of
gold. The resource is contained in two zones, of which the Tambang zone
contains 9,876,192 tonnes grading 109 grams of silver and 0.61 grams of
gold per tonne, while the Jambi zone contains 2,495,000 tonnes grading 1.96
grams of gold and 16 grams of silver per tonne. Two drills are currently
active on the property. An evaluation of results achieved to date is
currently under way as part of a prefeasibility study of the property.
Antares has requested the Indonesian Ministry of Mines to combine both COW
applications governing the 32,004 hectares Ojolali property into one COW
for ease of administration. An agreement in principle to grant a COW has
been received from the Ministry of Mines relating to the 29,760 hectare
portion of the Ojolali property.
LADY LINA MINE
During the three months ended April 30, 1998 3,219 tonnes of ore were
produced and sold to Forbes & Thompson (Pty.) Ltd., Antares' joint venture
partner in Zimbabwe. During this quarter 355 metres of development were
completed, all of which related to the Yellow Aster zone. A cash flow
deficit of $32,871 was recorded on mining operations for the quarter ended
April 30, 1998. As the 36.5 per cent interest which Antares owns in the
Lady Lina property is not a long-term component of the company's strategic
plan, it will divest this asset for value and redeploy the proceeds.
STEPPE GOLD RESOURCES LTD.
Antares completed an investment of $2,000,000 in Steppe Gold Resources
through the purchase of a private placement of 1,500,000 shares of Steppe
and a $1,700,000 debenture convertible into units of Steppe or an interest
in Steppe's properties. Steppe's main focus is the development of mineral
properties in Kazakhstan where its most advanced project, the open pit
Mizek gold heap leach project, is expected to produce 80,000 ounces of gold
in its first year of production at a cash cost of approximately $120 (U.S.)
per ounce. The investment in Steppe represents diversification by Antares
into proven precious and base metal reserves, with near term production
potential in a new geographical area.
FINANCIAL CONDITION
As at April 30, 1998 the Antares balance sheet was debt free with
$5,184,023 in working capital. While $2,000,000 has been invested in Steppe
Gold since that date, proceeds from the anticipated sale of Rappa should
more than offset this outlay.
OUTLOOK
In addition to conducting further work on its precious metal properties,
attention will also be focused on opportunities to add value in the
industrial minerals mining and processing areas. Antares is currently
undertaking a prefeasibility study relating to an industrial minerals
opportunity in Canada. Assuming that the outcome of this study is positive,
preparation of a bankable feasibility study will follow. Working capital
will continue to be carefully managed.
STATEMENT OF EARNINGS
Three months ended April 30
1998 1997
Operating
revenue $ 98,170 $ 158,280
Direct costs
Materials 65,322 68,896
Wages and salaries 54,010 49,215
Amortizatio 31,908 37,557
Utilities & rent 11,709 32,177
---------- ----------
(Loss) on mining
operations (64,779) (29,565)
Share of income
of Cangold (Pty) - 135,282
Other income 55,409 115,930
---------- ----------
(9,370) 221,647
---------- ----------
Expenses
Professional &
consulting fees 62,514 214,504
Administrative 78,752 163,449
Amortization 26,860 73,054
Travel 18,064 27,836
---------- ----------
186,190 478,843
---------- ----------
Net (loss) $(195,560) $(257,196)
========== ==========
Net (loss) per
share (1 cent) (1 cent) (1 cent) (1 cent)
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