BOO.....TRICK OR TREAT!
Has this been posted. The 35 mil oz. of Silver equals 175 mil U.S. in the ground. The gold is gravy. These guys are at the right place in the wrong time. Indo is Burning.......Scotia is starting to follow this play.
Subject:
Antares Mining and Exploration Corp - Company
Second quarter results
Antares Mining and Exploration Corp ANZ
Shares issued 18,992,219 Sep 28 close $0.145
Tue 29 Sept 98 Company Review
Mr. Dennis Gray reviews the company
During the quarter ended July 31, 1998 and to date, Antares:
Recorded progress towards the receipt of a COW on its Ojolali property;
Completed an investment in Steppe Gold Resources;
Completed an additional 6,153 metres of drilling on the Ojolali property;
and
Undertook further exploration of the Toodoggone property.
RAPPA HOLDINGS (PTY) LTD.
Due to the general deterioration in world capital markets, in particular
the decline of the Johannesburg Stock Exchange Index, the listing of the
waste management company which was to include Rappa as part of its
operations, will likely not proceed. Accordingly, both the Standard Bank
and Antares, who jointly own a 50 per cent interest in Rappa, are reviewing
other alternatives for realizing this asset.
During the four months ended July 31, 1998, reported consolidated unaudited
net after tax earnings of Rappa, under South African generally accepted
accounting principles, were R5,084,302 ($1,310,000 (Canadian)). What is
particularly encouraging regarding these results is that they include
losses of R1,721,798 ($440,000 (Canadian)) associated with Rappa's cobalt
recovery operations, which are in a startup phase. During the quarter,
Rappa agreed to divest its gold ore toll milling operations for R16,400,000
($4,226,000 (Canadian)) with the closing scheduled to take place on Oct. 2,
1998. The proceeds of this disposition will be used to repay debt and to
provide additional working capital to Rappa. Rappa remains a valuable
portfolio investment.
STEPPE GOLD RESOURCES
During the quarter, Antares completed an investment of $2,000,000 in Steppe
Gold through the purchase of a private placement of 1,500,000 treasury
common 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 Steppe debenture owned by Antares
can be converted into an up to 20 per cent share of Steppe's interest in
the Mizek project. The investment in Steppe represents strategic
diversification by Antares into proven precious and base metal reserves,
with near term production potential, in a new geographical area. The
Kazakhstan economy is relatively buoyant with reported GDP growth of 2.2
per cent during the first half of 1998 compared with the corresponding
period of the previous year; while annual inflation declined to 6.1 per
cent.
TOODOGGONE GOLD PROPERTY
The 1998 exploration program on the Toodoggone property in north central
British Columbia commenced on May 29. In all, 11 holes were completed,
seven of which were financed by Antares and four by its joint venture
partner. While all of these holes intersected gold mineralization,
continuity of grade encountered thus far is insufficient to provide the
economic bulk tonnage opportunity sought. Better grade and widths may be
identified by future exploration.
LADY LINA MINE
During the seven months ended July 31, 1998, 7,054 tonnes of ore were
produced and sold to Forbes & Thompson (Pty.) Ltd., Antares' joint venture
partner in Zimbabwe. During this period, 476 metres of development were
completed, all of which related to the Yellow Aster zone. A cash flow
deficit of $57,388 was recorded on mining operations for the half year
ended July 31, 1998. Due to the low price of gold, production has been
suspended at the mine, however, at the end of July three exploration
diamond drills were in operation on the 800 foot level, with the objective
of identifying higher grade ore. As the 34.5 per cent interest which
Antares owns in the Lady Lina property is not a long-term component of the
company's strategic plan, the company will divest this asset for value and
redeploy the proceeds.
OJOLALI GOLD AND SILVER PROPERTY
During the second quarter, agreement in principle to grant a COW on the
29,760 hectare portion of the 32,004 hectare Ojolali property was received
from the Indonesian Ministry of Mines. Following the granting of agreement
in principle to issue a COW on the 29,760 hectare section of the property,
a SIPP licence for that portion of the property was applied for and was
granted. The receipt of the SIPP licence is important because it allows
Antares to begin preliminary exploration on the unexplored 29,760 hectare
portion of the property which is over 13 times as large as the 2,244
hectare area of the property where its activities have thus far been
confined. In addition, progress was made regarding the combination of the
entire 32,004 hectare property into one COW for ease of administration. To
date, 21,373 metres of diamond drilling has been completed on the Ojolali
property which has identified a preliminary resource of 35,793,837 ounces
of silver and 351,316 ounces of gold. A recent study of the Ojolali
property by New Zealand based T. Leach & Co., geologists, postulated the
existence of a high grade gold zone at the intersection of the Tambang and
Chandra vein systems. Similar environments are said to have generated
bonanza grades at Thames, New Zealand, Zone 7 at Porgera and at Tolokuma,
PNG. Two main targets to test this hypothesis have been identified. At the
Jambi zone, pre-feasibility work continues. Drilling will shortly
recommence at the Batukuning zone where high grades have been intersected
over narrow widths with the objective of identifying dilated structures.
FINANCIAL CONDITION
As at July 31, 1998 the Antares balance sheet was debt free with $1,681,657
in working capital.
OUTLOOK
Attention is being focused on opportunities within countries where declines
in domestic currencies versus the U.S. dollar have occurred, and which have
the potential to produce high value U.S. dollar denominated resource
commodities. Various alternatives for realizing the Rappa investment for
value are being evaluated.
CONSOLIDATED STATEMENT OF INCOME
Six months ended July 31
1998 1997
Operating revenue $137,894 $331,704
-------- --------
Direct costs
Materials 92,516 146,722
Wages and salaries 84,643 106,096
Amortization 65,713 74,024
Utilities and rent 18,122 125,917
-------- --------
260,994 452,759
-------- --------
(Loss) on mining
operations (123,100) (121,055)
Share of income of
Cangold (Proprietary)
Limited - 135,282
Other income 63,172 235,383
-------- --------
(59,928) 249,610
-------- --------
Expenses
Professional and
consulting fees 271,681 337,720
Administration 339,518 409,961
Amortization 41,381 127,228
Investment written
down to market 208,399 51,366
-------- --------
860,979 926,275
-------- --------
Net (loss) ($920,907) ($676,665)
======== ========
Net (loss) per
share (3 cents) (3 cents)
(
fIXER.....Playing with a 8.3 hdcp index. |
