Aviva Corporation Limited FY 2012 results

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Aviva Corporation Limited FY 2012 results

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Aviva Corporation Limited FY 2012 results

  1. 1. Unit 1, 245 Churchill Avenue Subiaco WA 6008 Australia PO Box 2025, Subiaco WA 6904 For personal use only Phone: +61 8 9363 7100 Fax: +61 8 9388 2355 Email: info@avivacorp.com.au ABN 31 009 235 956 www.avivacorp.com.au 20 July 2012 ELS 02/2013 QUARTERLY REPORT – 30 JUNE 2012 HIGHLIGHTS • Results from drilling at Bushiangala in the Kakamega Gold Camp include the following highlights: o o 9.04m @ 13.05g/t Au from 5.96m (ASBSDD012) o 1.00m @17.1g/t Au from 4.96m (ASBSDD013) o 2.50m @ 11.3g/t Au from 10.26m (ASBSDD014) o • 10.82m @ 3.96g/t Au from 48.60m (ASBSDD010) 5.84m @ 8.52g/t Au from 67.25m (ASBSDD015) Aviva’s 51% interest in Special Licenses No. 123 and No. 213 (part of its West Kenya Joint Venture) registered by the Commissioner of Mines and Geology. • Coal Prospecting Licenses at Mmamantswe Coal Project in Botswana renewed for a further two years • Aviva met with Botswana Government stakeholders to discuss the final Environmental Impact Assessment (“EIA”) report for the Mmamantswe coal and power project. • Aviva issued convertible notes to the Company’s major shareholder, Sentient Executive GP IV Limited to raise A$750,000 to fund progress on African projects and general working capital • Negotiations regarding potential material corporate transaction close to finalisation. • Bumbo Resource Upgraded to - Indicated Category 1
  2. 2. SUMMARY OF ACTIVITIES During the June 2012 quarter, Aviva continued work on its metals and energy projects in Africa. For personal use only Exploration activities continued to focus on the West Kenya Project and more specifically on drilling at the Kimingini and Bushiangala Prospects located within the Kakamega Dome area. Results received to date continue to be encouraging. A resource upgrade on the Bumbo base metal deposit was completed – the Resource was given improved confidence and moved 1.32 MT grading 4.37% Cu Equivalent – (2.29% Cu, 0.59g/t Au, 36.60g/t Au and 5.02% Zn) into an Indicated category. Modelling of peripheral gold mineralization at Bumbo identified 290,000 tonnes grading 2.25g/t Au and 64.96g/t Ag. A further 500,000 to 700,000 tonnes of peripheral gold mineralization has also been identified with a possible grade of between 1.50 and 1.90g/t. This has been classified as an Exploration Target. Metallurgical test work is underway. As announced on 3 May 2012, Aviva received confirmation that the Acting Commissioner of Mines and Geology in Kenya had registered Aviva’s 51% interest in Special Licences No. 123 and No. 213 on its West Kenya Joint Venture. This followed Aviva’s announcement on 26 October 2011 that it had achieved its 51% earn-in milestone as part of its joint venture agreement with AfriOre International (Barbados) Limited, a wholly-owned subsidiary of Lonmin Plc. At the Company’s Mmamantswe Coal Project in Botswana, licences were renewed for a further two years. The area for renewal was reduced by 50% whilst the two licences, PL070 and PL069, were consolidated into a single licence covering 453.7 square kilometres. Aviva also undertook discussions with government stakeholders regarding the Company’s Environmental Impact Assessment for Mmamantswe. During the quarter, Aviva issued 1 million unlisted ordinary options, comprising two tranches of 500,000 options each, as part of the Company’s Executive and Employee Option Plan. On 22 June 2012, Aviva announced that it had agreed to issue 7.5 million convertible notes at a face value of $0.10 per note to the Company’s major shareholder, Sentient Executive GP IV Limited to raise A$750,000 to progress its projects in Africa and cover general working capital requirements. 2
  3. 3. PROJECTS WEST KENYA GOLD AND BASE METALS PROJECT For personal use only KAKAMEGA GOLD CAMP During the quarter, the Company operated two diamond drill rigs at the Kakamega Gold Camp, focusing on infill drilling at Bushiangala and Kimingini and testing other known prospects. Makutchi Fig 1: Kakamega Gold Camp – Prospect Locations and drilling highlights Bushiangala: Results received and announced during the quarter reinforce the continuity and high-grade nature of the known mineralisation as previously announced, and confirm the validity and predictive nature of the geological model constructed by the geological team. Some of the better results received are presented below. ASBSDD007 3.00m @ 1.11g/t Au from 11.33m 1.08m @ 2.68g/t Au from 23.92m 1.00m @ 1.71g/t Au from 45.92m 1.01m @ 1.26g/t Au from 96.02m 3
  4. 4. 1.00m @ 1.39g/t Au from 265.46m 1.36m @ 1.20g/t Au from 22.00m ASBSDD009 For personal use only ASBSDD008 2.58m @ 3.36g/t Au from 95.64m 1.09m @ 4.91g/t Au from 99.84m 1.00m @ 1.08g/t Au from 151.45m ASBSDD010 10.82m @ 3.96g/t Au from 48.60m 2.93m @ 7.77g/t Au from 96.97m 2.00m @ 0.95g/t Au from 151.00m 1.00m @ 1.15g/t Au from 172.54m ASBSDD011 4.17m @ 1.68g/t Au from 56.76m ASBSDD012 9.04m @ 13.05g/t Au from 5.96m ASBSDD013 1.00m @ 17.1g/t Au from 4.96m ASBSDD014 3.00m @ 1.25g/t Au from 5.83m 1.43m cavity from 8.83m (historical workings) 2.50m @ 11.3g/t Au from 10.26m 0.19m @ 5.43g/t Au from 59.96m 1.00m @ 17.65g/t Au from 4.96m ASBSDD015 1.00m @ 1.39g/t Au from 53.15m 1.41m @ 3.66g/t from 56.84m 5.84m @ 8.52g/t Au from 67.25m 1.63m @ 6.56g/t Au from 74.73m ASBSDD018 7.89m @ 3.31g/t Au from 67.23m 1.79m @ 1.42g/t Au from 126.94 1.01m @ 1.17g/t Au from 130.20m ASBSDD019 3.67m @ 2.06g/t Au from 62.85m 2.00m @ 1.85g/t Au from 71.58m 1.03m @ 2.54g/t Au from 117.64m 0.85m @ 1.04g/t Au from 123.07m 0.88g/t @ 1.16g/t Au from 132.18m Assay results for a further 10 holes are still awaited. Once all results are available data will be compiled with a view to defining a maiden Gold Resource on the project. 4
  5. 5. For personal use only Kimingini: Assay results for a further 3 diamond holes, drilled to test continuity and depth extent of the previously intersected high grade mineralisation, returned mixed results. Results from hole ASKDD005 was disappointing with the expected ore position effectively having been stoped out by a late buck white quartz vein. Some of the better results received are presented below. ASKDD003 3.40m @ 5.31g/t Au from 227.64m ASKDD004 1.00m @ 3.07g/t Au from 147.41m 4.49m @ 7.53g/t Au from 156.13m 3.27m @10.23g/t Au from 156.13 m ASKDD005 3.19m at 1.90g/t Au from 184.61m Makutchi: A single diamond hole drilled at Makutchi has confirmed the prospectivity of the area, which is characterised by very broad gold mineralisation zones within a highly deformed and altered quartzite. Results are viewed as encouraging and IP will be used in an attempt to define targets for higher grade mineralisation associated with an increase in disseminated sulphides. Some of the better results received are presented below. ASMKDD001 0.42m @ 1.19g/t Au from 40.08m 3.61m @ 1.59g/t Au from 49.10m 0.70m @ 1.45g/t Au from 70.24m 0.49m @ 1.11g/t Au from 80.48m 2.56m @ 2.76g/t Au from 111.93m 5
  6. 6. BUMBO BASE METALS PRECINCT For personal use only Bumbo Resource Upgrade – A revised resource estimate for the JV’s Bumbo Prospect has been completed. The update is considered as positive and has improved confidence in geometry and grade of the polymetallic Resource and has also confirmed the potential for a significant additional peripheral gold Resource. A summary of the Bumbo Mineral Resource, above a cut-off grade of 0.7% copper equivalent is presented below. The resulting Mineral Resource estimates (Table 1) for the massive and disseminated sulphide domains have been assigned to Indicated and Inferred Mineral Resource categories according to the guidelines of the AusIMM JORC Code (2004). Table 1 The Bumbo Mineral Resource statement * Category Indicated Mineral Resources Inferred Mineral Resources Volume (Mm3) 0.41 0.09 Tonnes (Mt) 1.32 0.27 Cu equivalent (%) 4.37 2.03 Cu (%) 2.29 1.05 Au (ppm) 0.59 0.42 Ag (ppm) 36.60 19.89 Zn (%) 5.02 1.93 Total (Inferred + Indicated) 0.50 1.58 3.98 2.08 0.56 33.77 4.50 * 0.7% copper equivalent cut-off grade for the massive and disseminated sulphides. In addition to the Massive and Disseminated sulphides, the peripheral gold mineralisation, which is not associated with the base metal sulphides, has also been modelled. Results are presented above a 1ppm gold cut-off in Table 2. Table 2 Gold lode data for Inferred Mineral Resource using 1 ppm gold cut-off grade Category Inferred Gold Volume 105,958 SG Mt Cu equivalent% Cu% Au ppm Ag ppm Zn% Pb% 2.77 0.29 2.25 0.12 2.31 64.96 0.07 0.25 A further 500,000 to 700,000 tonnes of peripheral gold mineralisation has been identified to have a gold grade ranging between 1.50ppm and 1.90ppm. This has been classified as an Exploration Target. It is possible that the gold mineralisation may contain other economic metals of interest, particularly silver. The 2011 and 2012 estimates compare well with an overall 7% decrease in copper equivalent metal in the latest iteration. Geological certainty and grade continuity have increased significantly. Forward work program Two diamond rigs will continue to evaluate prospects within the Kakamega Dome and Lake District. Detailed structural/magnetic interpretation will be completed on Kakamega Dome area. Geological mapping, auger drilling and geochemical programs designed to follow-up and evaluate projects, to feed the project pipeline is also in the process of being completed. 6
  7. 7. MMAMANTSWE COAL PROJECT, BOTSWANA For personal use only During the quarter, Aviva’s Coal Prospecting Licences in Botswana were renewed for a further two years. It was the second time the licences had been renewed and it required a 50% reduction in the first renewal area. The two Prospecting Licences, PL070 and PL069, were consolidated into a single licence, PL069, which covers 453.7 square kilometres. The new licence encompasses more than 12 times the area of Aviva’s Mmamantswe deposit while also retaining access to Botswana’s main infrastructure corridor 40km west. Figure 2: Mmamantswe Licence Area 7
  8. 8. For personal use only Figure 3: Export Rail Routes Mmamantswe has a probable reserve of 895 million tons of coal as estimated by SRK Consulting in 2010. Studies have demonstrated the project could yield 200 million tons of export-grade thermal coal and an additional 100-150 million tons of domestic power station coal. An EIA report has been completed for Mmamantswe by consultant Earthtec. It does not identify any major environmental impediments. Aviva has met with government stakeholders to finalise the EIA report for Mmamantswe. In line with its Coal Roadmap review released in the March quarter which concluded that an export rail line and export power infrastructure were essential to access export coal and power markets, the Botswana Government has continued to progress studies of both the eastern and western railway lines. The Botswana Government has commenced construction of high voltage transmission networks and will soon seek proposals for two new power stations in Botswana. In addition it has moved rapidly to form the Coal Development Unit which will coordinate the minerals, energy, water and transport elements required for a new coal sector. Aviva believes scale will be critical for the development of a coal sector in Botswana. 8
  9. 9. CORPORATE For personal use only During the quarter, Aviva issued 1 million unlisted ordinary options, comprising two tranches of 500,000 options each, as part of the Company’s Executive and Employee Option Plan. The first tranche of options has a vesting date of 1 January 2013, an exercise price of $0.20 and an expiry date of 30 June 2015. The second tranche will vest on 1 July 2013 with an exercise price of $0.30 and an expiry date of 30 June 2015. On 22 June 2012, Aviva announced that it had agreed to issue convertible notes to the Company’s major shareholder, Sentient Executive GP IV Limited (“the Noteholder”) to raise A$750,000. Aviva will use the funds raised through the convertible note issue to progress its projects in Africa and cover general working capital requirements. The issue of convertible notes resulted as Aviva is involved in negotiations regarding a potential material corporate transaction, preventing the Company from being able to raise funds via an equity capital raising, as the status of the transaction remain incomplete. Key terms of the issue are: • Maturity Date: 12 months after their issue date • Interest: Interest is payable on the Maturity Date, or such earlier date as the convertible notes may be converted or redeemed, at a rate of 8% compounded quarterly in arrears. If the convertible notes are converted prior to their Maturity Date, interest will be satisfied by way of the issue of Aviva ordinary fully paid shares at the same subscription price applicable to the conversion of those convertible notes • Redemption: The convertible notes are redeemable at Aviva’s election at any time prior to the Maturity Date although the Noteholder has the opportunity to convert the convertible notes into Aviva ordinary fully paid shares prior to the redemption taking effect • Conversion at Noteholder’s election: Each convertible note is convertible at the Noteholder’s election into Aviva ordinary fully paid shares at $0.10 per share • Conversion at Company’s election: Each convertible note is convertible at Aviva’s election into Aviva ordinary fully paid shares at $0.07 per share. About Aviva Aviva Corporation Limited is a resource development company listed on the Australian Securities Exchange and the Botswana Stock Exchange, with its head office in Perth. The company is well funded, and has a clear strategy to identify and develop early resource opportunities which are well located to demand and infrastructure. The Aviva management team has strong resource and capital market expertise, with proven expertise in the delivery, generation, exploration, approval and development of resource projects. In Africa, the company is exploring for gold and base metals at its West Kenyan joint venture project with Lonmin Plc. Aviva also has an interest in two coal-based energy assets – the Mmamantswe project in Botswana, and the Coolimba project in Western Australia. For more information, please visit our website: www.avivacorp.com.au or contact: Lindsay Reed Aviva Chief Executive Officer Tel: +61 (0) 8 9363 7100 Robert Kirtlan Aviva Director Tel: +61 (0) 8 9363 7100 9
  10. 10. For personal use only Exploration Results The information relating to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled and review by Mr Glen Edwards, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Edwards is an employee of the company and has more than 25 years’ experience as a geologist, of which the past 15 have included exploration and mineral resource estimation for a variety of deposits throughout the world. This experience is more than adequate to qualify him as a Competent Person for the purposes of the 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). Mr Edwards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Optiro letter detailing the work completed in the calculation of the Mineral Resource estimate is appended to this announcement. Bumbo Mineral Resource Estimate The information in this report which relates to the Mineral Resource is based upon information compiled by Ian Glacken, who is a fellow of the Australasian Institute of Mining and Metallurgy. Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Result, Mineral Resources and Ore Reserves. Ian Glacken consents to the inclusion in the report of a summary based upon his information in the form and context in which it appears. Forward-Looking Statements This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Aviva Corporation Limited’s planned exploration program and other statements that are not historic facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Although Aviva Corporation Limited believes that its expectations reflected in these are reasonable, such statements involves risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements. 10
  11. 11. For personal use only 29 May 2012 Our Ref: J_1388_G Glen Edwards General Manager Exploration Aviva Corporation Ltd Level 1 245 Churchill Avenue Subiaco WA 6008 Dear Glen, BUMBO MINERAL RESOURCE UPDATE Optiro has carried out a resource update at Aviva’s Bumbo copper-gold project in Kenya. Summary The Bumbo Mineral Resource as at 30 April 2012, at a cut-off of 0.7% copper equivalent, is presented below. Category Indicated Mineral Resources Inferred Mineral Resources Total (Inferred + Indicated) Base metal mineralisation Tonnes Cu equivalent (Mt) (%) 1.32 4.37 0.27 2.03 1.58 3.98 Cu (%) 2.29 1.05 2.08 Au (ppm) 0.59 0.42 0.56 Ag (ppm) 36.60 19.89 33.77 Zn (%) 5.02 1.93 4.50 In addition to the Indicated and Inferred Mineral Resource, the peripheral gold mineralisation not associated with base metal sulphides has also been modelled, and the results are presented at a 1 ppm gold cut-off. Category Inferred Mineral Resources Gold mineralisation Tonnes Cu equivalent (Mt) (%) 0.29 2.25 Cu (%) 0.12 Au (ppm) 2.31 Ag (ppm) 64.96 Zn (%) 0.07 A further 500,000 to 700,000 tonnes of peripheral gold mineralisation was identified to have a gold grade ranging between 1.50 ppm and 1.90 ppm. This has been classified as an Exploration Target. It is important to note that identification and tabulation of an Exploration Target does not guarantee that all or part of that material will ultimately be classified as a Mineral Resource. The copper equivalent formula used for the tabulation was based upon commodity prices at the close of the market on 25th July 2011, namely   Copper: Zinc: USD9633/tonne ($Cu) USD2441/tonne ($Zn)
  12. 12. BUMBO MINERAL RESOURCE UPDATE For personal use only   Gold: Silver: USD1614/ounce ($Au) USD40/ounce ($Ag). The copper equivalent formula is as follows: Copper equivalent (%) = Cu grade + (Zn% * ($Zn/100) / ($Cu/100)) + (Au g/t * ($Au/31.1034768) / ($Cu/100)) + (Ag g/t * ($Ag/31.1034768) / ($Cu/100)) Details of estimate Tenure and ownership The Bumbo deposit, which forms part of Aviva’s larger West Kenya Project, is located in Western Kenya, close to Lake Victoria. The Project comprises two licence areas, SPL123 (Ndori) and SPL213 (Siaya). Aviva acquired an interest in the West Kenya Project in 2010 through a Joint Venture Agreement (JVA) with AfriOre International (AfriOre). The JVA enables Aviva to earn up to 75% of the project through expenditure and completion of a Pre-Feasibility Study (PFS). Geology and mineralisation Bumbo is a polymetallic deposit with zinc, copper, gold and silver as the primary metals. The mineralisation is characterised by a central core of massive sulphides with immediately adjacent more disseminated and inter-layered sulphides. The mineralisation is broadly conformable with the host metamorphosed sedimentary lithologies, and has been likened to a vulcanogenic massive sulphide (VMS) style of mineralisation with significant hydrothermal overprint. The deposit is subdivided into two main lenses, each striking approximately east-west and dipping steeply to the north. Drilling and data preparation The exploration history at Bumbo is extensive, with historic exploration for both gold and base metal mineralisation. The deposit contains 52 holes, with 31 diamond and five reverse circulation (RC) holes intersecting the mineralisation. 17 diamond drillholes were drilled by BRGM and the remaining 14 diamond holes and five RC holes were drilled by Aviva. There has been an increase of 10 holes with assay results since the last (2011) estimation; this accounts for a 41% increase in the number of mineralised composites. The section spacing varies between 25 m and 60 m, with the average section spacing being 50 m. Aviva’s recent drill programme has been subject to the full spectrum of QAQC tests and Optiro is confident that the data has high quality. A number of the recent holes twin some of the BRGM holes and largely confirm the mineralisation thickness and grade from that drilling. There are, however, some minor collar survey issues with the BRGM holes. Prior to estimation the mineralisation was subdivided into three ore types, namely massive sulphide, adjacent disseminated sulphide and peripheral gold only zones. A broad cut-off of 0.5% copper equivalent, together with geology, was used to define the disseminated and massive sulphide ore domains. A 0.5 ppm gold cut-off was used for the peripheral gold zones. A weathered surface was used for the purposes of assigning representative density values, which were defined from a database of 1177 measurements. Densities in the fresh rock were estimated using ordinary kriging. Samples were composited to 1 m downhole intervals. Page |2
  13. 13. For personal use only BUMBO MINERAL RESOURCE UPDATE Estimation and validation One metre composites were subject to continuity analysis and variograms were modelled. The increase in mineralised composites has allowed for variography to be completed on a domain basis as opposed to grouping the east and west data separately. Overall, the variography has improved significantly for the mineralised domains when compared with the previous estimate. Grade continuity is generally greatest in the along strike direction, with typical ranges in the order of 50 to 100 m. During variogram modelling it was determined that grade continuity was isotropic. Accordingly, omni-directional variogram models were adopted for the primary and secondary directions. Figure 1 is a plan view of mineralisation wireframe solids showing the relationship of massive sulphide, disseminated sulphide and gold lodes. Grade estimation was via ordinary block kriging into 20 m(X) by 10 m(Y) by 10 m (Z) parent cells. A three pass estimation scheme was used, with a minimum of 5 and a maximum of 40 samples. 85% of the grades in the massive sulphide and disseminated zones were assigned during the first two passes. The massive sulphide domains were only estimated using samples from that domain, and disseminated sulphide domains similarly were only able to see samples from those domains. Gold grades were estimated into the gold zones using two search passes, due to limited grade continuity and in order to limit lateral grade smearing. The models were validated against the input composited sample data both visually, on a whole domain basis and by elevation and easting slice. Figure 1 Plan view of mineralisation wireframe solids and drillholes at Bumbo Red holes – holes with new assay data, green holes – existing drilling, pink – massive sulphide wireframes, red – disseminated sulphide wireframes and yellow – gold wireframes Classification Massive and disseminated sulphide domains have been classified as Indicated and Inferred Mineral Resources according to the guidelines of the JORC Code (2004). The core of the massive and disseminated sulphide domains has been classified as indicated as these areas have moderate to good grade continuity and the geological continuity is considered high. The remaining massive and disseminated sulphide domains have been classified as inferred as they have lower sample support and do not have well defined geological and grade continuity. The gold lodes are predominantly defined as Page |3
  14. 14. For personal use only BUMBO MINERAL RESOURCE UPDATE exploration targets as there is minimal sample support. Where there is sufficient sample support for an estimate from the first two passes and there is better geological and grade continuity, these blocks have been classified as Inferred. This classification takes into account the lack of topographical data, the absence of QAQC for the historical drilled samples, an irregular grid of drillhole intercepts across the mineralised domain and several mineralised edges requiring additional data in order to better define the extents. Figure 2 is a report of the Indicated and Inferred Mineral Resource (massive sulphide and disseminated zones) above a range of copper equivalent cut-off grades. Figure 2 Bumbo Indicated and Inferred Resource for the disseminated and massive sulphides above a range of cut-off grades Bumbo resource estimate April 2012 ABOVE Cu Equivalent bcm Mt Cu Equivalent Cu % Au ppm Ag ppm Zn % Pb % 0.0 497,241 1.583 3.97 2.08 0.56 33.73 4.49 0.152 0.5 497,241 1.583 3.97 2.08 0.56 33.73 4.49 0.152 0.7 496,390 1.580 3.98 2.08 0.56 33.77 4.50 0.152 1.0 455,241 1.463 4.22 2.21 0.59 35.73 4.78 0.157 1.5 273,547 0.935 5.91 3.17 0.72 45.74 6.85 0.156 2.0 178,526 0.658 7.69 4.16 0.86 55.46 9.15 0.159 3.0 159,660 0.603 8.18 4.43 0.89 58.46 9.83 0.161 4.0 159,660 0.603 8.18 4.43 0.89 58.46 9.83 0.161 5.0 154,566 0.585 8.29 4.51 0.91 58.81 9.86 0.147 In addition, the peripheral gold mineralisation has been classified as an Inferred Mineral Resource of 290,000 tonnes at an average gold grade of 2.31 ppm, using a 1 ppm gold cut-off grade. Material estimated within the gold zones is intended to provide follow up targets for Aviva, and as such Optiro is happy to declare an Exploration Target for the gold zones of between 500,000 and 700,000t with a target gold grade of between 1.50 and 1.90 ppm. Yours sincerely OPTIRO Ian M Glacken FAusIMM(CP), CEng Principal Consultant The information in this report which relates to Mineral Resources is based upon information compiled by Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Page |4
  15. 15. BUMBO MINERAL RESOURCE UPDATE For personal use only Results, Mineral Resources and Ore Reserves. Ian Glacken consents to the inclusion in public documents of a summary based upon his information in the form and context in which it appears. Page |5
  16. 16. Appendix 5B Mining exploration entity quarterly report Rule 5.3 For personal use only Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10. Name of entity AVIVA CORPORATION LIMITED ABN Quarter ended (“current quarter”) 31 009 235 956 30 June 2012 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 (a) exploration & evaluation (b) development (c) production (d) administration Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other income -sub-lease rental & R&D rebate (1,461) (5,557) (442) (1,954) 27 172 19 85 Net Operating Cash Flows (1,857) (7,254) (1) (88) 66 65 49 (39) (1,792) (7,293) Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets Loans to other entities Loans repaid by other entities Other – maturity / (payment) of security deposit Net investing cash flows Total operating and investing cash flows (carried forward) + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 1
  17. 17. Appendix 5B Mining exploration entity quarterly report For personal use only 1.13 1.14 1.15 1.16 1.17 1.18 1.19 Total operating and investing cash flows (brought forward) (1,792) Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (Share issue costs) 6,000 750 1.22 Cash at end of quarter (916) 2,135 (7) 1,086 Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20 (373) 6,377 (1,042) Net increase (decrease) in cash held 750 750 Net financing cash flows 1.20 1.21 (7,293) 2,042 (40) 1,086 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 90 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of the transactions 1.23 Salaries, directors fees and consultants fees paid to directors and associates of directors - Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. 3.1 Loan facilities 3.2 Amount available $A’000 750 Amount used $A’000 750 Credit standby arrangements + See chapter 19 for defined terms. Appendix 5B Page 2 30/9/2001
  18. 18. Appendix 5B Mining exploration entity quarterly report Estimated cash outflows for next quarter For personal use only 4.1 4.2 Development 4.3 Production 4.4 $A’000 1,450 Exploration and evaluation Administration 450 Total 1,900 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 735 400 1,400 1,086 2,135 Bank overdraft 5.4 686 Deposits at call 5.3 Previous quarter $A’000 Cash on hand and at bank 5.2 Current quarter $A’000 Other (provide details) Total: cash at end of quarter (item 1.22) Changes in interests in mining tenements Tenement reference 6.1 Interest at beginning of quarter Interest at end of quarter Interests in mining tenements relinquished, reduced or lapsed 6.2 Nature of interest (note (2)) Interests in mining tenements acquired or increased + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 3
  19. 19. Appendix 5B Mining exploration entity quarterly report Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. For personal use only Total number 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 Issue price per security (see note 3) (cents) 0 0 0 Expiry date 1July 2014 1July 2014 18 March 2014 18 March 2014 31 December 2013 31 December 2013 31 December 2013 31 December 2013 30 June 2015 30 June 2015 0 0 Exercise price $0.25 $0.35 $0.12 $0.12 $0.20 $0.30 $0.20 $0.30 $0.30 $0.20 166,141,825 0 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks +Convertible debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options (description and conversion factor) 0 166,141,825 Amount paid up per security (see note 3) (cents) 0 0 Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions +Ordinary securities Issued during quarter Exercised during quarter Number quoted 0 250,000 250,000 1,000,000 2,000,000 500,000 500,000 750,000 750,000 500,000 500,000 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 1,000,000 0 + See chapter 19 for defined terms. Appendix 5B Page 4 30/9/2001
  20. 20. Appendix 5B Mining exploration entity quarterly report 7.10 7.11 For personal use only 7.12 Expired during quarter Debentures 0 0 0 Unsecured notes 0 Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Date: 20 July 2012 (Company secretary) Print name: Stef Weber – Company Secretary Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 5
  21. 21. Appendix 5B Mining exploration entity quarterly report Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. For personal use only 5 == == == == == + See chapter 19 for defined terms. Appendix 5B Page 6 30/9/2001

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