ALLIANCE RESOURCES FOR THE PERIOD ENDING 31 DECEMBER 2015
22 January 2016 | ASX Code: AGS No. of pages: 14 |
DETAILS OF ANNOUNCEMENT
Quarterly Activity Report for the period ending 31 December 2015 (8 pages)
Appendix 5B for the period ending 31 December 2015 (5 pages)
For and on behalf of the Board
Bob Tolliday Company Secretary
Further information relating to the Company and its various mining and exploration projects can be found on the Company's website at www.allianceresources.com.au
Suite 3, 51-55 City Road
Southbank, VIC, 3006
P +61 3 9697 9090 F +61 3 9697 9091
info@allianceresources.com.au www.allianceresources.com.au
ABN 38 063 293 336
22 January 2016 | ASX Code: AGS |
QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2015 | |
Planning continued for the drilling scheduled to commence at Monardes in early 2016. A ten hole reverse circulation drilling program will test for copper-uranium mineralisation along strike and down dip within the eastern anomalous unit.
Alliance acquires option to purchase a strategic tenement holding along strike from its Monardes copper-uranium project from Mantos Exploration Pty Ltd and Roland Mountford.
Alliance has lodged applications for 14 additional exploration concessions at Vega, to the west of Monardes and the Mantos Project Tenements.
The option with Mantos, if exercised, and the additional Vega applications increase the total project area available to Alliance to 242 km2 and the strike length of the prospective Cretaceous Monardes Formation available to Alliance to 30 km.
Alliance lodged two exploration licence applications with potential for nickel-copper-gold in Western Australia's Eastern Goldfields, Nepean South and Gundockerta South.
The areas have been selected on the basis of encouraging nickel and/or copper anomalism from previous RAB drilling and/or the presence of cumulate textured ultramafics.
CORPORATEOn 12 October 2015, trading in Alliance shares began on an 'ex Capital return basis'.
The Record Date for the Capital Return was 14 October 2015.
Processing of payments totalling $50.06 million commenced on 28 October 2015.
On 21 October 2015, Alliance announced that the Australian Taxation Office (ATO) issued a Class Ruling (CR 2015/81) that confirms the full amount of the distribution represents a Capital Return with no portion deemed to be a dividend from profits.
Alliance has cash reserves of $25.6 million and has 417,173,773 ordinary shares on issue at 31 December 2015.
Alliance Chile Pty Ltd has two projects in Atacama Region III, located in northern Chile's iron-oxide copper-gold belt with potential for copper, gold, silver and uranium, namely the Monardes Project and the Sierra Cinchado Project.
Monardes Copper-Uranium Project (Alliance Right To Earn 100%)
The Monardes project is located in the eastern margin of the Monardes basin, 95 km east of Copiapo.
Alliance acquired an option to purchase 100% of the Monardes mining concessions in 2014 and has two exploration concessions to the west of the Monardes concessions (Vega Uno and Vega Dos). The concessions are located within the eastern margin of the Monardes Basin adjacent to the Maricunga Belt metallogenic province of Atacama Region III.
In early 2014, Alliance's geologists mapped a quartz-pebble conglomerate containing a small artisanal excavation for copper (Cu) at locality 465150E, 6970140N. The Cu-uranium (U) mineralisation occurs within the matrix of the pebble-conglomerate striking N10oE and dipping 70oSE (locally overturned) and which is locally associated with a stratigraphically overlying thin laminated carbonate unit and amygdaloidal basalt. The pebble conglomerate which is in a reduced oxidation state lies within the Lower Cretaceous Monardes Formation, comprising, for the most part, an oxidised red-bed sequence of siltstones, sandstones and pebble conglomerates.
Previously reported rock chip sampling results from several discontinuous outcrops of pebble conglomerate on the eastern anomalous unit reported Cu mineralisation over 1.8 km with 17 samples reporting Cu >3000ppm (highest value of 3.36% Cu) and 9 samples reporting U >300ppm (including a highest value of 2660ppm U).
An airborne radiometric survey (U channel spectrometer) confirmed the potential strike length of the eastern anomalous unit and identified a second parallel unit of anomalism some 300m to 500m west of the eastern unit.
Preliminary rock chip sampling results from several discontinuous outcrops on the western anomalous unit
reported Cu mineralisation over 2.3 km with 4 samples reporting Cu >3000ppm (highest value of 3.34% Cu).
Ten reverse circulation drill holes totalling between 1,500 and 2,000 metres are planned to test for Cu-U mineralisation along strike and down dip within the eastern anomalous unit. Drilling is scheduled to commence at Monardes in early 2016.
Refer to ASX announcements dated 27 October 2014 and 30 January 2015 for further details and competent person's consent.
On 27 October 2015, Alliance announced that Alliance (Chile) Pty Ltd (Alliance) secured an option to purchase tenements (Project Tenements) registered in the names of Mantos de Fuego SpA, a wholly owned subsidiary of Mantos Exploration Pty Ltd (Mantos), and Roland Mountford, located along strike from Alliance's Monardes Project.
The key terms of the option are:
Mantos has granted Alliance an option to purchase the Project Tenements for a purchase price of A$2,500,000 exercisable at any time prior to 31 October 2016 (Term) payable in shares in Alliance Resources Limited (AGS) (calculated by reference to VWAP for the 15 trading days after Alliance gives notice of exercise) or cash or a combination of cash and shares;
Alliance will pay Mantos an option fee of $200,000 cash within 7 days of signing a formal option agreement (since paid);
Alliance will have the exclusive right to carry out due diligence to confirm the status of the Project Tenements and to conduct exploration over the Project Tenements during the Term to evaluate whether it wishes to exercise the option;
During the Term Alliance must keep the Project Tenements in good standing and will pay all tenement costs including renewal fees and fees necessary to replace a tenement which is incapable of renewal;
Alliance may extend the Term by 6 months on two occasions by procuring AGS to issue fully paid ordinary shares to the value of $200,000 (calculated on the basis set out in paragraph 1) to Mantos or by paying the Company $200,000 cash.
If Alliance exercises the Option it will enter into a royalty agreement under which Mantos will be entitled to a royalty equivalent to one percent (1%) of the Net Smelter Return for minerals produced by Alliance for sale from the Project Tenements. Alliance will be granted:
a right to purchase the royalty based on an agreed valuation or, where agreement cannot be reached, at the market value as determined by an independent valuer; and
a last right of refusal.
Alliance has lodged applications for 14 additional exploration concessions at Vega (Vega 3 to Vega 16), to the west of Monardes and the Mantos Project Tenements
The option with Mantos, if exercised, and the additional Vega applications increase the total project area available to Alliance to 242 km2 and the strike length of the prospective Cretaceous Monardes Formation available to Alliance to 30 km.
Sierra Cinchado Copper-Silver Project (Alliance 100%)
The Sierra Cinchado project is located 25 km east of Copiapo. The project area has a number of mine workings which appear to be prospective for Manto style copper and silver.
No exploration work was undertaken during the reporting period.
Alliance Resources Limited issued this content on 2016-01-22 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-21 22:56:27 UTC
Original Document: http://www.allianceresources.com.au/IRM/PDF/1503/2ndQuarterActivityandCashflowReport31December2015
