EXPLAURUM LTD 
By ERONGO ENERGY LIMITED | Registered Office: | Postal Address: | Contact Details: |
ACN 114 175 138 | LEVEL 1, SUITE 5, THE BUSINESS CENTRE | PO BOX 131 | TELEPHONE 61 8 6380 1333 |
55 SALVADO ROAD, SUBIACO | SUBIACO WA 6904 | FACSIMILE 61 8 9380 6761 | |
WESTERN AUSTRALIA 6008 | ADMIN@ERONGOENERGY.COM.AU | ||
WWW.ERONGOENERGY.COM.AU |
Programme of 10 holes for 1,800m commenced in November 2012, designed to test grade and width over 800m of the mineralised structure at Kabotshome Prospect, Maniema Project, DRC
First results from Kabotshome drilling expected in February 2013
Complete current drilling programme at Kabotshome
Evaluate drilling results and plan more detailed infill drilling programme
Conduct soil sampling and trenching follow up programmes on additional targets
Perth-based gold explorer Erongo Energy Limited (ASX: ERN) is pleased to report its activities for the December 2012 quarter on the Company's gold project in the Democratic Republic of the Congo (DRC).
MANIEMA PROJECT, DRC
The Maniema Project covers 930km2 of prospective ground in the Maniema Province of the east central Democratic Republic of Congo (DRC) and is located in one of the world's principal Precambrian orogenic-metallogenic provinces. Banro Corporation's multi-million ounce gold deposits lie east of the Maniema Project within a 210km belt which Banro has likened to the Ashanti Belt in Ghana. Banro poured first gold from its Twangiza deposit (which currently comprises Measured and Indicated Resources of 5.60 million ounces of gold) in October 2011. Banro's Namoya deposit, which lies immediately east of the Maniema Project, is scheduled to start producing gold in 2013.
A programme of 10 holes for 1,800m commenced on the Company's flagship Kabotshome
Prospect at the Maniema Project in November and was designed to test grade and width over
800m of the mineralised structure, 50m to 100m below surface on 100m fences (see Figure 1). The drilling also aimed to identify any near-surface, high-grade mineralisation similar to that intercepted at depth in KBD07. Drill hole KBD07, completed in July 2012, intersected 20.25m
@ 2.5g/t Au from 319m, including 8m @ 4.03g/t Au and 21.7m @ 3.58g/t Au from 354m, including 5.7m @ 8.74g/t Au.
Two holes are planned to test a second priority zone with gold-in-soil support identified from geophysics along the sediment-mafic volcanic contact east of the main structure (see Figure 2).
1
This zone lies adjacent to extensive active alluvial workings, which were mined by the
Belgians up to the early 1960s.
Three drill holes were completed up to the December shutdown and all holes intersected significant shearing, silicification and quartz veining and sulphide mineralisation. Samples from the first three drill holes were sent to ALS Chemex Laboratories in Johannesburg for assay with results expected in early February 2013.
The current programme will determine the true mineralised potential of the Kabotshome structure over 800m down to depths exceeding 100m below surface. Recent results have confirmed the potential for a significant open-pit and underground mining operation.
CORPORATE
On 13 December 2012, the Company advised it would conduct a pro-rata non-renounceable entitlement issue of shares to raise approximately $514,000 before costs. The Directors resolved to offer all shareholders a non-renounceable offer to purchase one (1) share for every four (4) shares held at a price of two (2) cents per share.
On 22 January 2013, the Company advised that shareholders had subscribed for 7,402,689 shares, representing a 29% take-up of their rights entitlement, leaving a shortfall of 18,315,163 shares. The Directors, in conjunction with the Lead Manager to the issue, Indian Ocean Corporate Pty Ltd, have finalised the allocation of the shortfall shares and it is expected that the placement of the shortfall will be finalised by 31 January 2013.
The funds raised will be used contribute to the exploration programme at the Maniema Project and for working capital.
For more information contact:
Mark Gasson Simon Hinsley Managing Director Investor Relations Erongo Energy Limited NWR Communications Tel: +41 798 824 602 Tel: +61 3 9622 2104
Email: mark@gasson.co.za Email: simon@nwrcommunications.com.au
Or visit: www.erongoenergy.com.au
Notes:
The information in this report that relates to exploration results is based on information compiled by Mr Mark Gasson who is a member of the Australasian Institute of Mining and Metallurgy. Mr Gasson, the Managing Director of the Company, has sufficient relevant experience in respect of the style of mineralisation, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2004 Edition of the AusIMM's "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Gasson consents to the inclusion in this report of the matters that are based on his information in the form and context in which it appears.
2
Figure 1: Drill hole locality map showing completed and planned drill hole positions
489100 489300 489500
OPEN
9584200
N 9584200
9584000
9584000
9583800
Borehole & Trench Locality Map
PR4804
D Potentially Mineralised Shear Zonewith porphyry intrusions
DClastic Sediments & Conglomerates DQuartz Vein D Mafie Volcanicso Planned Drill holes KBT07
250 Metres
489100 489300
3
o
8012
OPEN
0 KBD13
9583800
9583600
Figure 2: Interpreted Geology Map ofKabotshome
488000 490000 491000
N
........
........
........
................
_.,l
........ ........ -... .......
8
-
Legend
D Sediments D Mafie rod
o Pal nned Ornl l'de
f----1 Tll!f1Ch
--) Soil.a-001att
>100 ppb
Target zones
Fold
+ Fold axis lnterpreted
Fault
489000 490000 '191000
4
Appendix 5B Mining exploration entity quarterly report
Appendix 5B Mining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Rule 5.3
Name of entity
ERONGO ENERGY LIMITED
ABN Quarter ended ("current quarter")
50 114 175 138 31 December 2012
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from sales
1.2 Payments for
(a) exploration and evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other revenues
Net Operating Cash Flows
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward) | (1,015) | 17 |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - costs of share issues Net financing cash flows | - - - - - - | 378 - - - - - |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - costs of share issues Net financing cash flows | - | 378 |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | (1,015) 2,059 - | 395 663 (14) |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 1,044 | 1,044 |
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 1.2 100
-
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
Relates to Directors fees and salaries for executive and non-executive directors and payments made for company secretarial services and occupancy expenses.
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
N/A
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
N/A
+ See chapter 19 for defined terms.
Appendix 5B Page 6 30/9/2001
Financing facilities available
Add notes as necessary for an understanding of the position.
Appendix 5B Mining exploration entity quarterly report
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cashReconciliation 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.
Changes in interests in mining tenements
6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 7
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.
7.12 Unsecured notes
(totals only)
+ See chapter 19 for defined terms.
Appendix 5B Page 8 30/9/2001
Compliance statementAppendix 5B Mining exploration entity quarterly report
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: 29 January 2013 (Company secretary)
Print name: Paul Jurman
Notes1 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.
5 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.
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 9
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