PARAMOUNT MINING CORPORATION LTD. 31 October 2014
September 2014 Quarterly ReportKey Highlight
• Receipt of the AMDAL and Environmental Permits means that the Company is now authorised to start underground mining and ore processing at Gunung Rosa
GUNUNG ROSA HIGH GRADE GOLD, SILVER AND BASE METAL PROJECT, WEST JAVA PROVINCE, INDONESIA
AMDAL AND ENVIRONMENTAL PERMITS ISSUED
During the quarter, original AMDAL and Environmental Permit documents were received after approval by the Mines Department and the Bupati (Regent) of Cianjur Regency in West Java Province, Indonesia.
Receipt of these original documents completes the final regulatory step before reopening the high-grade
Gunung Rosa gold, silver and base metal mine.
With these permits in hand, and the Mines Department permits previously announced to the market on 17
April 2014, the Company is now authorised to start underground mining and ore processing at Gunung
Rosa.
This significant milestone achieved, the next key steps include upgrading to a JORC Indicated Resource, dewatering and rehabilitating the existing 2.5 kilometres of underground mine workings and starting the related engineering studies and construction activities.
Mining tenements held as at 30 September 2014
Project | Tenement | Country/Province | Status | Interest |
Gunung Rosa | 503/Tmb.839/DPSDA.P | Indonesia/West Java | Granted | 72.25% |
For further information please contact:
Mo Munshi Daniel Poller
Chairman CEO & Managing Director
+86 139 1017 5192 +62 8151 1102 180
Paramount Mining Corporation Ltd
Quarterly Report - 30 September 2014
About Paramount: Paramount is an ASX-listed mining company focussing on precious and base metal deposits in Asia, and in particular Indonesia. The Gunung Rosa project is a high-grade gold, silver and base metals sulphide mine 125km south of Jakarta in West Java which has the potential to be a low cost operation. The project is the flagship project for Paramount and the Company presently holds a controlling 72.25% equity interest with rights of first refusal on the remaining shareholding.
The project has a 20 year Mining Permit (Operation/Production IUP), which was issued in 2010 and has from late 2012 been under Paramount management at the operating level. It is presently in the pre- development phase with a drilling program imminent, which is designed to upgrade JORC Resources from Inferred to Indicated, and with gold production expected within 18 months of the construction start.
This poly-metallic mineralisation, trending N-S, is known to extend under soil cover from surface to 240m depth, as a sub-vertical, on average 2.26m wide, mesothermal vein with a drilled strike of approximately
900m with geological evidence of some 2.5km of strike; it remains geologically open to the north, south and to depth beyond the present limit of drilling.
The project was extensively developed underground on the 900m of strike, following a positive Definitive Feasibility Study in the early 1990s, by sinking a mining decline, vertical shafts and development drives on four levels up until the Asian Financial Crisis whereupon it was curtailed due to the lack of availability of debt financing. The project has not advanced since that time despite the significant increase in the value of gold in real terms.
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Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Rule 5.5
Name of entity
Paramount Mining Corporation Limited
ABN Quarter ended ("current quarter")
73 102 426 175 30 September 2014
Consolidated statement of cash flowsCash flows related to operating activities | Current quarter $A'000 | Year to date (12.months) $A'000 | |
1.1 | Receipts from product sales and related debtors | ||
1.2 | Payments for (a) exploration & evaluation (b) development (c) production (d) administration | (127) (123) | (127) (123) |
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 (provide details if material) | ||
Net Operating Cash Flows | (250) | (250) | |
Cash flows related to investing activities | |||
1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets | ||
1.9 | Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets | ||
1.10 | Loans to other entities | ||
1.11 | Loans repaid by other entities | ||
1.12 | Other (provide details if material) | ||
Net investing cash flows | |||
1.13 | Total operating and investing cash flows (carried forward) | (250) | (250) |
+ See chapter 19 for defined terms.
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Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward) | (250) | (250) |
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 (provide details if material) Net financing cash flows | 260 | 260 |
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 (provide details if material) Net financing cash flows | 260 | 260 |
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 | - 13 | - 13 |
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 | 23 | 23 |
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 36
1.24 Aggregate amount of loans to tfahe parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
N/A
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.
01/05/2013 Appendix 5B Page 2
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Financing facilities availableAdd notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
$A'000 | ||
4.1 | Exploration and evaluation | 120 |
4.2 | Development | - |
4.3 | Production | - |
4.4 | Administration | 100 |
Total | 220 |
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. | Current quarter $A'000 | Previous quarter $A'000 | |
5.1 | Cash on hand and at bank | 23 | 13 |
5.2 | Deposits at call | - | - |
5.3 | Bank overdraft | - | - |
5.4 | Loan facilities available | 707 | 98 |
Total: cash at end of quarter (item 1.22) | 730 | 111 |
6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed
+ See chapter 19 for defined terms.
01/05/2013 Appendix 5B Page 3
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
6.2 Interests in mining tenements and petroleum acquired or increased |
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number | Number quoted | Issue price per security (see note 3) (cents) | Amount paid up per security (see note 3) (cents) | |
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions | - | - | - | - |
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions | - | - | - | - |
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs | 559,939,708 | 559,939,708 | - | - |
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs | - | - | - | - |
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | - | - | - | - |
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted | - | - | - | - |
+ See chapter 19 for defined terms.
01/05/2013 Appendix 5B Page 4
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
7.12 Unsecured notes (totals only)
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 5).
2. This statement does /does not* (delete one) give a true and fair view of the matters disclosed.
Sign here: ............................................................ Date: 31 October 2014 (Director/Company secretary)
Print name: ...GARRY TAYLOR...............................
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 and petroleum 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 6: Exploration for and Evaluation of Mineral Resources
and AASB 107: Statement of Cash Flows apply to this report.
5. Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.
01/05/2013 Appendix 5B Page 5
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