21 December 1999
Our activities over the period since 1 April have been limited by available funds for the development of the Dolaucothi and Parys Mountain projects. Nevertheless work has continued on geological and scientific studies at Parys Mountain and further drilling of two holes at Dolaucothi has resulted in four small gold intersections.
The loss for the half year was £91,000, up on the corresponding period last year because of an increased amount of expenditure on the review and evaluation of new opportunities and because of higher interest charges. Expenditures on mineral development at Parys and Dolaucothi properties were £45,000 compared to £184,000 in 1998 when drilling was taking place at Parys Mountain. These development expenses are capitalised, in accordance with the company's accounting policy.
Juno has continued to support the company in these difficult times and a further extension to the working capital agreement has been arranged.
The company has concentrated its efforts on geological and scientific studies with limited field work. We continue to be encouraged by the results of this extensive examination of data however the planned drilling programme of 10,000 metres in 10 to 15 holes cannot commence until appropriate finance is available.
There has been a significant rise the price of zinc over the past year. In fact the increase from the low point of 41 cents to the high of 55 US cents per pound is 34%. This is encouraging and there are some firm signs that further increases are likely.
Zinc would provide over half of the revenues from the probable reserves at Parys Mountain with the balance coming from copper, lead, silver and gold, in that order. A sustained higher price for zinc would greatly assist our efforts to obtain finance for the planned drilling programme.
During the period hole M13 was deepened to a depth of 132m. As described in the annual report, this hole had already intersected gold at 40m below surface, with grades of 3.48 grams over 2.53m and within that, 6.50 grams over 0.95m. In the extension of this hole two further small intersections with mineralised material were noted. These have not yet been assayed.
Hole M14 was drilled to a depth of 49m at an inclination of 76 degrees from the horizontal. Two small mineralised intersections were made which also have not yet been assayed. These appear to represent the down dip continuation of intersections in M12 and M13.
This cluster of intersections between 30m and 40m in M12, M13 and M14 appear to be spatially related to a small anticlinal fold within the recently identified zone of deformation. The geometry of this fold is similar to the geometry of the fold with which the Roman Lode is associated and highlights a possible association between anticlinal fold axes and mineralisation at Dolaucothi.
It is planned to deepen hole M14 to a depth of 115m.
During the period we carried out an evaluation of a zinc opportunity in Ireland. That property continues to be the subject of legal action and while the opportunity will be monitored no immediate action is anticipated. We continue to work on several other new projects and hope to make progress in respect of at least one of these matters within three months.
On behalf of the board of directors
John F Kearney
21 December 1998
Unaudited Consolidated Profit and Loss Account
Six months to 30 September 1999
Six months to 30 September 1998
Net operating expenses
- continuing operations
Loss on ordinary activities before and after taxation
Loss per share - basic
Loss per share - fully diluted
Unaudited Consolidated Balance Sheets
30 September 1999
30 September 1998
Total fixed assets
Total current assets
Current liabilities (note 1)
Creditors - amounts due within one year
Net current (liabilities)/assets
Profit & loss account deficit
Equity shareholders funds
Non equity shareholders funds
Total shareholders funds
Notes : -
1 Current liabilities include £559,478 due to Juno Limited, the ultimate parent company.
2 The half year figures are unaudited. The profit and loss account and the balance sheet have been prepared on a basis consistent with that of the accounts for the year ended 31 March 1999. The auditors' report on those accounts was not qualified and did not contain a statement under section 237 of the Companies Act 1985.
3 This interim statement is being posted to all shareholders and copies are available on request from the company's registered office.
Contacts : Ian Cuthbertson John F. Kearney Company Secretary Chairman (44)1248 361333 (1)416 362 6686
|Anglesey Mining plc
Parys Mountain, Amlwch,
Anglesey, LL68 9RE, UK
|Phone +44 1248 361333