Chairman's Address to Shareholders
Sydney, Nov 24, 2011 AEST (ABN Newswire) - Dear Shareholders, Gold Anomaly's (
ASX:GOA) focus since the previous Annual General Meeting has remained the advancement of the potentially world class Crater Mountain project in Papua New Guinea through exploration and drilling.
During the year, your Company commenced two significant drilling programs focusing on the Nevera prospect - our maiden 2,500 metre beginning in January, and our current 10,000 metre follow-up campaign that commenced in July.
Through the work of these programs and previous exploration activities dating back to BHP's ownership of the asset in the 1990s, we are pleased to announce today details of our maiden inferred gold resource of 790,000 ounces for Crater Mountain.
As I speak, there are two rigs on site continuing to drill. A third rig is planned for next year to focus on the high grade gold zone discovered during our maiden campaign. In addition, logging and sampling is under way for the initial part of NEV027 - our first deep, 1000m+ hole searching for a buried intrusive feeder zone system at depth. NEV027 results have provided sufficient encouraging signs of a possible porphyry system to enable planning of the next deep hole.
In brief, your Company has been very active over the past 12 months. During this same time however, global economic and financial uncertainties have confronted various governments and overseas markets, leading to volatile domestic markets. As such, whilst our share price has reflected that volatility, your Company remains focused on the activities it can control to create shareholder value - that is, our efforts and resources remain squarely fixed on advancing Crater Mountain. Our goal for the next 12 months is to continue to drill the Nevera prospect, extend exploration to the adjacent prospects, and deliver an upgraded and larger resource at Crater Mountain by this time next year.
The progress made at Crater Mountain has validated our decision last year to enter a farm-out arrangement with TSX-listed Kenai Resources as it enabled precious Gold Anomaly cash resources to be focussed at Crater while concurrently enabling the further significant advancement and exploration success of Sao Chico through Kenai Resources financing the project and the engaging local management. Without Kenai Resources involvement, your Company would have had to raise a further $4M, further diluting shareholders, to support the ongoing operations and undertake the current exploration work. Without this work, the rights to the Sao Chico exploration lease would be lost. Through this Joint Venture, your company has the opportunity to be a minority partner in a project which is now, through Kenai's involvement, demonstrating significant potential.
While 2011 has been the most successful year for the Company in terms of exploration, 2012 is shaping to be even more successful. We anticipate even greater degrees of success at Crater from two key areas - the Mixing Zone and from the intrusive; drilling at Sao Chico is demonstrating its potential at depth at a much greater rate than anticipated; and an internal review of the Croydon projects in the last few months has strongly demonstrated that we must revisit both the polymetallic and gold opportunities that attracted the Company in the first place. I will detail all this in a separate presentation.
The challenge the Company faces now is how best to finance the various projects it has moving forward. While this is a major challenge given the opposing issues of a very poor state of general financial markets and the very high quality assets that require expenditure to advance, your Board feels comfortable that there are options available to continue to progress and place our Company in a very strong position ready to capitalise when overall market sentiment improves.
On behalf of the Board of Gold Anomaly, I wish to thank our employees, contractors and joint venture partners who have all had a large impact on this, our most successful year. I also thank shareholders for their commitment and support during the year, enabling us to continue to add value to the Company in this very difficult financial environment.
The following presentation provides an update of our progress to date, and outlook for 2012.
Greg Starr
Executive Chairman
Gold Anomaly
View the Full Presentation at:
http://media.abnnewswire.net/media/en/docs/ASX-GOA-237681.pdf
Contact
Gold Anomaly
TEL: +61-2-9241-4224
FAX: +61-2-9252-2335
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