ABN Financial Report for the half-year ended 31 December 2006

ABN 72 009 178 689 Financial Report for the half-year ended 31 December 2006 070013GRN.doc GRAVITY DIAMONDS LIMITED ABN 72 009 178 689 AND CONTROL...
Author: Mary Pitts
2 downloads 3 Views 232KB Size
ABN 72 009 178 689

Financial Report for the half-year ended 31 December 2006

070013GRN.doc

GRAVITY DIAMONDS LIMITED ABN 72 009 178 689 AND CONTROLLED ENTITIES

CONTENTS Page No. DIRECTORS’ REPORT

1

AUDITOR’S INDEPENDENCE DECLARATION

6

CONDENSED CONSOLIDATED INCOME STATEMENT

7

CONDENSED CONSOLIDATED BALANCE SHEET

8

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

9

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

10

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

11

DIRECTORS’ DECLARATION

14

INDEPENDENT REVIEW REPORT

15

CORPORATE DIRECTORY

17

GRAVITY DIAMONDS LIMITED ABN 72 009 178 689 AND CONTROLLED ENTITIES

DIRECTORS’ REPORT The directors present their report on Gravity Diamonds Limited (“Gravity” or the “company”) and its controlled entities for the half-year ended 31 December 2006. DIRECTORS The names of directors who held office during or since the end of the half-year are: Robert V Danchin Phillip G Harman Nicholas J Limb Wynford Davies PRINCIPAL ACTIVITIES The principal continuing activity of the company during the half-year consisted of the exploration for economic resources of diamonds in Australia and the Democratic Republic of Congo (“DRC”) largely through its wholly-owned subsidiary Diamond Mines Australia Pty Ltd (“DMA”) in both countries. RESULTS OF OPERATIONS The net loss of the consolidated entity attributable to members during the half-year ended 31 December 2006 was $5,740,781 (2005 - loss of $1,141,786). The loss was principally attributable to non-cash charges of: • •

exploration expenditure written off on relinquished areas of interest loss on foreign currency

$3,848,757 $829,974

REVIEW OF OPERATIONS Australia – Northern Territory and Western Australia Northern Australia Diamonds The bulk sampling program to provide an indication of the grade potential of the ABN 021 kimberlite pipe was completed during the period. Kimberlite was successfully extracted from five pits, each approximately five metres square, located at a variety of positions within the pipe. Approximately 220 tonnes of kimberlite was transported to the Merlin Diamond Mine, 50 kilometres east, operated by North Australian Diamonds Limited (“NAD”). Processing of this material through NAD’s Mark III processing plant commenced during the fourth week of January and took approximately two weeks. Following that, the recovered heavy mineral fraction was transported to the Diatech laboratory in Perth for final processing and diamond recovery. Elsewhere, significant progress was achieved on the Abner Range district exploration projects. A helicopter-borne transient electromagnetic survey (HoistEM) was completed during October, collecting over 3,000 line kilometres of data at a flight line spacing of 80 metres. Final processed data obtained during November generated a number of EM targets west of ABN 021, on the main Abner Plateau and in the North Valley, several of which were ground inspected and loam sampled before the end of the dry season. While loam sampling of the sandy soils over these targets did not return indicator minerals, most of these features will be further tested by planned RAB drilling programs during the 2007 field season. On other Northern Australia Diamonds projects, follow-up sampling results were received at Cox-Arnold for the Cox002 FALCON® anomaly and the ‘Sample 159817 or Cox022’ drainage basin, both of which previously returned numerous chromites of possible kimberlitic origin. At Cox002, a loam sample returned 14 chrome spinels, several with possibly kimberlitic affinities, while a drainage sample 2.5 kilometres downstream of the target recovered four chromites and one small diamond. In the Cox022 drainage basin, several samples returned chrome spinels, however, as yet a source for these recovered grains has not been identified. Further sampling and ground geophysical surveys followed by drilling, if warranted, are planned for this area in the forthcoming field season.

-1-

GRAVITY DIAMONDS LIMITED ABN 72 009 178 689 AND CONTROLLED ENTITIES

DIRECTORS’ REPORT Results from follow-up sampling of the Tee Dee 33 anomaly failed to reproduce the original sample results and further work in this area is under review, while at Tanaburs, the combined gravity/air photo feature, TAN016, returned another chromite from a loam sample collected. This target will be drilled in conjunction with other drill programs in the McArthur Project area early in the 2007 field season. Two new joint ventures were entered into with Red Metal Limited involving diamond exploration rights. The Mallapunyah project abuts the western boundary of the tenement containing the Abner Range kimberlite, while the St Vidgeons tenement is located on the Hodgson project. Limited sampling has been completed on the latter JV area. Ellendale –Blina JV Results were received from bulk sampling of the recently discovered Kimberley 45 lamproite and from sample pit programs across interpreted palaeochannels to the north of Blina’s E9 North palaeochannel. No diamonds were recovered from the 225 tonnes of lamproite collected from the central portion of the Kimberley 45 pipe and, accordingly, no further work is planned on this pipe. Gravel accumulations were encountered in several pits across the curvilinear features but did not identify a major palaeochannel. Lamproitic chromites were found in all samples and an exploration program is being formulated to further assess the interpreted palaeochannel targets and possible extensions of Blina’s E9 North West and East palaeochannel systems into the southern portions of the joint venture area. Democratic Republic of Congo Evaluation of the regional heavy mineral sampling results has identified four main project areas – Luebo, Penge, Maniamuna and Gungu all within the Kasai craton. Luebo Project A helicopter-supported infill sampling program was completed over five priority areas – Sasaie, Lubembe, Dibinga, Kabunji-Nzemba and LUMAG 137, with the aim of constraining in greater detail the source areas of the kimberlitic indicator mineral (“KIM”) anomalies identified in the regional sampling. A field laboratory, with experienced personnel from MSA Geoservices in South Africa, was set up at the Luebo base camp. This facility was able to process and pick the 1-4mm size fractions for 393 of the 512 samples recovered, thereby providing results within days of sample collection. Many samples returned visually highly positive KIM results, identifying focused areas of interest, many also in the vicinity of intense artisanal diamond mining activity in streams and gullies. These results, combined with the ongoing detailed interpretation of the aeromagnetic data, will lead to the selection of new drill targets. Other results from the field observations recovered a total of 41 macro diamonds from 32 samples out of the 393 samples picked so far. Thirty of the samples contained diamonds in the 1-2mm size fraction and two samples contained diamonds in the 2-4mm size fraction. The remainder of the samples and the

Suggest Documents