9th Jun 2005 07:00
Triple Plate Junction Plc09 June 2005 For immediate release 9 June 2005 Triple Plate Junction plc ("TPJ" or the "Company") Preliminary Results for the Year ended 31 March 2005 Triple Plate Junction plc (AIM : TPJ), the gold exploration company focusing onSouth-East Asia, is pleased to announce preliminary results for the year ended31 March 2005. Summary of key points: Vietnam • Two exploration licences issued for the core area at the Pu Sam Cap gold prospect, the first new exploration licences to be issued by the Government of Vietnam since June 2001 Papua New Guinea (PNG) • Two exploration diamond drilling programs underway - Crater Mountain and Lambuso • Start-up exploration program on Manus Island, a recently secured joint venture • Regional exploration programmes commenced on other prospective PNG licences • Encouraging results from TPJ's first diamond drilling at the Crater Mountain project - Intersected mineralised width of 158 metres averaging 1.4 g/t gold from 220 metres to 378 metres hole depth with grade increasing at depth Financial • In May 2005 the Company raised £11.7 million gross to fund expanded exploration in Vietnam and PNG • Strong treasury gives TPJ ability to fast track projects showing strong potential The loss of £701,000 reflects the costs associated with finalising the issue ofthe licences in Vietnam, the costs associated with identification of,negotiation and application for the additional licences and joint ventures inPNG and the administration and operating costs of the public company. Ian Gowrie-Smith, Chairman, commented: "In our first full year since our flotation TPJ has expanded its horizons from aone country, single project focus to a two country, multi project explorationcompany. We have secured our exploration licences in Vietnam, and built a firstclass portfolio of exploration projects in PNG. The fundraising in May has givenus the ability to maximise the potential of this portfolio. "The Board is encouraged by initial results and believes that the systematic andcomprehensive programs now underway have the potential to yield substantialvalue for shareholders. We look forward to reporting on our progress in duecourse." For further information please contact: Triple Plate Junction plc 020 7499 1400Geoff Walsh, Chief ExecutiveDavid Lees, Finance Director Buchanan Communications 020 7466 5000Tim AndersonIsabel Podda CHAIRMAN'S STATEMENT This report covers the first full year since TPJ became a gold explorationcompany. During this time TPJ has expanded its horizons from a one country,single project focus to a two country, multi project exploration company. Vietnam: We are extremely pleased that, as a result of the efforts of our team inVietnam, the Company was issued two exploration licences over the core 154 sq.km at the highly prospective Pu Sam Cap (PSC) prospect area in Lai Chau,Vietnam. These were the first gold exploration licences issued by theVietnamese government since June 2001. Granting of these licences has allowed our exploration program to commence andwe have already sent in an advance team of geologists to establish operationsand tackle the logistical challenges of working in this area. Our joint venturepartners, Newmont Vietnam Pty Ltd are actively supporting our explorationefforts at PSC. Mapping of this extensive mineralised area has commenced with aview to identification of specific targets. The PSC prospect area is dominated by a Tertiary alkaline volcanic-intrusivecomplex from which local artisan miners have been extracting gold over a widearea from quartz-carbonate veins and brecciated wall-rocks. In the Company'sAIM Admission document dated 22 December 2003, historic exploration results werepublished in support of the corporate strategy. This sampling is detailed in thefollowing table: Year Sampled by No. of Samples Gold Silver g/t g/t (arithmetic average)* (arithmetic average)*1992 Normandy 300sq km regional geochemical BLEG gold anomaly1993 Normandy 22 8.6 271996 VRC 103 5.3 131998 VRC 45 9.6 182003 ACA Howe 14 4.5 12 * These results are not statistically relevant and may not be representative ofoverall mineralization. No systematic modern exploration work or drilling has ever been carried out atPSC. However, the Geological Survey of Vietnam has long regarded the area ashaving high potential, and introduced a joint-venture company comprisingNormandy Mining Limited and Anglo American Corporation (Normandy Anglo Asian PtyLtd) to the area in 1992. Initial reconnaissance work by that joint venturedefined a very strong, cohesive gold geochemical anomaly over an area of morethan 300 sq. km centred on the PSC rocks, and applications to explore the areawere lodged in 1993. Subsequent short expeditions to the area have confirmed the widespreaddistribution of gold (see table above). Normandy Anglo Asian Pty Ltd and itssuccessor Newmont Vietnam Pty Ltd (a wholly owned subsidiary of Newmont MiningCorporation) maintained the applications until 2003 when the applications werere-submitted by Triple Plate Junction limited, a company owned jointly byNewmont Vietnam Pty Ltd (49%) and Triple Plate Junction plc (51%). The granting of the PSC Exploration Licences is an important element of theCompany's strategy of targeting major unexplored or under-explored mineralizedsystems in frontier geological terrains. The Company has not yet progressed the granting of the remaining three licencesat Xi Pa, A Bung and Lang Vai currently under application by our joint venturepartners Tiberon Minerals Limited (see TSX Venture:TBR) as management felt itvital to initially focus on the granting of the core licence areas at PSC. Papua New Guinea The Company has made excellent progress in PNG during the last year. Since theinitial decision to target exploration opportunities in the region in March 2004the Company has built an impressive portfolio of exploration acreage held injoint ventures or proprietary licences. PNG Projects The acreage under licence in PNG again complements the Company's strategy oftargeting major unexplored or under-explored mineralized systems in frontiergeological terrains. The Company's portfolio in PNG includes: Block/Project Licences Area (km2) Ownership/interest Crater Mountain EL1115 41 51% earn-in EL1353 662 51% earn-in ELA1384 10 51% earn-in Lambuso EL1307 857 80% earn-in ELA 1381 512 80% earn-in Wamum EL 1369-Kainantu 2,493 100% Wau Block EL1365-Wau 184 90% EL1370-Heiweni 2,558 90% ELA1371-Tekadu 2,356 90% EL1377-Manga 1,708 90% EL1378-Sela 759 90% Oram EL1367 1,296 100% Wedau EL1368 443 100% Manus Island EL1326 273 65% earn-in with option to increase to 70% Where EL is an exploration licence and ELA is an exploration licence application The Company has two diamond drill programs underway, one on the Crater Mountainproject and one at Lambuso on New Ireland and has also recently initiated astart-up exploration program on Manus Island, a joint venture recently secured.The Company has also begun a regional exploration program on the remaininglicence areas with the objective of target identification for specificexploration programs. Company Infrastructure and Human Resources in PNG The Company has established the following infrastructure in PNG: • A regional head office in Port Moresby • A logistical office in Goroka (to service Crater Mountain) • A main exploration camp near Guasa Village at Crater Mountain • A satellite exploration camp on the Nevera Prospect at Crater Mountain Infrastructure to support the drilling program planned for Lambuso over thecoming months is currently being renovated. A warehouse is being established atthe seaport of Lae in order to improve supply chain efficiency for ourexploration operations. This will help reduce reliance on airfreight and helpwith the reduction of higher costs generally associated with exploration in PNG. We have built a small, highly experienced team in PNG and are currentlyrecruiting geologists to form the core of the regional exploration team. Wehave also recruited a number of graduate geologists to support more seniorpersonnel. Crater Mountain Program Initial results from the Crater Mountain diamond drill program are encouraging.Hole NEV-08 intersected a mineralised width of 158 metres averaging 1.4 g/t goldfrom 220 metres to 378 metres hole depth, with hydrothermal brecciation,disseminated, fracture-filled and vein sulphide mineralization encounteredthroughout the entire hole length of 450 metres. The results confirm a drillhole interval of 115 metres of 1.8 g/t gold reported by then BHP in the samearea in 1997, and appear to significantly increase the intersected width ofmineralization. Pyrite and carbonate-base metal dominated veins and fractures encountered in theTPJ drill-hole are multi-phased and hosted in an extensively altered andbrecciated volcanic pile and basement sediments. Gold grades within the158-metre interval averaging 1.4 g/t gold appear to be increasing with holedepth, as evidenced by intercepts of: • 12 metres at 1.11 g/t gold from 220-232 metres • 14 metres at 1.18 g/t gold from 236-250 metres • 12 metres at 1.64 g/t gold from 262-274 metres • 58 metres at 1.89 g/t gold from 284-342 metres • 20 metres at 2.33 g/t gold from 358-378 metres At this early stage of exploration, the extent of mineralization is unknown. Adrilling programme is continuing in order to better understandstructural-lithilogical controls and geometry of the mineralization. The drill-intersected mineralization occurs in the Nevera prospect area, one offive areas of interest identified in the Crater Mountain structural corridor.The Nevera prospect is characterized by extensive argillic alteration, gold andbase-metal soil anomalism over an area of some 5km by 2km. Early hand dugtrenches by previous explorers returned gold values of 35m at 3.1 g/t and 54m at1.21 g/t, but all surface work has been hampered by three to six metres ofvolcanic ash that blanketed the area in Quaternary times. Crater Mountain is one of a number of Pliocene to Quaternary strata-volcanoesthat lie in the tectonically active New Guinea Mobile Belt. The Mobile Belthosts several world-class gold-copper deposits including Ok Tedi, Porgera,Hidden Valley and Wafi, and the underground vein gold deposits of Kainantu andTolukuma. Prior to commencing the current drilling program, the Company compiled allexisting data at Crater Mountain including the re-processing andre-interpretation of airborne and ground magnetic data, geochemical data, andlandsat structural and lithological data. This work together with newgeological mapping and sampling has identified four highly prospective targetswithin the Nevera prospect area. TPJ also commissioned geological consultants Sinclair Knight Merz (SKM) toexamine a suite of rocks taken from the Nevera prospect. SKM has reported thatthe rocks comprising dacites, sediments, intrusives, hydrothermal breccias and adiatreme breccia, reveal similarities between Crater Mountain and theworld-class Porgera deposit of similar geological age. Porgera production todate and remaining reserves total approximately 20 Moz of gold. Financing In May 2005 the Company concluded an equity financing with institutions inLondon and North America raising gross proceeds of £11.7m. These funds are tobe spent on exploration programmes in PNG and Vietnam. The Company has a strongtreasury and is in a position to continue to explore its properties in the mostappropriate manner. Plans for this year Management is focusing efforts into actively exploring the portfolio in Vietnamand PNG with comprehensive exploration programs designed on both a regional andproject basis. The Company's strong treasury also gives it the potential tofast-track projects if they display sufficient potential. Management The Board has been complemented by the development of a strong middle-managementteam recruited to assist with in country operations. This investment in humanresources has proved invaluable in operations in PNG as the team's experienceallows it to deal with the idiosyncrasies of operating in challenging logisticaland technical environments. Conclusion During the past year management have secured the Pu Sam Cap project in Vietnamand have built a first class portfolio of exploration projects in PNG. TheCompany has also secured institutional support to enable the Company to properlyexplore the portfolio. The Directors are encouraged by initial results and believe that the systematicand comprehensive exploration programs now underway have the potential to yieldsubstantial value for shareholders. Ian Gowrie-SmithChairman8 June 2005 TRIPLE PLATE JUNCTION PLCConsolidated Profit and Loss Accountfor the year ended 31 March 2005 Note 2005 2004 £'000 £'000 Turnover - 1,132 Cost of sales - (366) Gross profit - 766 Administrative expenses (788) (1,204) Operating loss (788) (438) Net interest 79 3 Loss on ordinary activities before taxation (709) (435) Tax on loss on ordinary activities - - Loss after taxation for the year (709) (435) Minority interest 8 - Loss sustained for the year 3 (701) (435) Loss per share 2 (1.81)p (2.52)p There were no recognised gains or losses other than the loss for the year. TRIPLE PLATE JUNCTION PLCConsolidated Balance Sheetat 31 March 2005 Note Group Group 2005 2004 £'000 £'000Fixed assetsIntangible assets 10,806 3,521Tangible assets 120 9 10,926 3,530Current assetsDebtors 317 178Cash at bank and in hand 1,245 2,844 1,562 3,022Creditors: amounts falling due within one year (227) (189) Net current assets 1,335 2,833 Total assets less current liabilities 12,261 6,363 Capital and reservesCalled up share capital 609 386Share premium account 6,384 -Profit and loss account 5,276 5,977Minority interest (8) -Equity shareholders' funds 3 12,261 6,363 This preliminary statement was approved by the Board of Directors on 8 June2005. TRIPLE PLATE JUNCTION PLCConsolidated Cash Flow Statementfor the year ended 31 March 2005 Note 2005 2005 2004 2004 £'000 £'000 £'000 £'000 Net cash outflow from operating activities 4 (869) (222) Returns on investments and servicing offinanceInterest received 79 15Interest paid (12) -Net cash inflow from returns on 79 3investments and servicing of finance Capital expenditurePurchase of tangible fixed assets (131) (23)Purchase of intangible fixed assets (785) (410) Net cash outflow from capital expenditure (916) (433) Acquisitions - (111) DisposalsNet cash disposed of with subsidiaries - (94) Net cash outflow before financing (1,706) (857) FinancingIssue of ordinary share capital 107 4,204Expenses paid in connection with share issues - (590)Capital element of finance lease rentals - (5)Net cash inflow from financing 107 3,609 (Decrease) / increase in cash 5,6 (1,599) 2,752 TRIPLE PLATE JUNCTION PLCNotes for the year ended 31 March 2005 1. General The financial information herein does not constitute statutory accounts asdefined in section 240 of the Companies Act 1985. The financial information has been extracted from the company's 2005 statutoryfinancial statements upon which the auditors reported on 8 June 2005. Theiropinion does not include any statement under section 237 of the Companies Act1985. The financial statements have been prepared in accordance with applicable UnitedKingdom Accounting Standards and under the historical cost convention. Copies of the annual report are being posted to shareholders and copies will beavailable from the company's registered office at 105 Piccadilly, London, W1J7NJ. 2. Loss per ordinary share The calculation for the basic loss per share is based upon the loss attributableto ordinary shareholders divided by the weighted average number of shares inissue during the year. Reconciliation of the loss and weighted average number of shares used in thecalculations are set out below: 2005 2004Basic loss per shareLoss on ordinary activities before tax (£'000) (701) (435) Weighted average number of shares ('000) 38,728 17,257 Amount of loss per share (pence) (1.81) (2.52) The options and warrants are anti-dilutive so there is no diluted loss pershare. 3. Reconciliation of movements in shareholders' funds 2005 2004 £'000 £'000 Loss for the financial year (701) (435)Issue of shares 6,607 7,450Issue costs written off to share premium account - (590)Minority interest (8) - Net increase in shareholders' funds 5,898 6,425Shareholders' funds at 1 April 6,363 (62) Shareholders' funds at 31 March 12,261 6,363 TRIPLE PLATE JUNCTION PLCNotes for the year ended 31 March 2005 4. Reconciliation of operating loss to net cash outflow from operating activities 2005 2004 £'000 £'000 Operating loss (788) (438)Depreciation 20 38Amortisation - 75Loss on disposal of business - 25Increase in debtors (139) (77)Increase in creditors 38 155 Net cash outflow from operating activities (869) (222) 5. Reconciliation of net cash flow to movement in net funds 2005 2004 £'000 £'000 (Decrease)/increase in cash in the year (1,599) 2,752Cash inflow from debt and lease financing - 5Finance leases disposed of - 9Conversion of debt to equity - 246Inception of finance leases - (12) Change in net debt during the year (1,599) 3,000Net funds at 1 April 2,844 (156) Net funds at 31 March 1,245 2,844 6. Analysis of movements in net funds At 1 April At 31 March 2004 Cash flow 2005 £'000 £'000 £'000 Cash in hand and at bank 2,844 (1,599) 1,245 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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