PDF - Redstone Resources Ltd.

 30 January 2015 QUAR
RTERLY REPORT For the
e Period EEnding 31 Decembe
er 2014 The Board of Redstonee Resources Limited (ASX
X Code: RDSS) (“Redston
ne” or “the Company”) presents itss quarterly reeport for the period endin
ng 31 Decem
mber 2014 (“tthe Quarter””). Redstone’s primary focu
us is the Tollu
u Project whhich is located
d in the souttheast portioon of the West Musgravee region of W
Western Ausstralia. Thiss Project hossts a giant swarm of hydrothermall copper rich
h veins in a a
2
mineralised
d system covvering an areea at least 55km . Copper mineralisation is expoosed at the surface and
d forms part o
of a dilation system betw
ween two maajor shears. Redstone exxpects the Prroject’s mineeralised area
a and the volu
ume of hydro
othermal min
neralisation to increase ssignificantly with further r drilling. SUMMAR
RY 


Con
ntinued workk on definingg a Conceptu
ual Exploratio
on Target onn the Atlas Prroject Com
mpleted Environment Maanagement P
Plan framew
work for futurre Works pro
ograms Con
ntinued prom
motional actiivities and asssessment off fundraisingg options. Tollu Projecct (Redstone
e 100%) Redstone’s 100% owneed Tollu Project is locateed in the sou
utheast portiion of the W
West Musgrave region off Western Au
ustralia (Figu
ure 1). The P
Project is appproximatelyy 20km south
h east of thee Blackstone Communityy on Company’s 100% ow
wned teneme
ent E69/24500 (Figure 2).
The Tollu P
Project consists of a larrge swarm oof hydrotherrmal copper rich quartzz veins in a mineralised
d system coveering an area at least 5kkm2. Malach ite rich gosssans associatted with quaartz veins are
e exposed att surface and
d form part o
of a dilatation
nal system b etween two major structtures within the Tollu Fault Zone. Redstone Resou
R
urces Limited A
ABN 42 090 169 154 60 Havelock Stre
6
eet, West Perth
h WA 6005 Tel: 08 9328 2552 Fax: 08 9328 26
660 www.redsto
one.com.au Email: [email protected]
one.com.au ASX: RDS Figure 1 – W
West Musgrave
e ‐ Location Maap Figure 2 – T
Tollu Project – Location Map The C
Company haas renamed its existing prospects within w
the Tollu Project and has ide
entified further prospectss within the Tollu Projectt. There are
e now 16 pro
ospects in tootal within th
he Tollu Projeect. The inittial focus is on o the Chattsworth Prosspect, the Ea
astern Reef Prospect, th
he Main Reef Prospect and
d the Dawycck Prospects.. The C
Company haas also identified the p otential for a number of other proojects on th
he Tollu tenem
ment (E69/2450) in addittion to the TTollu Project, detailed bellow. Teneement E69/2
2450 Prospe
ectivity Five additional projects p
have
e been iden tified on E6
69/2450 (Figure 3) as keey sites to conduct c
mineral exploration. These Prrojects are:  Atlas Projject (prospecctive for IOCCG & Mt Isa sstyle‐copper sediment‐hoosted). Project (prosspective for IIOCG & Mt Issa style‐copp
per sedimentt‐hosted).  Babylon P
Project (prosspective for M
Mt Isa style‐copper sedim
ment‐hostedd).  Pompeii P
diment‐hostted).  Pergamon Project (prrospective foor Mt Isa style‐copper sed
 Herculaneum Project (prospectivee for Mt Isa style‐copperr sediment‐hhosted). 2 ASX: RDS Figure 3 –– Project –Lo
ocation Map
Tollu Project – Co
onceptual Exxploration Taarget Redsttone has deffined an incrreased Concceptual Explo
oration Targe
et (Target) foor the Tollu Project of 222 to 33 million tonnes of mineralissation at a conceptual c
grade g
rangee of 0.9 ‐ 1..3% Cu, contaaining 198,00
00 to 445,00
00 tonnes of f copper. This includes a
an estimate oof 4.3 to 6.4 million tonnees of mineralisation at a conceptual ggrade range of 1.6 ‐ 2.4%
%, containingg 69,000 to 1
154,000 tonnees of copper on the Chattsworth Prosspect. potential quaantity and grade of the Target is conceptual in nature. It iss important to note The p
that tthere has beeen insufficie
ent explorati on to estimaate a Minera
al Resource aand it is unce
ertain if further exploratio
on will resultt in the estim
mation of a M
Mineral Resource. Atlass Conceptuall Exploration
n Target Durin
ng the Quarrter the Com
mpany contiinued geological and ge
eophysical w
work on deffining a Conceptual Explo
oration Targe
et on the Atlaas Project. Atlass Project Bacckground The A
Atlas Projectt lies to the immediate north of the
e Tollu Proje
ect and is prroximal to th
he Tollu Fault Zone (Figure 4). Most of the Prooject area appears to be under a tthin Tertiaryy cover. Impo
ortantly, mucch of the arch
hitecture of Tollu is repe
eated in Atlass. In additioon is the inclu
usion of interm
mediate volccanic rocks o
of the Hogarrth Formatio
on and the in
ntrusion of aa granite (Figgure 5). In combination with w the proximity of th e Tollu Fault Zone, and expanse of Tertiary covver, the Atlas Project is prrospective fo
or a blind Mtt Isa style‐cop
pper sediment‐hosted deeposit. 3 ASX: RDS Figure 4 – At
F
tlas Project –
–Location Map The A
Atlas Project is also prospective for tthe IOCG min
neralisation. In the nortthern portion
n of the Projeect, a felsic in
ntrusion is positioned at the margin to the Tollu Fault Zone. Immediatelly north of thiis is a magneetised unit with a strike oof 1200 metrres and width
h of 500m (FFigure 6). The rrock type iss interpreted
d to be a pporphyritic rhyolite. As a magnetiseed feature it could repreesent a portion of stratigraphy not deemagnetised
d by the Tollu
u Fault Zonee, or the foottprint of a hyd
drothermal cell c that cau
used magnettisation conssistent with an IOCG an alogy. Adjacent to this location, witthin the dam
maged and ddemagnetised domain off the Tollu FFault Zone iss a rock specimen P70966
60. This speccimen was sttudied by pe
etrographic a
analysis by Te
Teale and Asssociates (20066) and was observed to b
be a porphyrritic rhyolite tthat has bee
en sulphidiseed. It contained pyrite, chalcopyrite, covelllite, magnettite and hae
ematite as aaccessory minerals. m
Abun
ndant K‐feldsspar and biottite was pressent but it iss unclear from the descriiption if thesse were primaary or a pro
oduct of me
etasomatism
m. The obsservation of pyrite, cha lcopyrite, co
ovellite, magn
netite and haaematite favour an IOCG deposit model. 4 ASX: RDS Figuree 5. The locatio
on of the six Pro
ojects situated within E69/24
450 that have been consideredd prospective ffor metal end
dowment. The main mineral system targeteed is Mt Isa stylle‐copper sedim
ment‐hosted m
mineral system. IOCG mine
eralisation is allso considered to be plausible
e. The tenemen
nt outline is in bbrown. Figurre 6. The spatiaal proximity of the sulphidisedd rhyolite as de
etermined from
m petrographicc thin section (2
2006), a magn
netic high, a felssic intrusive an
nd the Tollu Fau
ult Zone.
5 ASX: RDS CORP
PORATE Durin
ng the Quarrter, the Co
ompany enggaged a con
nsultant to assist a
with capital raising and prom
motional activvities, with the objectivee of raising aadditional fun
nds during t his quarter. A West Musggrave and To
ollu project siite visit was undertaken in early Dece
ember for thhis purpose. Durin
ng the Quartter, the Company receiveed a warningg from the DMP relating to breachess arising from historical exploration activities unddertaken on the Blackstone Range PProject. Furrther to this, tthe Compan
ny has completed a revieew and updaated its environmental ppolicies, proccedures and m
management plans. Thiss Environme ntal Manage
ement Plan will provide the framew
work for all futture exploration activitie
es to be undeertaken by th
he Companyy. Durin
ng the Quaarter the Co
ompany loddged a Research and Developmennt Tax concession appliccation (“App
plication”) for eligible exppenditure inccurred during the 2013/114 financial yyear for a Ressearch and Developmen
nt tax offseet amount. The T Applicattion is curreently pendin
ng with AusIn
ndustry and tthe Australia
an Taxation O
Office. petent Person
ns Statement Comp
nformation in
n this announ
ncement that relates to Exxploration Tarrgets and Expploration Results was The in
autho
orised by Mr Darryl Maple
eson, a Princcipal Geologisst and a full time employeee of BM Ge
eological Servicces, who are engaged as consultant c
geeologists to Re
edstone Reso
ources Limitedd. Mr Maple
eson is a Fellow
w of the Austrralian Institute
e of Mining annd Metallurgyy. Mr Mapleson has suffici ent experiencce which is releevant to the sstyle of minerralisation andd type of depo
osit under consideration too act as a com
mpetent perso
on as defined in the 2012 edition of t he “Australassian Code forr reporting off Exploration results, erves”. Mr Maapleson conse
ents to the incclusion in the report of the matters Minerral Resources and Ore Rese
based
d on his inform
mation in the fform and conttext in which it appears. Forwaard‐Looking SStatements document mayy include forw
ward‐looking sstatements. FForward‐looking statementts include, butt are not This d
limiteed to statements concernin
ng Redstone R
Resources Lim
mited’s (Redsto
one) planned exploration p
program and o
other statemeents that are not historicaal facts. When used in th
his documentt, the words such as “could
d”, “plan”, “eestimate”, “expect”, “intendd”, “may”, “p
potential”, “sh
hould”, and si milar expresssions are forwaard‐looking staatements. Altthough Redst one believes that its expecctations refleccted in these fforward‐
lookin
ng statementss are reasonable, such stat ements involvve risks and u
uncertainties aand no assura
ance can be givven that actuaal results will b
be consistent with these fo
orward‐looking
g statements.. 6 ASX: RDS TENEM
MENT INFOR
RMATION ASS REQUIRED BY LISTING RULE 5.3.3 The C
Company holds the follow
wing tenemeents at the end of the 31 December 22014 quarterr. TENEM
MENT SUMM
MARY AS AT 31 DECEMB
BER 2014 Australia West Musgrave, A
Pro
oject
Tollu
Tene
ement
E6
69/2450
Blacks
stone
Range
e
Blacks
stone
Range
e
69/2108
E6
69/2109
E6
Reg
gistered Holderr
Applicant
es
Redsstone Resource
Limite
ed
Gold
Riverr
Explo
oration Pty Ltd
Gold
Riverr
Explo
oration Pty Ltd
Consolidated
Entity
Intere
est
Gran
nt Date
(Application
Date)
D
100%
100%
19/0
09/2008
18/09/2018
41
125.0
100%
75%
%
28/0
04/2006
27/04/2015
39
121.0
100%
75%
%
28/0
04/2006
27/04/2015
70
217.0
150
463.0
Holderr
Interes t
Expiry
Area
km2
Blocks
Brazil, South Ameerica Projject
Tene
ement
State
Registered Holder
Applica
ant
Holder
Interest
Co
onsolidated
Entity
Interest
Grant Date
Expiry
Area (ha)
Re
edstone
Mine
eração
Do
100%
100%
15/02/2008 15/02/2011*
6,953.43
Ma
ata Grosso Brrasil Ltda
*Applica
ation for an exte
ension of term for
f tenement 866280/07 for a fu
urther three yea
ars was lodged with
w the Brazil N
National Department of Minerall
Production (DNMP) an
nd is still pending. Arinos
s
866.280/2007
The fo
ollowing gran
nted tenemeent interests held by the Company exxpired during
g the Quarteer: Brazil, South Ameerica Projject
Tene
ement
Bala and
al
Ponta
850.738/2011
Bala and
al
Ponta
850.739/2011
State
gu
Xing
Xing
gu
Registered Holder
Applica
ant
HJ
JH Mineração
Ltd
da.
HJ
JH Mineração
Ltd
da.
do
Brasil
do
Brasil
Holder
Interest
Co
onsolidated
Entity
Interest
90%
10%
3/10/2011
3/10/2014
90%
10%
3/10/2011
3/10/2014
Grant Date
Expiry
Area (ha)
9,203.78
9,727.25
18,931.03
Blacksstone Rangee Project – E69/2108 E
and E69/2109:: Farmin witth Resource Mining Corpporation Ltd (ASX: RMI),, Redsto
one earning 90% The C
Company has a beneficia
al interest off 75% in its B
Blackstone Range joint veenture at the end of thee Quartter. The Com
mpany did not n acquire oor dispose of o any beneficial interestts in any joint ventures,, farm‐‐in or farm out arrange
ements durinng the Quarrter. These tenements t
aare currentlyy subject to
o Forfeeiture Applicaations which
h are being d efended. 7 ASX:: RDS ABOU
UT REDSTON
NE RESOURC
CES Redsttone Resourrces Ltd (ASSX: RDS) is aa Perth‐base
ed companyy focused o n highly pro
ospective coppeer exploratio
on properties in the Wesst Musgrave region of We
estern Austraalia. Redsttone’s 100%
% owned Tollu Project is located in th
he south‐easst portion off the West M
Musgrave region of Westerrn Australia. The Tollu PProject consissts of a large
e swarm of hhydrotherma
al copper 2
quartz veins in a mineralised system
m covering an
n area at lea
ast 5km . M
Malachite‐rich
h gossans rich q
assocciated with quartz veins are expossed at surfaace and form
m part of aa dilatationa
al system betw
ween two majjor structure
es within thee Tollu Fault ZZone. The TTollu Projectt has a Conce
eptual Explooration Targe
et estimated to be 22 too 33 million ttonnes of mineralisation at a conceptua
al grade rangge of 0.9 ‐ 1.3
3% Cu, conta
aining 198,0000 to 445,00
00 tonnes of copper. This in
ncludes 4.3 tto 6.4 millionn tonnes of m
mineralisatio
on at a conceeptual grade
e range of 1.6 – 2.4%, containing 69,000
0 to 154,000 tonnes of Co
opper on the
e Chatsworthh Prospect. For fu
urther inform
mation please contact: Richaard Homsanyy Chairrman Redsttone Resources Limited +61 (08) 9328 255
52 [email protected]
ne.com.au Brett Hodgins
B
s Technical Dire
T
ector Redstone Res
R
sources Limitted +61 (08) 9328
8 2552 [email protected] 8 Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 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
Name of entity
Redstone Resources Limited
ABN
Quarter ended (“current quarter”)
42 090 169 154
31 December 2014
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A’000
Year to date
(6 months)
$A’000
(169)
(103)
(352)
(337)
1
5
-
-
(271)
(684)
Cash flows related to investing activities
Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
-
-
1.10
1.11
1.12
Loans to other entities
Loans repaid by other entities
Other (provide details if material)
-
-
Net investing cash flows
Total operating and investing cash flows
(carried forward)
-
-
1.13
(271)
(684)
1.1
1.2
Receipts from product sales and related debtors
Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3
1.4
Dividends received
Interest and other items of a similar nature
received
Interest and other costs of finance paid
Income taxes paid
Other (provide details if material)
R&D Rebate (net)
1.5
1.6
1.7
Net Operating Cash Flows
1.8
1.9
+ See chapter 19 for defined terms.
01/05/2013 Appendix 5B Page 1
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
1.13
1.14
1.15
1.16
1.17
1.18
1.19
Total operating and investing cash flows
(brought forward)
Cash flows related to financing activities
Proceeds from issues of shares, options, etc.
Proceeds from sale of forfeited shares
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Other - capital raising costs
Net financing cash flows
Net increase (decrease) in cash held
(271)
(684)
-
-
-
-
(271)
(684)
1.20
1.21
Cash at beginning of quarter/year to date
Exchange rate adjustments to item 1.20
487
900
1.22
Cash at end of quarter
216
216
Payments to directors of the entity, associates of the directors, related
entities of the entity and associates of the related entities
Current quarter
$A'000
1.23
Aggregate amount of payments to the parties included in item 1.2
1.24
Aggregate amount of loans to the parties included in item 1.10
1.25
Explanation necessary for an understanding of the transactions
75
-
Director and Director Consulting Fees including to related entities of the directors.
Non-cash financing and investing activities
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
Nil
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
Nil
+ See chapter 19 for defined terms.
Appendix 5B Page 2
01/05/2013
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available
$A’000
Amount used
$A’000
3.1
Loan facilities
-
-
3.2
Credit standby arrangements
-
-
Estimated cash outflows for next quarter
$A’000
75
4.1
Exploration and evaluation
4.2
Development
-
4.3
Production
-
4.4
Administration
75
150
Total
Reconciliation of cash
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.
5.1
Cash on hand and at bank
5.2
Deposits at call
5.3
Bank overdraft
5.4
Other (provide details)
Total: cash at end of quarter (item 1.22)
+ See chapter 19 for defined terms.
01/05/2013 Appendix 5B Page 3
Current quarter
$A’000
Previous quarter
$A’000
186
257
30
230
-
-
-
-
216
487
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Changes in interests in mining tenements and petroleum tenements
6.1
6.2
Tenement reference and
location
Nature of interest
(note (2))
Interests in mining
tenements and petroleum
tenements relinquished,
reduced or lapsed
Brazil, South America 850.738/2011 850.739/2011 10% free carried interest 10% free carried interest Interests in mining
tenements and petroleum
tenements acquired or
increased
Nil Interest at
beginning
of quarter
10% 10% Interest at
end of
quarter
0% 0% Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number
7.1
7.2
7.3
7.4
7.5
Preference
+securities
(description)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks,
redemptions
+Ordinary
securities
186,969,390
Number quoted
186,969,390
Issue price per
security (see note
3) (cents)
Amount paid up per
security (see note 3)
(cents)
Fully Paid
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks
+Convertible
debt securities
(description)
+ See chapter 19 for defined terms.
Appendix 5B Page 4
01/05/2013
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
7.6
7.7
7.8
7.9
7.10
7.11
7.12
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
Options
(description and
conversion
factor)
Quoted Options
(ASX: RDSO)
31,356,966
Exercise price
20 cents
Expiry date
28/02/16
Unquoted Options
750,000
750,000
1,000,000
2,000,000
35 cents
45 cents
30 cents
20 cents
06/07/15
06/07/15
26/02/15
04/12/17
1,500,000
500,000
500,000
1,000,000
25 cents
30 cents
35 cents
30 cents
30/11/14
30/11/14
30/11/14
21/12/14
Issued during
quarter
Exercised during
quarter
Expired during
quarter
Debentures
(totals only)
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 give a true and fair view of the matters disclosed.
30 January 2015
Sign here:
............................................................ Date: ............................
(Company secretary)
Miranda Conti
Print name:
.........................................................
Notes
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.
+ See chapter 19 for defined terms.
01/05/2013 Appendix 5B Page 5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
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 or
petroleum 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.
Appendix 5B Page 6
01/05/2013