Quarterly Report. For the Quarter Ended 30 June Vulcan is maintaining its low cost exposure to West Australian gold exploration.

Transcription

1 Quarterly Report For the Quarter Ended 30 June 2004 Vulcan is maintaining its low cost exposure to West Australian gold exploration. Yerilla Joint Venture (Sons of Gwalia earning 75%) Sons of Gwalia are continuing to assess the project with a number of areas defined for follow-up exploration. The Yerilla group of tenements is situated north-northwest of the Carosue Mine area within the Keith Kilkenny tectonic zone. The exploration tenement 31/524 is located 75km NNW of the Carosue mine site and 35km NW of the former Porphyry mine. During the June period, 485 auger samples were collected in a 50m x 400m pattern covering an area of 16km 2. The area had previously been tested by 500m x 500m spaced BLEG soil sampling that returned anomalous gold results over 3 zones. The auger samples were collected to better define the anomalous zones prior to further evaluation. All analytical results are pending. Project Acquisition Vulcan Resources is actively continuing its aggressive programme of review and evaluation of new exploration and production opportunities both within Australia and overseas. Financial As at 30 June 2004, the Company has million shares on issue and cash on hand of $0.79 million. Ground Level, 1 Havelock Street WEST PERTH WA 6005 Telephone: (61 8) Facsimile: (61 8)

2 VULCAN RESOURCES LIMITED QUARTERLY REPORT 2 For Quarter Ended 30 June 2004 Dated this 26 th day of July Signed on behalf of the Board of Vulcan Resources Limited. p.p. ALISTAIR COWDEN Chairman Please direct enquiries to: Alistair Cowden (Chairman); or Brett Dickson (Finance Director) Telephone: (08) The information on mineralisation contained in this report accurately reflects information compiled by Dr Alistair Cowden B.Sc (Hons.), Ph.D, M.Aus.I.M.M., M.A.I.G., and Mr Terry Peachey B.Sc (Hons.), M.A.I.G., who are Competent Persons (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves) with relevant experience in relation to such mineralisation and are officers of Vulcan Resources Limited.

3 VULCAN RESOURCES LIMITED 3. APPENDIX 5B Mining Exploration entity ly report Name of entity VULCAN RESOURCES LIMITED ACN or ARBN Quarter ended ( current ) June 2004 Consolidated statement of cash flows Cash flows related to operating activities Current Quarter A$ 000 Year to Date (12 months) 1.1 Receipts from product sales and related debtors Payments for (a) exploration and evaluation (50) (1,036) (b) development - - (c) production - - (d) administration (114) (598) 1.3 Dividends received Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid Other - - Net Operating Cash Flows (78) (1,418) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects - - (b) equity investments - - (c) other fixed assets (20) (36) 1.9 Proceeds from sale of: (a) prospects - - (b) equity investments - - (c) other fixed assets Loans to other entities Loans repaid by other entities Other - - Net investing cash flows (20) (36) 1.13 Total operating and investing cash flows (carried forward) (98) (1,454)

4 VULCAN RESOURCES LIMITED Total operating and investing cash flows (brought forward) (98) (1,454) Cash flows related to financing activities 1.14 Proceeds from issues of shares (net of costs) Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other - - Net financing cash flows - 2 Net increase (decrease) in cash held (98) (1,452) 1.20 Cash at beginning of /year to date 887 2, Exchange rate adjustments to Cash at end of Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current 1.23 Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions N/A 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.

5 VULCAN RESOURCES LIMITED Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used 3.1 Loan facilities Credit standby arrangements - - Estimated cash outflows for next 4.1 Exploration and evaluation Development - Total 100 Reconciliation Of Cash Reconciliation of cash at the end of the (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current Previous 5.1 Cash on hand and at bank 50 (72) 5.2 Deposits at call Bank overdraft Other (provide details) - - Total: cash at end of (item 1.22) Changes in interests in mining tenements See attached Schedule A.

6 VULCAN RESOURCES LIMITED 6. Issued and quoted securities at end of current 7.1 Preference securities (description) Total number Number quoted Issue price per security (cents) - Amount paid up per security (cents) 7.2 Changes during Ordinary securities 25,144,000 16,809, Changes during - Issued 7.5 Convertible debt securities (description and conversion factor) Changes during Options (description and conversion factor) 4,000,000 12,400,001 Nil 7,932,761 Exercise Price $0.20 $0.25 Expires 30 June December Issued during 7.9 Exercised during 7.10 Expired during Debentures (totals only) Unsecured notes (totals only) -

7 VULCAN RESOURCES LIMITED 7. Compliance statement 1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX. 2. This statement does give a true and fair view of the matters disclosed. Sign here: Date: 26 July 2004 Company Secretary Print Name: Brett Dickson

8 VULCAN RESOURCES LIMITED 8. SCHEDULE A Interests in mining tenements relinquished, reduced or lapsed during the YINDI Tenement Reference Nature of Interest Interest at beginning of Interest at end of E28/1028 Relinquished during 100% Nil MULGABBIE M28/288 Relinquished during 100% Nil YERILLA 100% E31/475 Relinquished during 100% Nil E31/482 Relinquished during 100% Nil E31/456 Relinquished during 100% Nil Interests in mining tenements acquired or increased during the Nil Tenement Reference Nature of Interest Interest at beginning of Interest at end of Interests in mining tenements at end of the Tenement Reference Nature of Interest Interest at beginning of MULGABBIE Interest at end of E28/989 Owned 100% 100% VARDEN E38/1152 Owned 100% 100% BLACK HILL E57/422 royalty $5/oz royalty $5/oz royalty E57/424 royalty $5/oz royalty $5/oz royalty PINJIN ELA28/1083 Application 100% 100% ELA28/1142 Application 100% 100% E31/562 Owned 100% 100% YINDI ELA28/932 Application 100% 100%

9 VULCAN RESOURCES LIMITED 9. Interests in mining tenements at end of the (contd) Tenement Reference Nature of Interest Interest at beginning of YERILLA JV * Interest at end of E31/465 Owned earning 80% Earning 80% Earning 80% E31/479 Owned earning 80% Earning 80% Earning 80% ELA31/524 Owned earning 80% Earning 80% Earning 80% ELA31/618 Application earning 80% Earning 80% Earning 80% E39/795 Owned earning 80% Earning 80% Earning 80% E31/444 Owned 100% 100% ELA31/473 Owned 100% 100% ELA31/474 Owned 100% 100% ELA31/560 Owned 100% 100% ELA39/844 Application 100% 100% E31/503 Owned 100% 100% ELA31/504 Owned 100% 100% ELA39/884 Application 100% 100% ELA31/536 Application Earning 70% Earning 70% ELA39/850 Application 100% 100% YERILLA 100% E31/511 Owned 100% 100% E31/523 Owned 100% 100% E39/801 Owned 100% 100% E39/843 Owned Earning 70% Earning 70% * Sons of Gwalia Ltd earning a 75% interest in the company s interest. Glossary E P MLA ELA R Exploration Licence Prospecting Licence Mining Lease Application Exploration Licence Application Denotes retained royalty interest