At today's 2003 AGM, Oxiana's Chairman, Barry Cusack said "I am able to report to you that Oxiana is in very good shape going forward with the developments we want to undertake in fact we are probably today in better shape than we have ever been and in better shape than many of our competitors."
The key points from the address by Barry Cusack and the presentation by Oxiana's Managing Director, Owen Hegarty, are:
CAPITAL RAISING
The successful institutional placement has added $60m to the treasury. In addition, all shareholders have the right to participate in the Share Purchase Plan which could add further funds and which places Oxiana in an excellent position going forward with its gold and copper developments.
SEPON GOLD OPERATIONS
Oxiana completed the Sepon Gold Project on time and under budget and operating performance to date is better than Plan. The first quarter's results of 42,000oz at US$124/oz cash cost were excellent.
GOLD EXPLORATION AND DEVELOPMENT
Gold development and prospect drilling in the Sepon field continues to bring in positive results. A new reserves and resources statement is expected by August this year. This, combined with the operating performance data to that time, will enable the Company to examine a gold production expansion.
The Company has initiated further generative exploration programmes for multi-million ounce gold orebodies both within Laos and regionally.
COPPER
The Khanong Copper Project remains on track for completion early 2005. Design and engineering commenced this year and major on site construction is due to commence in the final quarter. Long lead items have been ordered and some large contracts have been let.
The debt financing package is progressing with ANZ Bank having been appointed as coordinator. The package will consist of a group of commercial banks, export credit agencies plus development funds. First drawdown is scheduled for the fourth quarter to coincide with major site construction start.
COPPER EXPLORATION AND DEVELOPMENT
The focus of Sepon exploration has been gold in recent months. In the next few months a copper program will commence at Khanong to further test the Western high grade zone which, at this stage, does not form part of the mine plan. Towards the end of 2003 it is planned to commence further copper drill testing at the Thengkham prospect.
PROMISING PROGRESS IN CYPRUS EASTERN MEDITERRANEAN MINERALS (OXIANA 60%)
A drill programme testing a prioritised suite of volcanogenic massive sulphide (VMS) copper targets commenced in recent weeks. The first hole at the first target Kallikadhes intersected massive sulphide and stockwork mineralisation. Chalcopyrite (copper), Chalcocite (copper) and Sphalerite (zinc) minerals are evident in the drill chips: assays are awaited.
CORPORATE
Two directors, Paul Espie and John Barr retired from the Board at the close of the meeting. Paul Espie was Chairman of Oxiana from 1995 to 2002; John Barr was a Director from 1995 to today and has chaired the Audit Committee of the Board. Mr Cusack thanked both Directors for their excellent contributions to the Board and to the growth of the Company and shareholder value.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Fig Jam
I don't hold OXR
OXR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
HotCopper & The Market Online will be live From the Floor at the Mining News Select Conference and we want to bring the voice of our online audience to the show with us.
