Kasbah Resources Limited 1 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com QUARTERLY ACTIVITIES REPORT TO JUNE 29 2007 23 July 2007 The Manager Company Announcements Office Australian Stock Exchange HIGHLIGHTS �� Successful listing of Kasbah (ASX:KAS) on Australian Stock Exchange on April 26 �� KAS raises A$10M and is 4 x oversubscribed �� Key Management Appointments made – Executive Manager Geology and Development Manager �� Kasbah wins International Tender for the Tamlalt Gold Deposit �� Surface exploration commences at Achmmach Tin Project �� Baseline Environmental studies commenced at El Karit and Achmmach Tin Projects FIGURE 1 KASBAH PROJECT MAP Kasbah Resources Limited 2 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com Kasbah Resources Limited (ASX: KAS) is pleased to present its Quarterly Activities Report for the period ending June 29 2007. 1.0 ACHMMACH TIN PROJECT Exploration Activity During the quarter Kasbah finalised the acquisition of all Bureau de Recherches et de Participations Minieres (BRPM) exploration data and commenced a structural mapping programme at Achmmach. This geological mapping was undertaken at 1:2,500 scale of the Achmmach “vein” system and was completed during the quarter. As part of the mapping exercise, 90 rock chip samples were collected. The best mineralised rock chip sample returned 3.73% Sn and 0.34g/t Au from a narrow tourmalinised “vein” exposed between drill hole collars DH25 and DH28. Follow-up rock chip sampling around this site in July returned five samples ranging from 0.16% Sn to 1.78% Sn over a strike length of 50m. These results provide both an immediate drill-target and evidence of extensions of the mineralisation at surface. Further exploration and drilling is required to establish the extent of historical mineralisation present within the Exploitation Permits and this will be the focus from quarter 3 onwards. Proposals from Moroccan and International drilling companies were received and evaluated during the quarter and mobilisation and commencement of drilling is scheduled for the September quarter. FIGURE 2 ACHMMACH – ROCK CHIP SAMPLING LOCATIONS Kasbah Resources Limited 3 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com Project Overview The Achmmach Project represents a large, highly prospective tin exploration project in which Kasbah has an exclusive right to acquire a 100% interest. Kasbah will commence a scoping study and drilling on Achmmach during the third quarter 2007 to test the potential of near surface mineralisation and down-plunge extensions to existing zones, along with other zone extensions and repetitions identified to date within the Achmmach property. The Achmmach Project is located on the western edge of the El Hajeb province, approximately 140km southeast of the Moroccan capital, Rabat. This district contains a wide zone of tin bearing structures extending for 8km in a north northeast direction, from Bou El Jai to Achmmach. FIGURE 3 ACHMMACH –GEOLOGY AND PERMIT LOCATION The project area mineralisation occurs in three main orientations. The most significant occurs as stacked lodes striking east-northeast, dipping steeply to the north. Six main structures have been identified and traced over several hundreds of metres of strike length. From 1991 onwards, the BRPM undertook an extensive exploration and evaluation work program on Achmmach, which included regional and project scale geological mapping, soil geochemistry, gravity surveying, surface trenching, 33 diamond drill holes totaling 14,463m, a 85 metre deep exploratory shaft with 827 metres of underground drives, an underground bulk sampling program and metallurgical test work. Kasbah Resources Limited 4 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com FIGURE 4 ACHMMACH – LONG SECTION SHOWING SIGNIFICANT BRPM DRILLING INTERCEPTS (metres & % Sn) 2.0 EL KARIT TIN PROJECT Exploration Activity Kasbah commenced a scoping study on El Karit during the quarter and this will be complete in the September quarter 2007. Drilling and the collection of bulk samples for grade determination and metallurgical test work is also scheduled to commence in the September quarter. Project Overview The El Karit Project represents a smaller, highly prospective tin exploration project in which Kasbah has an exclusive right to acquire a 100% interest. The El Karit Project is located 100km southeast of Rabat. Access to the project is via sealed road to the regional centre of Maaziz (100km) thence 50km southwest to the village of Oulmès, and 14km along secondary roads to the project area. Tin mineralisation at El Karit comprises discrete zones along the western margin of the granite-sediment contact located within biotite schists and pods of muscovite-tourmaline bearing granite. Five main zones of tin bearing quartz veining have been identified which, from south to north include Marsouin I, Marsouin II, Hirondelle I, El Karit and Hirondelle II. The existence of tin in the El Karit area is understood to have been known since 1,000 BC, with the earliest recorded mining history dating back to the early 1600’s. Semi-artisanal mining at El Karit started in 1925 and ended in 1974 with a total of some 750t of tin concentrate at an approximate average grade of 65% Sn. Kasbah Resources Limited 5 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com he area was revisited in the 1980’s during a country-wide review for tin and tungsten mineralisation; however no T significant work was carried out until 1998 when the BRPM completed a scoping study, topographic surveying, underground exploration/development and a small diamond drilling program. FIGURE 5 EL KAR N MAP total of five adits were excavated into several cassiterite-bearing veins by the BRPM. Veins in the area trend east he El Karit Project represents good exploration potential for zones of economic primary tin mineralisation within IT LOCATIO A to southeast, and dip moderately to the north. Four surface trenches were excavated, intercepting veins 0.4m to 1.0m in width with grades of up to 1.76% Sn. Mineralisation is mostly hosted within quartz veins, with minor selvage mineralisation associated with biotite-muscovite schist. T and along the Oulmès granite-sediment contact. Kasbah Resources Limited 6 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com .0 TAMLALT GOLD DEPOSIT asbah entered into an agreement with ONHYM (ONHYM was formed through the merger of the Office National de xploration Activity Collation of all technical data will continue in the September quarter with a view to commencement of a surface Project Overview has completed preliminary exploration work including 33 diamond drill holes totaling 7,019m. been drill-tested, gold mineralization has been intersected to within List of Significant ONHYM D Drill hole Results - Tamlalt Hole ID Easting Northing RL Azimuth Dip From To Interval Grade 3 K Recherches et d’Exploitations Petrolieres and the BRPM) during the quarter to acquire the Tamlalt gold deposit, located at the eastern end of the Moroccan High Atlas Mountains, about 300 km south of the town of Oujda. The Tamlalt gold deposit mining property is covered by eight exploration permits covering a total surface area of 128 km2. E exploration programme towards year end. At Tamlalt ONHYM The ONHYM drilling shows that the Tamlalt deposit consists of a multiple-veined quartz system developed within a chlorite-sericite altered folded porphyritic body. Within the 400m of strike length that has so far 12m of the surface and to a maximum depth of 360m vertical from surface. Table 1 iamond (m) (m) (m) Au (g/t) JM01 85 2 514.2 893.0 327 -40 2. 85 123 38 3.56 . inc 1 81.80 JM03 81 9 664.0 893.5 202 -71 104 109 9. 5 1.38 JM03 155 158 3 3.03 JM09 81 0 588.1 892.0 139 -65 0. 32 41 9 5.01 c. in 1 30.10 JM09 71 77 6 4.87 JM09 131 133 2 1.95 JM11 76 3 637.9 892.7 139 -65 0. 103 107 4 1.85 JM10 760.0 588.0 893.3 142 -65 56 71 15 2.64 JM15 847.0 658.4 894.2 139 -65 67 72 5 3.86 JM18 847.0 620.3 892.7 139 -65 22 25 3 3.73 JM18 32 35 3 4.30 JM20 90 9 671.8 896.5 139 -65 0. 164 167 3 20.80 . inc 1 58.00 JM28 23.3 792.0 6.5 -90 361 363 8 89 0 2 33.90 Kasbah Resources Limited 7 ACN 116 931 705 Address: 19 Hardy St Ph: (+61) 8 9463 6651 South Perth, WA 6151, Australia Fax: (+61) 8 9463 6652 www.kasbahresources.com .0 CORPORATE asbah was admitted to the ASX on April 26 and began trading on April 27. xecutive Team uring the quarter Kasbah added two new members to the management team; Mr Alf Gillman, Executive Manager apital Structure and Major Shareholders he total number of ordinary fully paid shares quoted on the ASX at 29 June is 88,500,003. The top 20 shareholders ash Position s at 29 June 2007, Kasbah had cash reserves of $10.8 million. or and on behalf of the Board, 4 K E D Geology and Mr Michael Kitney, Development Manager. Mr Gillman brings in excess of 27 years experience in exploration and resource development to Kasbah while Mr Kitney brings over 37 years of international project development, engineering and operational expertise. C T held 69.5% of the stock. C A F Wayne Bramwell Managing Director For further details, contact: ayne Bramwell Peter Youd ial Officer 65 m W Managing Director Chief Financ Phone: +61 8 9463 61 Phone: +61 8 9463 6651 [email protected] m [email protected] The information in this report is based on information compiled by Mr. Alf Gillman, a Fellow of Australian Institute of Mining and Metallurgy (CP Geol). Mr. Gillman is a full-time employee of Kasbah Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Gillman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Appendix 5B Mining exploration entity quarterly report Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity KASBAH RESOURCES LIMITED ABN Quarter ended (“current quarter”) 78 116 931 705 JUNE 2007 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A’000 Year to date (3.months) $A’000 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration (187) (362) (187) (362) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 140 140 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows (409) (409) Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets (54) (54) 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows (54) (54) 1.13 Total operating and investing cash flows (carried forward) (463) (463) + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 1 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (463) (463) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 10,000 10,000 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Share issue costs (707) (707) Net financing cash flows 9,293 9,293 Net increase (decrease) in cash held 8.830 8,830 1.20 Cash at beginning of quarter/year to date 2,033 2,033 1.21 Exchange rate adjustments to item 1.20 - - 1.22 Cash at end of quarter 10,863 10,863 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 quarter $A'000 1.2 Aggregate amount of payments to the parties included in item 1.2 88 1.2 Aggregate amount of loans to the parties included in item 1.10 - 1.2 Explanation necessary for an understanding of the transactions Company listed on the ASX on April 27th, 2007. This form covers the period April 1st – June 30th, 2007. 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 30/9/2001 Appendix 5B Mining 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 Nil Nil 3.2 Credit standby arrangements Nil Nil Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 1,080 4.2 Development 257 Total 1,337 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. Current quarter $A’000 Previous quarter $A’000 5.1 Cash on hand and at bank 5,853 2,033 5.2 Deposits at call 5,010 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 10,863 2,033 Changes in interests in mining tenements Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed Not Applicable. 6.2 Interests in mining tenements acquired or increased Not Applicable. + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 3 Appendix 5B Mining exploration entity quarterly report 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 Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents) 7.1 Performance +securities (description) 14,000,003 Nil 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary securities 88,500,003 62,830,000 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs 40,000,000 40,000,000 $0.25 $0.25 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted + See chapter 19 for defined terms. Appendix 5B Page 4 30/9/2001 Appendix 5B Mining exploration entity quarterly report 7.7 Options (description and conversion factor) 9,000,000 Management Options 5,625,000 Director A Options 1,450,000 Director B Options 2,070,00 Argonaut Options Nil Nil Nil Nil Exercise price $0.25 $0.25 $0.20 $0.30 15 Nov 2011 15 Nov 2011 10 May 2011 10 April 2010 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 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 4). 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed. Sign here: Date: July 23rd, 2007 Chief Financial Officer & Company Secretary Print name: Peter R. Youd + See chapter 19 for defined terms. 30/9/2001 Appendix 5B Page 5
KAS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
