LISTED on the Australian Stock Exchange and on London’s...

LISTED on the Australian Stock Exchange and on London’s Alternative
Investment Market, AIM Resources Ltd is focused on creating shareholder
value through the acquisition and responsible development of major mining
ventures in Africa.
AIM’s focus is centred on the wholly-owned Perkoa zinc project in Burkina
Faso but the company is also earning a 70% interest in the Mumbwa coppergold
project in Zambia from BHP Billiton, and has a platinum project on the
Bushveld Igneous Complex in South Africa. However, AIM’s managing director,
Marc Flory has stressed that the company’s primary focus is Perkoa, which
he describes as a ‘company-building’ project.
PERKOA, BURKINA FASO
In November 2004, AIM exercised an option with BHP Billiton Development
BV and Johannesburg-listed Metorex Ltd to purchase 100% of Metorex
Burkina Faso BV, the owner of the Perkoa zinc project, which has an inferred
resource of 7.1 Mt grading 17.7% Zn (at a 10% cut-off ). Located in Sanguie
Province, 120 km west of the capital Ouagadougou, the 320 km2 Perkoa property
is 35 km by road from the country’s third-largest town, Koudougou.
Zinc mineralisation was discovered in the late 1970s by testing coincident
geochemical and geophysical anomalies. The project was extensively drilled
by Billiton during the 1990s, including 23,000 m of diamond drilling (on a
50 m x 50 m grid, with limited infi ll drilling at 25 m spacing, covering in excess
of 70 drill holes). This work outlined a classic volcanogenic massive sulphide
(VMS) deposit hosted by the Lower Proterozoic Birimian belt. The deposit
is unusual for its high tonnage of zinc and barium mineralisation, and low
concentrations of lead and copper.
MUMBWA, ZAMBIA
In June 2004, AIM reached a joint-venture agreement with Billiton Development
(Zambia) Ltd to earn a 70% interest in the latter’s Mumbwa prospecting
licence in central-western Zambia by spending a minimum US$3 million
over four years. This prospecting licence, within Zambia’s Central Province
African-focused
resource company
THE TEAM
MARC FLORY
Chief executive
Marc Flory has 25 years’
experience in fi nancial
markets (including
project-investment funds
management) and the
mining industry, in South
Africa and Australasia. He
has held senior positions at
Goldfi elds of South Africa, JCI, Canadian Imperial Bank
of Commerce, Citibank and AMP. At the latter he conceived
and headed Australia’s fi rst International Private
Capital Fund, and ran the large Direct Investment Unit
that invested directly in mining, infrastructure and
industrial projects. In this capacity he held a number
of directorships. He holds graduate and postgraduate
qualifi cations in geology, mineral economics and
economics. He has an extensive network of contacts
in Africa and Asia, both in business and government
levels.
SCOTT REID
Executive director
Scott Reid has had 15 years’ experience in exploration
and mining fi nance with a background in mineral
exploration (geophysics) management worldwide
(particularly with Geoterrex, a subsidiary of the French
multinational Compagnie Générale Géophysique),
fi nancial analysis of resource projects and companies,
applied fi nance and in mineral economics. He is a specialist
corporate adviser and resources analyst in the
small-cap mining sector, mineral and energy sectors.
He holds graduate and postgraduate qualifi cations in
geophysics, applied fi nance and mineral economics,
and is on the board of a number of Australian-listed
companies.
LOUIS MNGUNI
Non-executive director
Mr Mnguni was a philosophy
lecturer at the University of the
North, South Africa. He became
president of the United Democratic
Front, Northern Transvaal,
and a member of the UDF
national executive committee. The UDF was an affi liate
of the African National Congress, and during 1993
and 1994 he was the overall election co- ordinator
for the ANC in the Northern Province. From 1994-99,
Mr Mnguni was a member of the National Assembly
(South African Parliament), representing the ANC, and
served in the portfolio committees of foreign aff airs,
education and the reconstruction and development
programme. Since February 1999, he has been the
South African High Commissioner to the Republic of
Mauritius. With degrees in sociology, philosophy and
politics, and with extensive experience in diplomacy
and government, Mr Mnguni is a valuable member of
the board.
AIM RESOURCES Burkina Faso Ghana South Africa Zambia
16 WORLD MINING STOCKS May 2005
and covering an area of 5,190 km2, is prospective for
iron oxide copper-gold deposits (similar to the Olympic
Dam and Ernest Henry mines, in South Australia and
Queensland, respectively).
Previous drilling in the mid-late 1990s by Billiton outlined
signifi cant mineralisation (in eight of nine holes)
over a strike length of 6 km, but may have fallen short
of the main targets indicated by geophysical surveys. A
Falcon airborne gravity survey of a linear 8,725 km was
completed in November 2004 over key target areas. AIM
is focusing its attention on the Kitumba deposit.
MOOIPLATS, SOUTH AFRICA
In June 2004, AIM exercised an option to purchase
100% of the issued share capital of Mooiplats Mineral
Holdings Ltd and Severin Development Corp for
R14.2 million.
Mooiplats holds a 76.84% shareholding in Southern
Sphere Mining and Development Ltd, which owns the
Mooiplats platinum project on the eastern limb of the
Bushveld Igneous Complex. Snowden Mining Industry
Consultants has confi rmed an inferred resource of
10.2 Moz (3 PGE + Au) for the Boschkloof area, and a
potential 15.6 Moz in the Mooimeisjesfontein area.
Settlement of the transaction remains subject to
ministerial approval under the South African Mineral
and Petroleum Resource Development Act 2002. To
facilitate the approval process, the settlement date has
been extended to end-April 2005.
MOKOPANE, SOUTH AFRICA
This wholly-owned PGM project is on the northern
outskirts of the township of Mokopane in Limpopo
Province, about 30 km south of Anglo Platinum’s PPRust
open-pit platinum mine, Pan Paladium’s Grass Valley
project and immediately south of African Minerals’
Platreef project. AIM’s holding covers the Potgietersrus
and Townlands 44KS properties (covering an area of
960 ha), and includes the right of fi rst refusal over the
remaining portion of the Potgietersrus farm (measuring
3,000 ha). The project was acquired in June 2004
following the purchase of Platinexco Ltd from JSE-listed
Thabex Exploration Ltd, for a total consideration of
R20 million.
PGM mineralisation occurs from surface to a vertical
depth of over 200 m within the Platreef zone. Approximately
15,330 m of drilling was undertaken from 1989-
92, mostly on the South West anomaly. Snowden has
reviewed the work, and estimated an inferred resources
of 39.7 Mt at 0.15% Ni, 0.09% Cu, 0.22 g/t Pl and 0.33 g/t
Pd for the South West deposit.
The company boosted its ASX exposure by listing
on AIM in March 2005 after raising £1.5 million through
a placing of new shares with UK-based institutional
investors. Managing director Mr Flory says the new
listing will provide AIM with greater exposure to UK
and European investors, who he believes have better
understanding of the African resources sector than their
Australian counterparts.
The proceeds will be used to fund the completion of
a defi nitive feasibility study of the Perkoa zinc project.
Snowden has been mandated to undertake a ‘bankable’
feasibility study, which is scheduled for completion
later this year. Assuming a positive study, AIM expects
to secure project fi nancing by end-2005 and to start
production in 2007. The total capital cost of the project
is estimated at US$40 million, and Mr Flory says operating
costs are likely be in the lowest quartile owing to
the metallurgical simplicity of the ore.
Mr Flory says the only major issue remaining is
infrastructure, and in particular how best to transport
the zinc concentrate to the Ghanaian coast for export.
However, he notes that the government is assisting by
upgrading a road that links Perkoa to Ouagadougou.
The government is also constructing a dam 20 km away
from the property, to which AIM will have access for
water supplies. “We have a very good relationship with
the government,” says Mr Flory.
VITAL STATISTICS
Name: AIM Resources Ltd
Address: Level 5, Angel Place, 123 Pitt Street,
Sydney, NSW 2000, Australia
E-mail: [email protected]
Website: www.aimresources.com.au
CONTACTS
CEO: Marc Flory
Tel: +61 (0) 2 9222 9444
Fax: +61 (0) 2 9222 9477
SHARE INFORMATION (at end-March 2005)
Listed: Australian Stock Exchange and AIM, London
Ticker: AIM (on ASX) and AIMR (on AIM)
Shares in issue: 503.8 million
Market capitalisation:
US$17 million (at £1 = US$1.85)
12-month trading average: 3.1 million shares/day
Share holders: JP Morgan 4.0%
McNeil Nominees Pty 3.6%
ANZ Nominees Ltd 2.9%
Billiton E&D BV 2.1%
G Harvey Investments Pty 2.0%
Directors:
M Flory 3.1% (direct + indirect, plus options)
S Reid 0.8% (direct + indirect, plus options)
Net cash (end-March 2005): US$5.0 million
(US$1 = A$1.30)
ASSOCIATES
Stockbroker: Hichens, Harrison & Co, London
Nominated adviser: Grant Thornton
Solicitor: Peter Kemp Solicitors
Auditor: Alcock Davis Danieli
Public relations: Park Green
PEER GROUP
Griffi n Mining (AIM)
Jabiru Metals Ltd (ASX)
CBH Resources Ltd (ASX)
ZincOx Resources (AIM)
MD, Marc Flory, has stressed
that AIM’s primary focus is
Perkoa, which he describes as
a ‘company-building’ project
INFERRED RESOURCES
Cut-off Ore resource Nickel Copper PGM
(Nickel) (’000 t) (%) (%) (g/t)
Mokopane 0.0% 39,740 0.146 0.085 0.55
Mooiplats1 N/A 60,900 - - 5.412
Cut-off Ore resource Zinc Silver Zinc equiv3
(Zinc) (’000 t) (%) (g/t) (%)
Perkoa 10.0% 7,060 17.7 37.8 18.6
1 The Boschkloof Farm property; reported tonnage discounted by 30% for geological losses
2 Calculated using 3 PGM (platinum, palladium and rhenium) + Au
3 Calculated using zinc price of US$960/t and silver price of US$6.67/oz
Au Cu PGM Zn PROFILE
Share pricShare price
May 2005 WORLD MINING STOCKS 17
(A$)