King River Resources Limited (ASX: KRR) today released its quarterly cashflow report for the three months ended 31 March 2019.
The Group’s cash balance stands at $3.68 million as at the end of the quarter compared to $4.14 million at the beginning of the period. On the upside, the metal and mining sector company incurred $3,23,000 towards exploration and evaluation activities and $1,41,000 on administration and corporate costs during the quarter, which led to the operating net cash outflow of $4,63,000 for productive mining and development operations.
These costs are primarily associated with the company’s ongoing development activities at its wholly-owned Speewah Specialty Metals Project situated in the Kimberley of Western Australia.
As per the latest estimates, Speewah deposits include a combined Measured, Indicated and Inferred Mineral Resource of 4,712 million tonnes at 3.3% Titanium Dioxide, 0.3% Vanadium Pentoxide, and 14.7% Iron. This combined resource underscores Measured Resources of 322m tonnes at 3.4% Titanium Dioxide, 0.32% Vanadium Pentoxide and 14.9% Iron, Indicated Resources of 1,054m tonnes at 0.33% Vanadium Pentoxide, 3.3% Titanium Dioxide and 14.9% Iron, and Inferred Resources of 3,335m tonnes at 3.3% Titanium Dioxide, 0.29% Vanadium Pentoxide and 14.6% Iron.
King River also provided its cash flows estimates for the next quarter. It expects a total cash outflow of $1.14 million in June 2019 Quarter, comprising of $350,000 for exploration and drilling program, $450,000 for scoping and pre-feasibility work, $104,000 for the tenement and other expenses and $100,000 for native title. The company has also estimated administration and corporate costs for the next quarter which is expected to be $136,000.
The principal activities of the Group are focused on exploration and development of the tenements in the East Kimberley region of Western Australia. Over the period of time, it has established a portfolio of 100% owned tenements covering approximately 2,488 square kilometres in the East Kimberley region in Western Australia. It has also built a portfolio of 100% owned tenements covering approximately 6,619 square kilometres in the Tenant Creek region of the Northern Territory.
CSA Global Pty Ltd was engaged by King River Resources in 2017 to report Mineral Resource estimates for their Speewah Project in accordance with the JORC Code. As per the company’s information, CSA Global is responsible for compiling the Project’s financial, technical, and implementation information into a detailed Scoping Study which could further suggest the future work required to develop Speewah through a subsequent Prefeasibility Study.
The scoping study reportedly aims at Mineral Resource mining from Indicated and Measured Categories, Opex and Capex estimate, and recovery of Vanadium, Titanium and Iron through hydrometallurgical processing.
KRR’s stock closed the day’s trading session at a price of $0.027 with a market capitalisation of $33.44 million as on 9 April 2019.
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