On 10 April 2019, New Age Exploration Limited (ASX: NAE) announced that The Coal Authority has recently granted an Exploration License, Conditional Mining License and Option over an area of 66.5 Sq km connecting the existing Lochinvar License.
Palaris Australia which is an autonomous technical consultant is involved in providing an approximation about the coking coal exploration target on the Lochinvar North license and the company expects to finish the work soon.
The company has developed an initial 12 to 24 months work program for the Lochinvar North License Area. The main aim of the work program will be to define a JORC compliant Resource that will be similar to the already defined one in the connecting Lochinvar License by NAE. The primary task of the company in the first year will involve the data collation followed by data assessment, as well as the interpretation of the data of the Lochinvar North License area. Reinterpretation of the region will include the assembling and reviewing of historic drilling, seismic as well as the geological data. It will also include the geological mapping, review along with the interpretation of the historical seismic lines in the Lochinvar North region followed by JORC resource update.
Synergies with Lochinvar: Lochinvar North is capable of extending the Lochinvar resource. It can reduce the depth to first coal, which will result in lowering the cost of capital, with increased mining production rate followed by an increase in the mine life.
In the first half of FY2019, New Age Exploration Limited incurred a loss of $447,161, which was due to the increase in the operating expenses. The company generated revenue (including other income) of $25,886. The balance sheet of the company reported a rise in the net asset as a result of increased total assets followed by the fall in the total liabilities. The total shareholders’ equity for the period was $10,424,517.
The company made payment for the exploration and evaluation costs and other financial assets. As a result, there was an increase in a net cash outflow of $883,757 through the investing activities.
The net cash and cash equivalent weakened at the end of the period. As a result, the company was left with net cash of $291,844.
The shares of the company are trading at A$0.007 on ASX (as at 12:07 PM AEST, 11 April 2019) trading flat as compared to its previous closing price. New Age Exploration Limited has a market capitalisation of $4.44 million with approximately 888.78 million outstanding shares. The closing price of the stock is near its 52 weeks low price with a daily volume of 14,182,500.
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