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All that investors need to know about gold explorer, Stone Resources Australia

  • May 02, 2019 06:37 PM AEST
  • Team Kalkine
All that investors need to know about gold explorer, Stone Resources Australia

Stone Resources Australia Limited (ASX: SHK), a subsidiary of Stone Resources Limited and headquartered in Cloverdale, Australia, is a metals and mining sector player which explores for and develops mineral properties, primarily gold deposits.

Gold MTF non-AMP

As the company transitioned from being an explorer to a miner in 2009, it commenced the mining at its 100% owned Brightstar Beta project, which is situated ~35 km south-east of Laverton and has a mill that operates at an average annual rate of 300k tonnes per annum. Subsequently, the Brightstar Alpha project was mined in 2011.

Currently, Stone Resources Australia is focussed on exploring at the Cork Tree Well project, the Alpha gold deposit (100% interest) located 40 km South-East of Laverton in Western Australia and the Ben Hur deposit in North Laverton adjacent to the historic open pit - King of Creation.

Recently, Stone Resources updated the market with its Quarterly results for the three months to March 31st, 2019. The key highlights from the period include the announcement made by the company (March 27th, 2019) of significant high-grade intersections returned from the infill and extensional drilling (due-diligence) of the Ben Hur deposit.

Back in September 2016, Stone Resources entered into a non-binding head of agreement on the Brightstar Tenements with VCS Civil and Mining Pty Ltd (VCS), establishing a partnership to expedite the exploration of gold deposits in the Laverton area. As the first stage in determining the project viability, VCS began an RC drilling campaign in December 2016 which closed in mid-March 2017 followed by completion of Diamond drilling in April 2017 for Geotechnical and Metallurgical work.

In February 2018, VCS submitted the data to the company and recently on February 26th, 2019, Stone Resources Australia announced to have signed a Deed of Settlement with VCS, whereby the terms of the settlement remained confidential, to receive the tenement IP, which covers the reports related to drilling, assaying, rock chopping, surveying, geotechnical, mine plan and other analytical research.

Subsequently, Stone Resources Australia would review the tenement IP and publish relevant reports as appropriate.

During the quarter, Stone Resources Australia consistently received funding from the parent entity, approximately $318,000, as working capital and to investigate suitable opportunities for the development of their Northern and Southern leases.

The operating activities undertaken during the three-month span, resulted in net cash outflows of around $ 312K due to exploration & evaluation expenditure ($ 141k), payments for production ($14k), staff costs ($137k) and other administration and corporate costs ($71k). On the other hand, around $318k of net cash inflows were generated by financing activities including proceeds from borrowings. The net cash and cash equivalents amounted to ~ $91K, up on $86k as of end of the prior quarter.

Besides, for the half-year year ended December 31st, 2018, Stone Resources Australia’s net loss after income tax stood at $ 2,092,389, down on $ 2,142,532 as of December 31st, 2017. The company also received a total funding of $ 33,117,825 as at December 31st, 2018.

With around 811.65 million outstanding shares, the SHK stock last traded on April 29th, 2019 at $ 0.002.


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Disclaimer
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