FinnAust Mining plc, the AIM listed exploration company with a multi-project, copper, zinc and nickel portfolio in Finland and Austria, has given DirectorsTalk its final results for the year ended 30 June 2015.
The Company also said that its Annual General Meeting (‘AGM’) will be held at 10.00 a.m. on Tuesday, 13 October 2015 at The Courthouse Hotel, 19-21 Great Marlborough Street, London, W1F 7HL. A notice convening the AGM, proxy form and Report and Accounts for the year ended 30 June 2015 will be posted to shareholders today and will also be available to download from the Company’s website at www.finnaust.com shortly.
Overview
-- Three high grade copper, zinc and nickel projects in Finland
— 15,000m of drilling completed across the Hammaslahti Copper Project (45 holes/ 10,366m), the Kelkka Nickel-Copper Project (21 holes/ 3,570m) and the Outokumpu Copper Project (4 holes/ 1,462m)
— Currently formulating future exploration strategy to support high-margin, modest capex, development projects
— Identified strategic opportunities for the continued expansion of the Company’s European/Scandinavian footprint
-- Seeking ways to monetise an 80% interest in the Mitterberg Copper Project in Austria -- Cornerstone investment from ASX quoted Western Areas Limited with established board support
Roderick McIllree, interim Chief Executive Officer of FinnAust, said, “I would like to take this opportunity to introduce myself to shareholders. I am both pleased and excited by the opportunities and challenges ahead. I bring with me a strategy for growth as well as a vision of where to take the company in the short term. I am working closely with existing management to identify the best way to extract the maximum possible value from existing assets whilst also looking to identify opportunities within the broader Scandinavian region.
“There are many reasons it made sense to join the team at FinnAust but probably the most obvious is the unique and supportive international shareholder base the company enjoys. Based on initial positive feedback from several of the larger shareholders, I am confident that my vision of growth, which leverages both existing and newly identified assets, will be well received by the market and rewarded once implemented. With your continued support and that of our cornerstone shareholder Western Areas Ltd, it is my belief we have a bright future.”
Chairman’s Statement
Hammaslahti
With three highly prospective licence areas, we have established a solid footprint within a mineral rich region. To date, we have drilled a total of 15,000m across our Finnish portfolio. Our Hammaslahti Copper Project (‘Hammaslahti’) has been the focus of the majority of this work, with 45 holes drilled over 10,366m. This has led to the discovery of a shallow multi-metal lode, which contains high-grade copper with zinc, lead and silver. This is located directly below the northern zinc/gold open pit of the historical Hammaslahti mine.
Drilling has successfully extended this mineralised zone, with a strike length of over 500m north to south and over 125m east to west now identified. It is our belief that this lode is one of four southerly plunging multi-metal lodes, all of which appear open at depth, which are part of a relatively continuous north to south plunging lode system, transitioning from shallow zinc and gold in the north, to copper as it deepens in the south. These additional lodes exist to the north, south and east of the old mine and underground workings. This location, together with the shallow nature of the mineralisation, offers significant capex and opex benefits, as the mineralisation is proximal to the historical mine infrastructure. The Company is currently evaluating the significance of these results to determine the best value outcome for shareholders.
Kelkka
At our Kelkka Nickel-Copper Project (‘Kelkka’) (previously called Enonkoski), we have drilled a total of 3,570m across 21 holes, with the objective of identifying mineralisation of a similar style to the previously producing Enonkoski nickel-copper mine (‘Enonkoski’). This historical mine, which is located within our Kelkka licence area, reportedly produced 6.7Mt at an average grade of 0.8% Ni between 1984 and 1994. Drilling has consequently been conducted close to the old mine, and we were pleased to discover a short, shallow interval of remobilised nickel/copper sulphides at the Laukunlampi intrusion (‘Laukunlampi’) 1km southeast of Enonkoski.
Whilst these grades are low, the presence of these remobilised veins is very encouraging and suggests that Laukunlampi is capable of hosting nickel/copper mineralisation. It is our belief that the potential still exists to identify massive sulphide ore bodies. Indeed, within the Kelkka licence area, historical drill intercepts have returned results of 15m at 6.9% Ni and 2.0% Cu, and with modern exploration techniques such as ZTEM geophysical technology now available to us, we believe commercial discoveries can still be made. Anglo American highlighted the resource potential of the country, with the 2006 world-class discovery of the Sakatti nickel-copper-platinum group elements deposit in northern Finland. Although this project is still in its early phase of exploration, a sulphide body in excess of 1,500m long has been identified to-date, underpinning the potential for commercial discoveries to be made.
Outokumpu
At our Outokumpu Copper Project (‘Outokumpu’), we have conducted on-ice drilling at Lake Juojärvi to test for massive copper and polymetallic mineralisation. Four holes have been drilled across a previously undrilled 5km section of the renowned Outokumpu Belt, which hosted the world famous Outokumpu Copper Mine, which produced 42Mt at 3.1% copper between 1908-1999. The holes, which are along strike from the old mine, all intercepted varying thicknesses of known Outokumpu geology; one drill hole intercepted approximately 50m of iron sulphides. Whilst not a discovery in itself, we believe that this may represent some kind of feeder structure or sulphidic “tail” that may be part of a larger multi metal system. We are also currently assessing a number of additional ways in which to develop this project, which includes potential joint venture opportunities; we will update the market on these developments when practicable.
Mitterberg
Aside from our Finnish portfolio, we hold an 80% interest in the previously producing Mitterberg Copper Project in Austria. We continue to assess the best way in which to realise value from this asset.
Corporate Update
FinnAust continues to benefit from the cornerstone investment and support of ASX major Western Areas Limited (‘Western Areas’). The Company not only benefits from access to funding, but also gains the experience of a proven management and technical team; Western Areas successfully identified from greenfield exploration and put into production two high grade nickel mines and is now one of the leading nickel producers in Australia. I am Managing Director and Chief Executive Officer of Western Areas, and my fellow FinnAust Board member Graham Marshall is General Manager-Commercial of Western Areas, thus strongly demonstrating Western Areas’ commitment to FinnAust.
During the period Alastair Clayton an Executive Director of the Company, resigned from the Board of Directors and from his employment with the Company. We are grateful for Alastair’s contributions in supporting our admission to AIM and initial exploration efforts of the Company, and wish him well for the future as we look to develop our exploration activity.
Post-period end, we were delighted to announce that Roderick McIllree (‘Rod’) joined the Company as interim Chief Executive Officer (‘CEO’). Rod’s extensive experience in both mining and finance will be extremely valuable in not only determining future exploration activity at our Finnish assets but also supporting the Company’s continued expansion within Europe and Scandinavia.
Financial Review
The loss before taxation of the Group for the year ended 30 June 2015 amounted to GBP927,371 (30 June 2014: GBP2,394,934).
The Group’s cash position at 30 June 2015 was GBP795,368 (30 June 2014: GBP1,706,137) and currently stands at approximately GBP640,032.
Outlook
We have established a solid portfolio of assets and through our targeted exploration programmes are well placed for future growth. Our focus going forward will be on furthering our understanding of the resource potential of our three Finnish licence areas. We are currently finalising our next phase of exploration; initial activity will focus on Outokumpu and will include mapping, sampling and reinterpretation of new geophysical data. Further updates regarding this proposed exploration, work at Hammaslahti and across our wider portfolio, will be made as soon as practicable.
Additionally, we maintain an active growth strategy and in line with this will continue to assess additional prospective opportunities both in Finland and across the wider Scandinavian region in order to leverage our established regional presence in what is a very favourable mining location.
Finally, I would like to take this opportunity to thank our shareholders, advisers and management team for their continued support and hard work.
Daniel Lougher
Chairman
