Normandy Mining Limited - Report On Activities For The Three Months Ended 30 June 1999.ADELAIDE, SOUTH AUSTRALIA--(BUSINESS WIRE)--July 19, 1999-- (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NDY NDY Not Dead Yet NDY Not Done Yet .) (ME:NDY.) Normandy Mining Limited -------------------------------------------------------- Report On Activities For The Three Months Ended 30 June 1999 --------------------------------------------------------
PRODUCTION Three months - 467,204 ounces
(attributable) Twelve months - record 1,670,674 ounces
--------------------------------------------------------
EXPLORATION Wide gold intersections at Yamfo-
Sefwi, and significant progress on
six other properties
--------------------------------------------------------
CORPORATE TVX Normandy Americas
strategic partnership formed
--------------------------------------------------------
--------------------------------------------------------
Australian Dollar Values
are used in this report other than where specified.
For convenience, some key financial figures have been
translated at A$0.6607 = US$1.00
Enquiries concerning this report may be directed to:
C G Jackson, Executive General Manager - Corporate
100 Hutt Street, Adelaide 5000
South Australia, Australia
Tel: +61 8 8303 1703 Facsimile: +61 8 8303 1994
---------------------------------------------------------
This report and previous reports available at web site:
http://www.normandy.com.au
---------------------------------------------------------
Directors
RJ Champion de Crespigny Executive Chairman
Dr IG Gould Group Managing Director
Rt. Hon. JD Anthony CH Non-Executive Director
MS Hamson Non-Executive Director
BG McKay Non-Executive Director
JB Prescott AC Non-executive Director
B Wheelahan Non-Executive Director
PF Carr Company Secretary
Registered & Principal Office
100 Hutt Street, Adelaide 5000
South Australia, Australia
Telephone +61 8 8303 1700
Facsimile +61 8 8303 1900
---------------------------------------------------------
Overview
GOLD
- ATTRIBUTABLE PRODUCTION
- 467,204 ounces (396,456oz)
- Total cash cost (unaudited), $352:US$233 per ounce
($343:US$215/oz)
- Attributable gold sales, 475,131 ounces (395,937oz)
at an average realised $573:US$379 per ounce ($596:US$374/oz)
- Margin, $221:US$146 per ounce ($253:US$159/oz)
- Improved operating performance at eight mines
- Record annual production at eight mines
- DEVELOPMENT
- Pajingo, expansion on schedule for December completion
- Callie, underground production rate achieves annualised
0.85Mtpa
- Martha, expansion on schedule for December completion
- Perama (Greece), mining title application approved
- Ity (Cote d'Ivoire), 30 percent expansion under review
- Yamfo-Sefwi (Ghana), pre-feasibility completion due
September
- EXPLORATION
- Pajingo, new veins intersected, resource potential extended
- Callie, drilling confirms continuity of deep mineralisation
- Ground Rush, higher grades intersected in deeper drilling
- Chariot (Tennant Creek), new high grade discovery
- Tasiast (Mauritania), higher grade shoots outlined
- Yamfo-Sefwi, wide intersections over 1,200m at Area E
- Kenbert (Ghana), broad intersections in initial drilling
- Calcatreu (Argentina), new epithermal gold vein intersected
---------------------------------------------------------------
NON-GOLD
- ZINC (Golden Grove)
- Record zinc concentrate production - 66,344 tonnes (53,242t)
- Average realised zinc price US46 cents per pound (US45c/lb)
- COBALT (Kasese)
- Construction essentially complete, commissioning progressing
- MAGNESIUM
- Anhydrous magnesium chloride product buildup continues ahead
of electrolytic cell commissioning
- INDUSTRIAL MINERALS
- Earnings improve as sales in Australia recover
-----------------------------------------------------------------
FINANCIAL RESULTS - Financial results (audited) for the three months and twelve months to 30 June 1999 will be released 21 August 1999 Previous quarter figures bracketed in italics Chairman's message Attributable gold production for the quarter and year were records at 467,204 ounces (1.9 million ounces annualised) and 1,670,674 ounces respectively. Quarterly production improvements were recorded from eight operations. The annual result was largely due to record production from Mt Leyshon, Pajingo, Martha, Kaltails and Ity - and the contribution from Normandy's interest in Yandal Operations (where Bronzewing Bronzewing standard domestic turkey; black with bronzing on neck and back, and bronze barring on tail, which has a wide, white end-stripe. The female has white end-stripes on breast, back and wing bows, and secondary bows. Shanks are blackish-pink. , Jundee and Wiluna all achieved annual records). This offset lower production from mines approaching reserve depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able (Boddington and Tennant Creek), deconsolidation of Ariab, and the year-long effect of a major equipment failure, exacerbated by periods of cyclonic cy·clone n. 1. Meteorology a. An atmospheric system characterized by the rapid inward circulation of air masses about a low-pressure center, usually accompanied by stormy, often destructive weather. rains, on Normandy's largest contributor, Kalgoorlie Operations. Total cash cost for the quarter was $352 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. (including stockpile stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. writedowns) and, for the year, $329 per ounce, a disappointing 2.5 percent reversal on 1998. In the coming year, we expect increased production from - Kalgoorlie Operations (higher plant availability), Tanami Operations (increased underground mining rate), and Pajingo and Martha (expansions) - plus an inaugural contribution from TVX TVx Target Vertex TVX Transmission Valid Timer (FDDI) TVX Valid Transmission Normandy Americas and an increased share from Yandal Operations. The operational adjustment process accelerated in the quarter - with a further $50 per ounce fall in the spot gold price ($90/oz for the year) - and included Kaltails impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. closure (exclusion of Oroya dump from reserves), Big Bell ( high cost open pits suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. , ongoing underground review) and Mt Charlotte (cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of development). In addition, White Devil White devil can refer to:
Global Exploration Success Normandy's sustained global exploration programme met with increasing success this quarter, concluding a year that was easily our best. Further high grades were intersected at Pajingo, Callie and Tasiast (Mauritania), the status of Ground Rush (Tanami) was elevated by higher grade intercepts, and a new high grade discovery was made at Chariot chariot, earliest and simplest type of carriage and the chief vehicle of many ancient peoples. The chariot was known among the Babylonians before the introduction of horses c.2000 B.C. and was first drawn by asses. The chariot and horse introduced into Egypt c.1700 B. (Tennant Creek). Higher grade mineralisation, the widest thus far recorded from the Yamfo-Sefwi belt, was also intersected at the rapidly expanding Ntotoroso resource position. Record Zinc Production At Golden Grove
Both our Kasese cobalt Cobalt, town, Canada Cobalt (kō`bôlt), town (1991 pop. 1,470), E Ont., Canada, NE of Sudbury, near Lake Timiskaming. Once a center for cobalt and silver mining, the area is now economically depressed. plant and Gladstone magnesium magnesium (măgnē`zēəm, –zhəm), metallic chemical element; symbol Mg; at. no. 12; at. wt. 24.305; m.p. about 648.8°C;; b.p. about 1,090°C;; sp. gr. 1.738 at 20°C;; valence +2. demonstration project are in advanced commissioning, applying sophisticated technology to achieve our objective of producing the world's lowest cost cobalt and magnesium. Yandal Gold A Federal Court ruling has permitted Yandal Gold (Normandy 49.9 percent) to compulsorily com·pul·so·ry adj. 1. Obligatory; required: a compulsory examination. 2. Employing or exerting compulsion; coercive. n. pl. acquire the outstanding shares in Great Central Mines - giving Normandy an ultimate 57 percent interest in the Yandal Belt assets. Yandal Operations will contribute approximately 450,000 ounces per annum Per annum Yearly. at a total cash cost lower than the current Normandy average, and add 6.8 million ounces and 3.5 million ounces respectively in attributable resources and reserves to the gold inventory. A New Partnership The core gold division expanded, with the establishment of an operational presence in the Americas through a strategic alliance - TVX Normandy Americas (Normandy 49.9 percent). Production from five gold mines will be consolidated from 1 July 1999 - an attributable 240,000 ounces for the year at a total cash cost lower than the current Normandy average, and with a longer average mine life. The US$180 million transaction was funded from existing balance sheet cash. Strategic Objectives The process of simplifying and rationalising Normandy's existing operations continues, with discussions progressing toward further equity and asset adjustments.
Robert Champion de Crespigny
Executive Chairman
19 July 1999
Group Managing Director's
discussion ... gold operations,
Gold
Attributable production was 18 percent above the previous
quarter, reflecting increased equity in Yandal Operations. The total
cash cost of $352 per ounce (US$233/oz) was 2.6 percent higher.
The realised gold price, after hedge fees, of $501 per ounce
exceeded the spot price average for the quarter by $82 per ounce.
Including the deferred hedge gain, the net gold price achieved was
$573 per ounce.
Attributable Gold Production
periods ending 30 June 1999
3 months 12 months
('000oz) ('000oz)
--------------------------------------------------------------
Kalgoorlie 76.9 354.9
Yandal 127.7 280.5
Mt Leyshon 57.7 240.2
Tanami 54.0 179.0
Pajingo 15.4 52.3
Others 135.5 563.8
Total 467.2 1,670.7
--------------------------------------------------------------
Attributable Realised Price
(including deferred hedge gain)
periods ending 30 June 1999
3 months 12 months
($/oz) ($/oz)
Kalgoorlie 611 659
Yandal 558 561
Mt Leyshon 516 537
Tanami 542 599
Pajingo 614 658
Others 603 592
Average 573 596
--------------------------------------------------------------
Attributable Total Cash Cost
periods ending 30 June 1999
3 months 12 months
($/oz) ($/oz)
Kalgoorlie 347 342
Yandal 289 303
Mt Leyshon 256 257
Tanami 405 381
Pajingo 169 185
Others 455 360
Average 352 329
--------------------------------------------------------------
Australia At Kalgoorlie Operations, the damaged SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. mill girth GIRTH., A girth or yard is a measure of length. The word is of Saxon origin, taken from the circumference of the human body. Girth is contracted from girdeth, and signifies as much as girdle. See Ell. gear, which limited plant throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. for the past 12 months, was replaced, with full production achieved by quarter end. During the 11-day shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down additional maintenance and inspection programmes identified a cracked cracked said of grain; indicates grain that has been exposed to a combined breaking and crushing action. ball mill girth gear. The ball mill was off line one month for repair. Super Pit ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly returned to previous levels. Total material movement was affected by wet weather and reduced contractor haul truck availability. Mt Charlotte costs were higher, due to the need to screen certain ore types because of mill feed problems, higher than forecast backfill back·fill n. Material used to refill an excavated area. tr.v. back·filled, back·fill·ing, back·fills To refill (an excavated area) with such material. tonnages, and ground support and maintenance costs. Operational readjustments (cessation of mine development) were announced after period end. At Kaltails, gold production increased 43 percent, with increased recovery from Croesus dump. Gold production for the quarter and year were records. The last tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. (from Trafalgar dump) will be processed in mid-August. At Boddington, production was slightly lower, with a further slight fall in head grades reflecting the increasing reliance on lower grade stockpiles and ex-pit ex-pit Of or relating to a futures transaction that takes place away from the trading floor. For example, a person long a futures contract on coffee may agree to take delivery of the commodity from an investor who is short an identical contract. material. A similar result is anticipated next quarter, after which production is expected to improve as Hedges and other ore sources become more significant. The total cash cost for the quarter includes a non-recurring writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. ($9.5M) of low grade stockpiles to realisable value at period end. At Big Bell Consolidated, production was affected by a major failure of the ball mill girth gear. The operation was rationalised in May focusing on the underground mine, with all pits suspended. The total cash cost for the quarter includes a non-recurring writedowns ($1.7M) of open pit stockpiles. At Yandal Operations, production totalled 236,327 ounces at a total cash cost of $289 per ounce, and annual production was 783,182 ounces at $307 per ounce. Bronzewing mining and milling rates improved significantly, with higher grade Central Zone stope stope n. An excavation in the form of steps made by the mining of ore from steeply inclined or vertical veins. tr.v. stoped, stop·ing, stopes To remove (ore) from or mine by means of a stope. ore accessed as forecast. The mine produced its one millionth ounce. At Jundee, Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. Deeps continued to produce ore at higher than budget rates, with the South Decline reaching 11 Level and North Decline advancing to 10 Level. At Wiluna treatment plant recoveries were maintained at 94 percent. At Tanami Operations, an annualised crushing crushing deaths of newborn animals, especially those in litters, caused by the mother lying on them accidentally. Contributed to by weakness of the neonate or awkward accommodation. A problem in piglets and puppies. Called also overlying. and mill circuit throughput of 2.4Mtpa was achieved. Gold production was 13 percent higher, due to higher throughput offset by lower average grade and lower recovery (plant throughput well in excess of design capacity of the leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. circuit and stockpiling stock·pile n. A supply stored for future use, usually carefully accrued and maintained. tr.v. stock·piled, stock·pil·ing, stock·piles To accumulate and maintain a supply of for future use. of low grade mill scats for possible later retreatment). Cash operating cost was 7 percent higher reflecting the lower head grade and ongoing mill maintenance and upgrade activities. An upgrade of the CIP (1) (Common Isochronous Packet) The packet format used in time-based (real time) FireWire transmission. See FireWire, IEC 61883 and mLAN. (2) (Common Industrial P circuit is expected to improve reliability and gold recovery at a 2.5Mtpa rate. At Tennant Creek, production was higher due to increased mill throughput (including White Devil ore through the concentrator) partly offset by lower grades. Campaign processing of stockpiled Orlando ore through the concentrator was completed, producing 9,203 payable ounces. At Mt Leyshon, quarterly production was 4 percent higher. Annual production was a record 314,575 ounces (up 26 percent), with total cash cost 20 percent lower at $257 per ounce. Head grade averaged 2.0g/t for the year (up 27 percent), reflecting the influence of ore sourced from the higher grade porphyry Porphyry, Greek scholar Porphyry (pôr`fĭrē), c.232–c.304, Greek scholar and Neoplatonic philosopher. He studied rhetoric under Cassius Longinus and philosophy under Plotinus. sill zone. At Pajingo Operations, mill throughput was 30 percent above design due to plant improvements introduced in the last quarter. Gold production was 11 percent higher. A new mining contract is forecast to result in lower mining costs from next quarter. International At Martha, gold production increased 8 percent, largely as a result of increased mill throughput, offset by lower recoveries which are expected to improve when the mill upgrade is commissioned. At Ity, gold production was lower and total cash cost higher, reflecting the impact of heavy seasonal rains. Annual production was a record 49,326 ounces at a total cash cost of US$156 per ounce. - development, Development At Tanami Operations, the focus at Callie is on level development in Wilson Shoot to achieve the production rate increase to 1.5Mtpa by June 2000. Reserve delineation drilling, cemented fill plant specification work and extension of mine services all progressed. A decision on a new, larger capacity plant has been deferred pending the outcome of the current upgrade, and after resource delineation has reached the stage to allow a decision on optimum development. At Pajingo Operations, the expansion scheduled for completion in December will result in ore production more than doubling to 500,000 tonnes per annum (from six active mining areas) and gold output increasing to more than 200,000 ounces per annum at a total cash cost of approximately $185 per ounce. The treatment plant upgrade will comprise an additional, larger primary ball mill and two large leach tanks, expansion of the adsorption adsorption, adhesion of the molecules of liquids, gases, and dissolved substances to the surfaces of solids, as opposed to absorption, in which the molecules actually enter the absorbing medium (see adhesion and cohesion). train and a new gold room. Vera South orebody development is imminent. Kalgoorlie Operations' transition to owner mining progressed, with the first assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. units of a larger capacity earthmoving fleet scheduled on site by the end of July. At Martha, expansion activities continued. Full commissioning of the upgraded crushing and conveying, process and water treatment plants remains scheduled for the December 1999 Quarter. At Perama (Greece, 67 percent), the Mining Title Application has been approved and signing of the Presidential Decree decree, in law, decision of a suit in a court of equity. It is the counterpart in equity of the judgment in a court of law, although in those jurisdictions where law and equity have merged, judgment is sometimes used to include both. is imminent. The Pre-Approval Site Application (a prerequisite pre·req·ui·site adj. Required or necessary as a prior condition: Competence is prerequisite to promotion. n. to the formal Environmental Impact Statement) has been submitted to the Ministry of Environment. Community relations 1. The relationship between military and civilian communities. 2. Those public affairs programs that address issues of interest to the general public, business, academia, veterans, Service organizations, military-related associations, and other non-news media entities. programmes and baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version environmental monitoring is progressing well. A definitive feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. is scheduled for completion toward year end. At Yamfo-Sefwi (Ghana, 90 percent), prefeasibility completion is now scheduled for September. Infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drilling at Bosumkese is complete. Environmental baseline studies and work with the local community is progressing. An option to increase the interest in the adjoining Rank JV by 10 percent to 50 percent was exercised by spending US$4M on exploration (includes the Ntotoroso prospect). At Ity (Cote d'Ivoire, 51 percent), engineering and feasibility studies are underway to increase annual production by 30 percent. - exploration, Exploration Expenditure on direct interests worldwide was $15.3 million. Gold - Australia At Pajingo, drill results from Sid (1) (Society for Information Display, Santa Ana, CA, www.sid.org) A membership organization founded in 1962 devoted to the information display industry. With chapters around the world, SID hosts conferences in the U.S. and abroad and publishes a monthly magazine. , located 1km along strike southeast of Vera South (2.2m at 12.5g/t) and Starlight star·light n. The light from the stars. starlight Noun the light that comes from the stars Noun 1. Northeast, 1.3km east-southeast of Vera South (2.0m at 7.9g/t) extended the resource potential of the Vera-Nancy epithermal system. Drilling for extensions of the V1 structure at Vera South returned 4.2m at 46.4g/t, and 1.6m at 84.9g/t. At Callie, drilling continued to test the down-plunge extent of Wilson Shoot. On Section 60,200E, 39m at 8.0g/t (cut to 100g/t, or 9.6g/t uncut) and 15m at 11.0g/t was intersected in the classic Wilson Shoot position, with 12m at 9.2g/t (20.4g/t uncut) in overlying overlying suffocation of piglets by the sow. The piglets may be weak from illness or malnutrition, the sow may be clumsy or ill, the pen may be inadequate in size or poorly designed so that piglets cannot escape. , non-typical host rocks. On Section 60,500E, mineralisation was intersected south of Kerril Fault, including 24m at 8.3g/t, 18m at 6.3g/t (10.5g/t), and 3m at 34.1g/t (117.7g/t). North of Kerril Fault, in non-typical host rocks, intersections included 39m at 6.6g/t (7.3g/t) and 11m at 12.8g/t (20.8g/t). Having established that significant mineralisation occurs outside the classic Wilson Shoot position, underground drilling tested south of Kerril Fault above 690RL. Several narrow, high grade intercepts were recorded (1m to 3m at 17.1g/t to 138g/t, uncut). The above results are not included in current resources. At Ground Rush (100km NNW NNW abbr. north-northwest Noun 1. NNW - the compass point that is midway between north and northwest nor'-nor'-west, north northwest of The Granites), RC and diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral confirmed previous RAB Rab (räb), Ital. Arbe, island (1991 pop. 9,205), 40 sq mi (104 sq km) off Croatia, in the Adriatic Sea. One of the Dalmatian islands, it is a popular seaside resort. Fishing and agriculture are the main occupations. results. Better intersections included 12m at 10.7g/t, 31m at 4.8g/t and 11m at 23.9g/t. At Tennant Creek, drilling on the Chariot prospect (Normandy 77 percent) returned several high-grade intersections, including 10m at 12.0g/t, 14m at 66.4g/t and 3m at 39.5g/t. The mineralisation is open at depth and west, along strike. At Boddington, final Wandoo North evaluation drilling results were received, including 123m at 2.3g/t and 0.2 percent copper from the Blob (Binary Large OBject) A database field that holds any digitized information, including text, images, audio or video. Also known simply as a "large object" or LOB, a BLOB may have a huge storage capacity. Contrast with CLOB. 1. Shoot; modelling continues. Drilling around Hedges pit intersected oxide oxide, chemical compound containing oxygen and one other chemical element. Oxides are widely and abundantly distributed in nature. Water is the oxide of hydrogen. Silicon dioxide is the major component of sand and quartz. ore remnants. At Wattle wattle, in botany: see acacia. , drilling of the main vein returned 2.8m at 20.4g/t, and 8m at 23.9g/t. Drilling of a palaeochannel containing detrital de·tri·tus n. pl. detritus 1. Loose fragments or grains that have been worn away from rock. 2. a. Disintegrated or eroded matter: the detritus of past civilizations. gold shedding from the Jarrah jar·rah n. An Australian tree (Eucalyptus marginata) widely grown for its hard red-brown wood. [Nyungar (Aboriginal language of southwest Australia) jarily. veins, returned best results of 4m at 16.1g/t, and 8m at 5.3g/t. At Yandal Operations, RC drilling recommenced at Jundee with the objective of converting resources to reserves in close proximity to existing pits or final pit designs. High grade results were returned from the Deakin South (4m at 19.8g/t, 12m at 14.7g/t) and Nim 3 areas, and in the upper 100m of the Throssel structure (28m at 8.5g/t from 52m). At Ward Well, 20km southwest of Wiluna, gold grades up to 4m at 12.2g/t were returned from a 4km by 2km anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. zone. Follow-up drilling is in progress. At KCGM KCGM Kalgoorlie Consolidated Gold Mines Pty Ltd , drilling continues to identify increased resource tonnages in lodes both within and below the current Super Pit design. Some of the better (uncut) intersections include 28m at 4.5g/t from Boulder Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). Main Lode, 48m at 6.6g/t from North Kal Main Lode, 17m at 15.6g/t from Perseverance Perseverance See also Determination. Ainsworth redid dictionary manuscript burnt in fire. [Br. Hist.: Brewer Handbook, 752] Call of the Wild, The dogs trail steadfastly through Alaska’s tundra. [Am. Lit. Lode, 13m at 5.6g/t and 13m at 6.3g/t from 12 Lode, 12m at 13g/t from East Vale Lode, and 28m at 4.8g/t from Lower Kal Main Lode. Improved geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. modelling, incorporating the results of drilling, is expected to lead to increased reserves. In the Telfer region, RAB and aircore drilling commenced on several prospects (465 holes, total 36,300m). Results to date from the Chicken Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. prospect include numerous anomalous values, with best intercepts of 4m at 4.9g/t and 4m at 8.6g/t. At Rosemont, in the Duketon greenstone belt Greenstone belts are zones of variably metamorphosed mafic to ultramafic volcanic sequences with associated sedimentary rocks that occur within Archaean and Proterozoic cratons between granite and gneiss bodies. , RC drilling yielded encouraging results including 3m at 18.9g/t from 198m, and 6m at 27.5g/t from 154m. At Reichelts, RC drilling below the open pit intersected 20m at 8.5g/t from 147m, indicating a short, steeply plunging plunge v. plunged, plung·ing, plung·es v.tr. 1. To thrust or throw forcefully into a substance or place: shoot of higher grade mineralisation. In South Australia South Australia, state (1991 pop. 1,236,623), 380,070 sq mi (984,381 sq km), S central Australia. It is bounded on the S by the Indian Ocean. Kangaroo Island and many smaller islands off the south coast are included in the state. , preliminary work continued on the Padthaway project, along the western margin of the Murray Basin, east of Adelaide. The area covers prospective magnetic and structural features with known copper/gold mineralisation. Gold - International In the Ity mine area, trenching on the Walter "B" anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. returned encouraging results in oxidized oxidized having been modified by the process of oxidation. oxidized cellulose see absorbable cellulose. skarn-type mineralisation (6m at 15.2g/t, 14m at 9.3g/t). Drilling is planned. On the Gueya grid at Toulepleu, soil sampling delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. an 8km anomalous trend, with values up to 6g/t. Infill sampling will be required to define drilling targets. In the Perama district (Greece, 67 percent), RC drilling at Perama South returned several moderate intercepts including 14m at 1.6g/t and 6m at 3.6g/t. On the Yamfo-Sefwi Belt, Ghana, at Ntotoroso (earning 50 percent), RC drilling at Area E returned further strong intersections, including 129m at 3.0g/t (inc. 28m at 8.7g/t), 107m at 3.5g/t (inc. 43m at 4.6g/t), 96m at 3.9g/t (inc. 9m at 6.4g/t), 86m at 2.7g/t (inc. 24m at 5.4g/t) and 77m at 2.6g/t (inc. 22m at 6.9g/t). Major intercepts have been returned over a strike length of 1,200m, with the zone open in both directions and at depth. At Kenbert (Ghana, 72 percent), northeast of Ashanti, diamond drilling commenced on the Afosu anomaly. An initial reconnaissance  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. phase of five holes returned substantial intersections of moderate grade included 69m at 2.6g/t (inc. 18.1m at 6.4g/t), 66m at 1.8g/t, 50m at 2.0g/t, 69m at 1.2g/t, and 70m at 1.6g/t. Further trenching extended the zone to the east, and partially defined new zones to the south and north. At Tasiast (Mauritania), further mineralisation was intersected in diamond drilling on the Aoueouat East Branch zone, including 16m at 6.9g/t, 16m at 5.6g/t, 27m at 10.1g/t, 33m at 4.8g/t, 13m at 6.2g/t, and 39m at 2.4g/t. On the Sibolga COW (Sumatra, NAAL NAAL National Assessment of Adult Literacy NAAL North American Academy of Liturgy 90 percent) drilling continued on the Monyet, Bedrock Bedrock - A C++ class library for Macintosh user interface portability. , and Harimau prospects, in the Aek Pahu area. At Harimau, mapping and rock chip sampling extended to the north and west, returning some encouraging values. Further drilling is planned. On the Calcatreau Project (Argentina), eleven shallow diamond drill holes tested epithermal quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. veining vein·ing n. Distribution or arrangement of veins or veinlike markings. at the Vein 49 prospect. All holes recorded mineralisation; better values included 17m at 4.7g/t, 15m at 6.4g/t, 18m at 5.2g/t, and 9m at 6.8g/t. ---------------------------------------------------------------------- -- Information in this report relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc ore reserves, mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature or mineralisation conforms to the reporting requirements of the AusIMM/AMIC/AIG "Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves"and disclosure standards adopted by the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . It is based on information compiled by defined Competent Persons, under the direction of Bruce D Kay KAY Kick Ass Year KAY Kansas Association of Youth , Group Executive - Exploration, a corporate member of the AusIMM with 25 years experience as a geologist. --------------------------------------------------------------------- -- - production and costs,
MINE PRODUCTION and COSTS
Equity Ore Head Gold
Interest Treated Grade Produced(1)
(percent) (t) (g/t) (oz)
------------------------------------------------------------------------------
-- Three months to 30 June 1999
Western Australia
Kalgoorlie Operations (50)
Super Pit 1,881,582 2.33 123,338
Mt Charlotte 396,402 2.63 30,381
Kaltails (90) 1,776,011 0.77 24,968
Boddington (44.44) 2,186,512 0.87 57,798
Big Bell Consolidated (100) 556,530 2.67 40,483
Yandal Operations (3) (55.39)
Bronzewing 485,744 6.73 102,601
Jundee 790,879 4.09 97,287
Wiluna 197,754 6.93 36,439
Northern Territory
Tanami Operations (81.83) 605,741 3.77 66,290
Tennant Creek Operations (100)
White Devil and District 80,022 5.98 13,754
Orlando (4) 100,470 4.13 9,203
Gecko (4) 842
Queensland
Mt Leyshon (76.36) 1,302,554 2.03 75,519
Pajingo Operations (50) 69,994 14.40 30,876
International
Martha (New Zealand) (67.06) 249,133 3.52 25,692
Ity (Cote d'Ivoire) (5, 6) (51) 65,650 7.33 11,493
ATTRIBUTABLE (7) 467,204
---------------------------------------------------------------
Twelve months to 30 June 1999
ATTRIBUTABLE (8) 1,670,674
---------------------------------------------------------------
MINE PRODUCTION and COSTS
Equity Total Cash Total Prod
Interest Cost (2) Cost (2)
(percent) ($/oz) ($/oz)
Three months to 30 June 1999
Western Australia
Kalgoorlie Operations (50)
Super Pit 315 383
Mt Charlotte 480 518
Kaltails (90) 325 677
Boddington (44.44) 529 604
Big Bell Consolidated (100) 639 696
Yandal Operations (3) (55.39)
Bronzewing 258 380
Jundee 300 379
Wiluna 356 448
Northern Territory
Tanami Operations (81.83) 405 455
Tennant Creek Operations (100)
White Devil and District 352 629
Orlando (4) 395 522
Gecko (4)
Queensland
Mt Leyshon (76.36) 256 301
Pajingo Operations (50) 169 221
International
Martha (New Zealand) (67.06) 287 352
Ity (Cote d'Ivoire) (5, 6) (51) 253 284
ATTRIBUTABLE (7) 352 442
--------------------------------------------------------------
Twelve months to 30 June 1999
ATTRIBUTABLE (8) 329 413
---------------------------------------------------------------
MINE PRODUCTION and COSTS
(1) 100 percent for each operation.
(2) Costs in accordance with Gold Institute Standard,
unaudited.
(3) Direct shareholding in Great Central Mines, 27.8 percent
plus weighted share of Yandal Gold.
(4) Bullion plus payable ounces in copper concentrate.
(5) Tonnes stacked onto heaps, not tonnes under irrigation.
(6) US$ costs converted at spot exchange rate at 30 June 1999
of $0.6607 (at 31 March 1999 $0.6278).
(7) TVX Normandy Americas production attributable from
1 July 1999.
(8) 6,665 ounces of Yandal Gold production (March 1999 Quarter)
not previously included.
ATTRIBUTABLE PRODUCTION COSTS
Gold Institute Standard
periods ending 30 June 1999
(unaudited) 3 mths 12 mths
($/oz) ($/oz)
--------------------------------------------------------------
Direct mining expenses 364 328
Stripping & mine
development adjustments (12) 3
By-product credits (5) (5)
Sundry expenditure (income) (1) (4)
Cash operating cost 346 322
Royalties 6 7
Total cash cost 352 329
Depreciation 41 39
Amortisation 32 30
Mine closure 17 15
Total production cost 442 413
--------------------------------------------------------------
GOLD HEDGING POSITIONS
at 30 June 1999 Normandy(1)
('000oz) ($/oz)
--------------------------------------------------------------
Forward Contracts
1999-00 213 479
2000-01 436 506
2001-02 592 537
2002-10 1,941 616
Total 3,182 577
Put Options
1999-00 701 483
2000-01 230 504
Total 931 488
Subsidiaries Associates
('000oz) ($/oz) ('000oz) ($/oz)
Forward Contracts
1999-00 562 587 306 561
2000-01 396 565 185 589
2001-02 361 596 133 614
2002-10 797 640 841 597
Total 2,118 604 1,466 590
Put Options
1999-00 42 478 40 571
2000-01 64 510 114 557
2001-02 - - 255 558
2002-12 - - 1,312 591
Total 106 497 1,720 583
Convertible Puts
1999-00 - - 65 564
2000-01 - - 65 569
2001-02 - - 74 575
2002-10 - - 2,250 625
Total - - 2,454 620
Call Options
1999-00 - - 19 625
2000-01 - - 4 640
2002-10 - - 439 546
Total - - 462 550
--------------------------------------------------------------
(1) Normandy wholly-owned, excluding share of subsidiaries and associates. Note: Exercise prices are before hedge fees. From 1 July 1999, exercise prices will be net of actual or estimated fees - reflecting the potential for increased gold lease rates ahead of possible Year 2000 issues. MARK TO MARKET at 30 June 1999 $M(1) $/oz(1) Normandy (2) 235.2 57 Normandy Mt Leyshon 48.5 118 Normandy NFM 168.3 93 Great Central Mines 217.4 36 ---------------------------------------------------------------- (1) Spot price at 30 June 1999, $395 per ounce (2) Normandy wholly-owned, excluding share of subsidiaries and associates. - and non-gold activities GOLDEN GROVE PRODUCTION periods ending 30 June 1999 3 mths 12 mths -------------------------------------------------------------- Mine Production Ore mined (t) 319,847 1,073,682 Ore milled (t) 317,419 1,053,261 Head grade Zinc (percent) 11.9 11.9 Copper (percent) 0.7 0.6 Lead (percent) 0.8 0.9 Concentrate Production Zinc (t) 66,344 218,309 Grade (percent) 50.5 50.6 Contained metal (t) 33,477 110,355 Cash cost (1,2) (c/lb) 54 57 Copper (t) 8,719 25,997 Grade (percent) 11.4 12.0 Contained metal (t) 994 3,130 Silver grade (g/t) 1,738 1,616 Gold grade (g/t) 19.0 17.8 Lead (t) 1,553 3,428 Grade (percent) 24.0 25.1 Contained metal (t) 373 861 Metals Sales Zinc (3) Payable metal (4) (t) 32,094 125,544 Est. price (5, 6) (c/lb) 72 69 Copper (3) Payable metal (7) (t) 1,661 15,373 Est. price (8) (c/lb) 150 121 -------------------------------------------------------------- (1) Australian currency, includes smelting, refining, freight charges and insurance, net of by-product revenue. (2) Copper by-product credit where associated with zinc. (3) Revenues on provisionally priced "open" pounds adjusted monthly, based on then-current prices, with final settlement generally based on average London Metal Exchange price for a specified future month. (4) Includes Woodcutters - adjustment to sales of 121t for the quarter (29,209t full year). (5) 48.72Mlb of payable zinc provisionally priced at 70c/lb. (6) Estimated zinc price US46c/lb based on open provisional pricing and provisional billings at shipment time. (7) Includes Tennant Creek - sales of 945t for the quarter (12,688t full year). (8) Includes hedging benefits. ZINC PRODUCTION COST periods ending 30 June 1999 3 mths 12(1)mths (unaudited) (c/lb) (c/lb) -------------------------------------------------------------- Direct mining expenses 25 30 Transport & smelter charges 37 39 Mine development (2) (2) By-product credits (8) (9) Sundry expenditure (income) - - Cash operating cost 52 58 Royalties 2 1 Total cash cost 54 59 Depreciation 4 4 Amortisation 5 5 Mine closure - 1 Total production cost 63 69 -------------------------------------------------------------- (1) Includes Woodcutters for 9 months. Zinc (Golden Grove) Mine and mill performance records were achieved, exceeding plan and plant design, and with total costs 6 percent below budget. Zinc ore production increased 29 percent and mill throughput improved (for the fourth consecutive quarter) 20 percent. Zinc concentrate Zinc concentrate is a highly hazardous product used in the production of zinc metal and zinc alloys, which is the result of a flotation process after the zinc ore has been mined and milled. production was a record 25 percent higher and recovery improved to 88.8 percent, with copper, lead, silver and gold recoveries also above budget. At Gossan gos·san n. An exposed, oxidized portion of a mineral vein, especially a rust-colored outcrop of iron ore. [Cornish gossen, from g Hill, deep drilling intersected 6m at 15.4 percent zinc from 986m and 2.5m at 5.8 percent copper from 1,156m. At Scuddles, Below-Deeps diamond drilling intersected 9.7m true width at 15.3 percent zinc from almost 1,100m below surface. Cobalt (Kasese) At Kasese (Uganda, Banff Resources 63 percent), project construction was completed and the first cobalt cathode produced. Hand over to Operations for continuous commercial production occurs progressively over the next few months. Magnesium At Gladstone (Queensland, effective 65 percent), production of anhydrous an·hy·drous adj. Without water, especially water of crystallization. anhydrous (anhī´drus), adj without water. anhydrous containing no water. magnesium chloride magnesium chloride Warning - High-alert drug! Chloromag, Mag 64, Mag Delay, Slo-Mag Pharmacologic class: Mineral Therapeutic class: to the specification required for charging the electrolytic cell electrolytic cell n. 1. A cell containing an electrolyte through which an externally generated electric current is passed by a system of electrodes in order to produce an electrochemical reaction. 2. was achieved. Design modifications to achieve rated capacity and commissioning of the electrolytic cell is now underway. Feasibility study, environmental and developmental approval activities for the Stanwell commercial site are continuing. Industrial Minerals Earnings before interest and tax were 46 percent above the previous quarter, though 16 percent below the corresponding quarter last year. With the Australian economy continuing to strengthen, Omya Southern and the Australian operations of Commercial Minerals and Larvik made positive contributions. Ian G Gould Group Managing Director ------------------------------------------------------------------------------ INVESTOR INFORMATION Stock Exchange Listings Australian Stock Exchange (Ticker Symbol NDY) Toronto Stock Exchange (Ticker Symbol NDY) Montreal Exchange (Ticker Symbol NDY) Issued Capital At 30 June 1999, issued capital was 1,717,179,710 shares There are 248,537,609 listed options exercisable at $2.50 per option until 30 April 2001. Major Shareholders Westpac Custodian Nominees 21.33 percent National Nominees 10.19 percent ANZ Nominees 8.69 percent Chase Manhattan Nominees 7.62 percent Substantial Shareholders Tiger Management Corporation 11.68 percent Maple Brown Abbott 7.52 percent ADS Depositary The Bank of New York 101 Barclay Street, New York, NY 10286 Telephone +1 212 815 2204 Facsimile +1 212 571 3050 Shareholder Enquiries Matters relating to shares held, change of address, tax file number and dividends should be directed to the Share Registry: National Shareholder Services Pty Limited 100 Hutt Street, Adelaide 5000 South Australia, Australia Telephone +61 8 8232 0003 Facsimile +61 8 8232 0072 Share Price Movement Quarter High Low September 1998 $1.47 $0.96 December 1998 $1.60 $1.31 March 1999 $1.56 $1.25 June 1999 $1.54 $0.96 Web Site http://www.normandy.com.au ------------------------------------------------------------- |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion