467 Canning Highway
Como
Western Australia 6152
Postal: Post Office Box 920
CANNING BRIDGE WA 6153
Phone: (618) 9313 2144
Fax: (618) 9313 2188
Email: enq@gmeresources.com.au
www.gmeresources.com.au
ABN 62 009 260 315
ASX Announcement – 30 September 2008
The Companies Announcement Office
ASX Limited
Level 4, 20 Bridge Street
SYDNEY NSW 2000
Dear Sirs
2008 ANNUAL REPORT
Please find attached the following documents for immediate release to ASX and lodgement with
ASIC:
• The 2008 Annual Report incorporating the Audited Financial Statements for GME
Resources Limited and Controlled Entities for the Year ended 30 June 2008.
Yours sincerely
Bradley Wynne
Company Secretary
G M E R E S O U R C E S L T D
ABN 62 009 260 315
ANNUAL REPORT
2008
CONTENTS
PAGE
CORPORATE DIRECTORY ..............................................................
1
CHAIRMAN’S LETTER ....................................................................
2
REVIEW OPERATIONS ...................................................................
3
CORPORATE GOVERNANCE ........................................................ 24
DIRECTORS’ REPORT .................................................................... 31
AUDITORS INDEPENDENCE DECLARATION ................................ 40
FINANCIAL REPORT ...................................................................... 41
DIRECTORS’ DECLARATION ........................................................ 64
INDEPENDENT AUDIT REPORT .................................................... 65
SHAREHOLDER INFORMATION ................................................... 67
TENEMENT DIRECTORY ............................................................... 69
GME RESOURCES LTD
CORPORATE DIRECTORY
DIRECTORS
Chairman
Michael Delaney PERROTT AM B.Com
Managing Director
David John VARCOE B.Mining Engineering (Hons), M.AusIMM
Executive Director
James Noel SULLIVAN FAICD
Director
Peter Ross SULLIVAN BE, MBA
Director
Geoffrey Mayfield MOTTERAM B.MetE(Hons), M.AusIMM
COMPANY SECRETARY
Bradley John WYNNE B.Com(Dist), C.A.
REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS
467 Canning Highway
Como WA 6152
PO Box 920
Applecross WA 6953
Telephone:
Facsimile:
E-Mail:
Web Site:
(08) 9313 2144
(08) 9313 2188
enq@gmeresources.com.au
www.gmeresources.com.au
AUDITORS
HLB Mann Judd
Chartered Accountants
15 Rheola Street
West Perth WA 6005
SHARE REGISTRY
Computershare Registry Services Pty Ltd
Level 2, Reserve Bank Building
45 St George’s Terrace
Perth WA 6000
GPO Box D182
Perth WA 6001
Telephone:
Facsimile:
(08) 9323 2000
(08) 9323 2033
STOCK EXCHANGE LISTING
The Company’s shares are quoted on the
Official List of Australian Securities Exchange Limited
Ticker code: GME
STATE OF REGISTRATION
Western Australia
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ANNUAL REPORT 2008
GME RESOURCES LTD
CHAIRMAN’S LETTER
Dear Shareholder
Considerable progress, once again, has been achieved on the development of the NiWest
nickel laterite project during the past 12 months. Your Board believes this is a world class
project and this is particularly so in light of the changed economic order the world is
experiencing at the present time.
Dave Varcoe became the Managing Director at the commencement of this calendar year and
replaced Jamie Sullivan who has served the Company well for the past 4 years. We're grateful
to Jamie for his contribution and wish him well as he focuses on his other business activities.
We are delighted Jamie continues as a Board member.
Dave is a mining engineer who was recruited from Rio Tinto with 20 years experience. The
Board believes he has the drive and experience to deliver on this world class project.
Our Managing Director led the completion of the strategic review by April this year which
emphasised the project to be better undertaken at a greater size and scope than previously
envisaged in the pre feasibility study completed in May 2007. The Niwest nickel laterite project
is now envisaged to produce between 30,000 and 35,000 tonnes of nickel and deliver a pre tax
NPV in the order of $2 - $3 billion.
The resource base was reviewed once again during the year and the results demonstrate a very
robust project at the highest quality. Ongoing metallurgical test work continues to underpin
positive results seen to date. The ten column tests completed to date support large scale heap
leaching as the preferred treatment option.
The Company continues to evaluate opportunities as they arrive and the acquisition of the
Wanbanna tenements in October 2007 provided an opportunity to expand the resource base of
the project. Wanbanna provides additional tonnes of quality ore in support of the larger project.
The primary focus of the year ahead will be the continuation of the bankable feasibility study
and demonstration trial heap leach at the Hepi project site.
The management team has been expanded during the year to allow for the increased workload
and we're grateful to them. I especially thank my fellow Board members for their continued
diligence and involvement.
We look forward to seeing you at our Annual General Meeting.
Yours faithfully
MICHAEL PERROTT AM
Chairman
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ANNUAL REPORT 2008
GME RESOURCES LTD
REVIEW OF OPERATIONS
NiWest Nickel Laterite Heap Leach Project
Over the year the Company has continued to develop and advance the NiWest Nickel
Laterite Heap Leach Project. This is a company changing project and we believe it is the
BEST undeveloped nickel laterite project in Australia due to its size, location and
amenability to simple heap leaching.
In 2007 the Company completed a pre-feasibility study (PFS), produced by independent
Engineering Consultants Aker Kvaerner, which demonstrated the project was technically
feasible and economically very attractive.
During the year the Company conducted a strategic review of the NiWest Project in light
of metallurgical test work results, ongoing resource development work and other
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ANNUAL REPORT 2008
GME RESOURCES LTD
significant strategic developments. Based on this work, the Company believes that the
optimal size of the NiWest Project is between 3.5 and 4.5 million tonnes per annum
(Mtpa) of ore stacked, producing between 30,000 and 35,000 tonnes of nickel metal per
annum. This represents a significant increase on the production capacity envisaged by
the PFS. The Company has now committed to a Bankable Feasibility Study (BFS) for the
project which will include a demonstration mining and heap leach trial.
The Company announced in October 2007 that it had completed an agreement with a
private company to acquire a strategic 80% interest in the Wanbanna project located 4
kilometres west of the Murrin Murrin Nickel Refinery and abutting the Company’s Murrin
North project. This project fits well with the resource that is being defined to support the
NiWest Project.
In June the company acquired the necessary equipment to undertake the Heap Leach
demonstration trial. This equipment is now being refurbished.
The Company has commenced water exploration in the region with initial success.
During the year the company made good progress with environmental studies working
towards final project approvals.
The NiWest Nickel Laterite Project comprises of seven separate project areas in the Murrin
Murrin region of the North Eastern Goldfields of Western Australia. Located on granted mining
leases, total resources of 112 million tonnes averaging 0.95% nickel and 0.07% Cobalt (0.7%Ni
cut off grade) have been defined through extensive systematic drilling programs.
The area is well suited to Heap Leach processing being located in low rainfall, semi desert
environment that is sparsely vegetated and generally flat open country. The area is well
serviced with infrastructure such as railway linked to deep water ports, bitumen road, and gas
pipeline and is in close proximity to the township of Leonora.
These fundamental aspects combined with the positive PFS results underpin the growing
confidence your Board has in the project.
Strategic Review
In April 2008 the Company announced the outcome of a strategic review of the NiWest Project
This work was initiated based on recent column test work results, ongoing resource
development work and other significant strategic developments. As part of this process, the
Company has reviewed a number of project development options based on variations of the
heap leach processing route for nickel laterite ores.
This work led the Company to the conclusion that the optimal size of the NiWest Project is
between 3.5 and 4.5 million tonnes per annum (Mtpa), producing between 30,000 and 35,000
tonnes of nickel metal. This represents a significant increase on the production capacity detailed
in the Pre-Feasibility Study.
The Company envisages developing a world class Nickel and Cobalt processing plant in the
Northern Goldfields.
Preliminary estimates suggest that the expanded development strategy would require a capital
investment in the order of A$1.0 to A$1.2 billion with a pre-tax NPV in the range of A$2.0-3.0
billion. This represents a substantial change to the size and scope of the NiWest Project, with
the potential to deliver significantly enhanced returns to shareholders. The Company believes
that the project needs to be at this critical size for success and that the larger project will be less
capital intensive than the project envisaged in the PFS. This is reflected in the chart below
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ANNUAL REPORT 2008
GME RESOURCES LTD
which shows a range of different NPV outcomes based on different production levels and metal
prices:
The Company advises that this work is strategic in nature and will be supported by further work
as part of the feasibility study planned for 2008 / 2009.
Pre Feasibility Study (PFS)
The Company has previously announced the results of the pre-feasibility study into the technical
and economic merits of the application of heap leach technology to the NiWest Project. This
work commenced in October 2006 and was completed in 2007. The work was undertaken by
internationally recognised engineering consultants Aker Kvaerner.
Heap Leaching of Nickel Laterites is similar to traditional gold and copper heap leach
processing where ore is mined, agglomerated and stacked in piles or heaps. The piles are
irrigated with sulphuric acid that percolates through the ore piles dissolving the contained
metals. The pregnant solution is then processed to recover the dissolved metals.
PFS Project Financial Indicators
A financial model produced for the project using the established resources, capital estimates
and operating costs generated from the PFS supports an economically robust project. Based on
nickel and cobalt prices of US$10 and US$20 per pound respectively, the model shows the
project has the potential to produce an operating cash surplus of A$4.7 billion before tax over
the projected 20 year mine life. Using a discount rate of 8% this equates to a Net Present Value
of A$1.68 billion before tax.
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ANNUAL REPORT 2008
GME RESOURCES LTD
PFS Capital Costs
Aker Kvaerner has estimated the total capital costs to construct the project to be $455 million.
The cost estimate includes provision for an acid plant, metal precipitation plant, power
generation, site clearing, civil earthworks, and borefield and site access roads. Allowances for
engineering procurement construction management and contingencies are also taken into
account. In terms of capital costs the NiWest project is at the lower end of capital costs curve.
PFS Operating Costs
Operating cost estimates in the PFS were US$3.30/lb Nickel after cobalt credits are taken up
operating costs fall to US$2.37/lb Nickel.
Further analysis of the operating costs estimates will be undertaken as the Feasibility Study
progresses to investigate where potential savings can be made in the heap leach and solution
processing areas.
Feasibility Study
The Company has commenced a feasibility study into the expanded project and anticipates
completion in 2009. The study is managed by Mr Mick Ryan who commenced with the
Company in February 2007. Mr Ryan has significant experience in heap leach operations and
nickel laterite projects including having previously held the position of General Manager
Metallurgy at Murrin Murrin.
In May 2008 the Company appointed Simulus to complete the process engineering design for
the NiWest project. Simulus is a Perth based process engineering company, which specialises
in metallurgical consulting, focusing on the fields of hydrometallurgy and nickel processing.
Their expertise in mineral processing, modeling and design coupled with nickel process and
heap leach experience underpinned GME’s decision to select Simulus as preferred plant
designers for the NiWest Laterite Project Feasibility Study.
The scope of work includes:
• Review of metallurgical test work completed to date and make recommendations of
further design work required to support the Feasibility Study and detailed design;
• Facilitate and supervise further test work in conjunction with GME;
• Complete Feasibility process design criteria;
• Complete Feasibility mass and energy balances;
• Process optimisation studies
• Review and recommendations on metallurgical testwork programs, including monitoring
of the Hepi trial heap leach and laboratory testwork
• Preparation of flowsheets, process and instrument diagrams, layouts and necessary
drawing for the Study
• Preparation of equipment specifications, lists and datasheets
• Preparation of process operating cost model
• Process risk assessment
This work will form the basis of detailed heap leach and plant design work for estimation of
capital and operating costs in conjunction with the project engineering group. The selection
process for the appropriate engineering group is currently underway.
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ANNUAL REPORT 2008
GME RESOURCES LTD
Geological Resource Base
The Company has engaged Ravensgate Minerals Industry Consultants (Ravensgate) to review
its entire geological resource base. Ravensgate has developed Krigged resource models for the
major project areas that make up the NiWest resource base. These resource models are the
product of industry best practice for geological modelling which provides greater confidence for
the project. The work incorporates recent drilling and mapping and therefore is based on a new
geological interpretation. The percentage of measured and indicated resource has
increased significantly reflecting the higher confidence levels resulting from the updated
drilling, modelling and geological mapping.
The new resource summary is shown below. A global resource is reported at a 0.7%Ni cut-off
based on a combination of the Krigged resource models constructed by Ravensgate for the
Hepi, Mt Kilkenny and Eucalyptus areas as well as GME’s polygonal resource estimates for
satellite deposit areas (Table 1).The updated Krigged models are also reported at 0.8% Ni cut-
off (Table 2) which the Company expects to have a high conversion rate to reserves based on
preliminary work to date.
Tonnes
(Millions)
%Ni
%Co
0.7% COG
TOTAL
CATEGORY
Measured
Indicated
Inferred
Combined
%
24%
26%
50%
100%
Table 1 Global Resource at 0.7% Nickel cut-off incorporating both Polygonal and Krigged
resource models
266,198
274,699
521,395
1,062,292
27.18
29.07
56.01
112.26
17,023
17,785
40,719
75,527
0.98
0.94
0.93
0.95
0.06
0.06
0.07
0.07
Co Metal
Ni Metal
KRIGGED RESOURCES for HEPI, MT KILKENNY AND EUCALYPTUS
Tonnes
(Millions)
Ni %
Co %
%
Indicated
Inferred
Total
17.39
17.73
54.82
Table 2 Krigged resources for the main project areas at Hepi, Mt Kilkenny and Eucalyptus.
1.001
0.959
1.004
0.066
0.062
0.066
36%
32%
32%
100%
19.70
1.049
0.068
The information in this report that relates to Exploration Results and Mineral Resources is based
on information compiled by Mr Stephen Hyland, Mr Bill Hill and Mr Steve Goertz who are
members of The Australasian Institute of Mining and Metallurgy. Mr Hyland is a Principal
Consultant with Ravensgate Minerals Industry Consultants who consults to the Company. Mr
Hill is self employed and consults to the Company when required. Mr Hill, Mr Goertz, and Mr
Hyland have sufficient experience, which is relevant to the style of mineralization and type of
deposit under consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of
Mineral Resources and Ore Reserves. Mr Hill, Mr Goertz and Mr Hyland consent to the
inclusion in the report of the matters based on information provided in the form and context in
which it appears.
At a production rate of 3.5Mtpa the measured and indicated resource in Table 2 supports a
mine life of 10 years with another 5 years based on the inferred ore. The Company will continue
to develop its 0.8% cut-off resource base to support a long life operation.
- 7 -
ANNUAL REPORT 2008
0.8% Cut Off
Measured
GME RESOURCES LTD
The ore zones show high continuity and consistency at the 0.8%Ni cut-off. The continuity of the
ore zones at Hepi, Eucalyptus and Mt Kilkenny can be seen in the following figures, with the
0.8% Ni ore zones continuous over strike lengths of up to 5 kilometres.
Figure 1 Grade Contours Hepi Project Area Figure 2 Grade Contours Mt Kilkenny Project
Figure 3 Grade Contours Eucalyptus Project Area
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ANNUAL REPORT 2008
GME RESOURCES LTD
To facilitate the resource modeling and to ensure a high standard resource is produced the
Company undertook further ground based geological mapping across a number of tenements.
This task assists the Company’s geologists to provide high quality resource models and to focus
future exploration efforts.
In May 2008 GME commissioned its DataShed geological database. The DataShed product is
considered an industry leading drill hole database. Maxwell Geoservices built the database and
conducted a full audit of the geological data set.
Metallurgical Test Work
The Company has now completed 10 x 4 metre column tests on ore collected by sonic drilling
from the project areas. Four of these columns were completed in September 2007 and have
been fully reconciled. The other six column tests are now finished leaching and await final
reconciliation hence the results are preliminary. All results have been very positive and support
large scale heap leaching of the ore. Two of the columns showed lower extractions than
expected due to testing of alternative operating strategies to determine the effects of varying acid
concentrations in feed solutions, binder addition rates and different methods for controlling
magnesium and iron concentrations in solution.
Number Extraction
Column Head Reconciliation
Days
120
120
120
4 Metre Column
Tests
Hepi #1
Mt Kilkenny North #1
Mt Kilkenny Central
#1
Mt Kilkenny North #2
Eucalyptus Central
Eucalyptus North
Mt Kilkenny Camel
Back
Hepi #3
Hepi #4
Mt Kilkenny
Table 3 – 4 metre column results
120
120
120
120
120
120
120
%Ni
82.6
80.5
78.8
81.3
77
69
79
67
66
57
%Co
99.1
98.7
86.0
89.1
41
46
36
38
37
20
Grade
1.74
1.29
1.37
1.12
1.25
1.14
1.35
1.98
1.98
1.10
Final
Final
Final
Final
Preliminary
Preliminary
Preliminary
Preliminary
Preliminary
Preliminary
Figure 4 Preliminary extraction results for the second set of columns
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ANNUAL REPORT 2008
GME RESOURCES LTD
Using actual pregnant solution from column tests a range of preliminary testing for the
downstream processing plant has been undertaken to review a number of potential options.
The work has confirmed the selected flowsheet to produce a mixed sulphide precipitate using
hydrogen sulphide.
Further downstream testwork is planned to develop detailed design parameters for the selected
unit operations, this will consist of:
• Pre-reduction and Solution Neutralisation testing with H2S and local calcrete
• Sulphide precipitation with H2S
• Acid regeneration of process solutions
• Neutralisation of residue solutions and solids
• Materials handling testwork with TUNRA on ore and heap leach residue, and other
process residues
This testwork results will be used along with the results from a pilot plant using bulk solutions
from the demonstration trial for final plant design.
Heap Leach Demonstration Trial
On 30 June 2008 the Company took delivery of the key components for the heap leach trial, this
equipment is now in Kalgoorlie and is being refurbished.
The Hepi Demonstration Trial will consist of a single heap of approximately 4,000 tonnes of ore,
with provision for additional heaps if required. Planning is already well advanced for the Trial, all
permits are in place. Water resources required for the Trial have been identified and are being
secured.
Figure 5 Trial components being refurbished
Close spaced RC Grade control drilling and mine design work have been completed for the
Hepi pit for the Demonstration Trial. The grade control drilling defined a resource of 289,000
tonnes of high grade ore at 1.53% Ni (0.8 % Ni Cut-off).
Importantly, the grade control drilling provided a 117% positive reconciliation in metal over the
original resource model. This suggests that the Geological model is very robust in the Hepi
area. The grade control model is shown below in Figure 6.
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ANNUAL REPORT 2008
GME RESOURCES LTD
Figure 6 Grade control trial pit and larger grade control model
Water Exploration
Water exploration drilling targeting water resources identified by geophysical surveys in 2007,
by our water consultant Coffey Geoscience was undertaken. A total of nine exploration bores
were drilled during the period, three of which were successful and cased with initial flowrates of
over 4 L/second. Two of the three developed bores have yielded good quality water and are
located within the Kilkenny mine area. The other bore is saline, but suitable for process water.
In addition to this initial program other potential aquifers have been identified and will be
explored.
Licensing of bores and modelling of the aquifers will continue to be undertaken as development
progresses to achieve the necessary long-term water supply requirements for the project.
This work has given the company confidence of finding adequate water supplies for the project.
Environmental Studies
With the long-term nature of environmental studies to obtain project approvals for a project of
this scale work commenced in early 2007 and continues. The work is being coordinated by
Rapallo Environmental.
In addition to obtaining approvals for the trial mining and processing at Hepi, a number of
environmental studies are continuing over all areas of the project. Areas covered this year
include:
• Fauna survey at Hepi and Mt Kilkenny,
• Flora survey at Hepi, with preliminary survey at Mt Kilkenny
• Ethnographic survey overall project areas
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ANNUAL REPORT 2008
GME RESOURCES LTD
Work programs planned include;
• Emission modeling for the project;
• Archeology surveys
• European heritage surveys
• Fauna surveys over Eucalyptus and Murrin North
• Flora surveys over Mt Kilkenny, Eucalyptus and Murrin North
• Soil and waste residue surveys and characterization.
In addition, GME has commenced
1. A program of work with Kings Park on selected plant species identified around the Hepi
project area. This work is intended to mitigate any potential long-term issues regarding
at risk flora species.
2. Rehabilitation trials with Edith Cowan University (ECU), these preliminary trials will assist
in development of long-term programs and strategies for rehabilitation of waste dumps
and process residues for the project.
Capital Raising August 2007
In August 2007 the Company completed a significant capital raising to progress the Feasibility
Study through a Renounceable Entitlement Issue to shareholders.
The one for ten entitlement issue at 50 cents per share raised a total of $10,403,966.50 and
resulted in an increase of issued capital of 20,807,933 ordinary shares. The issue was strongly
supported with 94.4% of entitlements taken up.
Nickel Market Fundamentals
The major use of Nickel is as stainless steel (65% of total consumption), which is used
extensively in industrial applications. Other uses include application in high technology alloys for
use in batteries, turbines, water treatment plants and nuclear power stations. World nickel
consumption is currently around 1.4 million tonnes per annum this market is expected to
continue to grow strongly, driven by the rapid urbanisation of countries including China. China’s
stainless steel production has grown at 40% per year over the last 8 years (Metalytics 2008).
Laterite Nickel ores constitute 73% of global resources but represent just 44% on global
processing this imbalance is expected to correct over time (Figure 8). The Nickel price in the
long term must reflect the relative cost of processing the laterite ore types.
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ANNUAL REPORT 2008
GME RESOURCES LTD
Figure 7 Historical nickel prices $US/lb
Figure 8 Nickel laterite profile
Sulphide
Laterite
Wanbanna Acquisition
The Company announced in November 2007 that it had completed agreement with a private
Company to acquire a strategic 80% interest in the Wanbanna project. The project area is
located approximately 5 kilometres west of the Murrin Murrin Nickel refinery.
The Wanbanna project area contains a significant inferred nickel laterite resource and is
considered to be highly strategic as it abuts the Company’s Murrin North project and provides a
material increase in the overall resources held in the NiWest Nickel Laterite project.
Exploration Work
The Company has significantly increased its technical team with the recruitment of 3 geologists
during the year. The Company has also invested in GIS and drill hole database software to
further enhance the exploration effort.
Over the year the Company has completed two reverse circulation drilling programs and one
Sonic drill core program. RC drilling took place at Hepi, Wanbanna and Murrin North.
Sonic holes were drilled at Hepi, Mount Kilkenny and Waite Kauri. The Sonic programs
provided core samples for the column test work.
The following section provides an overview of the resource drilling work that was completed.
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ANNUAL REPORT 2008
GME RESOURCES LTD
Drilling statistics for 2007-2008 are shown in the following table:
RC Metres
3,612
2,185
7,129
Project
Hepi
North
Wanbanna
Waite Kauri
Mount Kilkenny
Total
Table 4 Drilling statistics for 2007/2008
12,926
RC Holes
118
47
114
Project areas
Hepi
M39/717- 718, M39/819
Tonnes (Millions)
KRIGGED RESOURCES for HEPI
0.8% Cut Off
Measured
Indicated
Inferred
Total
1.77
0.71
0.61
3.08
Sonic
Metres
53
Sonic
Holes
2
57
297
407
2
5
9
279
Ni %
Co %
%
1.098
0.949
0.894
1.023
0.065
0.065
0.072
0.066
57%
23%
20%
100%
Table 5 Hepi krigged resource
Figure 9 - Hepi project - 2.5 Hectare clearing for trial pit
Hepi sonic drill program
53 metres of Sonic core were completed at Hepi in two drill holes. The drilling took place in the
trial pit area to provide samples for further metallurgical test work.
The holes were designed to twin former RC holes providing a correlation of grade and thickness
from Sonic to RC drilling. Results from the sonic drilling was comparable to previous RC results
with high grade RC hole HPC168 intersecting 21 metres averaging 2.45% Nickel compared to
22.5 metres averaging 2.44% Nickel from the sonic core drilling.
Hepi sonic drilling results
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ANNUAL REPORT 2008
GME RESOURCES LTD
Hole _ID
HPS010
HPS011
including
Easting Northing
382264 6806591
382276 6806545
From
6.5
6.0
10.50
To
22.3
30.0
27.00
Interval
15.75
24
16.50
Ni%
1.11
2.48
3.00
Co%
0.09
0.08
0.10
Table 6 Hepi sonic drilling results
Hepi grade control drill program
The mining proposal for the trial mining at the Hepi project has been was approved. The
proposal covered the mining of approximately 25,000 tonnes of saprolite ore at an average
grade of 1.4% Nickel. Total tonnes to be mined, including low grade ore and waste are expected
to be 130,000 tonnes.
Initial clearing of 2.5 hectares for grade control drilling over the proposed trial pit area was
completed in December 2007.
The grade control drilling program took place in February 2008 and consisted of 3,612 metres of
RC drilling in 118 drill holes to an average depth of 31 metres. The grade control area measured
approximately 150 by 100 metres. The purpose of the drilling was to delineate ore for the Hepi
trial and to assist in the understanding of metal grade distribution and variation. The grade
control results produced a higher average grade than the resource drilling over the same area.
Results from the grade control drilling will ultimately be used to provide reconciliation of tonnes
and grade mined (Figure 10 and Table 7).
Some of the best results from drilling are shown in the table below.
22.0
26.0
27.0
26.0
28.0
33.0
27.0
26.0
25.0
29.0
9.0
GC021
GC022
GC035
GC036
1.0
8.0
12.0
8.0
13.0
11.0
Hole_ID Easting Northing From To
382240 6806600
GC009
382249 6806575
GC015
382275 6806575
GC017
382287 6806575
GC018
382300 6806575
GC019
382300 6806562
GC020
including
382287 6806563
including
382274 6806563
382263 6806550
382288 6806550
including
382212 6806537
382225 6806538
382262 6806538
382275 6806537
382287 6806537
including
382300 6806537
382300 6806525
382262 6806588
382275 6806588
382286 6806588
GC040
GC041
GC044
GC045
GC046
8.0
9.0
9.0
4.0
6.0
11.0
6.0
6.0
27.0
30.0
30.0
30.0
30.0
Interval Ni %
Co %
0.07
0.08
0.16
0.09
0.15
0.11
0.24
0.08
0.14
0.07
0.04
0.14
0.20
0.07
0.10
0.05
0.09
0.13
0.23
0.10
0.11
0.12
0.24
0.15
1.07
1.32
2.05
2.19
1.96
1.97
3.03
2.28
3.28
1.93
1.88
2.50
3.08
1.42
1.54
2.26
2.46
2.28
3.19
2.30
1.89
1.56
1.99
2.02
21
18
15
18
15
22
7
18
5
15
19
23
15
19
21
21
26
24
6
19
17
15
15
16
GC047
GC059
GC067
GC068
GC069
Table 7 Hepi grade control drilling summary of best intercepts (does not include all results).
32.0
24.0
23.0
24.0
24.0
13.0
7.0
8.0
9.0
8.0
- 15 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Figure 10 Hepi Grade Control section 6,806,550 North
Mount Kilkenny
E39/688, E37/878, E39/990, E39/1107-1108, M39/878 – 879, P39/4827
Mount Kilkenny resource calculation
Ravensgate Minerals Industry Consultants calculated a krigged resource for Mount Kilkenny
using last year’s major RC drilling program as the basis. This resulted in a substantial increase
in each JORC confidence category:
KRIGGED RESOURCES for Mt Kilkenny
0.8% Cut Off
Measured
Tonnes (Millions)
12.08
Indicated
Inferred
Total
7.39
4.14
23.61
Table 8 Mt Kilkenny krigged resource
Mount Kilkenny sonic drill program
Ni %
Co %
%
1.051
1.021
0.982
1.030
0.070
0.073
0.065
0.070
51%
31%
18%
100%
Five sonic drill holes for 297 metres of core were completed at Mount Kilkenny to provide
samples for further metallurgical test work.
The Mt Kilkenny sonic core drilling successfully obtained metallurgical sample material below
the alluvial cover within the Mt Kilkenny North resource zone. Metallurgical column leach tests
were prepared with the sonic core.
- 16 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Mount Kilkenny sonic drilling results
Hole _ID
MKS010
Easting Northing
383917 6786450
including
MKS011
MKS012
383594
6786644
383912 6786754
including
MKS013
MKS014
Table 9 Mt Kilkenny sonic drilling results
383723 6787052
383607 6787350
From
26.8
28.20
37.5
44.3
45.00
39.0
40.5
To
54.0
38.70
51.0
71.5
52.50
58.0
58.5
Interval
27.2
10.50
13.5
27.3
7.50
19.0
18.0
Ni%
1.60
2.03
1.49
1.37
2.11
1.42
1.55
Co%
0.14
0.14
0.15
0.14
0.25
0.09
0.09
Eucalyptus Bore
M39/289, M39/313, M39/344, M39/430, M39/568, M39/570, M39/616, M39/665 – 666,
M39/674, M39/744, M39/802 - 804
Ravensgate Minerals Industry Consultants calculated a krigged resource for Eucalyptus Bore.
This result is shown in the table below:
KRIGGED RESOURCES for Eucalyptus
0.8% Cut Off
Tonnes (Millions)
Ni %
Co %
Measured
Indicated
Inferred
5.86
9.29
12.97
Total
28.12
Table 10 Eucalyptus krigged resource
1.029
0.989
0.954
0.981
0.065
0.061
0.061
0.062
%
21%
33%
46%
100%
No exploration work was undertaken on the Eucalyptus project during the year. Geological fact
mapping and aeromagnetic interpretation is planned for the near future along with infill and ore
body edge RC drilling programs.
Murrin North
M39/758
Resource Drilling
The Murrin North lease is located 4km to the North West of the Murrin Murrin nickel refinery and
15km north of the Leonora to Laverton Highway. In June 2008, 2,185m were drilled in 47 RC
drill holes (MNC050 to MNC096).
Some of the best results from drilling are shown in the table below.
- 17 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Interval Ni %
Hole_ID Easting Northing From To
388854 6821963
MNC054
388915 6821596
MNC055
388975 6821534
MNC056
388975 6821534
MNC056
389015 6821484
MNC057
388619 6821330
MNC058
388681 6821265
MNC059
389298 6820000
MNC065
389401 6820802
MNC086
388350 6821034
MNC090
388083 6820733
MNC093
388137 6820669
MNC094
MNC096
387843 6820403
Table 11 Murrin North resource drilling summary of best results (does not include all results)
Co %
0.06
0.04
0.01
0.04
0.04
0.06
0.05
0.09
0.20
0.10
0.10
0.06
0.06
0.85
0.82
1.08
1.06
0.81
1.50
1.17
0.86
0.85
1.24
1.23
1.01
0.84
49.0
37.0
58.0
33.0
39.0
58.0
36.0
31.0
35.0
37.0
30.0
36.0
51.0
33.0
27.0
49.0
26.0
30.0
37.0
27.0
24.0
22.0
30.0
22.0
25.0
32.0
16
10
9
7
9
21
9
7
13
7
8
11
19
Geological Mapping
Jigsaw Geoscience completed a 1:10,000 scale geological fact mapping and aeromagnetic
interpretation at Murrin North during the year.
The mapping assists the Company’s geologists to provide high quality resource models and to
target future exploration efforts.
Rehabilitation
GME is a responsible corporate entity and undertakes progressive clean up and rehabilitation of
drill locations. Collar cutting and chip tray collection of all available historic RC drill holes at
Murrin North was completed during the year. All drill hole plastic collars were removed and
open holes plugged to Department of Industry and Resources standards.
Wanbanna
M39/460
In October 2007 the Company announced that it had reached agreement with privately owned
company Wanbanna Pty Ltd to acquire an 80% interest in Prospecting Licences 39/2831-2835
(MLA39/460) covering 9.7 square kilometres. The project area is located approximately 5
kilometres west of the Murrin Murrin Nickel refinery.
The Wanbanna project area contains a significant inferred nickel laterite resource and is
considered to be highly strategic as it abuts the Company’s Murrin North project and provides a
material increase in the overall resources held in the NiWest Nickel Laterite project.
The following table shows the inferred polygonal resource estimates, calculated at various
nickel cut off grades from the existing wide spaced air core drilling completed at the project. An
updated resource is being calculated.
Wanbanna Project Inferred Polygonal Resource Statement
Ni Cut Off Grade Million Tonnes
0.70%
1.00%
1.20%
14.9
5.5
3.0
%Ni
1.00
1.28
1.41
%Co
0.07
0.10
0.11
Table 12 Wanbanna inferred polygonal resource
- 18 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Mining Lease 39/460 was granted on 6th December 2007.
Drill program
During June 2008 a 100 by 100m spaced RC program at Wanbanna provided complete drilling
coverage of the Wanbanna ultramafic for a JORC compliant inferred resource to be calculated.
7,129m were drilled in RC drill holes WNC001 to WNC114.
Some of the best results from drilling are shown in the table below.
Interval Ni %
Hole_ID Easting Northing From To
39.0
387497 6818203
WNC003
51.0
387399 6818104
WNC011
40.0
387499 6818001
WNC013
40.0
387397 6818000
WNC014
39.0
387299 6818000
WNC015
49.0
387400 6817901
WNC020
43.0
387200 6817903
WNC022
59.0
387489 6817804
WNC025
50.0
387403 6817803
WNC026
44.0
387301 6817805
WNC027
37.0
387201 6817804
WNC028
44.0
387103 6817802
WNC029
49.0
387499 6817701
WNC030
43.0
387400 6817699
WNC031
37.0
387198 6817698
WNC033
42.0
387403 6817598
WNC036
37.0
387197 6817600
WNC038
39.0
387101 6817598
WNC039
34.0
387297 6817498
WNC042
41.0
387197 6817499
WNC043
42.0
387097 6817500
WNC044
36.0
387298 6817399
WNC047
40.0
387101 6817403
WNC049
39.0
387308 6817303
WNC054
38.0
387101 6817303
WNC056
41.0
386999 6817206
WNC065
43.0
386896 6817198
WNC066
45.0
386502 6817099
WNC079
WNC085
35.0
386701 6816998
Table 13 Wanbanna drill program summary of best results (does not include all results)
Co %
0.09
0.07
0.11
0.06
0.06
0.15
0.05
0.09
0.04
0.10
0.08
0.07
0.09
0.11
0.09
0.09
0.10
0.06
0.07
0.03
0.07
0.07
0.07
0.04
0.04
0.11
0.07
0.07
0.08
1.34
1.29
1.18
1.02
1.29
1.19
1.09
1.08
1.01
1.49
1.42
1.01
1.27
1.11
1.31
1.25
1.06
1.28
1.10
1.01
1.52
1.24
1.17
1.18
1.28
1.07
1.07
1.20
1.17
28.0
29.0
26.0
26.0
21.0
33.0
22.0
36.0
26.0
25.0
27.0
24.0
35.0
28.0
24.0
22.0
23.0
24.0
24.0
27.0
24.0
24.0
26.0
26.0
25.0
29.0
24.0
32.0
21.0
11
22
14
14
18
16
21
23
24
19
10
20
14
15
13
20
14
15
10
14
18
12
14
13
13
12
19
13
14
Waite Kauri
M37/1216
Waite Kauri sonic drill program
Two sonic drill holes for 57 metres of core were completed at Waite Kauri. The core was cut in
half to supply samples for further metallurgical test work.
- 19 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Waite Kauri sonic drilling results
Hole _ID
From
WKS010
4.5
WKS011
3.0
Table 14 Waite Kauri sonic drilling results
Easting Northing
374716 6827163
387692 6827143
To
21.0
34.0
Interval
16.5
31.0
Ni%
1.76
2.03
Co%
0.12
0.09
Rehabilitation
GME is a responsible corporate entity and undertakes progressive clean up and rehabilitation of
drill locations. Collar cutting and chip tray collection of all available historic drill holes at Waite
Kauri was completed by during the year. All historic drill hole plastic and steel collars were
removed and open holes plugged to Department of Industry and Resources standards.
Mertondale
M 37/591
M 37/591 was granted on 20th February 2008. This tenement contains a nickel laterite bearing
ultramafic over eight kilometres long, with a reported inferred resource of 1.2 million tonnes at
1.24% Nickel and 0.06% Cobalt.
RC infill drilling will be completed to verify and upgrade this resource in due course.
Further to GME’s environmental responsibilities to clean up its current drilling all drill sample
reject from historic RC drilling has been removed from the Mertondale tenement and all holes
plugged. Over 230 holes were cleaned up during the year.
Duck Hill
E31/733
E31/733 was granted on 7th August 2008. This tenement contains a nickel laterite bearing
ultramafic over six kilometres long, with a reported inferred resource of 1.5 million tonnes at
1.27% Nickel and 0.30% Cobalt.
RC infill drilling will be completed to verify and upgrade this resource in due course.
GOLD
Gold Assets
GME and its subsidiary Golden Cliffs NL own a number of prospective gold projects in the
Leonora – Laverton region. The amount of work undertaken on the respective areas varies from
soil sampling through to diamond drilling and resource definition.
The majority of the tenements that make up the gold assets are in the process of reversion,
where new prospecting licenses have been applied for but are yet to be granted. Several new
tenements were applied for that either adjoined existing holdings or were considered
prospective for gold or base metals.
- 20 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Figure 11 GME Resources Gold tenement location map
During the reporting period the Company completed aircore drilling on three of the projects.
Drilling statistics and significant results are shown in the following tables.
Drilling statistics
Project Area
Leonora East
Laverton Downs
Hawk Nest
Drilling
Aircore
Aircore
Aircore
Holes Metres
12
9
6
423
279
71
Table 15 Gold tenement drilling statistics
Abednego
M 39/427, M 39/825
M 39/427 was granted on 21st May 2008. M 39/825 was granted on 22nd May 2008. These
tenements contain ‘walk-up’ gold targets requiring infill drilling.
All other leases that form part of this project are Prospecting Lease applications due to be
granted in the coming year.
Hawk Nest
M 38/218
The Hawk Nest lease contains a small open pit, mined for supergene gold during the 1980’s.
The tailings and pit surrounds were the subject of extensive rehabilitation by the Company
during the year.
- 21 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Aircore Drilling Program
Six aircore holes targeted the structure previously mined during the open pit operations.
Significant results are tabulated below:
Hole No
Hawk Nest
HAC001
HAC002
HAC004
Easting
Northing
From
To
Interval
Au g/t
430940
430940
430945
6824195
6824199
6824187
0
12
0
4
17
2
4
5
2
4.05
0.98
0.82
Table 16 Hawk Nest aircore drilling summary of best results (does not include all results)
Laverton Downs
E 38/1876 and E38/2066
The Laverton Downs leases are prospective for both Nickel laterite and gold resources. There
is over 7km of nickel laterite bearing ultramafic striking through E38/1876. The historic Fairfield
gold mining centre also occurs on E38/1876.
Aircore Drilling Program
Twelve aircore holes targeted the historic Fairfield workings. Significant results are tabulated
below.
Hole No
Easting
Northing
From
To
Interval
Au g/t
Laverton Downs
FAC001
448263
6853541
FAC004
448269
6853433
FAC005
448264
6853440
22
32
0
20
18
24
34
2
22
28
2
2
2
2
10
1.32
36.3
1.19
2.13
1.85
FAC006
2.75
Table 17 Laverton Downs aircore drilling summary of best results (does not include all results)
6853440
448258
28
32
4
Leonora East
P37/5650-5656, P37/6931-6932, E37/871
The Laverton Downs leases are prospective for both Nickel laterite and gold resources. There
is over 7km of nickel laterite bearing ultramafic striking through E38/1876. The historic Fairfield
mining centre also occurs on E38/1876.
- 22 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Aircore Drilling Program
Nine aircore holes targeted historic workings and cross-lodes. Significant results are tabulated
below:
Hole No
Easting
Northing
From
To
Interval
Au g/t
Leonora East
TEAC001
TEAC002
TEAC003
TEAC005
TWAC001
TWAC002
TWAC003
TWAC004
TWAC006
TWAC007
342977
342633
342632
342148
342165
342157
342134
342127
342139
342131
6806704
6809451
6809461
6809448
6807007
6807012
6806953
6806958
6806863
6806961
10
40
54
38
8
28
16
10
26
22
12
44
56
39
12
30
18
14
28
24
2
4
2
1
4
2
2
4
2
2
1.19
2.68
2.74
1.77
3.2
1.41
2.65
1.64
2.63
4.23
TWAC007
2.23
Table 18 Laverton Downs aircore drilling summary of best results (does not include all results)
28
26
2
Linden Project
P39/3417-3418, E39/1181 and E39/1337
The Linden Prospecting leases cover the historic Devon and Olympic gold mines. Residual
resources are present and require further evaluation.
Mount Morgan South
Prospecting Lease Applications only
The Mount Morgan South tenements are prospective for nickel and gold. The Prospecting
Lease applications will be granted in the coming year.
The Company is in the process of reviewing all the gold assets held in the group.
- 23 -
ANNUAL REPORT 2008
GME RESOURCES LTD
CORPORATE GOVERNANCE STATEMENT
Introduction
The Board of Directors of GME Resources Limited has adopted the following Corporate
Governance Principles and is responsible for the adherence to these Principles. These
Principles and Practices are reviewed regularly and upgraded or changed to reflect changes in
law and what is regarded as best practice. A description of the Company's main Corporate
Governance Principles and Practices is set out below.
Role of the Board
The Board has adopted the following Statement of Matters for which the Board will be
responsible:
(1) Reviewing and determining the Company's strategic direction and operational policies;
(2) Review and approve business plans, budgets and forecasts and set goals for
management;
(3) Appoint and remunerate Chief Executive Officer and Senior Staff;
(4) Review performance of Chief Executive Officer and Senior Staff;
(5) Review financial performance against Key Performance Indicators on a monthly basis;
(6) Approve acquisition and disposal of tenements;
(7) Approve exploration and mining programs;
(8) Approve capital, development and other large expenditures;
(9) Review risk management and compliance;
(10) Oversee the Company's control and accountability systems;
(11) Reporting to shareholders; and
(12) Ensure compliance with environmental, taxation, Corporations Act and other laws and
regulations.
Managing Director
GME's most senior employee is the Managing Director who is appointed and subject to annual
reviews by the Board. The Managing Director recommends policies, strategic direction and
business plans for the Board's approval and is responsible for managing the Company's day-to-
day business.
- 24 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Board Independence
The Board consists of five directors, but up to 10 directors can serve on the board. Mr David
Varcoe and Mr James Sullivan are the only executives, the remainder are non executive.
Currently the five directors are:
Michael D Perrott
David J Varcoe
James N Sullivan
Peter R Sullivan
Geoffrey M Motteram
Chairman
Managing Director
Executive Director
Director
Director
Director since 1996
62 years
45 years
Director since 2008
47 years Director since 2004
Director since 1996
52 years
Director since 1997
59 years
Mr Motteram and Mr P Sullivan are considered Independent Directors on the Board according to
the definitions by
the Australian Securities Exchange Corporate Governance Council
("Council").
The Managing Director, Mr D Varcoe is a full time executive, and Mr J Sullivan is also an
executive and is also a substantial shareholder of the Company. The Chairman, Mr Perrott, is
also not considered "Independent" by the definitions of the Council as he is indirectly a
substantial shareholder in the Company.
As such, the Company does not comply with the Council's recommendation, Item 2.1, that the
majority of the Company's directors should be Independent Directors. The Board has however
adopted a series of safeguards to ensure that independent judgement is applied when
considering the business of the Board:
• Directors are entitled to seek independent professional advice at the Company's
expense. Prior written approval of the Chairman is required but this is not unreasonably
withheld.
• Directors having a conflict of interest with an item for discussion by the Board must
absent themselves from a board meeting where such item is being discussed before
commencement of discussion on such topic.
• The Independent Directors confer on a "needs" basis with the Chairman with such
discussion if warranted and considered necessary by the Independent Directors.
• The Board considers Non-executive Directors to be independent even if they have minor
dealings with
they are not a substantial shareholder.
Transactions with a value in excess of 5% of the Company's annual operating costs are
considered material. A director will not be considered independent if he has transactions
in excess of this materiality threshold.
the Company provided
Tenure of the Board
The Directors are expected to review their membership of the Board from time to time taking
into account the length of service on the Board, age, qualification and experience. In light of the
needs of the Company and direction of the Company together with such other criteria
considered desirable for composition of a balanced board and the overall interests of the
Company.
A director is expected to resign if the remaining directors recommend that a director should not
continue in office, but is not obliged to do so.
- 25 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Chairman
The current Chairman is Mr Michael D Perrott. Mr Perrott brings a wealth of business
experience, connections and drive to the Board.
The Chairman's role is separated from the role of the Managing Director.
The Chairman's role includes:
• Providing effective leadership on formulating the Board's strategy;
• Representing the views of the Board to the public;
• Ensuring that that the Board meets at regular intervals throughout the year and that
minutes of meeting accurately record decisions taken and where appropriate the views
of individual directors;
• Guiding the agenda, information flow and conduct of all board meetings;
• Reviewing the performance of the board of directors; and
• Monitoring the performance of the management of the Company.
Committees
Due to the small size of the Company and the number of board members, the Board does not
have a formal nomination committee structure. Any new directors will be selected according to
the needs of the Company at that particular time, the composition and the balance of
experience on the Board as well as the strategic direction of the Company.
Should the need arise to consider a new board member, some or all of the Directors would form
the committee to consider the selection process and appointment of a new director.
At each annual general meeting the following directors retire:
• One third of directors (excluding the Managing Director);
• Directors appointed by the Board to fill casual vacancies or otherwise;
• Directors who have held office for more than three years since the last general meeting
at which they were elected.
Details on Current Directors
Details on current directors including their skills and experience are included in the Directors’
Report.
- 26 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Ethical and Responsible Decision-making
In making decisions, the Directors of the Company, its officers and employees, take into
account the needs of all stakeholders:
• Shareholders;
• Employees;
• Community;
• Creditors;
• Contractors; and
• Government (Federal, State and Local).
The Directors, officers and employees of the Company are expected to:
• Comply with the laws and regulations both by the letter and in spirit;
• Act honestly and with integrity;
• Avoid conflicts of interest by not placing themselves in situations which result in divided
loyalties;
• Use the Company's assets responsibly and in the interests of the Company, not take
advantage of property, information or position for personal gain or to compete with the
Company;
• To keep non-public information confidential except where disclosure is authorised or
legally mandated; and
• Responsible and accountable for their actions and report any unethical behaviour.
Trading in Company Securities
The Directors, officers and employees of the Company must not acquire or dispose of securities
in the Company whilst in possession of price sensitive information not yet released to the
market. Subject to this condition and the trading prohibition applying to periods prior to major
announcements, including announcement of drilling results, announcement of half-yearly and
full year results and the holding of a general meeting, trading can occur at any time.
Directors must advise the Company which in turn advises the Australian Securities Exchange of
any transactions conducted by them in the Company's securities within five business days after
the transaction occurs.
- 27 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Integrity of Financial Reporting
GME's Managing Director and Chief Financial Officer report in writing to the Board:
• That the Company's financial reports are complete and present a true and fair view, in all
material respects, of the financial condition and operational results of the Company and
Group; and
• That the above statement is founded on a sound system of internal control and risk
management which implements the policies adopted by the Board and that the
Company's risk management and internal controls are operating efficiently in all material
respects.
Audit Committee
The Company does not have a formal audit committee as, in the opinion of the directors, the
scope and size of the Company’s operations do not warrant it. As such the Company is not in
strict compliance of the Council’s Recommendation 4.2 that the Board should establish an audit
committee. It should be noted however that when the Council’s Recommendation was made it
was emphasised that it was more relevant for large companies.
The Board regularly reviews the scope of audits, the level of audit fees and the performance of
auditors.
The Board also is continually assessing to ensure the independence of the external auditor is
maintained. The company will and does, if necessary, use other consultants to avoid any
potential independence issues.
Timely and Balanced Disclosure to Australian Securities Exchange
The Company has procedures in place to identify matters that are likely to have a material effect
on the price of the Company's securities and to ensure those matters are notified to the
Australian Securities Exchange in accordance with its listing rule disclosure requirements.
Information to the market and media is handled by the Chairman, the Managing Director or the
Company Secretary. In particular, the Company Secretary has been nominated as the person
responsible for communications with Australian Securities Exchange. This role includes
responsibility for compliance with the continuous disclosure requirements of the Australian
Securities Exchange Listing Rules and overseeing and coordinating information disclosures to
Australian Securities Exchange, analysts, brokers, shareholders the media and the public.
All disclosures to Australian Securities Exchange are posted on the Company's website soon
after clearance has been received from Australian Securities Exchange.
The Chairman, the Managing Director and Company Secretary are monitoring information in the
marketplace to ensure that a false market does not emerge in the Company's securities.
- 28 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Communication with Shareholders
It is the Company's communication policy to communicate with shareholders and other
stakeholders in an open, regular and timely manner so that the market has sufficient information
to make informed investment decisions on the operations and results of the Company.
The information is communicated to the shareholders through:
• Continuous disclosure announcements made to the Australian Securities Exchange;
• Distribution of the annual report to shareholders together with a notice of meeting;
• Posting of half-yearly results and all Australian Securities Exchange announcements on
the Company's website;
• Posting of all major drilling results;
• Posting of all media announcements on the Company's website; and
• Calling of annual general meetings and other meetings of shareholders to obtain
approval for board action as considered appropriate.
On the Company's website, information about the Company's projects is shown.
At annual general meetings and other general meetings of shareholders, shareholders are
encouraged to ask questions of the Board of Directors relating to the operation of the Company.
Risk Management
Due to its size of operation and size of the board, there is no formal board committee to identify,
assess and monitor and manage risk. Responsibility for day to day control and risk
management lies with the Managing Director and Company Secretary (financial risk) with
reporting responsibility to the Board. The Board participate and monitor risks including but not
limited to compliance with development and environmental approvals, tendering, contracting
and development, pricing of products, quality, safety, strategic issues, financial risk, joint
venture, accounting and insurance. Any changes in the risk profile for the Company are
communicated to its stakeholders via an announcement to Australian Securities Exchange.
Performance
The Board has adopted a self-evaluation process to measure its own performance. The
Chairman evaluates the performance of each director and the Board evaluates the performance
of the Chairman. Performance of senior executives is evaluated by the Managing Director in
cooperation with the Chairman. All performance evaluations are measured against budget,
goals and objectives set.
All directors of the board have access to the Company Secretary who is appointed by the
Board. The Company Secretary reports to the Chairman, in particular to matters relating to
corporate governance.
All board members have access to professional independent advice at the Company's expense
provided they first have obtained the Chairman's approval which will not be unreasonably
withheld.
- 29 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Remuneration
Managing Director and Non-executive Directors
The directors are remunerated for the services they render the Company and such services are
normally carried out under normal commercial terms and conditions. Remuneration is also
determined having regard to how directors are remunerated for other similar companies, the
time spent on the Company’s matters and the performance of the Company. Engagement and
payment for such services are approved by the other directors with no interest in the
engagement of services.
The Board has no retirement or termination benefits. Payments to all directors are set out in the
Director's Report.
Senior Executives
The remuneration of senior executives is discussed and determined by the Board upon
receiving advice from the Managing Director. The remuneration packages are set at levels
intended to attract and retain the executives capable of managing the Company's operations.
The remuneration of senior executives, where applicable, is set out in the Directors’ Report.
General
Due to the staff size and the close involvement of the Board in the operations of the Company,
the Company does not operate a formal remuneration committee. All remuneration paid to the
Chairman, Non-executive Directors, Executive Directors and Senior Executives are all reviewed
and discussed by the Board.
The Company does not operate an employee share option plan and there are no options
outstanding issued to directors.
Interests of Stakeholders
It is the Company's objective to create wealth for its shareholders and provide a safe and
challenging environment for employees and for the Company to be a valuable member of the
community as a whole.
The Company's ethical and responsible behaviour is set out under the heading "Ethical and
Responsible Decision-making".
The Company's core values are summarised as follows:
• Provide value to its shareholders through growth in its market capitalisation;
• Act with integrity and fairness;
• Create a safe and challenging workplace;
• Be participative and recognise the needs of the community;
• Protect the environment;
• Be commercially competitive; and
• Strive for high quality performance and development.
- 30 -
ANNUAL REPORT 2008
GME RESOURCES LTD
DIRECTORS’ REPORT
Your directors present their report of GME Resources Limited and its controlled entities for the
financial year ended 30 June 2008.
Directors
The names of directors in office at any time during or since the end of the year are:
Michael Delaney Perrott
David John Varcoe
James Noel Sullivan
Peter Ross Sullivan
Geoffrey Mayfield Motteram
(Non executive - Chairman)
(Managing Director) (appt 18 Feb 2008)
(Executive Director)
(Non executive - Director)
(Non executive - Director)
Directors have been in office since the start of the financial year to the date of this report unless
otherwise stated.
Principal Activities
The principal activities of the consolidated entity are mineral exploration and investment.
No significant change in the nature of these activities occurred during the year.
Operating and Financial Review
Operating Results
The net loss after income tax attributable to members of the Group for the financial year to 30
June 2008 amounted to $460,137 (2007: $403,906).
Overview of operating activity
During the year the Company conducted a strategic review of the NiWest Project in light of
metallurgical test work results, ongoing resource development work and other significant
strategic developments. Based on this work, the Company believes that the optimal size of the
NiWest Project is between 3.5 and 4.5 million tonnes per annum (Mtpa) of ore stacked,
producing between 30,000 and 35,000 tonnes of nickel metal per annum. This represents a
significant increase on the production capacity envisaged by the PFS. The Company has now
committed to a Feasibility Study (FS) for the project which will include a demonstration mining
and heap leach trial.
For a more detailed summary of activities for the year refer to the Review of Operations set out
elsewhere in this Annual Report.
Financial Position
At the end of the financial year the consolidated entity had $5,150,024 (2007: $714,667) in cash
and at call deposits.
Carried forward exploration expenditure was $25,119,793 (2007: $12,440,384).
- 31 -
ANNUAL REPORT 2008
GME RESOURCES LTD
During the year issued capital increased from 220,365,998 in 2007 to 253,173,931 ordinary
shares at the end of 2008. The movement of 32,807,933 ordinary shares resulted from a 1:10
entitlement issue on the 10th August 2007, as well as the issue of 12,000,000 fully paid ordinary
shares in the company as payment for acquisition of the Wanbanna tenements.
Dividends
No dividends have been paid or declared since the start of the financial year. No
recommendation is made as to dividends.
Significant Changes in State of Affairs
On 3 August 2007, Directors closed a 1 for 10 renounceable entitlement issue at 50 cents. The
entitlement issue was not underwritten and closed with 94.4% acceptances. The Company’s
share registry received acceptances for 20,807,933 ordinary shares at an issue price of 50
cents per share raising a total of $10,403,966.50 (before costs of the issue).
The Company elected not to place the shortfall of 1,228,667 shares or 5.6%.
The Company announced in September 2007 that it had completed agreement with a private
company to acquire a strategic 80% interest in the Wanbanna project located 5 kilometres west
of the Murrin Murrin Nickel Refinery and abutting the Company’s Murrin North project. This
project fits well with the resource that is being defined to support the NiWest Project.
During the year the Company conducted a strategic review of the NiWest Project in light of
metallurgical test work results, ongoing resource development work and other significant
strategic developments. Based on this work, the Company believes that the optimal size of the
NiWest Project is between 3.5 and 4.5 million tonnes per annum (Mtpa) of ore stacked,
producing between 30,000 and 35,000 tonnes of nickel metal per annum. This represents a
significant increase on the production capacity envisaged by the PFS. The Company has now
committed to a Feasibility Study (FS) for the project which will include a demonstration mining
and heap leach trial.
Other than the issues referred to above, there were no significant changes in the state of affairs
of the consolidated entity during the financial year.
After Balance Date Events
No matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the Group’s operations, the results of those operations or the
Group’s state of affairs in future financial years.
- 32 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Likely Developments
The consolidated entity’s areas of interest are in the exploration stage, and although the results
of work carried out to date are encouraging it is not possible to predict the likely developments.
The consolidated entity will continue its mineral exploration and investment with the object of
finding further mineralised resources and exploiting those already discovered.
The Board is following a strategic plan for the growth of the Group, however, further information
about likely developments future prospects and business strategies as they pertain to the
operations and expected results of those operations have not been included in this report, as
the Directors’ reasonably believe that disclosure of this information would be likely to result in
unreasonable prejudice to the Group.
Information on Directors and Company Secretary
Michael Delaney Perrott AM BCom FAIM
(Chairman) 62 Years
Director since 1996
Mr Perrott has been involved in the construction and contracting industry since 1969. He is
currently Chairman and director of various listed and unlisted public and private companies. Mr
Perrott is also a member of the Board of Notre Dame University and SANE Australia and a
council member for the State Ministerial Council for Suicide prevention. Through associated
entities, Mr Perrott is a substantial shareholder in GME Resources Limited.
Mr Perrott has been Chairman of the Company since his appointment as a director in 1996.
Other current directorships of listed companies
Director of Port Bouvard Limited since 1998 and Chairman since December 2000, director of
Portman Limited since June 1997, director of Schaffer Corporation Limited since February 2005
and director of Burrup Holdings Ltd since May 2008.
Former directorships of listed companies in last 3 years
Non executive chairman of Gage Roads Brewing Co Limited from November 2006 to October
2007.
David John Varcoe B. Mining Engineering (Honours) MAusIMM
(Managing Director) 45 Years
Director since 2008
Mr Varcoe is a highly qualified mining engineer with over 20 years experience that includes
extensive senior managerial and technical positions with Australia and international resource
companies. His experience includes positions at Sons of Gwalia, Centaur, WMC, and Goldfields
St Ives and for the period prior to joining GME as Principal Consultant Rio Tinto Technical
Services based in the United Kingdom and Perth WA.
Mr Varcoe has not been a Director of any other public listed entities during the past three years.
- 33 -
ANNUAL REPORT 2008
GME RESOURCES LTD
James Noel Sullivan FAICD
(Executive Director) 47 Years
Director since 2004
Mr Sullivan has over 20 years experience in commerce providing services to the mining and
allied industries.
Mr Sullivan was instrumental in establishing and managing the Golden Cliffs Prospecting
Syndicate which acquired and pegged a number of prospective tenements in the Eastern
Goldfields. The Golden Cliffs Prospecting Syndicate was subsequently acquired by the
company in 1996. Mr Sullivan has extensive knowledge in mining and prospecting in the North
Eastern Goldfields and in particular on matters involving tenement administration, native title
negotiation and supply and logistics of services. Mr Sullivan’s practical knowledge in these
areas will be of great benefit to the Company as it seeks to develop its assets for the benefit of
its shareholders.
Mr Sullivan has not been a Director of any other public listed entities during the past three
years.
Peter Ross Sullivan BE, MBA
(Non Executive Director) 52 years
Director since 1996
Mr Sullivan is an engineer and has been involved in the management and strategic
development of resource companies and projects for more than 20 years.
Mr Sullivan has been a director of the Company since his appointment in 1996.
Other current directorships of listed companies
Mr Sullivan has been a director of Resolute Mining Limited since June 2001.
Former directorships of listed companies in last 3 years
Mr Sullivan was a Director of Valhalla Uranium Limited for the period September 2005 to September
2006.
Geoffrey Mayfield Motteram BMetE (Hons), MAusIMM
(Non Executive Director) 59 years
Director since 1997
Mr Motteram is a metallurgical engineer with over 30 years’ experience in the development of
projects in the Australian resources industry.
He has extensive experience in gold and base metals having been involved with WMC’s
Kwinana Nickel Refinery and Kalgoorlie Nickel Smelter. He subsequently joined BHP, and later
Metals Exploration, where he was involved in the evaluation of gold and base metal projects.
Since 1989 he has acted as a Mining Project and Metallurgical Consultant. He was involved in
the formation of Minara Resources Limited (formerly Anaconda Nickel Limited) in 1994 and
controlled the technical development of the Murrin Murrin Joint Venture until the end of 1997.
He is a former director of Minara Resources Limited.
Mr Motteram has been a non executive director of the Company since 1997, and provides
technical support to the Company.
Other current directorships of listed companies
Mr Motteram has been a director of Mount Magnet South Limited since 31 May 2006.
- 34 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Mr Bradley John Wynne B.Com(Dist) CA
(Company Secretary) 33 Years
Mr Wynne was appointed to the position of Company Secretary in June 2007. Mr Wynne is
highly experienced in the engineering, oil and gas and mining industries. He has held senior
financial management positions in the mining sector with companies including St Barbara Mines
Ltd and Xstrata Zinc. Mr Wynne is also Chief Financial Officer of the Company.
- 35 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Remuneration report
The remuneration report is set out in the following manner:
• Policies used to determine the nature and amount of remuneration.
• Details of remuneration
• Service agreements
• Share based compensation
Remuneration policy
The Board of Directors is responsible for remuneration policies and the packages applicable to
the Directors of the Company. The broad remuneration policy is to ensure that packages
offered properly reflect a person’s duties and responsibilities and that remuneration is
competitive and attracts, retains, and motivates people of the highest quality.
The Managing Director and Non-executive Directors are remunerated for the services they
render to the Company and such services are carried out under normal commercial terms and
conditions. Engagement and payment for such services are approved by the other directors
who have no interest in the engagement of services.
At the date of this report the Company had not entered into any packages with Directors or
senior executives which include performance based components.
Details of remuneration for Directors
Remuneration levels are competitively set to attract and retain appropriately qualified and
experienced Directors and senior executives. The Board of Directors obtains independent
advice when appropriate when reviewing remuneration packages.
Details of nature and amount of each element of the emoluments of directors and executives of
the Company (and each of the officers of the Company and the consolidated entity receiving the
highest remuneration) are:
2008
Executive Directors
David J Varcoe
James N Sullivan
Non-Executive Directors
Michael D Perrott
Geoffrey M Motteram
Peter R Sullivan
Executives
Bradley J Wynne
John R Harris
Short Term
Benefits
Salary & Fees
$
Post Employment
Benefits
Superannuation
$
Long Term
Benefits
Options
$
93,253
120,727
30,000
36,000
24,000
150,000
66,667
520,647
9,325
-
-
-
-
13,500
6,000
28,825
Total
$
102,578
120,727
30,000
36,000
24,000
163,500
72,667
549,472
-
-
-
-
-
-
-
-
- 36 -
ANNUAL REPORT 2008
GME RESOURCES LTD
2007
Executive Directors
James N Sullivan
Non-Executive Directors
Michael D Perrott
Geoffrey M Motteram
Peter R Sullivan
Executives
Bradley
(appointed May 2007)
J
Wynne
Short Term
Benefits
Salary & Fees
$
Post Employment
Benefits
Superannuation
$
Long Term
Benefits
Options
$
Total
$
134,167
30,000
36,000
24,000
-
-
-
-
-
-
-
-
1,500
1,500
25,333
25,333
43,503
267,670
134,167
30,000
36,000
24,000
16,670
240,837
The Company and its subsidiaries had six employees as at 30 June 2008.
Service agreements
There are no service agreements with any of the Company’s Directors.
Share based compensation
There is currently no provision in policies of the consolidated entity for the provision of share
based compensation to directors. The interest of Directors in shares and options is set out
elsewhere in this report.
Directors and Executives Interests
The relevant interests of directors either directly or through entities controlled by the directors in
the share capital of the company as at the date of this report are:
Director
Michael D Perrott
David J Varcoe
James N Sullivan
Peter R Sullivan
Geoffrey M Motteram
Ordinary Shares
Balance
1/7/07
Net Change
(i)
Ordinary Shares
Balance
30/6/08
11,197,439
-
10,845,162
13,297,288
4,420,324
1,119,743
75,000
1,284,514
(1,615,274)
442,032
12,317,182
75,000
12,129,676
11,682,014
4,862,356
(i) Net change - movement for the year was in respect of 10:1 entitlement taken up in August 2007.
Entities associated with David Varcoe, James Sullivan and Peter Sullivan had on market
transactions during the year.
- 37 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Meetings of Directors
During the year, 6 meetings of directors were held. Attendances were:
Name
Michael D Perrott
David J Varcoe
James N Sullivan
Peter R Sullivan
Geoffrey M Motteram
Number
Eligible to
Attend
Number
Attended
6
3
6
6
6
6
3
5
6
6
Loans to Directors and Executives
There were no loans entered into with Directors or executives during the financial year under
review.
Related party transactions with directors and executives are set out in Note 17 to the Financial
Report.
Unlisted Options
At the date of this report the number of unlisted Options on issue were as follows:
•
•
•
2,000,000 Options exercisable at $0.70 each;
250,000 Options exercisable at $0.75 each; and
100,000 Options exercisable at $0.80 each.
The $0.70 options expire on 30 September 2010, while the other unlisted options will expire on
30 June 2009.
Audit Committee
The Company does not have an audit committee as, in the opinion of the directors, the scope
and size of the Company’s operations do not warrant it.
Indemnifying Officers or Auditors
The company has not, during or since the financial year, in respect of any person who is or has
been an officer or the auditor of the Company or of a related body corporate indemnified or
made any relative agreement for indemnifying against a liability incurred as an officer or auditor,
including costs and expenses in defending legal proceedings.
- 38 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Environmental Regulation
The consolidated entity’s exploration and mining tenements are located in Western Australia.
There are significant regulations under the Western Australian Mining Act 1978 and the
Environmental Protection Acts that apply. Licence requirements relating to ground disturbance,
rehabilitation and waste disposal exist for all tenements held.
The directors are not aware of any significant breaches during the period covered by this report.
Proceedings on Behalf of Company
No person has applied for leave of Court, pursuant to section 237 of the Corporations Act 2001,
to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or
any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory
audit duties where the auditors’ expertise and experience with the Company or consolidated
entity are important.
During the year HLB Mann Judd, has performed certain other services in addition to their
statutory audit duties, details of all amounts paid or payable to the auditor are set out in Note 14.
The Board has considered the non-audit services provided during the year by the auditor and is
satisfied that the provision of those non-audit services during the year by the auditor is
compatible with and did not compromise, the auditor independence requirements of the
Corporations Act 2001.
Auditors’ independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the
Corporations Act 2001 is set out on the following page.
This report is signed in accordance with a Resolution of Directors.
David J Varcoe
Managing Director
Perth, Western Australia
30 September 2008
- 39 -
ANNUAL REPORT 2008
Auditor’s Independence Declaration
As lead auditor for the audit of the financial report of GME Resources Ltd for the year ended 30 June 2008, I
declare that to the best of my knowledge and belief, there have been:
a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of GME Resources Ltd.
Perth, Western Australia
30 September 2008
W M CLARK
Partner, HLB Mann Judd
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 2 15 Rheola Street West Perth 6005 PO Box 263 West Perth 6872 Western Australia. Telephone +61 (08) 9481 0977. Fax +61 (08) 9481 3686.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a world-wide organisation of accounting firms and business advisers
GME RESOURCES LTD
CONSOLIDATED INCOME STATMENT
FOR THE YEAR ENDED 30 JUNE 2008
Note
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
Revenue
2
797,462
180,137
515,644
80,137
Interest expense
Depreciation expense
23,545
34,598
-
8,539
23,545
34,598
-
8,539
Management and consulting fees
642,892
259,222
642,892
259,222
Administration expenses
556,564
316,282
556,553
316,284
Loss before income tax expense
460,137
403,906
741,944
503,908
Income tax expense
3
-
-
-
-
Loss from ordinary activities after
related income tax
Net loss attributable to members of the
parent entity
460,137
403,906
741,944
503,908
460,137
403,906
741,944
503,908
Earnings Per Share
Basic earnings per share
(cents per share)
Diluted earnings per share
(cents per share)
16
16
(0.19)
(0.19)
(0.19)
(0.19)
The accompanying notes form part of these financial statements.
- 41 -
ANNUAL REPORT 2008
GME RESOURCES LTD
CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2008
Note
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
CURRENT ASSETS
Cash and cash equivalents
Receivables
Other financial assets
13(b)
4
5
5,150,024
230,023
8,250
714,667
213,002
8,250
4,928,834
247,974
8,250
693,467
212,770
8,250
TOTAL CURRENT ASSETS
5,388,297
935,919
5,185,058
914,487
NON CURRENT ASSETS
Receivables
Other financial assets
Plant and equipment
Exploration costs carried forward
6
7
8
9
-
-
727,948
25,119,793
-
-
19,473
12,440,384
9,245,709
2,615,950
727,948
13,139,101
8,186,475
2,615,950
19,473
1,570,782
TOTAL NON CURRENT ASSETS
25,847,741
12,459,857
25,728,708
12,392,680
TOTAL ASSETS
31,236,038
13,395,776
30,913,766
13,307,167
CURRENT LIABILITIES
Payables
10
713,540
1,099,990
2,059,402
2,397,708
TOTAL CURRENT LIABILITIES
713,540
1,099,990
2,059,402
2,397,708
TOTAL LIABILITIES
713,540
1,099,990
2,059,402
2,397,708
NET ASSETS
EQUITY
Issued capital
Financial assets reserve
Option reserve
Accumulated losses
30,522,498
12,295,786
28,854,364
10,909,459
11
11
11
44,518,381
(1,125)
740,796
(14,735,554)
26,480,932
(1,125)
91,396
(14,275,417)
44,518,381
(1,125)
740,796
(16,403,688)
26,480,932
(1,125)
91,396
(15,661,744)
TOTAL EQUITY
30,522,498
12,295,786
28,854,364
10,909,459
The accompanying notes form part of these financial statements.
- 42 -
ANNUAL REPORT 2008
GME RESOURCES LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2008
CONSOLIDATED
Note
ORDINARY
SHARES
FINANCIAL
ASSETS
RESERVE
OPTION
RESERVE
ACCUMULATED
LOSSES
TOTAL
Balance at 1 July 2006
23,221,622
(1,125)
Loss attributable to members of
the parent entity in 2007
Issue of unlisted options
-
-
Shares issued (net of costs)
11
3,259,310
-
-
-
-
-
91,396
-
(13,871,511)
9,348,986
(403,906)
(403,906)
-
-
91,396
3,259,310
Balance at 30 June 2007
26,480,932
(1,125)
91,396
(14,275,417)
12,295,786
Loss attributable to members of
the parent entity in 2008
Issue of unlisted options
-
-
Shares issued (net of costs)
11
18,037,449
-
-
-
-
(460,137)
(460,137)
649,400
-
-
-
649,400
18,037,449
Balance at 30 June 2008
44,518,381
(1,125)
740,796
(14,735,554)
30,522,498
PARENT
Balance at 1 July 2006
23,221,622
(1,125)
Loss attributable to members of
the parent entity in 2007
Issue of unlisted options
-
Shares issued (net of costs)
11
3,259,310
-
-
-
-
-
91,396
-
(15,157,836)
8,062,661
(503,908)
(503,908)
-
-
91,396
3,259,310
Balance at 30 June 2007
26,480,932
(1,125)
91,396
(15,661,744)
10,909,459
Loss attributable to members of
the parent entity in 2008
Issue of unlisted options
-
-
Shares issued (net of costs)
11
18,037,449
-
-
-
-
(741,944)
(741,944)
649,400
-
-
-
649,400
18,037,449
Balance at 30 June 2008
44,518,381
(1,125)
740,796
(16,403,688)
28,854,364
The accompanying notes form part of these financial statements.
- 43 -
ANNUAL REPORT 2008
GME RESOURCES LTD
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008
Cash flows from operating activities
Note
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
Cash receipts from customers
Cash paid to suppliers and employees
Interest received
Net cash from operating activities
13(a)
281,818
(5,947,894)
484,657
(5,181,419)
100,000
(3,086,693)
80,137
(2,906,556)
-
(4,836,803)
484,657
(4,352,146)
-
(301,596)
80,137
(221,459)
Cash flows from investing activities
Acquisition of Plant and equipment
Amounts paid on behalf of controlled
entities
Net cash from investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of costs associated with issue
of shares
(743,073)
(3,634)
(743,073)
(3,634)
-
(743,073)
-
(3,634)
(1,029,263)
(1,772,336)
(2,706,297)
(2,709,931)
10,403,967
3,283,817
10,403,967
3,283,817
(44,118)
(24,507)
(44,118)
(24,507)
Net cash from financing activities
10,359,849
3,259,310
10,359,849
3,259,310
Net increase in cash and cash
equivalents
4,435,357
349,120
4,235,367
327,920
Cash and cash equivalents at 1 July
714,667
365,547
693,467
365,547
Cash and cash equivalents at 30
June
13(b)
5,150,024
714,667
4,928,834
693,467
The accompanying notes form part of these financial statements.
- 44 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES
GME Resources Limited (‘the Company’) is a listed public company, incorporated and domiciled in
Australia. The consolidated financial report of the Company for the financial year ended 30 June
2008 comprise the Company and its subsidiaries (together referred to as ‘the Group’).
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been prepared in
accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and Interpretations and complies with other requirements of the law. The financial
report has also been prepared on a historical cost basis, unless otherwise stated, except for
available for sale investments which have been measured at fair value.
The financial report is presented in Australian dollars.
The Company is a listed public company, incorporated in Australia and operating in Australia.
The entity’s principal activities are mineral exploration and investment.
(b) Adoption of new and revised standards
In the year ended 30 June 2008, the Group has adopted all of the new and revised Standards
and Interpretations issued by the AASB that are relevant to its operations and effective for
annual reporting periods beginning on or after 1 July 2007. Details of the impact of the
adoption of these new accounting standards are set out in the individual accounting policy
notes set out below. The Group has also adopted the following Standards as listed below
which only impacted on the Group’s financial statements with respect to disclosure:
- AASB 101 ‘Presentation of Financial Instruments’ (revised October 2006).
- AASB 7 ‘Financial Instruments: Disclosures’.
The Group has also reviewed all new Standards and Interpretations that have been issued but
are not yet effective for the year ended 30 June 2008. As a result of this review the Directors
have determined that there is no impact, material or otherwise, of the new and revised
Standards and Interpretations on its business and, therefore, no change necessary to Group
accounting policies.
(c) Statement of compliance
The financial report was authorised for issue on 26th September 2008.
The financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS
ensures that the financial report, comprising the financial statements and notes thereto,
complies with International Financial Reporting Standards (IFRS).
(d) Principles of Consolidation
The consolidated financial statements comprise the financial statements of GME Resources
Limited and its subsidiaries as at 30 June each year (the Group).
The financial statements of the subsidiaries are prepared for the same reporting period as the
parent company, using consistent accounting policies
the consolidated
financial statements, all
In preparing
intercompany balances and
transactions, income and expenses and profit and losses resulting from intra-group
transactions have been eliminated in full. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group and cease to be consolidated from the date on which
control is transferred out of the Group. Control exists where the Company has the power to
govern the financial and operating policies of an entity so as to obtain benefit from its
activities.
- 45 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(d) Principles of Consolidation (cont.)
The acquisition of subsidiaries has been accounted for using the purchase method of
accounting. The purchase method of accounting involves allocating the cost of the business
combination to the fair value of the assets acquired and the liabilities and contingent liabilities
assumed at the date of acquisition. Accordingly, the consolidated financial statements include
the results of subsidiaries for the period from their acquisition.
Minority interests represent the portion of profit or loss and net assets in subsidiaries not held
by the Group and are presented separately in the income statement and within equity in the
consolidated balance sheet
(e) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to
the Group and the revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognised:
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the
effective yield on the financial asset.
(f) Borrowing Costs
Borrowing costs are recognised as an expense when incurred except those that relate to the
acquisition, construction or production of qualifying assets where the borrowing cost is added
to the cost of those assets until such time as the assets are substantially ready for their
intended use or sale.
(g) Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand. Cash
equivalents are short term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and
cash equivalents as defined above, net of outstanding bank overdrafts.
(h) Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at
original invoice amount less an allowance for any uncollectible amounts. An allowance for
doubtful debts is made when there is objective evidence that the Group will not be able to
collect the debts. Bad debts are written off when identified.
(i)
Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted by the
balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
- 46 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(i)
Income Tax (cont.)
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
when the deferred income tax liability arises from the initial recognition of goodwill or of
an asset or liability in a transaction that is not a business combination and that, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
•
when the taxable temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, and the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-
forward of unused tax assets and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences and the
carry-forward of unused tax credits and unused tax losses can be utilised, except:
•
when the deferred income tax asset relating to the deductible temporary difference arises
from the initial recognition of an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the accounting profit nor
taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only
recognised to the extent that it is probable that the temporary difference will reverse in
the foreseeable future and taxable profit will be available against which the temporary
difference can be utilised.
•
The carrying amount of deferred income tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are
recognised to the extent that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply to the year when the asset is realised or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in
profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right
exists to set off current tax assets against current tax liabilities and the deferred tax assets and
liabilities relate to the same taxable entity and the same taxation authority.
Tax consolidation legislation
GME Resources Limited and its 100% owned Australian resident subsidiaries have
implemented the tax consolidation legislation. Current and deferred tax amounts are
accounted for in each individual entity as if each entity continued to act as a taxpayer on its
own.
GME Resources Limited recognises both its own current and deferred tax amounts and those
current tax liabilities, current tax assets and deferred tax assets arising from unused tax
credits and unused tax losses which it has assumed from its controlled entities within the tax
consolidated group.
- 47 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(i)
Income Tax (cont.)
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are
recognised as amounts payable or receivable from or payable to other entities in the Group.
Any difference between the amounts receivable or payable under the tax funding agreement
are recognised as a contribution to (or distribution from) controlled entities in the tax
consolidated group.
(j) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Tax Office. In these
circumstances the GST is recognised as part of the cost of acquisition of the asset or as part
of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the balance sheet.
(k) Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated
impairment losses. Such cost includes the cost of replacing parts that are eligible for
capitalisation when the cost of replacing the parts is incurred. Similarly, when each major
inspection is performed, its cost is recognised in the carrying amount of the plant and
equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets
as follows:
Plant and equipment – over 4 to 5 years.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted
if appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each
reporting date, with recoverable amount being estimated when events or changes in
circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset
For an asset that does not generate largely independent cash inflows, recoverable
amount is determined for the cash-generating unit to which the asset belongs, unless the
asset's value in use can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units
exceeds its estimated recoverable amount. The asset or cash-generating unit is then
written down to its recoverable amount
For plant and equipment, impairment losses are recognised in the income statement in
the cost of sales line item.
- 48 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(k) Plant and Equipment (cont.)
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no
further future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in
profit or loss in the year the asset is derecognised.
(l)
receivables, held-to-maturity
Investments and other financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and
Measurement are classified as either financial assets at fair value through profit or loss, loans
and
investments, as
appropriate. When financial assets are recognised initially, they are measured at fair value,
plus, in the case of investments not at fair value through profit or loss, directly attributable
transactions costs. The Group determines the classification of its financial assets after initial
recognition and, when allowed and appropriate, re-evaluates this designation at each financial
year-end.
investments, or available-for-sale
All regular way purchases and sales of financial assets are recognised on the trade date i.e.
the date that the Group commits to purchase the asset. Regular way purchases or sales are
purchases or sales of financial assets under contracts that require delivery of the assets within
the period established generally by regulation or convention in the marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial
assets at fair value through profit or loss’. Financial assets are classified as held for
trading if they are acquired for the purpose of selling in the near term. Derivatives are
also classified as held for trading unless they are designated as effective hedging
instruments. Gains or losses on investments held for trading are recognised in profit or
loss.
(ii) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity
are classified as held-to-maturity when the Group has the positive intention and ability to
hold to maturity. Investments intended to be held for an undefined period are not included
in this classification. Investments that are intended to be held-to-maturity, such as bonds,
are subsequently measured at amortised cost. This cost is computed as the amount
initially recognised minus principal repayments, plus or minus the cumulative amortisation
using the effective interest method of any difference between the initially recognised
amount and the maturity amount. This calculation includes all fees and points paid or
received between parties to the contract that are an integral part of the effective interest
rate, transaction costs and all other premiums and discounts. For investments carried at
amortised cost, gains and losses are recognised in profit or loss when the investments
are derecognised or impaired, as well as through the amortisation process.
(iii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Such assets are carried at amortised
cost using the effective interest method. Gains and losses are recognised in profit or loss
when the loans and receivables are derecognised or impaired, as well as through the
amortisation process.
- 49 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(l)
Investments and other financial assets (cont.)
(iv) Available-for-sale investments
Available-for-sale investments are those non-derivative financial assets that are
designated as available-for-sale or are not classified as any of the three preceding
categories. After initial recognition available-for sale investments are measured at fair
value with gains or losses being recognised as a separate component of equity until the
investment is derecognised or until the investment is determined to be impaired, at which
time the cumulative gain or loss previously reported in equity is recognised in profit or
loss.
The fair value of investments that are actively traded in organised financial markets is
determined by reference to quoted market bid prices at the close of business on the
balance sheet date. For investments with no active market, fair value is determined using
valuation techniques. Such techniques include using recent arm’s length market
transactions; reference to the current market value of another instrument that is
substantially the same; discounted cash flow analysis and option pricing models.
(m) Exploration and Evaluation Expenditure
Exploration and evaluation costs, including the costs of acquiring licences, are capitalised as
exploration and evaluation assets on an area of interest basis. Costs incurred before the
Group has obtained the legal rights to explore an area are recognised in the income
statement.
Exploration and evaluation assets are only recognised if the rights of the area of interest are
current and either:
(i)
(ii)
the expenditures are expected to be recouped through successful development
and exploitation of the area of interest; or
activities in the area of interest have not at the reporting date, reached a stage
which permits a reasonable assessment of the existence or other wise of
economically recoverable reserves and active and significant operations in, or in
relation to, the area of interest are continuing
Exploration and evaluation assets are assessed for impairment if:
•
•
sufficient data exists to determine technical feasibility and commercial viability,
and
facts and circumstances suggest that the carrying amount exceeds the
recoverable amount (see impairment accounting policy 1(m)).
For the purposes of impairment testing, exploration and evaluation assets are allocated to
cash-generating units to which the exploration activity relates. The cash generating unit shall
not be larger than the area of interest.
Once the technical feasibility and commercial viability of the extraction of mineral resources in
an area of interest are demonstrable, exploration and evaluation assets attributable to that
area of interest are first tested for impairment and then reclassified from intangible assets to
mining property and development assets within property, plant and equipment.
- 50 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(n)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may
be
impaired. If any such indication exists, or when annual impairment testing for an asset
is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of its fair value less costs to sell and its value in use and is
determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets and the asset's value in
use cannot be estimated to be close to its fair value. In such cases the asset is tested for
impairment as part of the cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or
cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Impairment losses relating to continuing
operations are recognised in those expense categories consistent with the function of the
impaired asset unless the asset is carried at revalued amount (in which case the impairment
loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognised impairment
loss is reversed only if there has been a change in the estimates used to determine the
asset’s recoverable amount since the last impairment loss was recognised. If that is the case
the carrying amount of the asset is increased to its recoverable amount. That increased
amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such
reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which
case the reversal is treated as a revaluation increase. After such a reversal the depreciation
charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any
residual value, on a systematic basis over its remaining useful life.
(o) Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for
goods and services provided to the Group prior to the end of the financial year that are unpaid
and arise when the Group becomes obliged to make future payments in respect of the
purchase of these goods and services.
(p)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
- 51 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
(q) Earnings per share
Basic EPS is calculated as net result attributable to members, adjusted to exclude costs of
servicing equity (other than dividends) and preference share dividends, divided by the
weighted average number of ordinary shares, adjusted for any bonus element.
Diluted EPS is calculated as net result attributable to members, adjusted for:
•
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with potential dilutive
ordinary shares that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that
would result from the dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and potential dilutive ordinary
shares, adjusted for any bonus element.
- 52 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
2. REVENUE AND EXPENSES
(a) Revenue
Operating Activities
Interest received
515,644
80,137
515,644
80,137
Proceeds from:
Facilitation fee for prospecting
rights
281,818
100,000
-
-
Total revenue
797,462
180,137
515,644
80,137
(b) Expenses:
Depreciation – plant and
equipment
34,598
8,539
34,598
8,539
3.
INCOME TAX
(a)
Income tax recognised in profit
and loss
The prima facie tax benefit on operating
result is reconciled to the income tax
provided in the financial statements as
follows:
Accounting
continuing operations
loss before
from
tax
(460,137)
(403,906)
(741,944)
(503,908)
Income tax benefit calculated at 30%
(138,041)
(121,172)
(222,583)
(151,172)
Non-deductible expenses
Adjustments to head entity in respect of
tax consolidation
Unused tax losses and tax offset not
recognised as deferred tax assets
R&D tax concession
Unrecognised deferred tax assets /
(liabilities)
Other
Income tax expense reported in the
income statement
-
-
(248,785)
-
2,869,707
990,754
2,869,707
990,754
285,000
-
285,000
-
(3,016,805)
141
(869,582)
-
(2,683,480)
141
(839,582)
-
-
-
-
-
- 53 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
3.
INCOME TAX
(b) Unrecognised deferred tax
balances
Unrecognised deferred tax assets
comprise:
Losses available for offset against future
taxable income
Capital allowance differences
Project pool differences
Capital raising costs
Provision for non-recovery of
investments
Accrued expenses and liabilities
Unrecognised deferred tax liabilities
comprise:
Exploration expenditure
Deductible prepayment
Accrued income
Capital allowance differences
Income tax expense not recognised
directly in equity:
Capital raising costs
6,657,676
3,787,969
6,657,676
3,787,969
-
1,008,113
20,179
1,168,635
7,837
8,862,440
7,535,938
15,868
9,269
179,081
7,740,156
222
-
27,600
1,169,023
3,450
4,988,264
3,732,115
-
-
-
3,732,115
-
1,008,113
20,179
1,168,635
7,237
8,861,840
3,941,730
15,868
9,269
179,081
4,145,948
222
-
27,600
1,169,023
2,850
4,987,664
471,235
-
-
-
471,235
98,191
84,955
98,191
84,955
Potential deferred tax assets attributable to tax losses and capital losses carried forward have not been
brought to account because directors do not believe it is appropriate to regard realisation of the future tax
benefit as probable.
Tax Consolidation
Effective 1 July 2003, for the purposes of income taxation, the Company and its 100% wholly-owned
subsidiaries formed a tax consolidated group, the head entity of the tax consolidated group is GME
Resources Limited.
4. RECEIVABLES (CURRENT)
Sundry debtors
230,023
213,002
247,974
212,770
5. OTHER FINANCIAL ASSETS (CURRENT)
Available-for-sale
Listed investments
8,250
8,250
8,250
8,250
6. RECEIVABLES (NON CURRENT)
Loans to controlled entities (wholly
owned)
Provision for impairment loss
-
-
-
-
-
-
10,568,404
(1,322,695)
9,245,709
9,509,170
(1,322,695)
8,186,475
An existing provision for non recoverability has been reclassified as an impairment loss recognised against
loans to controlled entities. The provision is considered prudent as these entities have continued to incur
losses during the year. The provision allows for the possibility of these loans not being recoverable.
- 54 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
7. OTHER FINANCIAL ASSETS (NON CURRENT)
Unlisted Investments:
Controlled entities (refer note 12)
Provision for diminution in value
-
-
-
-
-
-
5,178,206
(2,562,256)
2,615,950
5,178,206
(2,562,256)
2,615,950
All investments comprise ordinary shares and no shares held in related corporations are listed on a
prescribed stock exchange.
The recoverability of the carrying value of shares in controlled and associated entities is dependent on the
successful development and commercial exploration or, alternatively, sale of the respective areas in which
those controlled entities have an interest.
8. PLANT AND EQUIPMENT (NON CURRENT)
Plant and equipment - at cost
Less accumulated depreciation
Total plant and equipment
781,348
(53,400)
727,948
38,275
(18,802)
19,473
781,348
(53,400)
727,948
38,275
(18,802)
19,473
Reconciliation of the carrying amount
of plant and equipment:
Carrying amount at the beginning of
the year
Additions
Disposals
Depreciation
Carrying amount at the end of the
year
19,473
743,073
-
(34,598)
24,377
3,635
-
(8,539)
19,473
743,073
-
(34,598)
727,948
19,473
727,948
24,377
3,635
-
(8,539)
19,473
9. EXPLORATION AND EVALUATION EXPENDITURE CARRIED FORWARD (NON CURRENT)
Deferred exploration and evaluation
expenditure - at cost
Movements:
Balance at beginning of the year
Direct expenditure
Less expenditure written off
12,440,384
12,679,409
9,097,138
3,343,246
1,570,782
11,568,319
25,119,793
-
25,119,793
12,440,384
-
12,440,384
13,139,101
-
13,139,101
1,037,228
533,554
1,570,782
-
1,570,782
The ultimate recoupment of the above deferred exploration and evaluation expenditure is dependent on the
successful development and commercial exploitation or, alternatively, sale of the respective areas.
- 55 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
10. PAYABLES (CURRENT)
Trade payables and accruals
Unearned income
Amount payable to wholly owned entity
653,540
60,000
-
1,039,990
60,000
-
651,540
-
1,407,862
1,037,990
-
1,359,718
713,540
1,099,990
2,059,402
2,397,708
Trade payables and accruals are non interest bearing and normally settled on 30 day terms.
Details of exposure to interest rate risk and fair value in respect of liabilities are set out in note 18. There
are no secured liabilities as at 30 June 2008.
11. CONTRIBUTED EQUITY AND
RESERVES
Issued and paid up capital
253,173,931 (2006: 220,365,998)
ordinary shares, fully paid
Ordinary shares
44,518,381
26,480,932
44,518,381
26,480,932
Balance at the beginning of the year
26,480,932
23,221,622
26,480,932
23,221,622
Entitlement issue (a)
Costs associated with entitlement
issue
Issue of shares pursuant to
acquisition of tenements (b)
Issue of shares pursuant to exercise
of options
10,403,967
1,883,817
10,403,967
1,883,817
(44,118)
(24,507)
(44,118)
(24,507)
7,677,600
-
7,677,600
-
-
1,400,000
-
1,400,000
Balance at the end of the year
44,518,381
26,480,932
44,518,381
26,480,932
No of
Shares
No of
Shares
No of
Shares
No of
Shares
(a)
Balance at the beginning of the year
Entitlement issue
Issue of shares pursuant to
acquisition of tenements (b)
Issue of shares pursuant to exercise
of options
Balance at the end of the year
220,365,998
20,807,933
202,807,215
12,558,783
220,365,998
20,807,933
202,807,215
12,558,783
12,000,000
-
12,000,000
-
-
253,173,931
5,000,000
220,365,998
-
253,173,931
5,000,000
220,365,998
(a) On 10 August 2007 the Company received acceptances for 20,807,933 ordinary shares at an issue price
of 50 cents per share pursuant to a renounceable entitlement issue of 1:10 shares.
(b) During the year, the company issued 12,000,000 shares as part consideration for the Wanbanna
tenement package at an issue price of 63.98 cents per share.
- 56 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
11.
CONTRIBUTED EQUITY
AND RESERVES
Options over Unissued Capital
Balance at the beginning of the year
$0.70
-
$0.75
250,000
$0.80
100,000
1 November 2007 Issue of options
2,000,000
Balance at the end of the year
2,000,000
250,000
100,000
Unlisted 75 and 80 cent Options outstanding at year end will expire on 30 June 2009, while the unlisted 70
cent Options outstanding at year end will expire on 30 September 2010.
Reserves
Nature and purpose
The financial assets reserve is used to record movements in the fair value of available for sale assets.
The option reserve is used to record the face value of options issued.
12. CONTROLLED ENTITIES
Name of Controlled Entity/
(Country Of Incorporation)
Percentage
Owned
GME Sulphur Inc (USA)
GME Investments Pty Ltd (Australia)
Golden Cliffs NL (Australia)
NiWest Limited (Australia)
2008
%
100
100
100
100
2007
%
100
100
100
100
Company’s
Cost of
Investment
2008
$
2007
$
-
-
616,893
4,561,313
5,178,206
-
-
616,893
4,561,313
5,178,206
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
13. STATEMENT OF CASH FLOWS
(a) Reconciliation of cash flows
from operating activities
Loss from ordinary activities after tax
(460,137)
(403,906)
(741,944)
(503,908)
Depreciation / amortisation
34,598
8,539
34,598
8,539
Exploration costs capitalised (excluding
creditors)
(4,352,409)
(3,343,246)
(3,241,319)
Decrease/(increase) in receivables
(17,021)
(117,967)
(35,204)
(533,554)
(171,322)
Decrease/(increase) in other current
assets
Increase/(decrease) in sundry creditors
Other non cash transactions (including
issue of options)
-
-
-
-
(386,450)
924,691
(368,277)
953,453
-
25,333
-
25,333
Net cash flows from operating activities
(5,181,419)
(2,906,556)
(4,352,146)
(221,459)
- 57 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
13.
STATEMENT OF CASH FLOWS
(b) Reconciliation of cash and cash
equivalents
Cash balance comprises:
Cash at bank
Deposits at call
14. AUDITOR’S REMUNERATION
Amounts received or due and receivable
by the auditors of GME Resources Ltd
for:
- an audit or review of the financial
statements of the company and any
other entity in the Group
- other services in relation to the
company and any other entity in the
Group
15. SEGMENT REPORTING
5,104,824
45,200
5,150,024
690,667
24,000
714,667
4,904,834
24,000
4,928,834
690,667
2,800
693,467
18,500
16,150
18,500
16,150
10,093
28,593
6,721
22,871
10,093
28,593
6,721
22,871
There are no individual segments to be reported as the Group’s operations are predominantly in the mining
industry in Australia.
Consolidated
2008
$
2007
$
16. EARNINGS PER SHARE
Basic and diluted loss per share (cents)
(0.19)
(0.19)
Loss used in calculation of basic and diluted earnings
per share
Weighted average number of ordinary shares
outstanding during the year used in calculation of basic
and diluted earnings per share
460,137
403,906
246,816,898
214,454,271
No adjustment was made for the 2,350,000 options on issue at 30 June 2008 (2007: 350,000) as they are
not considered to be dilutive.
- 58 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
17. DIRECTORS’ AND EXECUTIVES DISCLOSURES
a) Details of Key Management Personnel
(i) Directors
Michael Delaney Perrott
David John Varcoe
James Noel Sullivan
Peter Ross Sullivan
Geoffrey Mayfield Motteram
– Non executive Chairman
– Managing Director (appointed 18 February 2008)
– Executive Director
– Non executive Director
– Non executive Director
(ii) Executives
Bradley John Wynne - Chief Financial Officer
John Richard Harris - Chief Geologist
(b) Compensation of Key Management Personnel
(i) Compensation Policy
The Board of Directors is responsible for remuneration policies and the packages applicable to the Directors
of the Company. The Board remuneration policy is to ensure that packages offered properly reflect a
person’s duties and responsibilities and that remuneration is competitive and attracts, retains, and motivates
people of the highest quality.
The Managing Director and Non-executive Directors are remunerated for the services they render to the
Company and such services are carried out under normal commercial terms and conditions. Engagement
and payment for such services are approved by the other directors who have no interest in the engagement
of services.
There are no retirement or termination benefits payable to the Board or senior executives.
At the date of this report the Company had not entered into any packages with Directors or senior executives
which include performance based components. The Company does not operate an employee share option
plan.
As part of his package, Mr David Varcoe is entitled to 2,000,000 options exercisable at $0.65, 500,000
options exercisable at $0.80, and 500,000 options exercisable at $1.00. These options have an expiry date
of 18 February 2012 and are subject to shareholder approval.
(ii) Compensation of Key Management Personnel for the year ended 30 June 2008
2008
Executive Directors
David J Varcoe
James N Sullivan
Non-Executive Directors
Michael D Perrott
Geoffrey M Motteram
Peter R Sullivan
Executives
Bradley J Wynne
John R Harris
Short Term
Benefits
Salary & Fees
$
Post Employment
Benefits
Superannuation
$
Long Term
Benefits
Options
$
93,253
120,727
30,000
36,000
24,000
150,000
66,667
520,647
9,325
-
-
-
-
13,500
6,000
28,825
Total
$
102,578
120,727
30,000
36,000
24,000
163,500
72,667
549,472
-
-
-
-
-
-
-
-
- 59 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
17. DIRECTORS’ AND EXECUTIVES DISCLOSURES (CONTINUED)
(iii) Compensation of Key Management Personnel for the year ended 30 June 2007
Short Term
Benefits
Salary & Fees
$
Post Employment
Benefits
Superannuation
$
Long Term
Benefits
Options
$
2007
Executive Directors
James N Sullivan
Non-Executive Directors
Michael D Perrott
Geoffrey M Motteram
Peter R Sullivan
Executives
Bradley
(appointed May 2007)
J
Wynne
134,167
30,000
36,000
24,000
16,670
240,837
Total
$
134,167
30,000
36,000
24,000
-
-
-
-
-
-
-
-
1,500
1,500
25,333
25,333
43,503
267,670
(c) Shareholdings of Key Management Personnel (Consolidated)
Michael Delaney Perrott
David John Varcoe
James Noel Sullivan
Peter Ross Sullivan
Geoffrey Mayfield Motteram
Ordinary
Shares
1/7/2007
11,197,439
-
10,845,162
13,297,288
4,420,324
Net Change
1,119,743
75,000
1,284,514
(1,615,274)
442,032
Ordinary Shares
30/6/2008
12,317,182
75,000
12,129,676
11,682,014
4,862,356
(d) Other transactions and balances with Key
Management Personnel
There were no other transactions with key management personnel during this financial year.
- 60 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
18. FINANCIAL INSTRUMENT DISCLOSURES
(a) Categories of financial instruments
2008
Weighted
Average
Effective
Interest Rate
Floating
Interest
Rate
Fixed Interest Rate
Maturing
Within 1
year
Over 1 year
Non-interest
Bearing
Total
Financial Assets
$
$
$
$
$
Cash assets
Other financial assets
Receivables
7.28%
5,104,824
-
-
5,104,824
45,200
-
-
45,200
Financial Liabilities
Payables
-
-
-
-
Fixed Interest Rate
Maturing
-
-
-
-
-
-
-
8,250
230,023
238,273
5,150,024
8,250
230,023
5,388,297
391,242
391,242
391,242
391,242
2007
Weighted
Average
Effective
Interest Rate
Floating
Interest
Rate
Within 1
year
Over 1 year
Non-interest
Bearing
Total
Financial Assets
$
$
$
$
$
Cash assets
Other financial
assets
Receivables
6.14%
690,667
-
-
690,667
24,000
-
-
24,000
Financial Liabilities
Payables
-
-
-
-
-
-
-
-
-
-
-
8,250
213,002
221,252
714,667
8,250
213,002
935,919
1,099,990
1,099,990
1,099,990
1,099,990
(b) Interest rate risk sensitivity analysis
The Company and the Group are exposed to interest rate risk, which is the risk that a financial instrument’s
value will fluctuate as a result of changes in market interest rates, in respect of the cash balances and
deposits.
The sensitivity analyses below have been determined based on the exposure to interest rates for
instruments at the reporting date and the stipulated change taking place at the beginning of the financial
year and held constant throughout the reporting period. A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management’s
assessment of the change in interest rates.
At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were
held constant, the Group’s net profit before tax and equity would increase by $25,750 and decrease by
$25,750 respectively (2007:$6,505).
The Group’s sensitivity to interest rates has increased during the current period due to an increase in funds
in term deposits.
(c) Liquidity risk
The Company manages liquidity risk by continually monitoring cash reserves and cash flow forecasts to ensure
that financial commitments can be met as and when they fall due.
- 61 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
18. FINANCIAL INSTRUMENT DISCLOSURES (CONTINUED)
(d) Capital management risk
The Company controls the capital of the Group in order to maximise the return to shareholders and ensure that
the Group can fund its operations and continue as a going concern.
The Company effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its
capital structure in response to changes in these risks and the market. These responses include the
management of expenditure and debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the group since
the prior year.
(e) Net fair values
The net fair value of the financial assets and financial liabilities approximates their carrying value. Other than
listed investments that are measured at the quoted bid price at balance date adjusted for transaction costs
expected to be incurred, no financial assets and financial liabilities are readily traded on organised markets in
standardised form.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in
the balance sheet and in the notes to and forming part of the financial statements.
19. COMMITMENTS AND CONTINGENT LIABILITIES
There were no capital commitments or contingent liabilities, not provided for in the financial statements of the Group
as at 30 June 2008, other than:
(a) Mineral Tenement Leases
In order to maintain current rights of tenure to mining tenements, the Group in its own right or in conjunction with
its joint venture partners may be required to outlay amounts of approximately $1,715,449 (2007: $1,156,480) per
annum on an ongoing basis in respect of tenement lease rentals and to meet the minimum expenditure
requirements of the Western Australian and Queensland Mines Department. These obligations are expected to
be fulfilled in the normal course of operations by the Group or its joint venture partners and are subject to
variations dependent on various matters, including the results of exploration on the mineral tenements.
(b) Claims of Native Title
Legislative developments and judicial decisions (in particular the uncertainty created in the area of Aboriginal
land rights by the High Court decision in the “Mabo” case and native title legislation) may have an adverse
impact on the Group’s exploration and future production activities and its ability to fund those activities. It is
impossible at this stage to quantify the impact (if any) which these developments may have on the Group’s
operations.
Native title claims have been made over ground in which the Group currently has an interest. It is possible that
further claims could be made in the future. However, the Company has not undertaken the considerable legal,
historical, anthropological and ethnographic research which would be necessary to determine whether any
current or future claims, if made, will succeed and, if so, what the implications would be for the Group.
(c) Non Cancellable Operating Lease
Commitments
Within one year
One year or later and no later than
five years
Consolidated
Parent Entity
2008
$
2007
$
2008
$
2007
$
50,828
46,748
50,828
46,748
60,008
110,836
93,496
140,244
60,008
110,836
93,496
140,244
- 62 -
ANNUAL REPORT 2008
GME RESOURCES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2008
20. INTERESTS IN BUSINESS UNDERTAKINGS - JOINT VENTURES
The Company has entered into a number of agreements with other companies to gain interests in project areas.
These interests will be earned by expending certain amounts of money on exploration expenditure within a specific
time. The Company can however, withdraw from these projects at any time without penalty. The amounts required to
be expended in the next year have been included in Note 19 – Commitments and Contingent Liabilities.
21. RELATED PARTIES
Total amounts receivable and payable from entities in the wholly-owned group at balance date:
Non-Current Receivables
Loans net of provisions for non recovery
9,245,709
8,186,475
Current Payables
Loans
1,407,862
1,359,718
2008
$
2007
$
22. EVENTS SUBSEQUENT TO BALANCE DATE
No matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the Group’s operations, the results of those operations or the Group’s state of affairs in
future financial years.
- 63 -
ANNUAL REPORT 2008
GME RESOURCES LTD
DIRECTORS’ DECLARATION
1.
In the opinion of the directors:
a).
the financial statements and notes of the company and of the Group are in
accordance with the Corporations Act 2001 including:
i.
giving a true and fair view of the company’s and Group’s financial position as at
30 June 2008 and of their performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001;
b)
there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
2.
This declaration has been made after receiving the declarations required to be made to the
directors by the Managing Director and the Chief Financial Officer, in accordance with Section
295A of the Corporations Act 2001, for the financial year ended 30 June 2008.
This declaration is signed in accordance with a resolution of the Board of Directors.
David J Varcoe
Managing Director
Perth, Western Australia
30th September 2008
- 64 -
ANNUAL REPORT 2008
INDEPENDENT AUDITOR’S REPORT
To the members of
GME RESOURCES LTD
Report on the Financial Report
We have audited the accompanying financial report of GME Resources Ltd (“the company”), which
comprises the balance sheet as at 30 June 2008, the income statement, statement of changes in equity,
cash flow statement and notes to the financial statements for the year ended on that date, and the
directors’ declaration for both the company and the consolidated entity as set out on pages 41 to 64.
The consolidated entity comprises the company and the entities it controlled at the year’s end or from
time to time during the year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation and fair presentation of the financial
report in accordance with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes establishing and
maintaining internal controls relevant to the preparation and fair presentation of the financial report that
is free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances.
In Note 1(c), the directors also state, in accordance with Accounting Standard AASB 101: Presentation
of Financial Statements, that compliance with the Australian equivalents to International Financial
Reporting Standards ensures that the financial report, comprising the financial statements and notes,
complies with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit
to obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal controls relevant to the entity’s
preparation and fair presentation of the financial report in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
An audit also includes evaluating the appropriateness of accounting
of the entity’s internal controls.
policies used and the reasonableness of accounting estimates made by the directors, as well as
evaluating the overall presentation of the financial report.
Our audit did not involve an analysis of the prudence of business decisions made by directors or
management.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 2 15 Rheola Street West Perth 6005 PO Box 263 West Perth 6872 Western Australia. Telephone +61 (08) 9481 0977. Fax +61 (08) 9481 3686.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of
International, a world-wide organisation of accounting firms and business advisers
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Auditor’s Opinion
In our opinion:
(a)
the financial report of GME Resources Ltd is in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at
30 June 2008 and of their performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1(c).
Report on the Remuneration Report
We have audited the Remuneration Report included on pages 36 to 37 of the directors’ report for the
year ended 30 June 2008. The directors of the company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section 300A of the Corporations Act
2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion the Remuneration Report of GME Resources Ltd for the year ended 30 June 2008
complies with section 300A of the Corporations Act 2001.
HLB MANN JUDD
Chartered Accountants
Perth, Western Australia
30 September 2008
W M CLARK
Partner
GME RESOURCES LTD
SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 30 September 2008.
A.
Distribution of Securities
(a) Analysis of numbers of shareholders by size and holding:
Category
(size of holding)
Holders
-
1
-
1,001
-
5,001
10,001
-
100,000 and over
1,000
5,000
10,000
100,000
98
383
232
664
196
1573
(b) There were 304 holders of less than a marketable parcel of ordinary shares.
(c) The percentage of the total holding of the twenty largest shareholders is:
Ordinary Shares
61.32%
B.
Voting Rights
The voting rights attaching to each class of shares are set out below:
(a)
Ordinary Shares:
On a show of hands, every member present in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
C.
Substantial Shareholders
Substantial shareholders who have notified the Company as at 30 September 2008, are:
Name
Retirewise Capital Pty Ltd and associated entities
Mandalup Investments Pty Ltd
Guiness Peat Group plc, Mid-East Minerals Limited and
Retford Resources NL
Duncraig Investment Services Pty Ltd
%
26.94
6.88
5.33
5.11
- 67 -
ANNUAL REPORT 2008
GME RESOURCES LTD
SHAREHOLDER INFORMATION
The names of the 20 largest security holders of each class of equity security as at 30 September 2008
are listed below:
ORDINARY SHARES
Name
Retirewise Capital Pty Ltd
ANZ Nominees Limited
Retirewise Capital Australia Pty Ltd
Mandalup
Discretionary Account)
Investments Pty Ltd (Mandalup
Retford Resources NL
Duncraig Investment Services Pty Ltd
UBS Nominees Pty Ltd
Peter Ross Sullivan
Hardrock Capital Pty Ltd
James Noel Sullivan
Mandalup
Super Fund)
Investments Pty Ltd (Mandalup
Topsfield Pty Ltd
Geomett Pty Ltd
Sullivans Garage Pty Ltd
Tunza Holdings Pty Ltd
Selvie Tjowasi
Mervyn Ross and Mary Sullivan
Donald Anthony Sullivan
Ingot Capital Management Pty Ltd
Mark Selga and Elizabeth Selga
Number
Issued Shares Held
%
23,021,134
19,567,289
19,565,988
15,924,007
13,499,280
12,317,182
7,770,000
5,626,133
4,771,312
4,088,174
4,056,212
4,000,000
3,620,324
2,867,044
2,850,822
2,590,858
2,510,898
2,507,500
2,127,326
2,000,000
9.09
7.73
7.73
6.29
5.33
4.87
3.07
2.22
1.88
1.61
1.60
1.58
1.43
1.13
1.13
1.02
0.99
0.99
0.84
0.79
155,281,483
61.32
- 68 -
ANNUAL REPORT 2008
GME RESOURCES LTD
TENEMENT DIRECTORY
Project
Tenements
Company Interest
Comments
Abednego West
ML39/427
Golden Cliffs 100% Placer Royalty
ML 39/825
MLA39/823-824
Clermont
EPMA11575, EPMA11806, EPMA12164
GME 40%
Joint Venture with
Australian Gold Fields
NL (in Liquidation)
MLA31/214 converted E31/733
Niwest 50%
Murchison Metals 50%
Duck Hill
Edjudina
Eucalyptus
EL39/1337
Golden Cliffs 100%
P39/3459 - 3460 converted to MLA39/744
NiWest 100%
Anglo 100% Gold
Rights plus nickel
royalty
EL39/703
ML39/666
ML39/430 and ML39/344
ML39/665 - 666 and ML 39/674
M39/313 ML 39/568, 39/570, 39/616 and 39/802 -804
M39/289
Hawks Nest
M38/218, MLA 38/683
Ilgarari
E52/1482
Lake Carey
ELA39/1374
NiWest 100%
GME 100%
100% rights to non
copper minerals
Golden Cliffs 100%
Copper Royalty
Laverton Downs
E38/506 converted to MLA38/587 - 588 and 38/782 – 784
NiWest 100%
nickel rights
Millennium Minerals
100% Gold Rights
ELA38/2066
Leonora East
P37/4106 converted to MLA37/566
P37/5330 - 5333, MLA37/1059
P37/5650 – 5656
P37/6931-6932, P37/7279-7282
MLA37/876
ELA37/871
P39/3417 - 3418 converted to MLA39/797 - 798
P39/2974 - 2976 converted to MLA 39/500
EL 39/1181
ELA39/1251, EL39/1337, ELA 39/1375
P39/4909-4911
ML39/845
P37/4201 - 37/4205 converted to MLA37/591
E39/688, EL 37/878, ML39/878 – 879, EL 39/1107- 1108,
P39/4571, P39/4827
E39/990 J/V JINDALEE RESOURCES
Linden
Macey Hill
Mertondale
Mt Kilkenny
Golden Cliffs 100%
GME 100%
Golden Cliffs 100%
Golden Cliffs 100%
Golden Cliffs 100%
GME100%
GME 10%
Golden Cliffs 100%
Golden Cliffs 100%
Golden Cliffs 100%
NiWest 100%
NiWest 100%
NiWest 100%
Mt Morgan South
MLA39/702 - 703, MLA 39/481, MLA39/777
GME 100%
Murrin Murrin
MLA39/554 and MLA39/457
Golden Cliffs 100%
90% Haoma Mining NL
Farmin to Earn 80%
Murrin Murrin
(Minara
Resources)
Murrin Murrin
HEPI
ML39/426, 456, 552, 553 and 569
ML 39/717 - 718
ML39/819
Nickel laterite royalty 20
cents per tonne
Golden Cliffs 100%
rights to non nickel
laterite
Niwest 100%
- 69 -
ANNUAL REPORT 2008
GME RESOURCES LTD
Project
Murrin Murrin
North
Waite Kauri
ML39/758
MLA39/757
M37/1216
Wanbanna
M39/460
Yundamindra
EL39/1331
Tenements
Company Interest
Comments
Niwest 100%
Niwest 100%
NiWest 80%
20% Wanbanna Pty Ltd
NiWest 100%
NiWest 100%
Haul Roads, Ground
Water Resources
PLA: Prospecting Licence
Application
MLA: Mining Lease
Application
Misc Licences
MLA39/173, MLA39/174, MLA39/175, MLA39/179, MLA31/46,
MLA40/25, MLA 37/182, ML39/177
LEGEND:
E:
Exploration Licence
P:
Prospecting Licence
EPM:
Exploration Permit for Minerals
M: Mining Lease
ELA: Exploration Licence
Application
EPM
A:
Exploration Permit for Minerals
Application
.
- 70 -
ANNUAL REPORT 2008