GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2006
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2006
CONTENTS
Corporate Directory
Chairman’s letter
Review of Operations
Directors’ Report
Auditor’s Independence Report
Independent Auditors' Report
Directors' Declaration
Income Statements
Balance Sheets
Statements of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Corporate Governance Statement
ASX Information
Schedule of Tenements
Page
1
2
4
18
30
31
33
34
35
36
37
38
59
60
63
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CORPORATE DIRECTORY
GEOPACIFIC RESOURCES NL (a public, listed company incorporated in New South Wales in 1986)
Directors in Office
(as at the date of this
Report)
ACN 003 208 393
R J Fountain, Chairman
I J Pringle, Managing Director
W A Brook, Executive Director
I N A Simpson, Non-Executive Director
R H Probert, Non-Executive Director
C K McCabe (Alternate Director to Mr I N A Simpson)
Registered Office
556 Crown Street, Surry Hills, NSW 2010
Postal Address
P.O. Box 477, Surry Hills, NSW 2010
Phone: 61 2 9699 2311, Fax: 61 2 9699 7322 E-mail: ianp@geopacific.com.au
Company Secretary
Mr Grahame Clegg
Auditor
Bankers
Nexia Court & Co., Level 29, Australia Square,
264 George Street, Sydney, NSW, 2000, Australia
Westpac Banking Corporation, 50 Pitt Street, Sydney, NSW
GEOPACIFIC LIMITED (a private company incorporated in Fiji in 1980)
Directors
Fiji Operations Office
R H Probert (Chairman)
W A Brook (Managing Director)
I J Pringle
I N A Simpson
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Tel: 679 6 727150 Fax: 679 6 727152
All mail to: P O Box 9975, Nadi Airport, Fiji
E-mail: gpl@connect.com.fj
Company Secretary
W A Brook, P. O. Box 9975, Nadi Airport, Fiji
Tel: 679 6 727150 Fax: 679 6 727152 E-mail: gpl@connect.com.fj
Registered Office
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Auditor
Banker
Ernst & Young, Suva, Fiji
Westpac Banking Corporation, Main Street, Nadi, Fiji
BETA LIMITED (a private company incorporated in Fiji)
Directors
W A Brook
I J Pringle (Appointed 20 February 2006)
I N A Simpson
Company Secretary
W A Brook, P.O. Box 9975, Nadi Airport, Fiji
Tel: 679 6 727150 Fax: 679 6 727152 E-mail: gpl@connect.com.fj
Registered Office
HLB House, Lot 3, Cruikshank Road, Nasoso, Nadi, Fiji
Auditor
Ernst & Young, Suva, Fiji
1
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CHAIRMAN’S LETTER
Dear Shareholders
I am very pleased to report on an excellent year’s progress made by Geopacific since listing on the ASX
on 9 May 2006 (trading code GPR) after raising approximately $2.4m to explore for gold and copper in
Fiji. Your Managing Director, Dr Ian Pringle, has assembled a strong and experienced exploration team
and implemented a vigorous exploration program focussed on early drill testing of gold and copper
exploration targets defined by surface mapping and state of the art geophysical techniques.
Significant progress towards our goal of becoming a profitable producer was made on a number of
fronts, outlined below, and the Company is well positioned for an exciting future.
In February, Geopacific signed a Heads of Agreement to acquire Millennium Mining (Fiji) Limited and
it's sole assets (SPL 1216 'Nabila' and SPL 1415 'Kavukavu') by the issue of shares and options in GPR.
The key asset in Millennium is the Faddy's Gold Deposit and surrounding exploration ground with a
number of prospects and anomalies. Faddy’s is an epithermal-type gold deposit which contains near-
surface mineralisation estimated as 920,000t @ 4.9g/t Au (144,000 ounces of contained gold) by Climax
Mining Ltd in 1991 and although this is not considered to be of JORC reporting standard and is not an
estimate of Mineral Resources as defined by the JORC Code it represents a substantial mineralised
system. Faddy’s has the potential to be fast tracked into a small high-grade mine which will provide
Geopacific with both cash flow and operational experience in Fiji. This transaction is subject to
technical due diligence, which is underway, and shareholder approval which is being sought at our
Annual General Meeting.
At the Raki Raki Joint Venture (GPR 50% and manager), encouraging gold grades were intersected in
seven diamond drill holes completed at significant new anomalies which were defined by a Gradient
Array Resistivity geophysical survey within the Qalau-4300 area, confirming the potential of the area to
host significant gold mineralisation of similar style to Emperor Gold Mines’ +7 million ounce
Vatukoula gold deposit. Follow up drilling will commence after completion of the rainy season in May.
At the Vuda Project (GPR 80%), new target areas have been defined by an airborne magnetic-
radiometric survey completed over a 5.5km x 3.0km area covering the ‘Vuda Caldera’, and field follow-
up has located gold-rich dyke outcrops. Drill testing beneath high-grade, near-surface gold mineralised
dyke rock at the Natalau Prospect (Vuda Project) commenced in December and the first drill hole
(DDHVN001) intersected anomalous gold and base metals.
At the Nadi South Project (GPR 100%) a three dimensional Induced Polarisation survey across the Togo
Prospect was completed. This has defined a large anomaly typical of a porphyry Cu-Au deposit and
priority drill testing of this feature commenced during January 2007.
In February the Company raised an additional $1.82 million (before costs) through a placement of 3.37
million shares at $0.54 to clients of Lands Kirwan Tong Stockbrokers Pty Limited.
I am also pleased to report the recent well publicised political events in Fiji have had no impact on
Geopacific’s operations in the country, and our highly experienced exploration team remains committed
to locating and developing mineral deposits within the constraints of strict environmental controls and
social responsibility.
2
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CHAIRMAN’S LETTER
(Continued)
I would like to thank our team for their hard work during 2006. Geopacific enters its second year of
trading as a public company with a strong cash position, an enhanced portfolio of exciting exploration
targets, and the potential to rapidly advance the Faddy’s prospect into a defined Mineral Resource.
On behalf of the Board of Directors I would also like to thank shareholders for their support in what
truly been a milestone year for the Company.
Russell Fountain
Chairman
3
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
Highlights
• Significant new anomalies were defined by a Gradient Array Resistivity geophysical
survey at the Qalau-4300 area of the Raki Raki Project. Many of these anomalies
correspond with high gold-in-soil values and several were given high priority for drill
testing.
• High grade gold was intersected in seven diamond drill holes completed within the Qalau-
4300 area of the Raki Raki Project.
• DDHQ001 intersected 2.8 meters from 61.20m of 14.43g/t gold within a zone of
epithermal quartz-carbonate veining.
• DDHQ003 intersected 7.0 meters from 29.0m of 2.23g/t Au within a zone of
shearing and quartz-carbonate veining.
• DDHQ004 intersected 45.2 meters from 88.0m of 1.02 g/t Au including 5.0m
from 94.0m of 3.41 g/t Au and 9.5 meters from 121.0m of 2.31g/t Au.
• Assays in DDHQ005-7 ranged up to 9.37g/t Au and confirmed the continuity of
mineralisation in DDHQ001.
• An airborne magnetics-radiometric survey was completed over a 5.5km x 3.0km area
covering the ‘Vuda Caldera’ at the Vuda Project and this has defined new target areas.
Field follow-up located gold-rich dyke outcrops.
• Drill testing beneath high-grade, near-surface gold mineralised dyke rock at the Natalau
Prospect (Vuda Project) commenced in December and the first drill hole (DDHVN001)
intersected anomalous gold and base metals.
• A three dimensional Induced Polarisation survey across the Togo Prospect at the Nadi
South Project was completed. This has defined a large anomaly typical of a porphyry Cu-
Au deposit and priority drill testing of this feature commenced during January 2007.
• By way of placement the Company raised an additional $1.82 million (before costs)
through a placement of 3.37 million shares at $0.54 to clients of Lands Kirwan Tong
Stockbrokers Pty Limited.
• Geopacific has signed a Heads of Agreement to acquire Millennium Mining (Fiji) Limited
and it's sole assets (SPL 1216 'Nabila' and SPL 1415 'Kavukavu') which contain the
Faddy's Gold Deposit and surrounding exploration ground with a number of prospects
and anomalies. Faddy’s is an epithermal-type gold deposit which contains near-surface
mineralisation estimated as 920,000t @ 4.9g/t Au (144,000 ounces of contained gold) by
Climax Mining Ltd in 1991 and although this is not considered to be of JORC reporting
standard and is not an estimate of Mineral Resources as defined by the JORC Code it
represents a substantial mineralised system.
4
Project Review
N
Geopacific
Geopacific
Project
Project
Locations
Locations
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
SPL1373
SPL1436
SPL1231
SPL1368
SPL1361
SPL1434
CX667
SPL1377
S
P
L
1
3
6
1
Figure 1
FIGURE 1
Raki Raki Project
SPL1231, SPL1373, SPL1436
50% Beta Ltd (subsidiary of GPR) - Operator
50% Peninsula Minerals Ltd
The Raki Raki Project (Figure 1) is located in northern Viti Levu and is a 50% joint venture between
Peninsula Minerals Limited and Geopacific Resources NL. Geopacific is the manager of the joint
venture.
Perth based GPX Services Pty Ltd completed an Induced Polarisation (IP) geophysical survey over the
central portion of the B-R Grid (Qalau-4300) at the Raki Raki Project (Figure 2). Areas of high
resistivity (red) are located within the Qalau-4300 area of the IP survey and some of these correspond
with geochemical anomalies located during previous work. A zone of resistivity highs trends across a
1.5km strike length, grid east-west across the area and this is covered by a thin veneer of transported
gravels. This zone is located immediately to the north of Geopacific Resources’ drill hole RRC13 (0-6m
of 1.99g/t Au, 46-72m of 1.28g/t Au) on line 4300E and drill hole QRC4, completed by CRA
Exploration in 1992 on line 3600E (CRA Exploration reported 116-140m of 0.8g/t Au including 134-
140m of 2.5g/t Au). Areas of high resistivity were also defined in the central west of the grid area and
many of these also correspond with high gold in soils and in shallow trenches completed by both CRA
Exploration and Geopacific Resources.
A 3D Offset Pole-Dipole Resistivity survey was also undertaken and this has provided a better
understanding of the geometry and depth continuity of the main structural features in the survey area.
Auger soil sampling was completed along 50-100m spaced grid lines over selected resistivity anomalies
and in order to determine any association between geophysical resistivity anomalies and gold in soil
values close-spaced auger soil samples were collected in the 'Million Dollar' area of the Qalau grid
(between 3370-3420E and 5140-5190N, Figure 2). Channel rock chip sampling was completed at
anomalous gold outcrops in Qalaumatai creek.
5
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
A truck mounted UDR650 drill rig owned by Nadi based Exploration & Drilling Services (Fiji) Limited
commenced work at selected anomalies in early July and seven drill holes were completed (DDHQ001
to DDHQ007) in the Qalau-4300 (B-R) grid area. Gold fire assays were undertaken on sawn half core
(NQ3 and HQ3 size) at Emperor Mines Analytical laboratory. The targets have similar style and setting
of mineralisation at the Vatukoula Mine about 30km to the south west where Emperor Mines Limited
has past recorded production together with stated resources of over 7.5 million ounces of gold.
Table 1 lists anomalous assay results for the seven holes and drill collar locations are shown on Figure 2
with respect to the geophysical anomalies.
DDHQ001
DDHQ001 the first diamond drill hole of the current exploration program was located near the centre of
a prominent resistivity high which trends across the northern half of the surveyed area (Figure 2).
DDHQ001 intersected 2.8 meters from 61.20 meters of 14.43g/t gold within a zone of epithermal
quartz-carbonate veining (Figures 3 and 4).
Other mineralised zones in DDHQ001 include 1 metre drilled width of 1.27g/t Au from 39.00m down
hole and a deeper zone of 14.7 meters drilled width averaging 0.46g/t Au between 111.30 – 126.00
meters. DDHQ001 was drilled towards grid south at a 60 degree dip from grid 5565N/3600E to a total
depth of 150.9m within a zone of high resistivity values and within an area of the Qalau – 4300 grid
which is covered by transported river gravels.
DDHQ002
DDHQ002 was located to test corresponding gold anomalies (in both soil and shallow trench samples)
and a resistivity high approximately 600 metres grid SSW of DDHQ001 (Figure 2). DDHQ002 was
drilled at a 60 degree dip towards grid south. A single mineralised zone between 9-10 meters in
DDHQ002 returned 1.24g/t Au.
N
‘Million
Dollar’
area soil
sampling
Open
to west
DDHQ001,5-7
DDHQ002
700m trend under
alluvial cover requires
infill drilling
Drilled areas
Proposed drill areas
DDHQ003 and 4
Open
to east
Qalaumatai Creek
outcropping gold
mineralisation
Figure 2. Raki Raki Project. Qalau-4300 Resistivity Gradient Array
and locations of drill holes DDHQ005-7
6
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
DDHQ003 and DDHQ004
DDHQ003 and DDH004 (collared approximately 50m from DDHQ003) were located to test the grid
east end of the E-W trending geophysical anomaly approximately 750m grid east of DDHQ001 (Figure
2). Both drill holes intersected significant zones of gold mineralisation (Table 1). Both drill holes have
intersected, and finished within, wide zones of carbonate-quartz veining, shearing, brecciation and
alteration typical of an epithermal mineralised system.
• DDHQ003 intersected 7.0 meters from 29.0 meters (down-hole depth) of 2.23g/t Au, including
1m of 5.14g/t Au from 29m within a zone of shearing and quartz-carbonate veining.
• DDHQ004 intersected 45.2 meters from 88.0 meters (down-hole depth) of 1.02 g/t Au including
5.0 meters from 94.0 meters of 3.41 g/t Au and 9.5 meters from 121.0m of 2.31g/t Au (Figure
5).
DDHQ005, DDHQ006 and DDHQ007
Gold mineralised intervals intersected in diamond drill holes DDHQ005, DDHQ006 and DDHQ007
confirm that the mineralisation previously reported in DDHQ001 continues at depth and along trend to
the east (Table 1, Figure 3). All three drill holes penetrated quartz–carbonate veining and alteration
showing that the main mineralised structure in the DDHQ001 area dips towards grid north at
approximately 55 degrees (Figure 4).
DDHQ005 was completed at a location 15m grid south of DDHQ001 with a parallel drill direction and
dip. It intersected quartz veining and silicification between 80-86m and also within several other narrow
zones. DDHQ005 intersected 0.45 meters from 47.9 meters (down-hole depth) of 3.91g/t Au.
DDHQ006 was completed 25m grid north of DDHQ001 and was drilled at the same azimuth and dip.
Sheared, laminated quartz veins with high sulphide content occur in DDHQ006 near 79.8-81.8m and
119.4-120.6m. DDHQ006 intersected 0.50 meters from 80.5 meters (down-hole depth) of 9.37g/t Au
and several other mineralised intervals.
DDHQ007 is located 50m grid east of DDHQ006 and was drilled to test the strike direction of the
mineralised veins of this area. DDHQ007 intersected quartz veining and shearing between 24.3-35m
and 49.7-61m.
Drill holes DDHQ001 and DDHQ003-7 are located on a prominent resistivity anomaly which trends for
over 1 kilometre across an area covered by transported river gravels and soil (Figure 2). Follow-up
drilling of this resistivity anomaly within the 700 metres of untested area between DDHQ001 and
DDHQ004 is planned during 2007.
7
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Table 1. Summary of Drill Core Assays DDHQ001-7, Raki Raki Project
Drill hole summary
Drill core assay summary
Drill Hole
DDHQ001
coordinates (local
grid where grid N is
23o W of true N)
E
N
3600
5565
hole
azimuth
(grid)
hole dip
(deg)
hole
depth
(m)
180
60
150.9
DDHQ002
DDHQ003
5010
5370
DDHQ004
5335
DDHQ005
5550
3350
4330
including
4360
incl.***
incl.***
with
3600
DDHQ006
5585
3600
180
200
200
180
180
60
60
60
60
60
150.1
180.1
293.8
120.1
180.1
DDHQ007
5585
3650
180
60
171
down-hole
interval
(meters)
gold
(g/t)****
from (m)
39
61.2
111.3
9
29
29
88
94
121
121
47.9
107.5
25
28
80
80.5
120.1
33.4
72.5
101.2
to (m)
40
64
126
10
36
30
133.2
99
130.5
124
48.35
108.5
26
28.5
80.5
81
120.6
36
73.7
102
1
2.8
14.7
1
7
1
45.2
5
9.5
3
0.45
1
1
0.5
0.5
0.5
0.5
2.6
1.2
0.8
1.27
14.43
0.46
1.24
2.23
5.14
1.02
3.41
2.31
4.45
3.91
1.31
2.52
0.96
1.51
9.37
3.18
1.32
0.98
0.71
***
****
Using a 0.5g/t Au cut-off
Fire assays completed on sawn (halved) drill core at Emperor Mines Analytical Laboratory. All results
>0.5g/t Au have been re-assayed. Internal and external controls including standard reference material and
blanks have been routinely analysed.
N
Rakiraki Project, Qalau
Location plan of follow-up drill holes to test
mineralisation in DDHQ001
3
5
5
0
E
3
6
0
0
E
3
6
5
0
E
DDHQ006
Planned drill hole
o
DDHQ001
DDHQ007
5600 N
5550 N
DDHQ005
2.8m @ 14.43g/t Au
14.7m @ 0.46g/t Au
150m eoh
5500 N
Follow-up hole
Figure 3. Drill hole locations for DDHQ001 and DDHQ005-7, Raki Raki Project.
8
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
N
5
6
0
0
N
D
D
H
Q
0
0
1
5
5
5
0
N
NORTH
Line 3600 E
r i v e r
Rakiraki Project, Qalau
Section along 3600E
showing DDHQ001 and
follow-up drill holes
(traces shown in red)
80.5-81m
@ 9.37g/t Au
5
5
0
0
N
SOUTH
g r a v e l s
47.9-48.35m
@ 3.91g/t Au
61.2-64.0 @
14.43g/t Au
111.3-126.0m
@ 0.46g/t Au
50m
DDHQ006
DDHQ005
Figure 4. Cross section along 3600E showing drill traces of DDHQ001, DDHQ005 and DDHQ006,
Raki Raki Project.
North
Section along grid line 4300E
South
NNN
5350N
5300N
5250N
5200N
RESISTIVITY ANOMALY
0.03
2.68
0.11
0.05
0.29
1.36
0.14
0.02
Ground surface
RC4
33m @ 0.43g/t Au
RC12
(14m off
section to
west)
4m @ 2.62g/t Au
RC13
43m @ 0.72g/t Au
(
D
6
0
D
m
H
o
f
f
Q
s
0
e
c
0
t
i
4
o
n
)
5m @
3.41g/t Au
88-133.2m
(45.2m) @
1.02g/t Au
9,5m @
2.31g/t Au
Total length: 293.8m
88m @ 0.8g/t Au (including 26m @ 1.28g/t Au)
1.36
RC12
Auger soil sample (1m depth)
with Au assay in g/t
Trace of previous Geopacific
drill hole with mineralised
intervals
Section of DDHQ004 on
Grid Line 4300E,
B-R Grid, SPL1231,
RakiRaki Project
Figure 5. Cross section along 4300E with DDHQ004, Raki Raki Project.
Vuda Project
SPL1368 Geopacific Ltd (subsidiary of GPR)
has an option to purchase 80%
SPL1361 Geopacific Ltd (subsidiary of GPR)
has an option to purchase 100%
9
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Fugro Airborne Surveys Pty Ltd undertook an airborne survey covering 5.5km x 3.0km over the ‘Vuda
Caldera’ area of SPL1368. This area includes most of the known gold prospects in the Vuda Project and
covers a 4km x 1km arcuate alteration zone which has widespread anomalous gold values. The survey
was flown at 100m line spacings and in addition to magnetic readings, radiometric (K, U, and Th) and
digital elevation data were collected.
The data is being used to interpret structure and alteration of gold mineralised zones within the
shonshonitic volcanics of the Vuda Caldera feature. Summary maps of the magnetic and radiometric
features of the surveyed area are shown in Figure 6. In general, the magnetic low ‘areas’ (blue-green) of
the survey correspond with areas of prominent alteration and weathering. Small magnetic ‘highs’ may
indicate volcanic dykes and plugs which appear to host gold mineralisation at several of the Vuda
prospects.
A rock chip samples collected from outcrops several hundred metres SW of Natalau (Ista’s Prospect)
and located near a small magnetic ‘high’ contains high gold (up to 8.0g/t Au). These samples show high
temperature epithermal alteration dominated by adularia together with gold mineralisation (visible by
microscope) and could represent a latite/trachyte dyke and an exploration target similar to Natalau.
Natalau
Prospect
0
1km
177o30’
FIGURE XXXX
A. Magnetic map of
the Vuda area
with interpreted
major structures
(black lines) and
target areas (circled)
17o42’
B. Potassium
radiometric map of
the Vuda area with
areas of
pronounced
potassium alteration
(stippled)
17o42’
177o30’
Figure 6. Magnetic and Radiometric Maps, Vuda Project.
A drill rig mobilised from Suva completed drill testing of the first of three preliminary drill holes at the
Natalau Prospect (DDHVN001) where prospecting and drilling by other companies has intersected
near-surface, high grade gold within a steeply dipping dyke. The diamond core drilling is testing the
depth continuity of dyke-hosted gold mineralisation beneath shallow workings where previous explorers
have reported drill core intersections ranging to 9.2g/t Au over 23.7m (DDH4). Radial Drilling is
undertaking the work using a skid mounted drill-rig.
DDHVN001 intersected several zones of alteration/quartz veining and base metal mineralisation
approximately 50-100m beneath old near-surface mine workings (Figure 7). The best developed
mineralisation intersected in DDHVN001 occurs within an alkali intrusive rock (banakite) between
135m-149.1m where disseminated base metal mineralisation includes minor copper (chalcopyrite), zinc
(sphalerite) and lead (galena). Samples from this zone have been forwarded to Australia for assay.
10
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Preliminary gold fire assays of the interval 135-147m were completed at Emperor Mine’s analytical
facility prior to its closure and these contain anomalous gold values up to 0.8ppm Au.
A second drill hole (DDHVN002) was located to intersect the mineralisation approximately 50m above
VN001 (Figure 7) and a third drill hole (DDHVN003) was drilled to test the southerly plunge of
mineralisation 50m to the south. Drilling of VN002 and VN003 commenced during early 2007.
WEST
Natalau shaft/
open cut
EAST
s u r f a c e
DDHVN001
collar
135-136.4m
alkali intrusive with
adularia alteration, trace
pyrite
136.4-141m
clay pug zone with pyrite
& chalcopyrite
141-144m
alkali intrusive with qtz-
adularia-py-cpy-sph-gal-
mar in vugs
144-146m
polymict breccia, qtz-ad-
py-cpy-sph-gal-mar in
vugs/veinlets
146-149.1m
alkali intrusive with
adularia alteration, trace
pyrite
DDH
VN002
?
?
DDH VN001
Scale
20m
?
trace quartz veining
minor
quartz
veining
135-149.1 (14.1m)
base metal
mineralisation
Cross section
showing
GPR drill holes,
Natalau Prospect
Vuda Project
Planned depth 200m
Figure 7. East–west cross section showing drill holes VN001 and VN002, Vuda Project.
Nadi South Project
SPL1434 – 100% Geopacific Ltd (subsidiary of GPR)
At Nadi South (Figures 1 and 8) a three dimensional Induced Polarisation (IP) survey using an offset
pole-dipole (OPD) configuration was completed by GPX Services Ltd (Perth).
Together with 3D inversion of existing detailed aeromagnetic data of the area, the IP results have helped
to map the sub-surface mineralisation in the Togo porphyry system and have been used to identify the
optimal locations of drill holes to test the Togo Prospect. The Togo Prospect is located 10km south of
Nadi, within a sparsely populated area of low hills and close to major infrastructure.
The geophysical work has defined a large chargeability anomaly which extends from near surface to
over 400m depth and across a strike length of more than 2 kilometres (Figure 9). The shallow northern
portion of the anomaly is zoned with a lower chargeability central zone of several hundred metres
diameter. The high chargeability zone (red/orange areas of the chargeability plans and section in
Figures 9 and 10), reflects higher sulphide content, increases in size and intensity to the south and is best
developed between 100-300 meters depth. The anomaly is located along the eastern and southern
margin of a dioritic intrusive complex (Figure 8) which is poorly exposed in the area overlying the
anomaly but which is highly fractured and jointed in outcrops along the eastern edge of the feature.
Anomalous gold is common within in these limonitic fractures.
11
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
N
Figure 8
Magnetic Map of the Togo Prospect
Figure 6.6. Magnetic Map of the Togo Prospect
Figure
(Nadi South) showing approximate location of
(Nadi South) showing approximate location of
the IP survey and geology summary.
the IP survey and geology summary.
TOGO Porphyry Cu/Au
Approximate coverage of
3D Offset Pole-Dipole IP
Survey
Red Ridge
Planned
Gradient
Array
IP Survey
N
Figure 9
Figure 7.
E
0
0
5
1
E
0
0
5
2
E
0
0
5
3
E
0
0
5
4
Togo Prospect
(Nadi South)
Chargeability Plans
4000N
-100m
• IP Chargeability maps for
various depths show sulphide
mineralisation peripheral to a
diorite intrusive.
• The distribution of sulphides
is typical of a zoned porphyry
copper-gold deposit.
• Surface gold values and
fracturing/veining occur at
surface.
-200m
-350m
12
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
N
section
section
1 km
1 km
plan
plan
Figure 10
Figure 8. Nadi South, Togo Prospect IP/Resistivity
models from 3D inversion
Meetings with landowners and occupiers to discuss GPR’s work plans at Nadi South and to arrange
access agreements for the area prior to grid establishment at Togo have been completed.
The Togo anomaly is typical of a large porphyry copper-gold style of mineralisation where a large low-
grade gold-copper deposit may have a size range of several hundred million tonnes. This style of
deposit is similar to the Namosi porphyry copper project (owned by Nittetsu Mining Co Ltd) which is
located 70km east of Togo (Figure 1) and contains a ‘Measured Geological Resource’ of 930Mt of
0.43% Cu and 0.14g/t Au.
Drill testing of the Togo Prospect commenced in mid January 2007 with a truck mounted UDR650 drill
rig owned by Nadi based Exploration & Drilling Services (Fiji). An initial four drillhole programme
(350 - 400 metre deep drill holes) to test various parts of the Togo Prospect is planned.
Nuku Project
SPL1368 - 100% Geopacific Ltd (subsidiary of GPR)
CX667 – 100% Geopacific Ltd (subsidiary of GPR)
Mapping and sampling during reconnaissance work in SPL1368 during early 2006 located significant
areas of quartz vein stock-work and alteration patterns with characteristics typical of porphyry copper
deposits as well as extensive areas of magnetite skarn and gossan float boulders within an 11 square
kilometre zone. Following the wet season in mid-2007 grid preparation at the Wailoaloa Skarn Prospect
is planned prior to an IP survey and drill testing.
Nabila Project
SPL1216 - 100% Millennium Mining Fiji Ltd (purchase agreement by GPR)
SPL1415 - 100% Millennium Mining Fiji Ltd (purchase agreement by GPR)
On 27 February 2007, Geopacific Resources NL completed a Heads of Agreement to purchase
Millennium Mining Fiji Ltd ‘Millennium’ which has title to the Nabila Gold Project, two Special
Prospecting Licences (SPL 1216 and SPL 1415) located 16 kilometres southwest of Nadi, Fiji (Figure
11).
13
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Figure 11
The Nabila Gold Project contains the Faddy’s epithermal-type gold deposit (Figure 12), where near-surface
mineralisation has been estimated as 920,000t @ 4.9g/t Au (144,000 ounces of contained gold) by Climax Mining Ltd
in 1991 (this is not considered to be of JORC reporting standard and is not an estimate of Mineral Resources as defined
by the JORC Code). There is potential to substantiate this estimate and to discover additional mineralisation through
exploration in the immediate area. The Faddy’s mineralisation appears to be open along trend (north-south) and at
depth (dips towards the west) and previous drill sampling has not taken into account the occurrence of nuggetty gold
which in parts of the deposit may significantly add to gold grades.
Fig 12. View of the Faddy’s Gold Deposit (circled). Nadi is located in the headwaters of the bay to the far right.
14
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Figure 13 is a summary of the main types of mineralisation at the Faddy’s Deposit that occur within and
peripheral to a dioritic intrusive body which has been offset by a low angle reverse fault. Sheeted veins
overlying the fault can be interpreted as arcuate to undulating veins which have developed in a brittle
medium at the margin of the diorite. The sheeted veins are thickest in the diorite and thin over about
100 metres or so into the volcanic sediments. The veins are in the hanging wall above the fault plane
and generally converge into the fault plane in the diorite close to the point where the thrust causes the
diorite to ‘overhang’ volcanic sediments. In the northern part of Faddy’s Deposit two parallel veins
(E11 and E10) occur above the fault and are separated by about 15m of barren diorite. In the south of
the deposit only one vein (W8) has been defined.
The E11 vein is 7.4 metres (average) thick, has a minimum length of 200 metres and extends down dip
about 140 metres. The outcrop expression of the E11 sheeted vein in the northern part of the deposit has
had limited drill testing and trench sampling has been minimal.
The E10 vein has a length of 180 metres, extends down dip about 80 metres and has an average
thickness of 7.0 metres. E10 does not appear to reach the current erosion surface.
The W8 vein in the grid west area may be a continuation of E11. It is also contained in the hanging wall
of the thrust and has a shallow west dip. W8 has a length of about 180 metres, extends down dip about
100 metres and has an average thickness of 5.9 metres.
A low angle thrust (TW/TE) separates the sheeted veins from underlying disseminated mineralisation
(BT). Mineralisation along the thrust zone has an average thickness of 5.7m and has been shown to
extend down dip at least 150m. There is potential to extend this mineralisation up dip.
Figure 13. Mineralisation Model of Faddy’s Deposit. Schematic cross section looking south.
Exploration expenditure by Millennium and previous owners (Climax Mining Ltd, Hallcroft Pty Ltd)
since 1985 has exceeded A$4.0 million. This work has included; mapping, sampling, trenching
geophysical surveys, preliminary metallurgical test work and drilling (172 drill holes for 17,897
metres).
Geopacific has recognised the following potential to define more mineralisation at the Faddy’s deposit
through further drill testing:
15
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
Near surface: 0-75m (down dip) of the mineralised thrust zone has been poorly drill tested and
requires shallow drilling and trenching.
Along trend: Gold mineralisation is not closed off along strike. Anomalous soil gold values occur
within a 1.8km zone south of the Faddy’s deposit towards the old Mistry gold workings.
At depth:
Mineralisation in the thrust zone was intersected in a recent deep drill hole (MDD019)
which intersected 0.25m of 20.2g/t Au from 211m and 3m of 4.5g/t Au from 282m.
Very few drill holes have tested deeper than 110m.
The following factors also could enhance project economics:
1. Poor recoveries in most previous drilling due to soft clay in shear zones and the broken/brecciated
nature of sheeted veins which may have underestimated gold grade.
2. Limited consideration has been given to the occurrence of coarse nuggetty gold in previous work.
Repeated assays of high grade intersections indicate that gold grades may have been
underestimated
3. Silver, zinc, lead and copper are associated with gold (high grades of zinc up 20.2%, lead up to
8.45% and copper up to 2.57% occur with some gold mineralised drill intersections). The Au:Ag
ratio is about 1:5.
4. Preliminary metallurgical testing by Climax recovered 97% of Au in 24 hours with low reagent
consumptions and low grinding time.
5. The Faddy’s Gold Deposit is well located close to the coast. It has good road access and is not far
from port facilities and other infrastructure.
Potential for other new discoveries occur in the near vicinity of Faddy’s and elsewhere within the
tenements. Recently the FSM vein, an east-west trending quartz vein system (2.2km outcrop along
strike) was located by Millennium about 2km south of Faddy’s and four holes drilled late last year have
shown that this brecciated quartz vein structure contains anomalous gold and base metal values. New
structural interpretations between the FSM vein and the Faddy’s Deposit indicate new targets for offset
extensions of the Faddy’s mineralised structures. Other targets in the tenements include skarn-gold and
porphyry-copper-gold prospects.
Preliminary metallurgical results are encouraging and environmental factors are relatively favourable.
Relations with the Fijian Government, the Department of Mines and local landowners are good.
The Faddy’s deposit is near a point where a feasibility study can be undertaken. Some further drilling
is required to test for nuggetty gold, continuity of high grade and extensions to mineralisation down dip
and along trend and this can be followed by studies including; additional resource in-fill and step-out
drilling, trenching, metallurgical processing, mine design, environmental and socio economic studies.
Expenditure of $900,000 is planned during the next 12 months to progress these studies with a view to
develop a plus 25,000oz/annum gold project based on an open cut/shallow underground operation.
Millennium Mining has agreed in principle for Geopacific to acquire Millennium Mining (Fiji) Limited
(registered in Fiji) ('Millennium') and its sole assets (Special Prospecting Licences (SPL 1216 'Nabila'
and SPL 1415 'Kavukavu') which contain the Faddy's Deposit and surrounding exploration ground with
a number of prospects and anomalies). The consideration, conditional on a positive due diligence and
Geopacific shareholder approval, is:
1. Geopacific to issue to Millennium owners 4 million GPR shares.
2. Geopacific to issue to Millennium owners 4 million options at 50c convertible within 5 years and
contingent on defining a JORC compliant Ore Reserve of over 200,000 ounces of contained gold.
16
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
REVIEW OF OPERATIONS
(Continued)
3. Geopacific to issue to Millennium owners 1 million options at $1.00 convertible within 10 years and
contingent on defining a JORC compliant Ore Reserve of over 1,000,000 ounces of contained gold.
IPO and ASX Listing
A Prospectus for the initial public offer (IPO) of 22,500,000 ordinary shares at an offer price of $0.20
each was completed (dated 31 October 2005). Closing of the offer was extended through the issue of
supplementary prospectus dated 31 January 2006 which was lodged with ASIC on 31 January 2006 to
provide details of any events that occurred subsequent to the release of the Prospectus, and which the
Directors believed were or may have been material to existing shareholders, persons who lodged
Application Forms, and other potential investors. Both the Prospectus and Supplementary Prospectus
were mailed
the company’s website at
www.geopacific.com.au.
to Shareholders and both can be viewed on
Closing of the offer was on 3 April 2006. The IPO raised $2.4m to fund exploration for gold and base
metals at the Company’s four projects (Raki Raki, Vuda, Nadi South and Nuku) on Viti Levu, the main
island of Fiji. Geopacific Resources NL listed, and commenced trading on the Australian Stock
Exchange (trading code ‘GPR’) on 9 May 2006.
Share Placement
The Company completed a Short Form Prospectus (dated and lodged with ASIC on 22 December 2006)
which offered to clients and investors nominated by Lands Kirwan Tong Stockbrokers Pty Limited,
Placement Shares at $0.54 each. A total of $1.82M (before costs) was raised through the placement of
3.37m shares. The funds raised from the issue of these shares will be used for an expanded program of
drilling and additional IP geophysics in response to the exciting gold and copper targets that have been
generated by work to date at Raki Raki, Nadi South and Vuda, and also to vigorously pursue acquisition
of an advanced exploration property with early development potential.
17
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
The Directors present their report together with the financial report of Geopacific Resources N.L.
(“GPR”) (“the company”) and of the Group, being the company and its controlled entities, Geopacific
Limited (“GPL”) and Beta Limited (“Beta”), for the year ended 31 December 2006, together with the
auditors’ report thereon.
1 Directors
The Directors of the company at any time during, or since the end of the financial year of
31 December 2006 are:
Russell John Fountain, B.Sc., Ph.D, F.A.I.G., Chairman.
Dr Fountain was appointed a Director and chairman of the company on 23 September, 2005. He is a
Sydney-based consulting geologist with 39 years of international experience in all aspects of mineral
exploration, project feasibility and mine development. Previous positions include President, Phelps
Dodge Exploration Corporation; Exploration Manager, Nord Pacific Ltd and Chief Geologist, CSR
Minerals. Russell has had global responsibility for corporate exploration programs with portfolios
targeting copper, gold, nickel and mineral sands. He played a key role in the grassroots discovery of
mines at Granny Smith (Au in WA), Osborne (Cu-Au in Qld) and Lerokis (Au-Cu in Indonesia) and
the development of known prospects into mines at Girilambone (Cu in NSW) and Waihi (Au in
NZ). Russell was awarded a PhD in Geology from the University of Sydney in 1973, with a thesis
based on his work at the Panguna Mine (Cu-Au in PNG) and he worked as a project geologist on the
Namosi porphyry copper deposit in Fiji from 1972 to 1976. He is a Fellow of the Australian
Institute of Geoscientists, and Executive Chairman of Finders Resources Ltd.
Ian James Pringle, B.Sc. (Hons.), Ph.D, Managing Director.
Dr. Pringle was appointed Managing Director of the company on 23 September, 2005. He is a
Sydney-based exploration geologist with over 21 years of specialist expertise in exploration for
silver, gold, and copper within Australia and SE Asia. Ian gained a doctorate from the University of
Otago in Dunedin, New Zealand in 1981 where he studied petrology, mineralogy and geochemistry
of metamorphosed volcanic rocks and taught laboratory classes in economic geology. During his
career, Ian has worked in mineral exploration programmes that have resulted in successful mineral
discoveries;
(cid:131)
(cid:131)
(cid:131)
(cid:131)
in Northern Australia with Elf Aquitaine,
the Lerokis Au-Cu-Ag deposit, Indonesia with CSR Minerals,
the Girilambone copper deposit, NSW with Nord Resources, and
in Australia, the Philippines and Cyprus as Exploration Manager for Golden Shamrock
Mines and Oxiana Ltd.
Ian coordinated due diligence studies on Sepon for Oxiana and supervised resource drilling of the
main gold and copper deposits. Sepon is located in a recently discovered province of sediment-
hosted epithermal gold deposits and supergene enriched copper mineralisation in central Laos. Ian’s
recent and current work includes exploration and resource evaluation of the Bowdens Silver
Deposit, near Mudgee, NSW, an epithermal-style mineralised system which contains over 80
million ounces of silver and which is owned by Silver Standard Resources Inc, one of the few
publicly traded companies focused exclusively on the discovery and acquisition of silver-dominant
projects. Ian is a director of Silver Standard Australia Pty. Ltd.
18
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
1 Directors (continued)
Willie Anthony Brook, B.Sc., M.A.I.G., Executive Director
Mr Brook has served two terms as Managing Director of the company since 1987 and resigned this
position in September 2005 in favour of Dr Pringle. Bill is a geologist with over 41 years
experience in the industry, including senior positions with Australian and international exploration
and mining companies.
He spent six years as a contract field geologist (1980-86) exploring for epithermal gold deposits in
Papua New Guinea, Vanuatu and Fiji, which resulted in the discovery of several grassroots gold
prospects. In 1986 he commenced geological work on behalf of GPL in Fiji and discovered the
Tuvatu Gold Deposits, which were sold to Emperor Mines Ltd in 1997. He is also a member of the
Mining Council of Fiji, the Fiji Mining and Quarrying Wages Council and the Mining and
Development Technical Committee; the latter two posts being Government appointments. He
resides in Fiji and is responsible for maintaining and monitoring the company's operations in Fiji
and developing new projects. He is Managing Director of Geopacific Ltd and a Director of Beta
Ltd.
Ian Neville Aston Simpson, Non - Executive Director
Mr Simpson was appointed a Director of the company in March 2001. He is the Managing Director
of Pacific Crown Aviation (Fiji) Ltd, which operates a helicopter service based out of Nadi Airport
in Fiji. Mr Simpson received his training as a helicopter pilot and engineer in the Royal Navy, and
as such has been involved with the exploration industry in Fiji since 1970. He has been associated
with GPL since 1981 and a Director since 1994; he is also a Director of Beta Ltd. Mr Simpson is a
citizen of Fiji.
Craig Kingsley McCabe, B.Ec., F.A.I.B.F., A.I.M.M.
Alternate Director to Mr Simpson.
Craig has over 17 years experience in financial markets, having worked for banks and merchant
banks in Australia, where he dealt in interest rates, securities and equities. In the past 12 years he
has been engaged in managing his family business with interests in Australia and Fiji.
Roger Harvie Probert, Non - Executive Director
Mr Probert was elected chairman of GPL in 1997. In 1970-71 he served for one year as a field
manager for Barringer Research in a mineral exploration programme in Fiji. In 1972 he joined The
Fiji Gas Co. Ltd., and was appointed general manager and chief executive in 1983. He is also
general manager and a Director of the associated companies, Fiji Chemicals Ltd and Tonga Gas Ltd.
He served as a board member of the Civil Aviation Authority of Fiji, Capital Markets Development
Authority, Fiji Islands Revenue and Customs Authority and chairman of Airports Fiji Ltd. He is
also chairman of the Mining Council of Fiji and was president of the Fiji Institute of Management
(1989-91) and the Fiji Employees Federation (1993-95). Mr Probert is a citizen of Fiji.
2 Principal Activity
The principal activity of the Group is exploration for gold and gold-copper deposits in Fiji.
There was no significant change in the nature of this activity of the Group during the financial year.
3 Review and Results of Operations
The loss of the Group for the year ended 31 December 2006 was $382,944 (2005: loss $135,273).
Information on the operation and financial position of the Group and its business strategies and
prospects are set out in the review of operations.
19
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
4 Dividends
The Directors do not recommend the payment of a dividend.
Dividends paid or declared since the end of the previous year were $Nil.
5 State of Affairs
In the opinion of the Directors there were no significant changes in the state of affairs of the Group
that occurred during the financial year under review, not otherwise disclosed in this report.
6 Matters subsequent to the end of the financial year
Except for the acquisition of Millenium Mining (Fiji) Limited, including its assets, no matter or
circumstance has arisen since 31 December 2006 that has significantly affected, or may significantly
affect:
(a) the Group’s operations in future financial years, or
(b) the results of those operations in future financial years, or
(c) the Group’s state of affairs in future financial years.
7 Directors’ Interests and Benefits
The beneficial interest of each Director in the ordinary share capital of the company as at the date of
this report is:
Direct shares
Indirect shares
Options
R J Fountain (1)
I J Pringle
W A Brook
I N A Simpson
R H Probert
C K McCabe (Alternate)
10,000
10,000
3,022,033
692,695
589,454
Nil
30,000
50,000
1,569,050
Nil
Nil
595,238
Nil
1,500,000
Nil
Nil
Nil
Nil
(1) Russell Fountain is a director of Finders Resources Ltd which holds 5,900,000 shares.
8 Directors’ Meetings
During the year ended 31 December 2006 a total of two Directors’ Meetings were held. Directors’
attendance record is tabulated below.
Record of Directors’ Attendance at Meetings
Director
R J Fountain
I J Pringle
W A Brook
I N A Simpson
R H Probert
C K McCabe (alt. to I. Simpson)
Service
All year
All year
All year
All year
All year
All year
* Either in person, or by electronic means.
Attended *
2
2
1
1
-
1
Eligible to
Attend
2
2
2
2
2
1
Leave of
Absence
-
-
-
-
-
-
9 Likely developments and expected results of operations
The Group will continue to develop its existing exploration tenements and seek to increase its
tenement holdings by acquiring further projects.
20
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
10 Environment Regulations
Entities in the Group are subject to normal environmental regulations in areas of operations. There
has been no breach of these regulations during the financial year, or in the period subsequent to the
end of the financial year and up to the date of this report.
11 Share Options
Options have been issued to Ian J Pringle & Associates Pty Ltd, a company controlled by Dr
Pringle, were granted on the following terms and conditions:
(a) The Optionholder is entitled on payment of the Exercise Price (being 20c, 25c and 30c in
respect of the three instalments each of 500,000 options respectively listed in paragraph (b)
below) to be allotted one ordinary share in the company for each Option exercised (subject
to possible adjustments referred to below).
(b) The Options held by the Optionholder are exercisable in whole or in part as follows:
• as to 500,000 Options, within 5 years of the first anniversary of Listing;
• as to 500,000 Options, within 5 years of the second anniversary of Listing; and
• as to 500,000 Options, within 5 years of the third anniversary of Listing (“Exercise
Period”).
Options not exercised before the expiry of the Exercise Period will lapse. The Optionholder is not
entitled to exercise the Options unless Dr Pringle continues to hold the position of Director of the
company until at least the first anniversary (and in the case of the remaining instalments each of
500,000 options, the second and third anniversaries respectively) of the date of listing the company
on the ASX.
12 Remuneration report
The remuneration report is set out under the following main headings:
A Principles used to determine the nature and amount of remuneration
B Details of remuneration
C Service agreements
D Share-based compensation
The information provided under headings A-D includes remuneration disclosures that are required
under Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been
transferred from the financial report and have been audited.
A Principles used to determine the nature and amount of remuneration
The objective of the Group’s executive reward framework is to ensure reward for performance,
being the development of the Geopacific Resources exploration tenements. The framework
aligns executive reward with achievement of strategic objectives and the creation of value for
shareholders, and conforms with market best practice for delivery of reward. The Board ensures
that executive reward satisfies the following key criteria for good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation;
•
transparency; and
• capital management.
21
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
The Group has structured an executive remuneration framework that is market competitive and
complimentary to the reward strategy of the organisation.
Alignment to shareholders’ interests:
• has economic profit as a core component of plan design;
•
focuses on sustained growth in shareholder wealth, consisting of dividends and growth
in share price, and delivering constant return on assets as well as focusing the executive
on key non-financial drivers of value; and
• attracts and retains high calibre executives.
Alignment to programme participants’ interests:
rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
•
•
• provides a clear structure for earning rewards; and
• provides recognition for contribution.
The framework provides a mix of fixed and variable pay, and a blend of short and long-term
incentives. As executives gain seniority with the Group, the balance of this mix shifts to a
higher proportion of ''at risk'' rewards.
Non-executive directors
Fees and payments to non-executive directors reflect the demands, which are made on, and the
responsibilities of, the directors. The Board reviews Non-executive directors’ fees and payments
annually. The Board may from time to time seek the advice of independent remuneration
consultants to ensure non-executive directors’ fees and payments are appropriate and in line with the
market. The Chairman’s fees are determined independently to the fees of non-executive directors
based on comparative roles in the external market. The Chairman is not present at any discussions
relating to determination of his own remuneration.
Directors’ fees
The current base remuneration was last reviewed with effect from 1 January 2006 and will be
reviewed in September 2007.
Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum currently stands at
$200,000 per year in aggregate.
Executive pay
The executive pay and reward framework has four components:
• base pay and benefits;
•
•
short-term performance incentives;
long-term incentives through participation in the Geopacific Resources NL Employee
Option Plan (Geopacific Resources Option Plan); and
• other remuneration such as superannuation.
The combination of these comprises the executive’s total remuneration.
22
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
Base pay
Structured as a total employment cost package, which may be delivered as a combination of cash
and prescribed non-financial benefits at the executives’ discretion.
Executives are offered a competitive base pay that comprises the fixed component of pay and
rewards. Base pay for senior executives is reviewed annually to ensure the executive’s pay is
competitive with the market. An executive’s pay is also reviewed on promotion.
There are no guaranteed base pay increases included in any senior executives’ contracts.
Geopacific Resources NL Employee Option Plan
Information on the Geopacific Resources Option Plan is set out in note 26.
B Details of remuneration
Amounts of remuneration
Details of the remuneration of the directors and the key management personnel (as defined in
AASB 124 Related Party Disclosures) of Geopacific Resources and the Geopacific Resources
NL Group are set out in the following tables.
The key management personnel of Geopacific Resources and the Group includes the directors:
Remuneration paid to key management personnel of Geopacific Resources and of the Group
2006
Short-term benefits
Post-employment
benefits
Share-based
payment
Name
Non-executive directors
I N A Simpson
R J Fountain
R H Probert
Sub-total non-
executive directors
Executive directors
I J Pringle
W A Brook
Totals
IPO
Success
Fees
$
Directors’
Fees
$
Salary and
Consulting
Fees
$
Superannuation Options
$
$
Total
$
-
-
-
-
20,000
20,000
40,000
-
-
-
-
-
-
-
-
-
-
-
108,826
125,977
234,803
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
47,318 176,144
- 145,977
47,318 322,121
23
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
Remuneration paid to key management personnel of the Group
2005
Short-term employee benefits
Post-employment
benefits
Share-based
payment
Name
Non-executive directors
I N A Simpson
R J Fountain
R H Probert
Sub-total non-
executive directors
Executive directors
I J Pringle
W A Brook
Totals
Cash
salary and
fees
$
Directors’
Fees
$
Consulting
Fees
$
Superannuation Options
$
$
Total
$
-
-
-
-
-
46,540
46,540
-
-
-
-
-
-
-
-
-
-
-
25,050
-
25,050
-
-
-
-
-
7,540
7,540
-
-
-
-
-
-
-
-
-
-
-
25,050
54,080
79,130
C Service agreements (audited)
(i) Mr Ian Pringle - Managing Director
A Consultancy Agreement dated 16 February 2006 has been entered into between the
company and Ian J Pringle & Associates Pty Ltd (“Consultant”), being a company
controlled by Dr Pringle. The consulting services are to be provided by the Consultant
making available the services of Dr Pringle for between 150 and 185 days per annum (or
as otherwise agreed). The Agreement commenced on 1 March 2005 for an initial term of
two years, with an option for the Company to extend the term for two further periods of
two years each, unless the consultancy is terminated earlier in accordance with the
agreement. The Consultant may terminate the agreement on not less than 4 months notice.
The Consultant may also terminate the agreement immediately without notice if the
company becomes insolvent or requires the Consultant to perform services outside the
scope of the agreement for a period of more than 100 days in any year or if the company
fails to pay moneys due under the Agreement within 14 days of demand and the company
shall pay to the Consultant the termination payment referred to below. The company may
terminate the agreement immediately without notice for serious or persistent breach,
bankruptcy, fraud or wilful neglect, total and permanent incapacitation or mental illness of
the Consultant or Dr Pringle (as the case may be), and may terminate the agreement at any
time on 1 months notice without disclosure of any reason, by payment of a lump sum
termination payment equivalent to the amount which the Consultant would have received
for providing the services for one half of the Term then remaining or 6 months, whichever
is the greater. The consultancy fee is $400 per day (prior to Listing) and $800 per day
(post Listing), plus bonuses and expenses and subject to annual review by the company.
Dr Pringle will receive fees for services rendered to the company in his capacity as a
contractor to Ian J Pringle & Associates Pty Ltd.
24
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
(ii) Mr Willie Brook - Executive Director
Mr Willie Brook entered into an employment agreement as Executive Director with the
company effective from the date of Listing, for an initial term of two years, with an option
for the company to extend the term for a further year, unless the employment is terminated
earlier in accordance with the agreement.
Mr Brook may terminate the agreement on 3 months notice. The company may terminate
the agreement immediately without notice for serious breach, bankruptcy, fraud or wilful
neglect, total and permanent incapacitation or mental illness of Mr Brook, and may
terminate the agreement at any time on 6 months notice without disclosure of any reason,
or at its discretion, by payment of the equivalent amount of remuneration in lieu of the
notice period. The salary package is Fiji$100,000 per annum, including superannuation
plus bonuses and expenses, subject to annual review by the company. He is also entitled
to the usual leave entitlements.
(iii) Non-executive directors
Directors are entitled to remuneration out of the funds of the company but the
remuneration of the non-executive Directors may not exceed in any year the amount fixed
by the company in general meeting for that purpose. Directors are also entitled to be paid
reasonable travelling, accommodation and other expenses incurred in consequence of their
attendance at Board meetings and otherwise in the execution of their duties as Directors.
Service agreements summary
Start Date
Term of
Agreement
Director
I J Pringle
1 March 2005
W A Brook
3 May 2006
2 years with
options to
extend for 2
further terms
of 2 years each
2 years with
option to
extend for
further terms
of 1 year
Fees payable
2006
$
Notice period
for termination
(months)
Company Employee
Redundancy
payment
$800 per day
1
$100,000
6
4
3
6 months
fees
6 months
salary
25
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
D Share-based compensation (audited)
Options
Options are granted on the recommendation of the directors.
Options are granted for no consideration. Options are granted for a five year period, and are
exercisable immediately after the vesting date. The options issued to Mr Ian Pringle vest on the
first, second and third anniversaries of the listing date. The options issued on 1 December 2006
vested on that date.
The terms and conditions of each grant of options affecting remuneration in the previous, this or
future reporting periods are as follows:
Grant date
Expiry date
8 May 2006
8 May 2006
8 May 2006
8 May 2012
8 May 2013
8 May 2014
1 December 2006 1 November 2009
1 December 2006 1 November 2009
Exercise
price
$0.20
$0.25
$0.30
$0.50
$0.70
Value per option
at grant date
$0.0843
$0.0757
$0.0708
$0.4945
$0.4498
Date vesting
8 May 2007
8 May 2008
8 May 2009
1 December 2006
1 December 2006
Options granted carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share.
The exercise price of options is based on the weighted average price at which the company’s
shares are traded on the Australian Stock Exchange during the five trading days immediately
before the options are granted.
Details of options over ordinary shares in the company provided as remuneration to each
director of Geopacific Resources and each of the key management personnel of the Group are
set out below. Further information on the options is set out in notes 18 and 26 to the financial
statements.
Name
Directors of Geopacific Resources
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
Number of options
granted during the year
Number of options
vested during the year
2006
2005
2006
2005
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The assessed fair value at grant date of options granted to the individuals is allocated equally
over the period from grant date to vesting date, and the amount is included in the remuneration
tables above. Fair values at grant date are independently determined using a Black-Scholes
option pricing model that takes into account the exercise price, the term of the option, the impact
of dilution, the share price at grant date and expected price volatility of the underlying share, the
expected dividend yield and the risk-free interest rate for the term of the option.
26
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
The model inputs for options granted during the year ended 31 December 2006 included:
2006
2006
2006
2006
2006
2005
(a) options are granted
for no consideration
(b) exercise price
(c) grant date
(d) vesting date
(d) expiry date
(e) share price at grant
$0.20
$0.25
$0.30
8.05.2006 8.05.2006 8.05.2006 1.12.2006 1.12.2006
8.05.2007 8.05.2008 8.05.2009 1.12.2006 1.12.2006
8.05.2012 8.05.2013 8.05.2014 1.11.2009 1.11.2009
$0.70
$0.50
date
$0.20
$0.20
$0.20
$0.71
$0.71
(f) expected price
volatility of the
company’s shares
(g) expected dividend
yield
(h) risk-free interest rate
30.0%
30.0%
30.0%
97.3%
97.3%
0.0%
6.0%
0.0%
6.0%
0.0%
6.0%
0.0%
6.25%
0.0%
6.25%
-
-
-
-
-
-
-
-
Shares provided on exercise of remuneration options
No ordinary shares in the company were provided as a result of the exercise of remuneration options
to each director of Geopacific Resources NL and other key management personnel of the Group.
Share options granted to directors and the most highly remunerated officers
Options over unissued ordinary shares of Geopacific Resources NL granted during or since the end
of the financial year to the directors and the most highly remunerated officers of the company as part
of their remuneration were as follows:
A
Remuneration
consisting of
options
B
Value at grant
date
$
C
Value at
exercise date
$
D
Value at lapse
date
$
E
Total of
columns B-D
$
26.86%
-
-
-
-
$47,318
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$47,318
-
-
-
-
Name
Directors of
Geopacific
Resources NL
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
A = The percentage of the value of remuneration consisting of options, based on the value at grant
date set out in column B.
B = The value at grant date calculated in accordance with AASB 2 Share-based Payment of
options granted during the year as part of remuneration.
C = The value at exercise date of options that were granted as part of remuneration and were
exercised during the year.
D = The value at lapse date of options that were granted as part of remuneration and that lapsed
during the year.
27
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
12 Remuneration report (continued)
Shares issued on the exercise of options
No ordinary shares of Geopacific Resources NL were issued during the year ended 31 December
2006 on the exercise of options granted. No further shares have been issued since that date. No
amounts are unpaid on any of the shares.
13 Insurance of officers
The Company has, by Deed of Access, Indemnity and Insurance, paid a premium to insure the
Directors and Company Secretary of the Group in respect of certain legal liabilities, including costs
and expenses in successfully defending legal proceedings, whilst they remain as Directors and for
seven years thereafter. The insurance contract prohibits the disclosure of the total amount of the
premiums and a summary of the nature of the liabilities.
14 Non-audit services
The Group may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor's expertise and experience with the company and/or the Group are
important.
Details of the amounts paid or payable to the auditor (Nexia Court & Co) for audit and non-audit
services provided during the year are set out below.
The board of directors has considered the position and, in accordance with the advice received from
the audit committee, is satisfied that the provision of the non-audit services is compatible with the
general standard of independence for auditors imposed by the Corporations Act 2001. The directors
are satisfied that the provision of non-audit services by the auditor, as set out below, did not
compromise the auditor independence requirements of the Corporations Act 2001 for the following
reasons:
•
•
all non-audit services have been reviewed by the audit committee to ensure they do not
impact the impartiality and objectivity of the auditor
none of the services undermine the general principles relating to auditor independence,
including reviewing or auditing the auditor's own work, acting in a management or a
decision-making capacity for the company, acting as advocate for the company or jointly
sharing economic risk and rewards.
During the year the following fees were paid or payable for services provided by the auditor of
the company, its related practices and non-related audit firms:
Consolidated
2006
$
2005
$
Assurance services
1. Audit services
Nexia Court & Co Australian firm:
Audit and review of financial reports and other audit work under
the Corporations Act 2001
Total remuneration for audit services
22,723
22,723
12,412
12,412
28
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ REPORT
(Continued)
14 Non-audit services (continued)
2. Other assurance services
Ernst & Young Fijian firm:
Consolidated
2006
$
2005
$
Audit and review of financial reports
16,183
4,045
Total remuneration for other assurance services
Total remuneration for assurance services
Taxation services
Nexia Court & Co Australian firm:
Tax compliance services, including review of company income
tax returns
Total remuneration for taxation services
15 Lead Auditor’s Independence Declaration
16,183
4,045
38,906
16,457
-
-
23,460
23,460
The lead auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 30 and forms part of the director’s report for the year ended
31 December 2006.
16 Auditor
Nexia Court & Co continues in office in accordance with section 327 of the Corporations Act 2001.
Signed in accordance with a resolution of the directors:
Dr R J Fountain
Chairman
Sydney, Australia
30 March 2007
Dr I J Pringle
Managing Director
29
LEAD AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
To the directors of Geopacific Resources NL:
I declare that, to the best of my knowledge and belief, in relation to the audit
of the financial year ended 31 December 2006 there have been:
• no contraventions of the auditor independence requirements as set out
in the Corporations Act 2001 in relation to the audit; and
• no contraventions of any applicable code of professional conduct in
relation to the audit.
Nexia Court & Co
Chartered Accountants
Stephen Rogers
Partner
Sydney
30 March 2007
30
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
GEOPACIFIC RESOURCES NL
Scope
The Financial Report and Directors’ Responsibility
The financial report comprises the income balance sheet, income statement, statement
of changes in equity, cash flow statement, accompanying notes to the financial
statements (notes 1 to 30), and the directors’ declaration, (set out on pages 33 to 58) for
both Geopacific Resources NL (the “company”) and Geopacific Resources NL and its
subsidiaries (the “Group”) for the year ended 31 December 2006. The Group
comprises the company and the entities it controlled at year’s end or from time to time
during the financial year.
The directors of the company are responsible for the preparation and true and fair
presentation of the financial report in accordance with the Corporations Act 2001.
This includes responsibility for the maintenance of adequate accounting records and
internal controls that are designed to prevent and detect fraud and error, and for the
accounting policies and accounting estimates inherent in the financial report.
Audit Approach
We conducted an independent audit in order to express an opinion to the members of
the company. Our audit was conducted in accordance with Australian Auditing
Standards in order to provide reasonable assurance as to whether the financial report is
free of material misstatement. The nature of an audit is influenced by factors such as
the use of professional judgement, selective testing, the inherent limitations of internal
control, and the availability of persuasive rather than conclusive evidence. Therefore,
an audit cannot guarantee that all material misstatements have been detected.
We performed procedures to assess whether in all material respects the financial report
presents fairly, in accordance with the Corporations Act 2001, Australian Accounting
Standards and other mandatory financial reporting requirements in Australia, a view
which is consistent with our understanding of the company’s and the Group’s financial
position, and of their performance as represented by the results of their operations and
cash flows.
We formed our audit opinion on the basis of these procedures, which included:
a
b
examining, on a test basis, information to provide evidence supporting the
amounts and disclosures in the financial report; and
assessing the appropriateness of the accounting policies and disclosures used
and the reasonableness of significant accounting estimates made by the
directors.
While we considered the effectiveness of management’s internal controls over
financial reporting when determining the nature and extent of our procedures, our audit
was not designed to provide assurance on internal controls.
31
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF
GEOPACIFIC RESOURCES NL
(Continued)
Audit Opinion
In our opinion, the financial report of Geopacific Resources NL is in accordance with:
a
the Corporations Act 2001, including
i
giving a true and fair view of the company’s and Group’s financial position as at 31
December 2006, and of their performance for the year ended on that date; and
ii complying with Accounting Standards in Australia and the Corporations Regulations
2001; and
b
other mandatory financial reporting requirements in Australia.
Nexia Court & Co
Chartered Accountants
Sydney, Australia
30 March 2007
Stephen Rogers
Partner
32
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
DIRECTORS’ DECLARATION
In the opinion of the directors of Geopacific Resources NL:
a
the financial statements and notes set out on pages 34 to 58, are in accordance with the
Corporations Act 2001, including:
i
ii
giving a true and fair view of the financial position of the company and the Group as at
31 December 2006 and of their performance, as represented by the results of their
operations, and their cash flows for the financial year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
b
c
the remuneration disclosures set out in the Directors’ Report comply with Australian Accounting
Standard AASB 124 Related Party Disclosures and the Corporations Regulations 2001; and
there are reasonable grounds to believe that the company will be able to pay its debts as and when
they become due and payable.
The directors have been given the declarations by the Managing Director and Chief Executive Officer and
Chief Financial Officer required by section 295A of the Corporations Act 2001 for the financial year
ended on 31 December 2006.
Signed in accordance with a resolution of the directors:
Dr R J Fountain
Chairman
Sydney, Australia
30 March 2007
Dr I J Pringle
Managing Director
33
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
INCOME STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2006
Revenues from continuing operations
Depreciation expense
Borrowing costs
Options expense
Unrealised foreign currency exchange
loss
Provision for diminution of loans to
subsidiaries
Administration expenses
Loss before income tax expense
Income tax expense
Note
Consolidated
The Company
2006
$
2005
$
2006
$
2005
$
4
5
5
5
5
5
7
72,280
19,092
72,280
15,157
-
-
(236,178)
(504)
(462)
-
-
-
(236,178)
-
-
(105,002)
-
-
-
-
-
(219,046)
-
(153,399)
(27,738)
(219,046)
-
(136,653)
(382,944)
(135,273)
(515,684)
(121,496)
-
-
-
-
LOSS FOR THE YEAR
(382,944)
(135,273)
(515,684)
(121,496)
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
29
29
(1.28)
(1.27)
(0.78)
(0.78)
The above income statements should be read
in conjunction with the accompanying notes.
34
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
BALANCE SHEETS
AS AT 31 DECEMBER 2006
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Receivables
Exploration expenditure
Property, plant and equipment
Investments
TOTAL NON-CURRENT
ASSETS
Note
8
9
10
11
12
13
14
Consolidated
2006
$
2005
$
The Company
2006
$
2005
$
1,256,968
167,307
17,662
76,483
38,360
-
1,262,869
7,738
17,662
1,441,937
114,843
1,288,269
-
1,796,829
8,385
-
-
866,032
3,585
-
1,465,082
169,735
-
-
59,347
11,549
-
70,896
791,042
-
-
-
1,805,214
869,617
1,634,817
791,042
TOTAL ASSETS
3,247,151
984,460
2,923,086
861,938
CURRENT LIABILITIES
Trade and other payables
Loans and borrowings
TOTAL CURRENT
LIABILITIES
15
16
260,863
-
167,333
280,000
46,605
-
38,138
280,000
260,863
447,333
46,605
318,138
TOTAL LIABILITIES
260,863
447,333
46,605
318,138
NET ASSETS
2,986,288
537,127
2,876,481
543,800
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
17
19
20
6,311,996
223,041
(3,548,749)
3,699,809
3,123
(3,165,805)
6,311,996
239,301
(3,674,816)
3,699,809
3,123
(3,159,132)
2,986,288
537,127
2,876,481
543,800
The above balance sheets should be read
in conjunction with the accompanying notes.
35
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2006
Consolidated
The Company
2006
$
2005
$
2006
$
2005
$
Notes
Total equity at the beginning of the
financial year
Net income recognised directly in
equity
537,127
616,709
543,800
609,605
-
-
-
-
Loss for the year
(382,944)
(135,273)
(515,684)
(121,496)
Total recognised income and
expense for the year
Transactions with equity holders in
their capacity as equity holders
Contributions of equity, net of
transaction costs
Employee share options recognised
in share based payments reserve
Additions to foreign currency
translation reserve
17
19
19
(382,944)
(135,273)
(515,684)
(121,596)
2,612,187
55,691
2,612,187
55,691
236,178
(16,260)
2,832,105
-
236,178
-
55,691
-
2,848,365
-
-
55,691
Total equity at the end of the
financial year
2,986,288
537,127
2,876,481
543,800
The above statements of changes in equity should be read
in conjunction with the accompanying notes.
36
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CASH FLOW STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash receipts in the course of
operations
Cash payments in the course of
operations
Interest received
Interest paid
Net Cash Used in Operating
Activities
CASH FLOWS FROM
INVESTING ACTIVITIES
Payments for plant and equipment
Proceeds from sale of plant and
equipment
(Repayment of) advance from director
Loans advanced to related parties
Exploration expenditure
Net Cash Used in Investing
Activities
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from convertible notes issue
Proceeds from share issue
Share Issue Costs
Net Cash Provided by Financing
Activities
NET INCREASE IN CASH HELD
Cash and Cash Equivalents at the
Beginning of the Financial Year
CASH AND CASH
EQUIVALENTS AT THE END OF
THE FINANCIAL YEAR
Note
Consolidated
The Company
2006
$
2005
$
2006
$
2005
$
-
437
-
-
(286,557)
72,280
-
(141,422)
108
(462)
(267,312)
72,280
-
(122,551)
-
-
30(c)
(214,277)
(141,339)
(195,032)
(122,551)
(6,128)
(717)
-
-
-
(500)
-
(869,177)
2,738
500
-
(86,154)
-
(500)
(701,778)
(169,735)
-
500
(102,543)
-
(875,805)
(83,633)
(872,013)
(102,043)
-
2,719,844
(449,277)
225,000
250,000
(194,309)
-
2,719,844
(449,277)
225,000
250,000
(194,309)
2,270,567
280,691
2,270,567
280,691
1,180,485
55,719
1,203,522
56,097
76,483
20,764
59,347
3,250
30(a)
1,256,928
76,483
1,262,869
59,347
The above cash flow statements should be read
in conjunction with the accompanying notes.
37
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
Contents of the notes to the financial statements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Summary of significant accounting policies
Financial risk management
Critical accounting estimates and judgements
Revenue
Expenses
Remuneration of auditors
Taxation
Current assets - Cash and cash equivalents
Current assets - Trade and other receivables
Current assets - Other current assets
Non-current assets - Receivables
Non-current assets – Exploration expenditure
Non-current assets - Property, plant and equipment
Non-current assets - Investments
Current liabilities - Trade and other payables
Current liabilities – Loans and borrowings
Contributed equity
Options
Reserves
Accumulated losses
Commitments
Contingent Liabilities
Particulars relating to controlled entities
Key management personnel disclosures
Related party transactions
Share-based payments
Events occurring after the balance sheet date
Segment information
Loss per share
Notes to the cash flow statement
38
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial report are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated. The
financial report includes separate financial statements for Geopacific Resources NL as an individual
entity and the Group consisting of Geopacific Resources NL and its subsidiaries.
Basis of preparation
This general purpose financial report has been prepared in accordance with Australian equivalents to
International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Compliance with IFRSs
Australian Accounting Standards include AIFRSs. Compliance with AIFRSs ensures that the
consolidated financial statements and notes of Geopacific Resources NL comply with International
Financial Reporting Standards (IFRSs). The Company financial statements and notes also comply with
IFRSs except that it has elected to apply the relief provided to parent entities in respect of certain
disclosure requirements contained in AASB 132 Financial Instruments: Presentation and Disclosure.
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in the process of applying
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial statements, are disclosed in note
3.
Significant accounting policies
Accounting policies are selected and applied in a manner which ensures that the resultant financial
information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the
underlying transactions and other events is reported.
The Company has adopted relevant new and revised accounting standards and pronouncements with no
material impact.
The following significant accounting policies have been adopted in the preparation and presentation of
the financial report:
(a) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred.
(b) Borrowing costs
Borrowing costs are expensed as incurred.
(c) Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash at bank.
39
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(d) Contributed equity
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.
(e) Employee benefits
(i) Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits, and annual leave
expected to be settled within 12 months of the reporting date are recognised in other
payables in respect of employees’ services up to the reporting date and are measured at the
amounts expected to be paid when the liabilities are settled.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is given to expected future
wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting date on
national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows.
(iii) Share-based payments
The fair value of options granted to directors and employees is recognised as an employee
benefit expense with a corresponding increase in equity. The fair value is measured at grant
date and recognised over the period during which the employees become unconditionally
entitled to the options.
The fair value at grant date is independently determined using a Black-Scholes option
pricing model that takes into account the exercise price, the term of the option, the impact of
dilution, the share price at grant date and expected price volatility of the underlying share,
the expected dividend yield and the risk free interest rate for the term of the option
The fair value of the options granted is adjusted to reflect market vesting conditions, but
excludes the impact of any non-market vesting conditions (for example, profitability and
sales growth targets). Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable. At each balance sheet date, the
company revises its estimate of the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into account the
most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to
those options is transferred to share capital and the proceeds received, net of any directly
attributable transaction costs, are credited to share capital.
40
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(f) Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes.
The nominal value less estimated credit adjustments of trade receivables and payables are
assumed to approximate their fair values. The fair value of financial liabilities for disclosure
purposes is estimated by discounting the future contractual cash flows at the current market
interest rate that is available to the Group for similar financial instruments.
(g) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using
the currency of the primary economic environment in which the entity operates (‘the
functional currency’). The consolidated financial statements are presented in Australian
dollars, which is Geopacific Resources NL’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates
of monetary assets and liabilities denominated in foreign currencies are recognised in the
income statement.
(h) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as part
of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The
net amount of GST recoverable from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from
investing or financing activities which are recoverable from, or payable to the taxation authority,
are presented as operating cash flow.
(i) Impairment of assets
Assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are Grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or
Groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered
an impairment are reviewed for possible reversal of the impairment at each reporting date.
41
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(j) Income tax
The income tax expense or revenue for the period is the tax payable on the current period’s
taxable income based on the national income tax rate adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences between the tax bases of assets and liabilities
and their carrying amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates
expected to apply when the assets are recovered or liabilities are settled, based on those tax
rates. The relevant tax rates are applied to the cumulative amounts of deductible and taxable
temporary differences to measure the deferred tax asset or liability. An exception is made for
certain temporary differences arising from the initial recognition of an asset or a liability. No
deferred tax asset or liability is recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that at the time of the transaction did
not affect either accounting profit or taxable profit or loss.
Deferred tax liabilities and assets are not recognised for temporary differences between the
carrying amount and tax bases of investments in controlled entities where the The Company is
able to control the timing of the reversal of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also
recognised directly in equity.
(k) Investments
Non-current investments in controlled entities are measured on the cost basis. The carrying
amount of non-current investments is reviewed annually by Directors to ensure it is not in
excess of the recoverable amount of these investments.
(l) Loss per share
(i) Basic loss per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of
the company, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted
for bonus elements in ordinary shares issued during the year.
(ii) Diluted loss per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per
share to take into account the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares and the weighted average number of shares
assumed to have been issued for no consideration in relation to dilutive potential ordinary
shares.
42
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(m) Deferred Exploration Expenditure
The Group has adopted the area of interest method for capitalising the costs of procurement,
exploration and evaluation of areas where applications have been made for Prospecting
Licences.
The ultimate recoupment of such costs is dependent on sale of the tenement(s) or successful
development and commercial exploitation of the areas. Amortisation charges are to be made
over the life of the areas of interest and will be determined on a basis so that the rate of
amortisation shall not lag behind the rate of depletion of the economically recoverable reserves
in the areas of interest.
The areas of interest are each of the Special Prospecting Licences in which companies in the
Group have an interest. Where exploration expenditure has been incurred during the period, it
will be carried forward in the Balance Sheet together with procurement costs as deferred mineral
exploration expenditure until the directors are of the opinion that a tenement should be
abandoned as it shows no potential for recovery of expenditure incurred, in which case the said
expenditure is written off in the Income Statements.
(n) Plant and equipment
Plant and equipment is stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include
transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are
incurred.
Depreciation on assets is calculated using the straight-line method to allocate their cost or
revalued amounts, net of their residual values, over their estimated useful lives, as follows:
- Plant, vehicles and equipment
10 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount.
These are included in the income statement. When revalued assets are sold, it is Group policy to
transfer the amounts included in other reserves in respect of those assets to retained earnings.
43
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(o) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries
of Geopacific Resources NL (‘’company’’ or ‘’The Company’’) as at 31 December 2006
and the results of all subsidiaries for the year then ended. Geopacific Resources NL and its
subsidiaries together are referred to in this financial report as the Group.
Subsidiaries are all those entities over which the Group has the power to govern the financial
and operating policies, generally accompanying a shareholding of more than one-half of the
voting rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group controls
another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by
the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group
companies are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Investments in subsidiaries are accounted for at cost in the individual financial statements of
Geopacific Resources NL.
Unrealised gains on transactions between the Group and its associates are eliminated to the
extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset transferred. Accounting
policies of associates have been changed where necessary to ensure consistency with the
policies adopted by the Group.
(p) Revenue recognition
(i) Sale of Goods and Disposal of Assets
Revenue from the sale of goods and disposal of other assets is recognised when the Group
has passed the risks and rewards of ownership to the buyer.
(ii) Interest Income
Interest income is recognised on an accrual basis.
(iii) Other Income
Other income is recognised on receipt.
(iv) General
All revenue is stated net of goods and services tax (GST).
44
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(q) Segment reporting
A business segment is a group of assets and operations engaged in providing products or
services that are subject to risks and returns that are different to those of other business
segments. A geographical segment is engaged in providing products or services within a
particular economic environment and is subject to risks and returns that are different from those
of segments operating in other economic environments.
(r) Trade receivables
Trade receivables are recognised initially at fair value, less provision for doubtful debts.
(s) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end
of financial year which are unpaid. The amounts are unsecured and are usually paid within 30
days of recognition.
(t) New accounting standards and UIG interpretations
Certain new accounting standards and UIG interpretations have been published that are not
mandatory for 31 December 2006 reporting periods. The Group’s assessment of the impact of
these new standards and interpretations is set out below.
(i) UIG 4 Determining whether an Asset Contains a Lease
UIG 4 is applicable to annual periods beginning on or after 1 January 2006. The Group
has not elected to adopt UIG 4 early. It will apply UIG 4 in its 2007 financial statements
and the UIG 4 transition provisions. The Group will therefore apply UIG 4 on the basis of
facts and circumstances that existed as of 1 January 2006. Implementation of UIG 4 is not
expected to change the accounting for any of the Group’s current arrangements.
(ii) UIG 5 Rights to Interests arising from Decommissioning, Restoration and Environmental
Rehabilitation Funds
The Group does not have interests in decommissioning, restoration and environmental
rehabilitation funds. This interpretation will not affect the Group’s financial statements.
(iii) AASB 2005-9 Amendments to Australian Accounting Standards [AASB 4, AASB 1023,
AASB 139 & AASB 132]
AASB 2005-9 is applicable to annual reporting periods beginning on or after 1 January
2006. The amendments relate to the accounting for financial guarantee contracts. The
Group does not have any financial guarantee contracts. This standard will not affect the
Group’s financial statements.
(iv) AASB 2005-10 and AASB 7 Amendments to Australian Accounting Standards AASB 7
AASB 7 and AASB 2005-10 are applicable to annual reporting periods beginning on or
after 1 January 2007. The Group has not adopted the standards early. Application of the
standards will not affect any of the amounts recognised in the financial statements, but
may impact the type of information disclosed in relation to the Group’s financial
instruments.
45
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
1 Summary of significant accounting policies (continued)
(v) AASB 2005-6 Amendments to Australian Accounting Standards [AASB 121]
AASB 2005-6 is applicable to annual reporting periods ending on or after 31 December
2006. The amendment relates to monetary items that form part of a reporting entity’s net
investment in a foreign operation. It removes the requirement that such monetary items
had to be denominated either in the functional currency of the reporting entity or the
foreign operation. Geopacific Resources NL does not have any monetary items forming
part of a net investment in a foreign operation. The amendment to AASB 121 will
therefore have no impact on the Group’s financial statements.
2 Financial risk management
The Group's activities expose it to a variety of financial risks; market risk (including currency risk,
fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.
The Group's overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group.
(a) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and
liabilities are denominated in a currency that is not the Group’s functional currency.
(b) Credit risk
There is negligible credit risk on financial assets of the Group since there is no exposure to
individual customers or countries and the Group’s exposure is limited to the amount of cash,
short term deposits and receivables which have been recognised in the balance sheet and is
minimised by using recognised financial intermediaries as counterparties.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of
funding through an adequate amount of committed finance facilities.
(d) Cash flow and fair value interest rate risk
The Group is exposed to a risk of change in cash flows due to changes in interest rates.
3 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the entity and that
are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. There are no estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
46
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
Consolidated
2006
$
72,280
-
-
-
2005
$
108
2,738
15,807
439
The Company
2006
$
2005
$
72,280
-
-
-
-
-
-
15,157
72,280
19,092
72,280
15,157
4
Revenue from continuing operations
Interest received
Net Gain on sale of assets
Unrealised foreign exchange gain
Other revenues
Total revenue from continuing
operations
5 Expenses
Loss before income tax has been arrived
at after charging the following specific
expenses:
Depreciation
Borrowing costs
Options expense
Unrealised foreign currency exchange
(gain)/loss
Provision for diminution of loans to
subsidiaries
-
-
236,178
-
-
504
462
-
-
-
236,178
(15,807)
105,002
-
27,738
-
-
-
-
-
6 Remuneration of Auditors
Audit Services:
Auditors of the company – Nexia Court
& Co
Audit of the financial report of the
subsidiary companies
22,723
12,412
22,723
12,412
Other Services – Tax
-
23,460
16,183
4,045
-
-
23,460
-
Other Auditors – Ernst & Young Fiji
Audit of the financial report of the
subsidiary companies
7 Taxation
a
Income Tax Expense
Prima facie
tax benefit
income
calculated at 30% on the loss from
ordinary activities
Increase/(decrease) in income tax
expense due to:
Tax benefit on losses not recognised
(114,883)
(40,582)
(154,705)
(36,449)
114,883
40,582
154,705
36,449
Income Tax Expense
-
-
-
-
47
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
Consolidated
2006
$
2005
$
The Company
2006
$
2005
$
Taxation (continued)
7
b Deferred tax assets
Future income tax benefit not
taken into account
The potential future income tax
benefit arising from tax losses and
temporary differences has not been
recognised as an asset because
recovery of
is not
probable.
Tax losses carried forward
Temporary differences
tax assets
163,625
-
163,625
119,595
-
119,595
163,625
573,031
736,656
119,595
-
119,595
The potential future income tax benefit will only be obtained if:
i.
the Group and the company derive future assessable income of a nature and an amount
sufficient to enable the benefit to be realised;
ii. the Group and the company continue to comply with the conditions for deductibility imposed by
the law; and
iii. no changes in tax legislation adversely affect the realising of the benefit.
8 Cash and cash equivalents
Current
Cash at bank
Consolidated
2006
$
2005
$
The Company
2006
$
2005
$
1,256,968
76,483
1,262,869
59,347
The average effective interest rate for 2006 was 5.75%
9 Trade and other receivables
Current
Short term deposits
Sundry debtors
GST receivable
104,942
-
62,365
167,307
24,477
2,334
11,549
38,360
-
-
7,738
7,738
-
-
11,549
11,549
The average effective interest rate for 2006 was 5.50% (2005 5.25%)
10 Other current assets
Current Prepayments
17,662
17,662
-
-
17,662
17,662
-
-
48
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
11 Receivables
Non-current
Amount owing by Geopacific Limited
Less provision for diminution
12 Exploration expenditure
Consolidated
2006
$
2005
$
The Company
2006
$
2005
$
-
-
-
-
-
-
1,492,820
(27,738)
1,465,082
791,042
-
791,042
Non-Current
Costs carried forward in respect of areas of interest in Fiji in exploration and evaluation phase
are:
Consolidated
2006
$
2005
$
The Company
2006
$
2005
$
Tenement
SPL 1377 Nuku
SPL 1434 Nadi South
SPL 1368 Vuda
SPL 1361 Sabeto
CX 667 Nadovu
Beneficial
Interest of the
Group
100%
100%
80%
100%
100%
Raki Raki Joint Venture
(SPL 1231, 1373, 1436)
50%
Movement
454,710
591,329
170,212
17,541
8,371
1,242,163
554,616
362,638
372,574
38,201
9,226
6,919
789,558
76,474
350
28,801
12,901
-
1,200
43,252
126,483
1,796,829
866,032
169,735
Carrying value – beginning of year
Additions
Amounts written off
Carrying value – end of year
866,032
930,797
-
1,796,829
779,878
86,154
-
866,032
-
169,735
-
169,735
13 Property, plant and equipment
Non-Current
Plant, vehicles and equipment at
Directors’ valuation of market value at
1 January 1999
Less: Provision for depreciation
Movement
Carrying value – beginning of year
Additions
Depreciation (included in exploration
expenditure in 2006)
Carrying value – end of year
9,639
(1,254)
8,385
3,585
6,128
(1,328)
8,385
7,367
(3,782)
3,585
3,372
717
(504)
3,585
-
-
-
-
-
-
-
49
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
14 Investments
Non-current
Investments in Unlisted Securities
. Shares in Beta Limited
. Shares in Geopacific Limited
Provision for loss on investment
15
Trade and other payables
Current
Trade creditors and accruals
Directors fees owed
Advance from director – This loan is
unsecured and interest free
16 Loans and borrowings
Current
Convertible Notes – Finders
Resources Ltd
17 Contributed equity
Issued Capital
Balance as at 1 January
Issues during period:
750,000 at 10 cents
750,000 at 10 cents
750,000 at 10 cents
250,000 at 10 cents
4,233,333 at 6.6 cents on conversion
of convertible notes
11,938,025 shares issued under IPO
308,098 shares issued in lieu of
payment for services rendered
Less share issue costs
-
-
-
-
-
-
-
-
15,372
1,866,993
(1,882,365)
-
15,372
1,866,993
(1,882,365)
-
207,418
53,445
-
260,863
41,858
124,975
500
167,333
46,605
-
-
46,605
37,638
-
500
38,138
-
280,000
-
280,000
3,699,809
3,644,118
3,699,809
3,644,118
-
-
-
-
280,000
75,000
75,000
75,000
25,000
-
-
-
-
-
280,000
75,000
75,000
75,000
25,000
-
2,719,844
-
2,719,844
-
61,620
(449,277)
-
(194,309)
61,620
(449,277)
-
(194,309)
Balance as at 31 December
6,311,996
3,699,809
6,311,996
3,699,809
At balance date the company had on issue the following securities:
- 35,762,342 (2005 – 19,282,886) fully paid ordinary shares, and
- 14,286 (2005 – 14286) contributing shares paid to 10.5 cents.
50
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
18 Options
Consolidated and Company
2006
Expiry
Issue
Date
Date
08.05.2006 08.05.2012
08.05.2006 08.05.2013
08.05.2006 08.05.2014
01.12.2006 01.11.2009
01.12.2006 01.11.2009
Total Options on issue
Exercise
Price
$0.20
$0.25
$0.30
$0.50
$0.70
Number
on issue
Granted
31 December
during
2005
year
-
500,000
-
500,000
-
500,000
-
200,000
200,000
-
- 1,900,000
Lapsed
during
year
-
-
-
-
-
-
Exercised
during
year
-
-
-
-
-
-
Number
on issue
31 December
2006
500,000
500,000
500,000
200,000
200,000
1,900,000
On 8 May 2006 the Company granted 1,500,000 options to Mr I Pringle vesting on the first, second
and third anniversaries of the listing date which are exercisable at any time until expiry five years
from the vesting date at option exercise prices of $0.20, $0.25 and $0.30.
On 1 December 2006 the Company granted 400,000 options to employees of Geopacific Ltd which
are exercisable at any time until expiry on 1 November 2009 at option exercise prices of $0.50 and
$0.70.
2005 No options were issued in 2005.
Consolidated
19 Reserves
(a) Reserves
Forfeited Share Reserve
Foreign Currency Translation
Reserve
Share-Based Payments Reserve
(b) Movements
Share-based payments reserve
Balance 1 January
Option expense
Balance 31 December
Foreign Currency Translation
Reserve
Balance 1 January
Exchange losses during year
Balance 31 December
Forfeited Share Reserve
Balance 1 January
Shares forfeited during year
Balance 31 December
Total reserves
2006
$
3,123
(16,260)
236,178
223,041
-
236,178
236,178
-
(16,260)
(16,260)
3,123
-
3,123
223,041
51
2005
$
3,123
-
-
3,123
The Company
2005
2006
$
$
3,123
3,123
-
236,178
239,301
-
-
3,123
-
-
-
-
-
-
-
236,178
236,178
-
-
-
-
-
-
-
-
-
3,123
-
3,123
3,123
3,123
-
3,123
239,301
3,123
-
3,123
3,123
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
19 Reserves (continued)
(c) Nature and purpose of reserves
Share-based payments reserve
The share based payments reserve records the value of options issued to employees and
Directors which have been taken to expenses.
Foreign Currency Translation Reserve
The Foreign Currency Translation Reserve records unrealised exchange gains and losses
during the year.
Forfeited Shares Reserve
The Forfeited Shares Reserve records the amount of paid up capital received on shares
which have been forfeited due to non payment of calls.
Consolidated
The Company
2006
$
2005
$
2006
$
2005
$
(3,165,805)
(382,944)
(3,030,532)
(135,273)
(3,159,132)
(515,684)
(3,037,636)
(121,496)
(3,548,749)
(3,165,805)
(3,674,816)
(3,159,132)
20
Accumulated losses
Accumulated losses at the beginning of
the year
Loss for the year
Accumulated losses at the end of the
year
21 Commitments
Tenement Commitments
Entities in the Group are committed for expenditure by way of cash expenditure to retain their
interest in areas over which Special Prospecting Licenses are held.
The following proposals have been made to the Mineral Resources Department of Fiji.
Tenement
SPL 1377
SPL 1434
SPL 1368
SPL 1361
SPL application CX 667
(enclosing SPL 1377)
SPL 1231/1373
Renewal to
31 December, 2007
16 March 2008
31 December, 2007
31 December, 2007
First 12 month period
after granting
31 December, 2007
Expenditure $F
200,000
200,000
100,000
50,000
60,000
200,000
SPL 1436
16 March 2008
30,000
Comments
It is expected that CX 667
will be granted in 2007
50% to be met by JV
partner Imperial Mining
(Fiji) Ltd
50% to be met by JV
partner Imperial Mining
(Fiji) Ltd
52
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
22 Contingent liabilities
Option acquisition payments
Tenement
SPL 1368
SPL 1361
Due Date
on or before 9 May 2007
on or before 9 May 2007
Expenditure
AUD$34,000
F$10,000
Comments
Under the Vuda Option to purchase and Joint Venture Agreement, Geopacific Limited (GPL)
must pay the vendor, Apisai Vuniyayawa Tora (Tora) the following amounts:
- $34,000 Australian on the first anniversary of the listing date.
Under the Sabeto Option to Purchase Agreement, also between GPL and Tora, GPL must pay the
following amounts:
- $10,000 Fijian on or before the first anniversary of the listing date.
- $30,000 Fijian on or before the second anniversary of the listing date.
23 Particulars relating to controlled entities
Class of Share
Holding Company
Amount of Investment
Beta Limited
Geopacific Limited
Ordinary
Ordinary
2006
%
100
100
2005
%
100
100
2006
$
2005
$
15,372
1,866,993
1,882,365
15,372
1,866,993
1,882,365
Geopacific Limited and Beta Limited are companies incorporated and carrying on business in
Fiji.
24 Key management personnel disclosures
(a) Directors
The names of each person holding the position of director of Geopacific Resources NL during the
financial year were:
I J Pringle
R J Fountain
W A Brook
R H Probert
I N A Simpson
C K McCabe (alternate for INA Simpson)
(b) Other key management personnel
All directors are identified as key management personnel under AASB 124 “Related Party
Disclosures”.
There are no other staff that meet the definition of key management personnel.
53
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
24 Key management personnel disclosures (continued)
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
The Company
2006
$
274,803
-
47,318
322,121
2005
$
71,590
7,540
-
79,130
2006
$
274,803
-
47,318
322,121
2005
$
71,590
7,540
-
79,130
The Company has taken advantage of the relief provided by the Corporations Regulations and has transferred
the detailed remuneration disclosures to the Directors’ report. The relevant information can be found in
sections A-D of the remuneration report included in the Directors report.
(d) Directors Loans
Director
I J Pringle
The loan was unsecured and interest free.
(e) Directors Fees Owing
Director
W A Brook
2006
$
-
2005
$
500
53,445
124,975
(f) Equity instrument disclosures relating to key management personnel
(i) Options provided as remuneration and shares issued on exercise of such options
Details of options provided as remuneration and shares issued on the exercise of such
options, together with terms and conditions of the options, can be found in section D
of the remuneration report included in the Directors report.
(ii) Option holdings
The numbers of options over ordinary shares in the Company held during the financial
year by each Director of the Company and other key management personnel of the
Group, including their personally related parties, are set out below.
54
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
24 Key management personnel disclosures (continued)
2006
Name
Directors of Geopacific Resources Ltd
Balance at the
start of the year
Granted
during the
year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of the
year
Vested and
exercisable
at the end of
the year
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
-
-
-
-
-
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
-
-
-
-
No options are vested and unexercisable at the end of the year.
2005
Name
Directors of Geopacific Resources Ltd
Balance at the
start of the year
Granted
during the
year as
compensation
Exercised
during the
year
Other
changes
during the
year
Balance at
the end of
the year
Vested and
exercisable
at the end of
the year
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(iii) Share holdings
The numbers of shares in the company held at the end of the financial year by each
Director of the Company and other key management personnel of the Group,
including their personally related parties, are set out below. There were no shares
granted during the reporting period as compensation.
2006
Name
Ordinary shares
Directors of Geopacific Resources Ltd
Balance at the start
of the year
Received during the
year on the exercise
of options
Other changes
during the year
Balance at the end
of the year
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
C K McCabe
2005
60,000
4,591,083
692,695
40,000
589,454
595,238
Name
Ordinary shares
Directors of Geopacific Resources Ltd
Balance at the start
of the year
I J Pringle
W A Brook
I N A Simpson
R J Fountain
R H Probert
C K McCabe
60,000
4,591,083
692,695
40,000
589,454
595,238
-
-
-
-
-
-
Received during the
year on the exercise
of options
-
-
-
-
-
-
60,000
4,591,083
692,695
40,000
589,454
595,238
Other changes
during the year
Balance at the end
of the year
-
-
-
-
-
-
-
-
-
-
-
-
60,000
4,591,083
692,695
40,000
589,454
595,238
55
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
25 Related party transactions
All transactions with related parties are on normal commercial terms and conditions.
26
Share-based payments
(a) Employee Option Plan
The establishment of the Geopacific Resources NL Employee Option Plan was approved by
shareholders at the 2001 annual general meeting. All staff and consultants are eligible to
participate in the plan.
Options are granted under the plan for no consideration. Options are granted for a five year
period.
Options granted under the plan carry no dividend or voting rights.
When exercisable, each option is convertible into one ordinary share.
The exercise price of options is based on the weighted average price at which the
company’s shares are traded on the Australian Stock Exchange during the five trading days
immediately before the options are granted.
Set out below are summaries of options granted under the plan:
Grant date
Expiry date
Exercise price Value per option at
Date vesting
8 May 2006
8 May 2006
8 May 2006
8 May 2012
8 May 2013
8 May 2014
1 December 2006 1 November 2009
1 December 2006 1 November 2009
$0.20
$0.25
$0.30
$0.50
$0.70
grant date
$0.0843
$0.0757
$0.0708
$04945
$0.4498
8 May 2007
8 May 2008
8 May 2009
1 December 2006
1 December 2006
No options were forfeited during the periods covered by the above tables.
The weighted average share price at the date of exercise of options exercised during the year
ended 31 December 2006 was $0.3237 (2005 – N/A).
The weighted average remaining contractual life of share options outstanding at the end of
the period was 5.62 years (2005 – na).
The assessed fair value at grant date of options granted to the individuals is allocated equally
over the period from grant date to vesting date, and the amount is included in the
remuneration tables above. Fair values at grant date are independently determined using a
Black-Scholes option pricing model that takes into account the exercise price, the term of the
option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk-free interest rate for the term
of the option.
56
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
27 Events occurring after the balance sheet date
Except for the acquisition of Millenium Mining (Fiji) Limited, including its assets, no matters or
circumstances have arisen since 31 December 2006 that have significantly affected or may
significantly affect the Group’s operations in future financial years, or the results of those
operations in future financial years, or the Group’s state of affairs in future financial years.
28
Segment information
The Group operates in one business segment being mineral exploration in Fiji.
29 Loss per share
Consolidated
2006
Cents
2005
Cents
(a) Basic loss per share
Loss attributable to the ordinary equity holders of the company
1.28
0.78
(b) Diluted loss per share
Loss attributable to the ordinary equity holders of the company
1.27
0.78
(c) Reconciliations of loss used in calculating loss per share
Basic loss per share
Loss attributable to the ordinary equity holders of the company
used in calculating basic loss per share
Diluted loss per share
Loss attributable to the ordinary equity holders of the company
used in calculating diluted loss per share
(d) Weighted average number of shares used as the denominator
Consolidated
2006
$
2005
$
(382,944)
(135,273)
(382,944)
(135,273)
Consolidated
2006
Number
2005
Number
Weighted average number of ordinary shares used as the
denominator in calculating basic loss per share
Adjustments for calculation of diluted loss per share:
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
loss per share
29,907,210
17,278,776
352,438
-
30,259,648
17,278,776
57
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 DECEMBER 2006
30 Notes to the cash flow statement
(a) For the purpose of the Cash Flow Statement, Cash and cash equivalents include Cash at bank.
Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the
related items in the Balance Sheet as follows:
Consolidated
The Company
2006
$
2005
$
2006
$
2005
$
Cash at Bank
1,256,928
76,483
1,262,869
59,347
(b) Non Cash Financing
Conversion of redeemable notes
into shares
Shares issued in lieu of payment
for services rendered
(c) Reconciliation of Cash Flows
from Operating Activities
280,000
61,620
-
-
280,000
61,620
-
-
Loss for the year
(382,944)
(135,273)
(515,684)
(121,496)
Depreciation
Provision for diminution loans to
subsidiaries
Options expense
Net gain on sale of assets
-
-
504
-
236,178
-
-
(2,738)
-
27,738
236,178
-
-
-
-
-
Changes in Assets and
Liabilities:
(Decrease)/increase in receivables
Decrease in other assets
Increase in payables
Net Cash Used in Operating
Activities
(128,947)
(17,662)
79,098
(14,592)
-
10,760
3,811
(17,662)
70,587
(5,918)
-
4,863
(214,277)
(141,339)
(195,032)
(122,551)
58
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
CORPORATE GOVERNANCE STATEMENT
The Board of Directors is responsible for the corporate governance of the Company including its
strategic development, and has adopted the following principles:
Accountability - The Board is accountable to the Company Shareholders for the performance of the
Company and will have overall responsibility for its operations. Day to day management of the
Company’s affairs and the implementation of the corporate strategy and policy initiatives is delegated
by the Board to the Managing Director.
Board Composition - The Directors consider the size and composition of the Board is appropriate
given the size and status of the Company. However, the Company’s constitution provides that at every
annual general meeting, one third of the directors shall retire from office but may stand for re-election.
Conflicts of Interest - In accordance with the Corporations Act and the Company’s constitution, the
Directors must keep the Board advised, on an ongoing basis, of any interest that could potentially
conflict with those of the Company.
Director and Senior Management Dealings in Company Securities - The Company’s constitution
permits the Directors to acquire securities in the Company. However, the Company policy prohibits
directors and senior management from trading the Company’s securities at any time whilst in possession
of price sensitive information, and for 24 hours after any major announcements, the release of the
Company’s annual financial results to the ASX or the annual general meeting.
Board Committees - The Board of Directors takes ultimate responsibility for corporate governance
including the functions of establishing compensation arrangements of the Managing Director and its
senior executives and officers, appointment and retirement of non-executive directors, appointment of
and
auditors,
Remuneration/Nomination Committees. The Board seeks independent professional advice as necessary
in carrying out its duties and responsibilities.
risk, maintenance of
areas of business
and Audit
standards
ethical
Continuous Disclosure - The Company has a policy that all the Company shareholders and investors
have equal access to the company’s information and that shareholders will be informed of all major
developments affecting the Company’s state of affairs. The Chairman of the Board ensures that all price
sensitive information is disclosed to the ASX in accordance with the continuous disclosure requirements
of the Corporations Act and the ASX Listing Rules. The company secretary has primary responsibility
for all communications with the ASX.
Code of Ethics - The Directors, management and staff are expected to perform their duties for the
Company in a professional manner and act with the utmost integrity and objectivity, striving at all times
to enhance the reputation and performance of the company.
Share Based Payments - The Company has and intends to issue options to Directors and senior staff as
an incentive in relation to performance of their duties.
59
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ASX INFORMATION
The shareholder information set out below was applicable as at 26 March 2007.
A. Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1
1,001
5,001
10,001
100,001 and over
-
-
-
-
1000
5,000
10,000
100,000
Class of equity security
Ordinary shares
Shares
8,224
211,863
1,510,900
8,658,508
28,746,287
Options
-
-
-
-
1,900,000
There were xx holders of less than a marketable parcel of ordinary shares.
B. Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest holders of Fully Paid Ordinary quoted equity securities are listed
below:
Name
Ordinary shares
FINDERS CAPITAL LTD
YARRAANDOO PTY LTD
OTTER GOLD MINES LTD
MR OWEN LEIGH HEGARTY
ROMADAK PTY LTD
MR RAYMOND JANSEN & MISS K F JANSEN
GRAHAM JULL & ASSOCIATES LTD
MOONDANCE VENTURES LTD
SHIMMERING BRONZE PTY LTD
RESINFUND PTY LIMITED
ROMADAK PTY LTD
ADMIRAL TOWER PTY LTD
MR JOSATEKI NALUKUYA SOVAU
ADMIRAL TOWER PTY LTD
TELICA NOMINEES PTY LTD
MR ROBERT ADRIAN MAXWELL
TICKET NOMINEES PTY LTD
MR ROBERT ADRIAN MAXWELL
EXPLORATION & DRILLING SERVICES PTY LTD FIJI
PALAZZO NOMINEES PTY LTD
Total of Top 20 share holdings
Other shareholders
Total ordinary shares
60
Number held
2,316,667
1,962,600
1,808,451
750,000
750,000
521,008
503,644
502,008
500,000
500,000
500,000
500,000
460,097
385,200
372,600
372,600
366,300
350,000
308,098
302,600
14,031,873
15,052,136
29,084,009
Percentage of
issued capital
7.965
6.748
6.218
2.579
2.579
1.791
1.732
1.726
1.719
1.719
1.719
1.719
1.582
1.324
1.281
1.281
1.259
1.203
1.059
1.040
48.246
51.754
100.000
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ASX INFORMATION
(Continued)
B. Equity security holders (continued)
The names of the holders of 52.5c shares partly paid to 10.5c quoted equity securities are listed
below:
Holder Name
MR HENRY DAVID KENNEDY
Balance at
27-03-2007
14,286
14,286
Total
%
100.000
100.000
C.
Substantial holders
Substantial holders in the company are set out below:
Substantial Shareholder
(extracts from Substantial Shareholder Register)
FINDERS CAPITAL LTD
YARRAANDOO PTY LTD
OTTER GOLD MINES LTD
Shareholding
Number held Percentage
7.965
6.748
6.218
2,316,667
1,962,600
1,808,451
D. Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) Fully paid Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
(b) Partly paid Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote in proportion to the amount paid up on the shares.
(c) Options
No voting rights.
61
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
ASX INFORMATION
(Continued)
E. Summary of options issued
No of
options
No of
holders
Options
held
% Options
Issued
Options expiring 8 May 2012 with an
exercise price of $0.20
Option holders with more than 20% of class
Ian Pringle
Options expiring 8 May 2013 with an
exercise price of $0.25
Ian Pringle
Options expiring 8 May 2014 with an
exercise price of $0.30
Option holders with more than 20% of class
Ian Pringle
Options expiring 1 November 2009 with an
exercise price of $0.50
Option holders with more than 20% of class
Simon Yardley
Roman Leslie
500,000
500,000
500,000
200,000
Options expiring 1 November 2009 with an
exercise price of $0.70
Option holders with more than 20% of class
200,000
Simon Yardley
Roman Leslie
1
1
1
2
2
500,000
100.00%
500,000
100.00%
500,000
100.00%
100,000
100,000
50.00%
50.00%
100,000
100,000
50.00%
50.00%
62
Anticipated
Expenditure
F$160,000 is proposed
for the period to 31
December 2006. A
similar expenditure is
anticipated for 2007.
Costs 100% GPL
F$105,000 is proposed
for the 12 month period
to 16 March 2007. A
similar expenditure is
anticipated for the
remainder of 2007.
Costs 100% GPL
F$125,000 is proposed
for the period to 31
December 2006. A
similar expenditure is
anticipated for 2007.
Costs 50% Beta.
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
Tenement
Location
Area
Status
SPL 1377
NUKU 100%
GPL
50 km NNW
of Suva
2,370 ha
SPL 1434
NADI SOUTH
100% GPL
7 km
SE of Nadi
7,450 ha
Raki Raki
Approx.
7,790 ha.
SPL 1231
RAKI RAKI
50% Beta
50% Peninsula
Minerals
Granted on 15 August
1996 to GPL. Renewal
application has been
lodged and grant of
renewal is dependent on
meeting outstanding and
current expenditure
requirements, which will
be achieved in 2007.
Granted on 9 June 2005
to GPL for an initial 12
month period to 16
March 2006. Renewal
application was lodged
for the period to 16
March 2007 and grant of
renewal is dependent on
meeting outstanding and
current expenditure
requirements, which have
now been met.
Granted on 6 November
1985 to Beta. Peninsula
Minerals has earned
50.0%. Renewal
application was lodged
for the 12 month period
to 31 December 2006 and
grant of renewal is
dependent on meeting
outstanding and current
expenditure requirements,
which have now been
met.
63
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
(Continued)
Tenement
Location
Area
Status
Raki Raki
Approx.
3,440 ha.
SPL 1373
QALAU
50% Beta
50% Peninsula
Minerals
Raki Raki
Approx.
2,500 ha
SPL 1436
TABUKA
50% Beta
50% Peninsula
Minerals
CX 667
NADOVU
SPL application.
Nuku
Approx.
7,300 ha
100% GPL
Granted on 6 July 1995 to
Beta. Peninsula Minerals
has earned 50.0%.
Renewal application was
lodged for the 12 month
period to 31 December
2006 and grant of
renewal is dependent on
meeting outstanding and
current expenditure
requirements, which have
now been met.
Granted on 9 June 2005
to Beta for an initial 12
month period to 16
March 2006. Peninsula
Minerals has 50%
interest. Renewal
application was lodged
for the period to 16
March 2007 and grant of
renewal is dependent on
meeting outstanding and
current expenditure
requirements, which will
be achieved in early
2007.
Application was lodged
on 16 March 2005.
Notices appeared in local
newspapers and in the
Government Gazette in
August 2005. No
objections were received
by the MRD and granting
of CX 667 is expected
during 2007.
64
Anticipated
Expenditure
F$125,000 is proposed
for the period to 31
December 2006. A
similar expenditure is
anticipated for 2007.
Costs 50% Beta.
F$30,000 is proposed
for the 12 month period,
to 16 March 2007. A
similar expenditure is
anticipated for the
remainder of 2007.
Costs 50% Beta.
F$60,000 is proposed
for first 12 month
period after granting.
Costs 100% GPL
Anticipated
Expenditure
Proposed expenditure of
F$75,000 to 31
December 2006.
A similar expenditure is
anticipated for 2007.
Costs 100% GPL.
Proposed expenditure of
F$50,000 to 31
December 2006.
A similar expenditure is
likely for 2007.
Costs 100% GPL.
GEOPACIFIC RESOURCES NL
ACN 003 208 393
and Controlled Entities
SCHEDULE OF TENEMENTS
(Continued)
Tenement
Location
Area
Status
9,510 ha
15 km
NNE of
Nadi
SPL 1368
VUDA
GPL has option
to purchase 80%
by GPL by 22
February 2008
SPL 1361
SABETO
3-year option to
purchase 100%
by GPL.
16 km NE of
Nadi
3,850 ha
Granted on 18 October
1994. Ministerial
approval for a 3 year
option to purchase 80%
was granted on 2
February 2005.
Agreement signed 22
February 2005. Renewal
application of SPL 1368
was lodged for the 12
month period to 31
December 2006 and
renewal is dependent on
meeting outstanding and
current expenditure
requirements, which will
have been met by 31
December 2006.
Granted on 6 October
1999. Ministerial
approval for a 3 year
option to purchase 100%
granted 21 March 2005.
Agreement signed 4 April
2005. Application to
renew the SPL was
lodged and is dependent
on meeting out-standing
and current expenditure
requirements, which will
be achieved in early
2007.
65