Annual Report
For the year ended 30 June 2021
New Age Exploration Ltd
ACN 004 749 508
Level 2, 480 Collins Street
Melbourne, VIC 3000
+61 3 9614 0600
info@nae.net.au
Phone:
Email:
NAE Annual Report 30 June 2021
CONTENTS
CORPORATE DIRECTORY ............................................................................................................ 3
DIRECTORS’ REPORT ................................................................................................................ 34
AUDITOR’S INDEPENDENCE DECLARATION ............................................................................. 42
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................. 43
STATEMENT OF FINANCIAL POSITION ..................................................................................... 44
STATEMENT OF CHANGES IN EQUITY ...................................................................................... 45
STATEMENT OF CASH FLOWS .................................................................................................. 46
DIRECTORS’ DECLARATION ...................................................................................................... 65
INDEPENDENT AUDITOR’S REPORT ......................................................................................... 66
SHAREHOLDER INFORMATION ................................................................................................ 70
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CORPORATE DIRECTORY
NAE Annual Report 30 June 2021
Directors
Mr Alan Broome AM (Non-Executive Chairman)
Mr Joshua Wellisch (Executive Director)
Mr Adrien Wing (Non-Executive Director)
Company Secretaries
Registered Office and
Principal Place of Business
Mr Adrien M Wing
Ms Pauline Moffatt
Level 2
480 Collins Street
Melbourne VIC 3000
+61 3 9614 0600
Share Register
Auditor
Link Market Services Limited
Level 12
250 St George’s Terrace
Perth WA 6000
+61 1300 554 474
RSM Australia Partners
Level 21
55 Collins Street
Melbourne VIC 3000
Solicitors
Quinert Rodda & Associates
Suite 1, Level 6
50 Queen Street
Melbourne VIC 3000
Stock Exchange Listing
New Age Exploration Limited shares are listed on the Australian
Securities Exchange (ASX code: NAE)
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ACTIVITIES REPORT
KEY MILESTONES
NAE Annual Report 30 June 2021
PILBARA GOLD PROJECTS
• Acquired northern Pilbara tenements from Monterey Minerals (CSE: MREY)
o The new ground acquired from Monterey is in an under-explored part of the Pilbara, and close
to Hemi, the most exciting gold discovery made in WA for some years
• NAE’s 100% owned and granted Pilbara Projects now total 2400km2
• Completed an aeromagnetic survey covering 460km2 over the northern package of Pilbara Gold
Projects
o Detailed aeromagnetic data highlighted several “Hemi Style” intrusive gold targets over the
northern package of Pilbara Gold Projects
o KL-150 Aircore rig was mobilised to site and commenced the maiden High Priority drill
programme as planned
• Drill programme on the Northern Pilbara package completed:
o Programme completed 37 holes for a total of 1159m as a first pass litho-geochemical
assessment of the 12 high priority “Hemi-style” targets
o Drilling encountered previously unrecognised mafic-ultramafic lithologies with low level
anomalous Gold and Base Metal results
o Assessment of geophysical data and multi-element geochemistry underway
• Secured by exploration licence application Quartz Hill and Bullock Wells Gold Projects in the Central
Pilbara district of Western Australia
• Exploration licences granted within Quartz Hill Gold project adjacent to and within 60km2 of De Grey
Mining’s (ASX:DEG) Hemi gold deposit in the Pilbara, WA:
o E47/4408 and E47/4450
o E47/5724, E47/5725 and E47/5726 covering an additional 651km2
o E47/4406, E47/4407 and E47/4435 covering an additional 547km2
• Aeromagnetic survey on 100m line-spacing, covering 220km2 over the Bullock Well Gold Project and a
portion of the Quartz Hill Gold Project completed:
o Aeromagnetic data highlighted several intrusive and shear hosted gold targets along with
Nickel/Copper/Cobalt targets identified with coincident ultramafic units
o Field sampling programme was completed to refine the priority drill targets
o No previous detailed magnetic surveys have been flown over the projects which is critical in
identifying potential intrusive Hemi style gold targets
o The team is assessing the ground for Hemi style and shear-hosted gold deposits which are
located adjacent to De Grey Mining’s (ASX: DEG) ground which hosts the >6.8m oz Mallina gold
resources plus the Hemi deposits.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
NEW ZEALAND GOLD PROJECTS
LAMMERLAW GOLD PROJECTS
• Advanced Lammerlaw Gold Project in New Zealand with a subsequent exploration permit application
over 75km2
• Applied to extend the duration of its Lammerlaw prospecting permit (MPP60544) to continue ridge and
spur soil sampling along electromagnetic lineation
• Received additional gold assay results from in-fill soil sampling completed earlier in 2021 that shows a
series of northwest trending gold-arsenic anomalies that are 200m-1,000m in strike
• Results
indicate
strong potential
for
shear hosted gold mineralisation along
the
metamorphic/lithological boundaries
• Multiple anomalous arsenic samples have been identified at Lammerlaw Gold Project from regional
soil sampling carried out in November 2020 with samples returning arsenic over 300ppm
MANORBURN AND MARLBOROUGH
• Expanded New Zealand footprint with two new prospecting permits applied for in the South Island -
The Manorburn and Marlborough applications are 100% owned by NAE and cover 720km²
• Both application areas are prospective for orogenic gold mineralisation and complement NAE’s existing
Gold Exploration prospects, Lammerlaw and OPQ
• Completed a research review on the Marlborough and Manorburn gold projects in New Zealand, that
highlight potential additional mineralisation
UK Coking Coal
Lochinvar
•
Lochinvar central licence renewal completed.
CORPORATE
•
•
•
In September 2020, capital raising completed to secure A$2.18M (before costs)
In May 2021, firm commitments received for A$3.6m share placement (before costs) at A$0.018 (1.8
cents) per share
Funds raised enabled NAE to advance exploration and drilling for its existing Pilbara and New Zealand
gold projects
• Confirmed appointment of Mr Adrien Wing as Non-Executive Director and resignation of Mr Stephen
Layton as Non-Executive Director
• NAE will focus on advancing its gold exploration projects in the Pilbara Gold District, the South Island
of New Zealand and will strengthen efforts to acquire new opportunities which establish shareholder
value
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
PILBARA GOLD PROJECTS – WESTERN AUSTRALIA
Northern Pilbara Acquisitions
As announced on 29 September 2020, NAE had the right to acquire 100% ownership of the new tenements
from Monterey Minerals Inc (Monterey) (CSE:MREY). The option to acquire the tenements had been
extended by a further 6 months to enable a maiden High Priority drill programme to be completed in the
first half of 2021 to finalise the detailed due diligence.
Additionally in September 2020, NAE advised that it had made significant ground acquisitions at the ‘Bullock
Well Gold Project’ and attaching the ‘Quartz Hill Gold Project’ in the Central Pilbara Gold district, Western
Australia. The Company secured 100% ownership of the strategic tenement package from Monterey, located
~50km south of De Grey Mining’s (ASX: DEG) Hemi gold discovery.
The acquisition of these 4 licenses provided NAE immediate access to granted tenure and established a
substantial footprint in a highly competitive exploration space.
The new ground comprises four, granted exploration licences from Monterey: E45/5180, E47/38 86, E47/3887
and E47/3891.
The four Monterey licences lie in 3 clusters, with E47/3886, E47/3887 and E47/3891 located contiguous and
adjacent to NAE’s current tenure, and E45/5180 located 70km further East. E47/3886 is located immediately
West of, and E47/3891 lies immediately South of Novo’s Egina gold project, and 40km south of De Grey’s
Hemi gold discovery. Novo has delineated extensive terraces of shallow, gold-bearing gravels at Egina.
E47/5180 is further East, near Marble Bar and adjacent to Novo’s historical, high-grade Talga Talga gold
project (which produced 1,614 oz at average grade of 35.1 g/t gold).
A further 3 exploration licence applications have been made over vacant ground with, E47/4450 and
E47/4435 forming a contiguous ‘Quartz Hill’ block combined with the acquired E47/3891. The total area of
the expanded Quartz Hill Gold Project comprises 1,690 km².
The third EL application E47/4421 is contiguous with the acquired E47/3886 and adjacent to E47/3887
forming the Bullock Well Gold Project. That project area comprises 166.5 km².
The new ground acquired from Monterey is in an under-explored part of the Pilbara, and close to Hemi, the
largest and most exciting gold discovery made in WA for some years. Most of the ground is under cover and
has received little attention from historical gold prospectors. It contains margins of Sister Suite granite
intrusions, and gold deposits are seen to align in structures around these granites, and in pressure-shadows
adjacent to granites. The ground also shows some evidence for ultramafic rocks subcropping on E47/3 891.
In late August 2021, the Company announced its acquisition of the northern Pilbara tenements from Monterey.
Under the Option and Asset Sale Agreement dated 28 September 2020 between NAE, Monterey and their
subsidiaries (as previously announced), NAE had the right to acquire 100% ownership of the Tenements from
Monterey. Completion of this acquisition has now occurred with the following consideration being paid by NAE:
(a) upfront consideration of 7.5 million shares in NAE; and
(b) deferred consideration consisting of 30 million NAE shares issuable to Monterey upon NAE delineating
a 250koz gold indicated JORC resource on the Tenements and a further 30 million shares upon NAE
delineating a 500koz gold indicated JORC resource on the Tenements.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
The acquisition followed an initial review of the results from the first phase of drilling recently completed on
the tenements. The drill programme comprised 37 shallow air core holes for ~1159m on the high priority
targets within the northern package of Pilbara Gold projects including E47/5064, E47/5065 and E47/3958. The
tenure is located North of, and within ~50km of De Grey Mining’s (ASX:DEG) Hemi gold discovery containing
6.87Moz of gold in the highly prospective Central Pilbara Gold district, Western Australia.
Figure 1 - Location of Pilbara Gold Projects and recent granted applications
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Update on Activities
Northern Pilbara Package
A detailed aeromagnetic survey was completed over the entire project area and a preliminary assessment of
the data was undertaken by Core Geophysics.
The results indicated that the tenements consist primarily of granitic intrusive basement rocks beneath recent
alluvial cover, with windows of Mallina Basin, De Grey Group rocks interpreted to occur in the E47/3958,
E47/5064 and E47/5065 tenements. Several discrete, circular magnetic anomalies with characteristics similar
to the intrusions which host the Hemi Deposits have been defined within the surveys which warranted
immediate follow-up drill testing (Figure 2). The shallower, more discrete anomalies represent the high priority
Phase 1 drill targets.
Figure 2 - High Priority Magnetic “Hemi Style” drill targets on Central and West Block with
phase 1 drill holes
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Magnetic profile modelling completed over several discrete intrusion style anomalies suggest depths of
magnetic bodies from 10m to 150m (mostly < 75m), with some larger magnetic anomalies having depths of
350m. The recommendation was that the high priority anomalies be tested by shallow aircore drilling. The
survey results also delineated major structures within the granite bodies which may have some prospectivity
to host gold and base metals mineralisation.
The Phase 1 maiden drilling program was planned to comprise 40 holes for a total of 2,800m. However, due to
limited depth capability of the rig which was available at the time only 37 holes for ~1159m on the high priority
targets was completed. The tenure is located North of, and within ~50km of De Grey Mining’s (ASX:DEG) Hemi
gold discovery. The drill programme targeted ‘Hemi Style’ intrusions identified by detailed aeromagnetic data
utilising a KL-150 Moorooka Track Drill to complete the planned 50-120m Air Core holes. Follow up drilling with
a more powerful rig is now being planned for later this year.
Importantly, whilst most of the modelled magnetic targets remain untested several of the holes encountered
previously unrecognised mafic-ultramafic rocks and low-level gold and base metal geochemical anomalism in
bottom of hole samples. Mafic and ultramafic rocks such as these are a key feature of the geological setting at
Hemi and their identification in first pass regional scale scout drilling within NAE’s tenure is considered highly
encouraging.
Indicative results:
• NACO37: 2m @ 419 ppb Au from 37m depth
▪
inc 1m @ 769ppb Au
• NACO21: 2m @ 1250ppm Zn, 0.61ppm Ag, 119ppm Pb from 10m depth
▪
inc 1m @ 1400ppm Zn, 0.55ppm Ag, 115ppm Pb
Detailed assessment of all available geophysical data and of the recently acquired multi-element geochemical
results is in progress to identify new targets and further refine our existing targets. The results from this work
will guide the next phase of exploratory drilling which is planned to commence during H2 2021 subject to
availability of a suitable drill rig.
In addition, the Company received confirmation that the remaining 2 tenements E47/4408 and E47/4450 were
granted. This combined with the completion of the Northern Pilbara acquisition, brings NAE’s 100% owned
and granted landholding to 2400km2.
Central Pilbara Package – Quartz Hill and Bullock Well
During the June 2021 quarter, the Company received notification that exploration licences E47/3886, E47/3887,
E47/4421, E47/3891, E47/5724, E47/5725 and E/5726 were granted within the Quartz Hill Gold Project, in the
highly prospective Central Pilbara Gold district, Western Australia. The 100% owned and granted NAE tenure is
located South of and within 60km2 of De Grey Mining’s (ASX:DEG) Hemi gold discovery.
In April 2021, NAE commenced a detailed aeromagnetic survey covering 210km2 on 4 Exploration Licences
including E47/3886, E47/3887, E47/4421 and E47/3891 over the Bullock Well Gold Project and the granted
portions of Quartz Hill Gold Project.
E47/3891 is immediately adjoining Novo’s Egina gold project (TSE:NVO). Most of the ground is under cover and
has received little attention from historical gold prospectors. It contains margins of Sister Suite granite
intrusions and gold deposits are seen to align in structures around these granites, and in pressure-shadows
adjacent to granites. The ground also shows some evidence for ultramafic rocks subcropping.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
MagSpec was engaged to conduct the aeromagnetic survey on 100m spaced, east – west oriented lines, with a
sensor height of 30m. This represents a significant improvement in data resolution, with the tenements only
previously covered by wide 400m line spaced open file surveys.
In June 2021, the Company completed the reconnaissance field sampling programme.
The preliminary assessment and interpretation of the geophysical data identified numerous significant targets
of interest. These targets are not limited to intrusive style gold mineralisation but also include shear hosted
gold targets and Nickel (Ni)/Copper (Cu)/Cobalt (Co) targets over ultramafic units identified on published
government geological maps and interpreted ultramafic targets under cover.
The preliminary assessment of the survey results indicate that the tenements consist primarily of granitic
basement rocks beneath recent alluvial cover, with some xenoliths of ultramafic rocks within E47/3891
confirmed in GSWA mapping.
Several discrete, circular magnetic anomalies have been defined within the surveys which may represent
intrusives. In addition, major cross cutting structures and demagnetised zones are evident, representing areas
of potential fluid flow or migratory pathways that may have some prospectivity to host gold mineralisation
(Figures 3 and 4).
Figure 3 – Magnetic drill targets on Bullock Well Blocks E47/3886, E47/3887 and E47/4421
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 4 – Magnetic drill targets on the Quartz Hill block E47/3891
Follow up reconnaissance field sampling was conducted to further develop the targets before undertaking
future air core drilling. The programme was conducted over 5 days utilising a helicopter and was focused on
key magnetic targets identified in the recently completed airborne geophysical survey in the Pilbara which
included the Quartz Hill (E47/3891) and Bullock Well (E47/3886, E47/3887 and E47/4421) projects.
Soils and streams were taken comprising 8 stream sample sites and 234 soil sample sites. The stream sediment
sampling programme comprised a 2kg -5mm+2mm fraction (coarse) and a 3-4kg -2mm fraction (fine) sample
collected for geochemical analysis at Genalysis Labs for Au 2kgBLEG (fine fraction), aqua regia (fine and coarse
fractions) and multi-element analysis.
As well, a 10-12 kg sample of -2mm material was collected from the trap site for panning in the field. The benefit
of this process is to have potentially 4 results for gold, three from the laboratory and the physical gold in the
pan plus multi-element results.
The soil sampling programme comprised a 2kg -5mm+2mm fraction (coarse) and a 3-4kg -2mm fraction (fine)
sample collected for geochemical analysis at Genalysis Labs for Au 2kgBLEG (fine fraction), aqua regia (fine and
coarse fractions) and multi-element analysis. Soil traverses were undertaken after inspection of the regolith in
areas where creek sampling is not possible. Depending on the size of the magnetic anomaly soil samples were
either 25 or 50 metres apart across the magnetic target. The regolith comprised predominately skeletal colluvial
sand/soil over granite over a good portion of the magnetic targets.
Visual gold was not identified in the limited stream pan samples and no mafic rock types were observed other
than dolerite dykes and some ultramafic units which are documented on published geological maps
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
NEW ZEALAND GOLD PROJECTS
Lammerlaw Gold Project
In July 2021, the Company made an application to New Zealand Petroleum and Minerals (NZP&M), New
Zealand’s mining regulatory body that allocates mineral rights, for a subsequent exploration permit for its
Lammerlaw Gold Project located in the South Island of New Zealand. An exploration permit is the next stage
of permitting in New Zealand with the permit enabling NAE to advance the Lammerlaw Gold Project to a drilling
stage.
Lammerlaw East Exploration Permit
NAE applied for a subsequent exploration permit (MEP60807.01) over 75km² of the 265km² Lammerlaw Project
Area. NAE applied for the subsequent exploration permit over where NAE’s technical team at Verum Group
identified several gold-arsenic anomalies from soil samples that coincide with electromagnetic lineaments The
two target areas are Lammerlaw East and Waipori valley, see Figure 5 below.
Figure 5 - Exploration Permit Application Area and Gold-Arsenic Anomalous Areas
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
The granting of an exploration permit, along with land access, enables the permit holder to carry out trenching
and drilling activities. NAE anticipates a decision on the application will be made before the end of 2021 to
enable work to be carried out over the 2021/2022 summer season. A decision on a subsequent permit must
be made by NZP&M within 6 months1. NAE is planning on additional sampling and detail geological mapping
in the meantime to better constrain the anomalies and finalise initial drilling targets.
Lammerlaw Permit Extension
NAE also applied to extend the Lammerlaw prospecting permit (MPP60544) for a further two years as the
current expiry date is in November 2021. This extension will enable NAE to complete the ridge and spur
sampling to the north-west extension of the electromagnetic lineaments where the gold-arsenic anomalies that
are under the exploration permit application area are. NAE will also carry out ridge and spur sampling on the
untested southern lineaments. NAE plans to recommence the ridge and spur soil sampling programme after
winter. Anomalous areas will then be followed up with in-fill sampling to identify areas for potential further
exploration permit(s).
Figure 6 - Planned Ridge and Spur Soil Lines along EM Lineaments
1 Section 43 of the Crown Minerals Act 1991 https://www.legislation.govt.nz/act/public/1991/0070/latest/DLM246377.html
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ACTIVITIES REPORT
Lammerlaw Soil Samples
NAE Annual Report 30 June 2021
NAE despatched a further 167 soil samples from the Lammerlaw East area for gold analysis. These samples
were collected from the November 2020 and February 2021 field campaigns. The samples were taken between
and along strike of the gold-arsenic anomalies. Figure 7 below shows the full gold assay results at the
Lammerlaw East target.
Figure 7 - Gold Results at Lammerlaw East
• The assaying of the additional samples show there are a series of northwest trending gold-arsenic
anomalies (>10ppb Au and >30ppm As) that range in 200m to 1,000m in length and are generally 20m
to 100m wide. These anomalous zones also have slightly elevated base metals such as tungsten,
molybdenum and antimony, which are known be associated with shear hosted gold mineralisation
within the Otago Schist2.
2 Craw, D., MacKenzie, D.J., Pitcarin, I.K., Teagle, D.A.H., Norris, R.J., 2007. Geochemical signatures of mesothermal Au-mineralised late-metamorphic
deformation zones, Otago Schist, New Zealand, Geochemistry: Exploration, Environment, Analysis, Vol.7, PP 225-232
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
• The soil samples along the northern edge of the eastern soil lines, along strike of Buck’s Load were all
anomalous with gold (>10ppb) over 800m of strike. This includes a highly anomalous sample (sample
ID:60544-32-01) with 902ppb Au, an order of magnitude higher than any of sample.
• The samples along strike to the west of the existing anomalies constrained these anomalies with all
samples to the west below 5ppb Au.
•
In late April, NAE reported encouraging gold and arsenic results from ridge and spur and infill soil
sampling from field campaigns carried out in November 2020 and February 2021 at the Company’s
Lammerlaw Gold Project in Otago, New Zealand (Figure 8).
Current Work Program
Figure 8 - Location of NAE Permits in Otago, NZ
In November 2020, NAE’s technical team lead by Verum Group completed four (4) regional ridge and spur
soil sample lines across the Company’s Lammerlaw gold projects in New Zealand. From this reconnaissance
sampling programme two anomalous arsenic zones orientated along regional structural trends were
identified based on portable XRF analyses of the samples. Figure 9 below shows the location of the regional
ridge and spur soil lines.
Following initial results, an infill sampling programme of an additional 11 soil lines targeting these anomalous
arsenic zones was completed in February 2021. Analysis of these soil samples by portable XRF confirmed the
continuity of the arsenic anomalous zones (Figure 10). Arsenic anomaly zones consisted of at least 30ppm as
with a core of over 50ppm As reaching up to over 300ppm As.
2 Craw, D., MacKenzie, D.J., Pitcarin, I.K., Teagle, D.A.H., Norris, R.J., 2007. Geochemical signatures of mesothermal Au -
mineralised late-metamorphic deformation zones, Otago Schist, New Zealand, Geochemistry: Exploration, Environment,
Analysis, Vol.7, PP 225-232
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 9 - Regional Ridge and Spur Soil Sampling Lines Across Lammerlaw and OPQ projects
Figure 10 - Arsenic results from soil analysis to date
Soil samples that are within and adjacent to the anomalous arsenic zones were submitted to SGS New
Zealand to be assayed for gold with the results recently being returned (Figure 11). The arsenic anomalous
zone samples selected for gold analysis were defined as over 50ppm As. Soil samples within these anomalous
arsenic zones returned multiple results over 50ppb Au with broader zones of 5 to 20ppb Au. The combination
of the arsenic and gold results from the soil samples indicate:
• A 150m wide zone along the interpreted lithological contact between pelitic and psammitic schist
over a strike length of at least 2km. Although the arsenic anomaly weakens to the northwest
(although still over background levels), the gold within the soil continues at elevated levels (>50ppb)
• A parallel narrow anomalous Au-As zone over a potential strike length 2.3km, 1km to the south of
the main anomalous zone. This zone is narrower (<100m) and appears offset in several areas.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
• The results also show a potential northern extension of the historic Antimony Mine that a ppears to
intersect with anomalous As-Au zone over the northern lithological contact. Grab samples from
mullock dumps at the mine have returned gold grades of 1.69g/t and over 6% antimony.
Figure 11 - Gold results from soil samples analysed to date
Future Work
The company will have further soil samples analysed for gold where the gold anomalies in the soil are open.
Further structural mapping on limited outcrop is planned around these areas to help identify what is
potentially controlling these As-Au anomalies identified within the soil.
From the results of this work NAE’s technical team will look to identify initial drill holes to test whether these
anomalies relate to mineralised fluid flow within potential shearing within the underlying basement sc hist.
When drill targets can be identified an exploration permit to carry out this drilling will be sought.
The Company obtained a minimum impact activity consent from the Department of Conservation to carry
out work within public conservation land within the Lammerlaw Project. NAE’s technical team will be looking
to continue the regional ridge and spur soil sampling programme to the northwest along the interpreted
lithological contact within the Otago Schist that is associated with the As -Au anomalies identified to date.
The Company also obtained land access to carry out trenching along the northern extension of the O.P.Q.
deposit within their adjacent O.P.Q. Gold Project. NAE’s technical team are finalising plans to carry out this
work in conjunction with the additional ridge and spur sampling in the Lammerlaw Project in 2021.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Marlborough and Manorburn Gold Projects
In early April, NAE completed a research review of both the Marlborough and Manorburn projects. The
Company was encouraged by the results that show anomalous gold occurrences across the projects in New
Zealand.
The Manorburn Project is within the prospective Otago Schist that contains the world class Macraes Gold Mine
and a number of active drilling programmes and recently acquired exploration projects by junior exporters
have occurred in the past 12 months. The Marlborough Project is within the Marlborough Schist, a northern
analogue for the Otago Schist that has been displaced some ~450km along the Alpine Fault. Both projects are
currently under application awaiting approval by the New Zealand’s permitting agency NZP&M and once the
permits have been granted a field programme will be announced for both projects.
Figure 12 - Location of NAE’s Marlborough and Manorburn projects in relation to notable South Island gold deposits
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
MARLBOROUGH
Project Overview
The Marlborough project comprises of Minerals Prospecting Permit application 60725.01 that covers 500km²
of the Marlborough Schist Belt, a northern analogue of the Otago Schist Belt offset ~450 km along the Alpine
Fault. The permit application is to prospect for all metallic and precious metals.
Local Geology
Figure 13 - Marlborough Project Area
The Mesozoic basement rocks within the project area comprises of the biotite to chloride greenschist facies
in the southeast to the pumpellyite-actinolite facies in the northwest of the Marlborough Schist. The
Marlborough Schist is part of the wider Haast Schist and the Marlborough Schist is a northern analogue of
the Otago Schist (another subgroup of the Haast Schist) that contains the world-class Macrae’s deposits
(~10Moz). The Wakamarina Quartzite which is a prominent quartzite-metabasite formation is also found in
the project area and outcrops on the eastern side of the Wakamarina Valley. The area is cross-cut by several
large-scale faults trending NE and NW as well as a complex network of smaller scale shear zones and folds.
Locally Quaternary fluvial and colluvial sediments have in-filled a number of valleys.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 14 - Regional Geology of the Marlborough Project Area
Within the Marlborough region five deformation events are recognised. The most important for the target
mineralisation are the D3 structures. D3 structures are by low- to moderate-angle extensional mylonitic
shear zones (dips of ~30°) that are several metres thick. These shear zones formed within the ductile zone
of the crust late in the metamorphism of the schist and early in the uplift phase of the Marlborough Schist
ca. 175 ma. These D3 structures are of a similar age and origin as the low angle structures and shear zones
in the Otago Schist that host the Macraes and Rise & Shine gold deposits. These styles of deposits are low
grade but high tonnage.
D4 structures are recognised from trans-tensional faults formed in response to continued uplift of the schist
into the brittle deformation zone at ca. 140 ma and many of these faults formed near the D3 mylonite zones
but are much steeper (dips of ~70°). Uplift and the resultant tensional fracturing would have enabled the
release of crustal fluids derived from metamorphic reactions in the metamorphosed schist. These fluids are
related to the emplacement of the main quartz-gold lodes (e.g., Empire City & Golden Bar). Mineralised lodes
related to D4 structures tend to be moderate to high grade but low tonnage.
Previous Mining and Exploration
The alluvial gold diggings in the Wakamarina Valley were the largest gold producers in the Marlborough
region, and yielded some 1,026kg of gold between 1864 and the early 1900s (Downey 1928). Mining of vein
hosted gold and scheelite occurred in the 1870s, largely in the Wakamarina Valley and Top Valley areas. The
largest mine was the Golden Bar/Empire City vein system where between 1910 and 1916 that produced
62,542 tons of ore for 9,630 oz Au (3.7g/t) and 364 tons of scheelite (0.58% scheelite) (Williams 1965). Mining
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
occurred over a strike of ~700m and depths down to ~100m (Downy 1928). The reason for mining stopping
is not explained but Downey (1928) noted that the dip of the deposit changed from 70° to 30°, which is likely
to have caused the deposit to be uneconomic to mine (Williams 1965). Although the reef was mined over
~700m in length and is believed to extend to over ~1,800m of strike with a true width of 1.8m (Skinner et al
1999). In total the Wakamarina Field is believed to have produced 16,839 ounces of gold from 104,694 tons
of ore (Downey 1928). In the Top Valley reefs the only mine with reported production figures is the Jubilee
Mine with 1,187 oz of gold from 3,673 tons at a grade of 9.9 g/t over two levels recovered (Downey 1928).
Other reef systems include the Sutherlands Reefs and the Waikakaho Reefs. There is no recorded production
but testing of ore from these areas showed gold grades between 2.8 and 84g/t (Downey 1928, Williams 1965,
Walshe 1982).
Exploration of the Marlborough area commenced in the early 1970s with companies such as Lime and Marble
and BP Minerals initially exploring for tungsten (Ball 1972, McClelland 1984, Mackay 1986).
From the 1980s focused turned to gold as tungsten prices became depressed and gold price increased.
Between 1982 and 1984 CRA Exploration completed regional reconnaissance sampling that comprised of
stream sediment sampling (panned concentrate) and rock float sampling of the main streams draining into
the Wairau River (Price & Rosengren 1984). This work identified the Top Valley area as the most prospective
for gold-scheelite mineralisation. Follow up sampling occurred along historic workings and known
mineralised reefs. Table 1 below shows significant results from CRA’s rock chip sampling programme.
Table 1: Significant rock chip results from CRA (Price & Rosengren 1984)
Sample ID
9300
22790
21158
7748
22733
7296
22751
22786
Au (ppm)
10.45
9.85
6.00
4.36
4.04
4.01
3.63
2.93
Lithology
50cm thick quartz vein at Upper Jackson Lode
Quartz vein at Bob’s Dig workings
Quartz vein stockwork below the Jubilee mine
Upper Jackson Lode
Schist with cross cutting quartz veins at Upper Jackson Lode
2m wide chlorite schist from Upper Jackson Lode
Quartz vein along Jubilee Creek Road. Not associated with known workings
Well veined fractured foliated chlorite schist at Bob’s Dig workings
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 15 - CRA historical Rock Chip Sample Results
Follow up work was carried out by Summit Gold in 1986 to 1988 with further rock chip sampling around the
historic mines at Top Valley. Hohback (1987) reported 120 rock chip samples but only 69 samples are able to
be located from the map provided in the report (Hohback 1988) with these samples around the Jubilee Mine.
For the samples that the location cannot be found, grades up to 32.4g/t were reported. Of t he 69 samples
that can be located, 19 reported below detection limit for gold (0.005ppm), 12 are above 1 g/t Au with two
above 5 g/t Au (Hohback 1987). A follow up rock chip programme of 41 samples was undertaken in 1988
(Hohback 1988) with notable results in Table 2 below:
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
A two-hole drilling programme was undertaken by Summit Gold targeting the Whitehead Group and Upper
Jackson Lodes. KJDDH-1 and KJDD-2 were drilled at 60° towards 240° with HQ core recovered. KJDDH-1
reached 101 m and KJDDH-2 reached 100.5 m in length and both drill holes were targeted to intercept two
quartz lodes that dipped steeply ENE. Both holes intercepted lodes below the previous workings. Core was
lithologically logged and assayed for Au and As. In total 199 samples were assayed with maximum values of
1.89 ppm Au and 200 ppm as reported (Hohbach 1988). Significant diamond drill intersections included the
discovery of four mineralised zones within KJDD-1 with three of the 1m down hole sections having grades
over 1g/t Au. Drill hole collars and sampling results are displayed in Table 3 and 4, respectively. There is a
lack of data on the QA/QC and assay methods on the drill hole data.
Figure 16 - Summit Gold rock chip and drill hole locations at Top Valley
At Wakamarina Valley, Kiwi International Exploration Company Ltd explored the area in 1996 targeting the
Golden Bar vein system. Kiwi Int identified a potential 24m thick vein stockwork system within the Golden
Bar/Empire city mines. A total of 11 rock samples were taken from a mullock dump of the Level 2 Golden
Bar workings that included gold assays of 41.6, 9.75 and 4.02 g/t (Murfitt 1998). In 1998 GNS Science
published a report on geochemical analysis on whole rock XRF data and its use in interpreting the lithologie s
within the Wakamarina Goldfield (Skinner and Brathwaite, 1998). The study examined the patterns of
hydrothermal alteration related to lode formation and the depositional origins of the Wakamarina Quartzite.
A Total of 95 whole rock samples were analysed by XRF. Of the whole rock samples there are three
anomalous arsenic (>30ppm) samples in an area that has been mapped as a shear zone by Skinner et al 2002
and within 1km of the Golden Bar extension workings. Channel samples reported by Skinner and Brathwaite
(1999) from within the Golden Bar mine have gold grades ranging from 0.2 and 3.1ppm along an 120m
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
section of the mine. Further channel sampling by HPD New Zealand in 2006 at Golden Bar returned 4.41ppm
Au over 1.1m (Scott 2006).
BP Minerals explored for gold and identified a 6m wide steeply dipping shear zone at Waikakaho returning
gold up to 4.6g/t Au but generally around 1g/t Au (MacKay 1986). Follow up work as carried out by Prophecy
Mining in 1987 and 1988. Prophecy concluded that the area has anomalous gold and arsenic in quartz-
carbonate vein swarms, which are concordant to the host graphitic schists with the highest Au and As grades
of 1.42 g/t and 3,240 ppm respectively in channel samples over 1m around the historic working s (Robson
1989). Grab Samples by HPD also returned gold grades between 0.38 and 6.01 ppm (Scott 2006).
Glass Earth carried out an airborne magnetic and electromagnetic (EM) survey in 2007 over the Top Valley
and Wakamarina Valley.
Hawkeswood Resources commenced a systematic exploration programme in the early 2010s completing
regional rock chip samples and utilizing existing data to identify potential ductile shears that could
preferentially host shear hosted gold mineralisation at Top Valley and Wakamarina Valley (Hill 2014). No
follow up work has since been carried out to ground truth the shear zones.
In 2017 the New Zealand government completed a regional airborne magnetic survey over the Marlborough
Region. Interpretation of the data to date has focused on the Dun Mountain Ophiolite Sequence to the west.
A full interpretation of the data over the Marlborough Schist is yet to be undertaken and could identify
potential structures that could be conduits or traps for mineralised fluid.
Exploration Potential
Exploration to date has largely been focused on quartz lodes associated with D4 structures. These lodes are
what have been historically mined and sampled. The D4 structures are structurally controlled in NW trending,
steeply dipping normal faults. Hawkeswood Resources had started a more systematic regional exploration
in the 2010s but following identifying prospective areas following an initial first pass sampling programme
not further work has been carried out.
Little work has been done targeting potential mineralisation associated with D3 structures. D3 structures
have the potential to host significant gold deposits within the Haast Schist. Initial review of the Glass Earth
EM data has identified areas of potential contacts between pelitic and psammitic schist represented by sharp
EM contrasts that could represent structures that contain potential shear hosted gold. Potential ductile shear
zones have also been identified at both Top and Wakamarina valleys. These targets are yet to be tested and
represent potential structures that host low-angle shear style mineralisation similar to that at the Hyde-
Macraes and Rise and Shine shear zones in the Otago Schist.
Exploration is also planned around potential extensions to known mineralised lodes such as th e Golden Bar
lodes that has over 1km of potential strike length that has not been fully explored. There are also a down -
dip components of the structure that remains unexplored where the dip angel of the lode goes from 70° to
a low to moderate 30° and where there is a known 24m thick stockwork vein sequence. This change in dip
could represent a change to a D3 structure and warrants further mapping and sampling. At Wakamarina
Valley, the mineralised veins are associated with the Wakamarina Quartzite. The full area of the unit has yet
to be explored and will be targeted as part of planned exploration.
The Marlborough prospect is covered by airborne geophysical data acquired by the New Zealand
government in 2017. To date, no explorer has utilised this data for identifying structures or lithological
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
contacts within the Marlborough Schist, that have potential to contain shear hosted gold (± tungsten)
mineralisation, similar to what has been explored in the Otago Schist utlising the geophysical data in that
region acquired in the late 2000s. NAE may review this data to assist in identifying potential mineralised
structures within the Marlborough Schist.
Figure 17 - 8200HZ EM data for Top Valley and Wakamarina Valley showing high contrast contacts
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
MANORBURN
Project overview
The Manorburn prospect is covered by Minerals Prospecting Permit application 60716.01 and is 221.8km² in
area in Central Otago, New Zealand. Manorburn is located 20km southeast of the Rise and Shine Shear Zone
(inferred 252koz gold Mineral Resource https://santanaminerals.com/wp-content/uploads/Acquisition-of-
Bendigo-Ophir-Gold-Project-New-Zealand.pdf) that
forms the Bendigo-Ophir Gold Project recently
purchased by Santana Minerals (ASX: SMI). The application is also 85km northwest of Oceana Gold’s (ASX:
OGC) world-class Macraes Gold Mine that has combined production and Minerals Resources in excess of
10Moz gold (OGC Mineral Resource and Reserve Statement for the Year-Ended 2020). The permit application
is to prospect for all metallic and precious metals.
Figure 18 - Manorburn Project Area in relation to existing tenements in the Otago Goldfield
Local Geology
The Manorburn Project Area is located on the southern section of the Raggedy Range, a block faulted area
of quartzo-feldspathic schist of the Otago Schist belt (Bishop and Turnbull, 1996; Turnbull, 2000; and Forsyth,
2001). The area covers a number of internal, distinct subdivisions of the Otago Schist. Small remnants of
weathered, undifferentiated Miocene – Pliocene sediments are preserved in the project area (Bishop and
Turnbull, 1996). Quaternary alluvial terraces and flood plain deposits are also discontinuously located along
river and stream courses.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
The schists of the Otago Region are generally metasediments from two distinct geological terranes – the
Torlesse/Rakaia and Caples Terranes. The protolith Rakaia Terrane
is dominated by turbiditic,
quartzofeldspathic sandstones and mudstones. The protolith Caples Terrane is a turbiditic, volcaniclastic
sequence of sandstones and mudstones (Mortimer, 2004). The two terranes were metamorphosed and
amalgamated during the Mesozoic during continental collision where the Caples Terrane was thrusted over
the Rakaia Terrane (Forsyth 2001). The contact between these two terranes traces from east of the project
area then extends to the north through the Ophir Goldfield. The project area is largely within textural zone
III of the Otago Schist.
The project area is located within the biotite greenschist facies of the Otago Schist (Turnbull, 2000) with
varying carbonaceous pelitic and mafic pelitic to psammitic schist. The preferred metamorphic schist type
for shear hosted gold mineralisation are boundaries/transitions comprise variably carbonaceous pelitic
schist in sharp contact with overlying pelitic to psammitic mafic schist, within and along which shear and
related hydrothermal fluid flow is best developed within the pelitic schist hanging wall. Mineralised
structures are likely to be low grade, large volume and low angle in relation to shear, and lower volume but
higher grade in relation to fracturing at high angles to shear. The mineralisation style of higher priority is
that of the low grade, high volume orogenic gold, similar to that at Macraes and Rise & Shine, that are hosted
within low angle <20° regional shear zones.
Previous Mining and Exploration
Figure 19 - Geology of the Manorburn Project Area
There has been no historic hard rock gold mining in the area. Alluvial mining has occurred in the late 1800s
but there are minimal records of how much gold was recovered. Adjacent to the north of the Manorburn
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Project Area is the Ophir Goldfield where between 1880 and 1940, 12,750 tonnes of ore was mined at an
average grade of 3g/t Au across six shears/lodes. All of these lodes are outside of the project area but the
South Wai-iti shear was mined up to the boundary of the project area at a grade of 25g/t Au by a small
opencast.
Homestake NZ Exploration Ltd and BHP Minerals NZ Ltd completed a regional stream sediment sampling
programme over the wider area in 1987 identifying five smaller catchments within the Manorburn Project
area that were anomalous with gold (>0.7ppb Au). These catchments are all upstream from historic alluvial
gold workings as such the anomalous gold has potential to be from a hard rock source (Kerber 198 8).
In 1994 Welcome Gold Mines completed another regional stream sediment sampling programme. Within the
Manorburn Project Area the Olrig Anomaly was identified with Au (3.9ppb), Ag (163ppb), Cu (56ppm), As
(42.4ppm) and Sb (25.1ppm) over and area of 1x6km that coincident with a major east-west photo-lineament
(Torckler 1994). Following up sampling confirmed the anomalous gold with higher results (up to 44ppb Au)
but not the anomalous base metals. Assaying on follow up sampling was carried out on a differe nt mesh size
(-8mm compared to -2mm for the initial sampling).
Tasman Gold Developments Ltd prospected the southern part of the project area between 1992 and 1996.
Stream sediment sampling identified an area where there was anomalous gold the coincided with a mapped
mineralised schist (Rabone 1993). This was followed up with detailed mapping and soil sampling programme.
Soil sampling identified four small localised anomalous zones for gold (>50ppb Au) and identified northeast
trending shear zones, see Figure 16 (Dacey 1995). Rock chip sampling of the schist could not identify the
source of the anomalous soils (Dacey 1995).
The Manorburn Project area has had regional magnetic and electromagnetic survey completed over it in
2007 by Glass Earth (Fugro 2007). As part of the interpretation of the regional survey, Glass Earth identified
northwest trending lineaments from the EM data that they interpreted as areas of potential Mesozoic shears,
or high strain areas based on interpretation of the magnetic and EM data over the Hyde-Macraes Shear Zone
and follow up ground truthing (Henderson et al 2016). These shears/high strain areas are areas where metal
bearing hydrothermal fluid is likely to transport through and potentially form gold in higher concentr ations.
From this interpretation there are three areas of potential Mesozoic shear/high strain zones that trend in a
northwest direction that intersect the Manorburn Project area.
Glass Earth carried out two soil transects perpendicular to the northern lineament, but the soil samples were
panned, and gold grains counted rather than being geochemically analysed (Henderson et al 2012).
Glass Earth also identified areas of potential mafic greenschist within the Manorburn Project Area based on
the magnetic and EM data. This mafic greenschist host mineralised normal faults and high angel shear zones
in the Ophir Goldfield immediately to the north. These mafic greenschist tend NW-SE and then are orientated
N-S and potentially trend into the project area in the northeast (Glass Earth 2009). Since 2012 no further
work has been carried out on the Manorburn Project Area.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 20 - Regional EM lineaments that could potentially host Mesozoic Shear Zones
Exploration Potential
The Manorburn area remains underexplored. Aside from two regional stream sediment sampling
programmes, regional geophysical survey and a small localised soil sampling programme there has not been
a systematic exploration programme carried out at Manorburn.
NAE will be targeting the northwest trending EM lineaments that intersect through the Manorburn Project
Area. These lineaments have been interpreted throughout the Otago Schist and coincide with known
mineralised low angle shear zones such as Hyde-Macraes and Rise & Shine. These potential Mesozoic Shears
would be a high priority target for exploration as these have the potential to contain shear hosted
mineralisation.
At Macraes the shear zone is at low angles to foliation and lithology with best rheological contrast provided
by thicknesses of carbonaceous pelitic schist in contact with psammitic rock. Mapping is planned to be
carried out across these lineaments along with geochemical sampling (soil and rock chip) to determine if this
lithological contact is present and if there is gold mineralisation associated with this.
The northern lineament coincides with the Olrig Anomaly identified by Welcome Gold Mines and the five gold
anomalous catchments identify by Homestake and BHP. There is also a number of interpreted mafic
greenschist units in the area. The relationship between these anomalies have not previously been identified
or investigated. The trend of this lineament extends to the Rise & Shine Shear Zone, approximately 20km to
the northwest.
The centre lineament coincides with the gold soil anomalies identified by Tasman Gold in the 1990s. The
source/cause of the anomalous gold in these soils was not identified by Tasman Gold. The EM lineament is
located 500m to the northeast and upslope of these gold soil anomalies. Potential mineralised structures
associated with the EM lineament could be a potential source of the soil anomalies.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Figure 21 - Gold Catchment Anomalies that coincide with the northern EM lineament
Figure 22 - Gold soil anomalies that are adjacent to the central EM lineament
No previous work has been conducted on the southern lineament along the southern boundary of the
Manorburn Project area.
NAE will also consider further re-processing and interpretation of the magnetic and EM data. The EM
lineaments identified to date are based on a regional review of the geophysical data. A review on specially
the Manorburn area may assist in refining existing geophysical targets and/or potentially identify new
targets. A review of this nature was undertaken at NAE’s Lammerlaw Project in South Otago that identified
numerous potential mineralised structures where recent soil sampling has identified anomalous p athfinder
elements to gold mineralisation.
Re-processing and interpretation of the magnetic and EM data has been reccomended. The EM lineaments
identified to date are based on a regional review of the geophysical data. A review on specially the Manorburn
area may assist in refining existing geophysical targets and/or potentially identify new targets. A review of
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
this nature was undertaken at NAE’s Lammerlaw Project in South Otago that identified numerous potential
mineralised structures where recent soil sampling has identified anomalous pathfinder elements to gold
mineralisation (NAE Announcement 11 August 2020: NZ Gold Results Indicate Potential Shear Hosted Gold
Mineralisation, NAE Announcement 28 January 2021: Exploration commences at Lammerlaw Gold Pr oject -
NZ)
CORPORATE
Strategy
To focus on advancing our gold exploration projects in the Pilbara Gold district and the South Island of New
Zealand and to strengthen efforts to acquire new opportunities which establish shareholder value.
Acquisition
The Company entered into an asset purchase agreement to acquire the four (4) stated granted exploration
licences from Monterey Minerals Inc, E45/5180, E47/3886, E47/3887 and E47/3891 for a total consideration
of 25 million NAE shares under ASX Listing Rule 7.1.
In addition, the Company entered into an option and asset sale agreement to acquire a further four (4) stated
granted exploration licences from Monterey, E47/3958, E45/5064, E45/5065, E45/5063 for a total
consideration of 75 million NAE shares and 37.5 million unlisted NAE options with an exercise price of $0.02,
expiring 28 September 2023. NAE will have an exclusive right to exercise the option to acquire the tenements
on or before completion of a 45-day due diligence period. NAE was required to pay an option fee of $25,000.
In late August 2021, the Company announced its acquisition of the northern Pilbara tenements from
Monterey. Under the Option and Asset Sale Agreement dated 28 September 2020 between NAE, Monterey
and their subsidiaries (as previously announced), NAE had the right to acquire 100% ownership of the
Tenements from Monterey. Completion of this acquisition has now occurred with the following consideration
being paid by NAE:
(a)
(b)
upfront consideration of 7.5 million shares in NAE; and
deferred consideration consisting of 30 million NAE shares issuable to Monterey upon NAE
delineating a 250koz gold indicated JORC resource on the Tenements and a further 30 million shares upon
NAE delineating a 500koz gold indicated JORC resource on the Tenements.
Capital Raising
In September 2020, NAE received binding commitments for a Placement to sophisticated and professional
investors, comprising 273,250,000 fully paid ordinary shares in the Company (New Shares) at an issue price
of 0.8 cents ($0.008) per share to raise approximately A$2.18m (before costs) (Placement).
The Placement was conducted by Candour Advisory Pty Ltd as lead manager and within the Company’s
placement capacity under ASX Listing Rule 7.1 (108,121,959 shares) and ASX Listing Rule 7.1A (88,878,041
shares).
As part of this Placement, Directors of the Company committed up to A$616,000 in the offer. Director (and a
former director) participation in the Placement (76,250,000 shares) was subject to shareholder approval,
obtained at the Annual General Meeting held in November 2020.
The Capital Raising price of A$0.008 (0.8 cents) per New Share represented a 17.1% discount to the 15 -day
VWAP price (A$0.0096).
Page | 31
ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Funds raised will be used for exploration of the Company’s Pilbara and New Zealand projects, along with
working capital and to pay for the costs of the offer.
In addition, the Company issued 15,000,000 unlisted options exercisable at $0.02 (2 cents) to Candour
Advisory Pty Ltd. These options were subject to shareholder approval.
In May 2021, NAE received firm commitments to raise $3.6m (before costs) through a share placement
(Placement). The Placement was strongly supported by existing investors and several new high net worth
and institutional investors.
NAE received binding commitments for a placement to sophisticated and professional investors, comprising
200,000,000 fully paid ordinary shares in the Company (New Shares) at an issue price of 1.8 cents to raise
approximately $3.6m (before costs).
For every 3 Shares issued under the Placement investors received 1 free attaching option, each with an
exercise price of three cents ($0.03) expiring 31 December 2023 (Placement Options).
The Directors of the Company participated in the placement whereby they subscribed for 18,000,000 fully
paid ordinary shares on the same terms as the placement. The placement to direc tors was subject to
shareholder approval.
The Placement was within the Company’s placement capacity under ASX Listing Rule 7.1 (78,296,959 shares)
and Listing Rule 7.1A (121,703,041 shares). The Placement was conducted by Vert Capital Pty Ltd as lead
manager with Candour Advisory Pty Ltd and Beer & Co Pty Ltd supportive book runners.
The Capital Raising price of A$0.018 (1.8 cents) per New Share represented:
• 0.0% discount to the last traded price on Thursday 6th 2021 (A$0.018)
• 12.9% discount to the 5 day VWAP price (A$0.0207)
• 17.2% discount to the 15 day VWAP price (A$0.0217)
Funds raised from the Placement enabled NAE to advance exploration and drilling for its existing Pilbara and
New Zealand gold projects, and for general working capital.
Cash
The Company had cash reserves of A$6,375,836 as at 30 June 2021.
Board and Management Changes
On 3 July 2020, the Company announced the appointment of Mr. Adrien Wing as Non-Executive Director.
On 29 September, Mr. Stephen Layton resigned as Non-Executive Director to meet other business
commitments. Mr. Layton has played a pivotal role in the Company’s transition, both as a director and
shareholder. His contributions are much appreciated, and the board wishes him all the best with his future
endeavours.
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ACTIVITIES REPORT
NAE Annual Report 30 June 2021
Forward Looking Statements
This announcement contains ‘forward-looking information’ that is based on the Company’s expectations,
estimates and projections as of the date on which the statements were made. This forward -looking
information includes, among other things, statements with respect to the Company’s business strategy,
plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and
expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this
forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’,
‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’,
‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this
announcement are cautioned that such statements are only predictions, and that the Company’s actual
future results or performance may be materially different. Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materially different from those expressed or implied by such
forward-looking information.
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on information reviewed by Peter
Thompson, who is an exploration geologist and is a Member of the Australian Institute of Mining and
Metallurgy. Peter Thompson has over 20 years’ experience in precious and base metal exploration including
gold exploration and resource definition in the Pilbara region. Peter Thompson has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. He consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
Supporting Information and Cautionary Statements
This presentation has been prepared as a summary only, and does not contain all information about NAE’s
projects or its assets and liabilities, financial position and performance, profits and losses, prospects, and
the rights and liabilities attaching to NAE’s securities. The securities issued by NAE are considered speculative
and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on
the shares or that there will be an increase in the value of the shares in the future. NAE does not purport to
give financial or investment advice. No account has been taken of the objectives, financial situation or needs
of any recipient of this report. Recipients of this report should carefully consider whether the securit ies
issued by NAE are an appropriate investment for them in light of their personal circumstances, including
their financial and taxation position.
Page | 33
DIRECTORS’ REPORT
NAE Annual Report 30 June 2021
The Directors present their report, together with the consolidated financial statements of the Group comprising of New Age
Exploration Limited (the Company) and its subsidiaries, for the financial year ended 30 June 2021.
Directors
Directors of the Company during the whole of the financial year and up to the date of this report, unless otherwise stated:
Mr A Broome AM (Non-Executive Chairman)
Mr J Wellisch (Executive Director)
Mr A Wing (Non-Executive Director) – appointed 3 July 2020
Mr S Layton (Non-Executive Director) – resigned 29 September 2020
Company Secretaries
Mr Adrien Wing (B.Bus, CPA) was the company secretary of the Company during the whole of the financial year and up to the
date of this report. Mr Wing is CPA qualified. He practised in the audit and corporate divisions of a chartered accounting firm
before working with a number of public companies listed on the ASX as a corporate/accounting consultant and company
secretary.
Ms Pauline Moffatt is a graduate of the Australian Institute of Company Directors (GAICD) and a fellow GIA ICSA of the
Governance Institute of Australia. Ms Moffatt has a wealth of experience, providing specialised accounting and company
secretary services to public companies for over 20 years.
Meetings of directors
The number of meetings of the Company's Board of Directors held during the year ended 30 June 2021, and the number of
meetings attended by each director were:
Mr A Broome AM
Mr J Wellisch
Mr A Wing
Mr S Layton
Full Board
Held
15
15
14 1
2
Attended
14
14
13
2
‘Held’ represents the number of meetings held during the time the Director held office or was a member of the relevant
committee. The table includes decisions by circular resolutions.
Information on directors
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (in the last 3 years):
Special responsibilities:
Interests in shares:
First appointed to the Board:
Mr Alan Broome AM (I.Eng, F.AusIMM, FAICD, FICME, MInstD (NZ))
Non-Executive Director and Chairman
Mr Broome is a metallurgist with over 40 years’ experience in mining and
metals. A well-known figure in the Australian mining industry, Alan has
extensive board experience, both as a director and chairman, of a number
of listed and unlisted mining and mining technology companies. Over the
past 20 years, Alan has had in-depth experience in coal mining, mining
technology, equipment, services and research sectors, both in Australia
and abroad.
Strategic Minerals plc (Chairman)
Mustang energy plc (Chairman)
DDH1 Limited (Non-Executive Director)
Nil
Chairman of the Board
1,725,000 ordinary shares
18 February 2013
Page | 34
DIRECTORS’ REPORT
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (in the last 3 years):
Special responsibilities:
Interests in shares:
First appointed to the Board:
Name:
Title:
Experience and expertise:
Other current directorships:
Former directorships (in the last 3 years):
Special responsibilities:
Interests in shares:
First appointed to the Board:
Name:
Title:
Experience and expertise:
First appointed to the Board:
Date of resignation:
NAE Annual Report 30 June 2021
Mr Joshua Wellisch
Executive Director
Mr Wellisch is a corporate professional whose career has included several
Executive Management and Director roles in ASX listed companies. Mr
Wellisch has a breadth of experience in the acquisition, management and
development of mineral geological projects within the energy and minerals
sector. Mr Wellisch has a substantial background in Project Management
and is a member of the Project Management Institute (PMI). Mr Wellisch is
also currently a director of NRG Capital specialising in capital raisings,
corporate structuring and the facilitation of ASX listings.
Nil
Nil
Executive Director
35,777,692 ordinary shares
12 October 2018
Mr Adrien Wing
Non-Executive Director
Mr Wing is a Certified Practicing Accountant. He practiced in the audit and
corporate advisory divisions of a chartered accounting firm before working
with a number of public companies listed on the Australian Securities
Exchange as a corporate/accounting consultant and company secretary.
High Grade Metals Ltd (Non-Executive Director)
Red Sky Energy Ltd (Non-Executive Director)
Mithril Resources Ltd (Non-Executive Director) - May 2019 to February 2021
Nil
120,959,027 ordinary shares
3 July 2020
Mr Stephen Layton
Former Non-Executive Director
Mr Layton has over 35 years' experience in equity capital markets in the UK
and Australia. Mr Layton has worked with various stockbroking firms and/or
AFSL regulated corporate advisory firms. Mr Layton specialised in capital
raising services and opportunities, corporate advisory, facilitation of ASX
listings and assisting companies grow.
12 October 2018
29 September 2020
'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all
other types of entities, unless otherwise stated.
'Former directorships (in the last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and
excludes directorships in all other types of entities, unless otherwise stated.
Page | 35
DIRECTORS’ REPORT
Principal activities
NAE Annual Report 30 June 2021
During the financial year, the Group made significant progress with advancing its gold projects. The Group is focused on
advancing gold exploration projects in the Pilbara Gold district and the South Island of New Zealand and to strengthen efforts
to acquire new opportunities which establish shareholder value.
Dividends
There were no dividends paid or declared during the current or previous financial year.
Review of operations
The loss for the Group after providing for income tax amounted to $5,524,106 (2020: $4,965,036).
Additional information on the Group’s operations is included in the detailed Activities Report preceding this Directors' report.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Matters subsequent to the end of the financial year
Northern Pilbara Tenements Acquired
On 27 August 2021, the Group acquired northern Pilbara tenements from Monterey Minerals Inc. following a review of the
results received from the Phase 1 aircore reconnaissance drilling and ongoing interpretation of detailed aeromagnetic data.
Upfront consideration of 7,500,000 fully paid ordinary shares were issued under the terms of the purchase. Deferred
consideration payable consists of 30 million fully paid ordinary shares to be issued upon delineating a 250,000 ounce gold
indicated JORC resource on the tenements and a further 30 million fully paid ordinary shares to be issued upon delineating
a 500,000 ounce gold indicated JORC resource on the tenements.
COVID-19 Pandemic
The COVID 19 pandemic and the actions taken by governments and others to contain its spread have led to various
restrictions on movement being put in place and has affected the ability of how business take s place. As at the date of this
report, the Group has not been adversely affected, however the COVID-19 outbreak continues to evolve and is therefore
uncertain as to the full impact that the pandemic could have on the Group’s financial condition, liquidity, and future results.
Management is actively monitoring the global situation and its impact on the Group.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations or the Group's state of affairs in future financial years.
Likely developments and expected results of operations
The Group is continuing to advance its portfolio of exploration projects and examine the potential for investment in new
opportunities as they arise.
Environmental regulation
The Group's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of
a State or Territory in Australia as at this date.
The Group’s exploration activities in the United Kingdom, New Zealand and Australia are subject to environmental regulations
in those countries. The Board maintains responsibility that the Group is in compliance with all relevant environmental
legislation and maintains a high standard of environmental care. During the year, there were no known breaches of tenement
conditions, and no such breaches have been notified by any government agencies.
Page | 36
DIRECTORS’ REPORT
NAE Annual Report 30 June 2021
Remuneration report (audited)
The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those
persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or
indirectly, including all directors.
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
E - Additional information
A Principles used to determine the nature and amount of remuneration
Remuneration Policy
The Board practice for determining the nature and amount of remuneration of directors and other key management personnel
is agreed by the Board of Directors as a whole. The Board obtains professional advice where necessary to ensure that the Group
attracts and retains talented and motivated Directors and employees who can enhance Group performance through their
contributions and leadership.
Remuneration consists of a fixed remuneration, performance-based bonuses and long-term share options as considered
appropriate. The Board believes that options are an effective remuneration tool which preserves the cash reserves of the
Group whilst providing valuable remuneration.
Executive Director Remuneration
Due to the limited size of the Group and of its operations and financial affairs, the use of a separate remuneration committee
is not considered appropriate. In determining the level and make-up of the Executive Director remuneration, the Board
negotiates a remuneration to reflect the market salary for a position and individual of comparable responsibility and
experience.
Remuneration is periodically compared to relevant external market conditions. This is done based on surveys of peer
companies’ Managing Director remuneration and also taking into account the increase in consumer price index. If required,
the Board may engage an external consultant to provide independent advice in the form of a written report detailing market
levels of remuneration for comparable executive roles.
No external consultant was engaged during the year for the purpose of remuneration review.
Non-Executive Director Remuneration
Non-executive Directors’ fees are paid within an aggregate limit which is approved by the shareholders from time to time.
Retirement payments, if any, are agreed to be determined in accordance with the rules set out in the Corporations Act at the
time of the Directors retirement or termination. Non-Executive Directors remuneration may include an incentive portion
consisting of bonuses and/or options, as considered appropriate by the Board, which may be subject to shareholder approval
in accordance with the ASX Listing Rules.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned
amongst directors is reviewed annually. The Board considers the amount of Director fees being paid by comparable companies
with similar responsibilities and the experience of the Non-Executive Directors when undertaking the annual review process.
The Group determines the maximum amount for remuneration, including thresholds for share-based remuneration, for
Directors by resolution. At the Annual General Meeting held on 28 November 2012, shareholders approved $300,000 as the
annual maximum amount of remuneration that may be allocated to all Non-Executive Directors. Further details regarding
components of Director and executive remuneration are provided in the following tables.
Page | 37
DIRECTORS’ REPORT
NAE Annual Report 30 June 2021
Group performance, shareholder wealth and director and other key management personnel remuneration
The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and other key
management personnel through successfully achieving its primary objectives. During exploration project development phase,
these objectives are not linked to earnings. Instead, the successful discovery or acquisition of mineral resources and progress
with project development are the primary means of value creation and thus, are the primary objectives of the Company. The
achievement of this aim has been through the issue of options to Directors to encourage the alignment of personal and
shareholder interests. The recipients of the options are responsible for growing the Group and increasing shareholder value.
If they achieve this goal, the value of the options granted to them will also increase. Therefore, the options provide an incentive
to the recipients to remain with the Group and to continue to work to enhance the Group’s value.
In the financial year ended 30 June 2020, Mr A Wing received a bonus entitlement of $90,300 relating to the successful sale of
the 50% joint venture interest held by the Group in Cornwall Resources Ltd. There was no bonus in 2021.
B Details of remuneration
Details of the remuneration of the Directors and other key management personnel (defined as those who have the authority
and responsibility for planning, directing and controlling major activities) of the Group are set out in the following tables.
Short-term benefits
Salary/Fees Bonus
$
$
Post-employment
benefits
Superannuation
$
Options
$
Total
$
Performance
Related
%
2021
Non-Executive Directors:
Mr A Broome AM
Mr S Layton (1)
Mr A M Wing (2)
Executive Directors:
Mr J Wellisch
Non-Executive Directors:
Mr A Broome AM
Mr S Layton
Executive Directors:
Mr J Wellisch
Company Secretary:
Mr A M Wing
75,790
12,000
110,600
142,750
341,140
72,000
48,000
181,375
-
-
-
-
-
-
-
-
60,000
361,375
90,300
90,300
2020
$
$
(1) Resigned 29 September 2020.
(2) Appointed Director on 3 July 2021.
$
-
-
-
-
-
-
-
-
-
-
83,546
-
250,638
159,336
12,000
361,238
334,184
668,368
476,934
1,009,508
$
$
%
-
-
-
-
-
72,000
48,000
181,375
150,300
451,675
52.4
-
69.4
70.1
-
-
-
-
60.1
-
Page | 38
DIRECTORS’ REPORT
C Service agreements
NAE Annual Report 30 June 2021
Effective 15 March 2021, Mr Josh Wellisch entered into a service agreement for his role as an Executive Director at a rate of
$198,000 per annum. Short-term incentives of up to 30% of the annual fee are also able to be granted at the discretion of the
Board. The agreement can be terminated by either party upon providing 3 months notice.
NAE has no other existing service agreements as at 30 June 2021.
Key management personnel have no entitlement to termination payments in the event of removal for misconduct.
D Share-based compensation
Issue of shares
There were no shares issued to Directors and other key management personnel as part of compensation during the year ended
30 June 2021.
Shareholding
The number of shares in the Company held during the financial year by each director and other members of key management
personnel, including their personally related parties, is set out below:
2021
Ordinary shares
Alan Broome AM
Joshua Wellisch
Stephen Layton (1)
Adrien Wing
2020
Ordinary shares
Alan Broome AM
Joshua Wellisch
Stephen Layton
Adrien Wing
Balance at the
start of the year
Received as part
of remuneration
Additions
Disposals/
Other
Balance at the
end of the year
475,000
22,777,692
45,000,000
80,959,027
149,211,719
475,000
17,777,692
15,000,000
29,999,998
63,252,690
-
-
-
-
-
-
-
-
-
-
1,250,000
13,000,000
-
40,000,000
54,250,000
-
-
(45,000,000)
-
(45,000,000)
1,725,000
35,777,692
-
120,959,027
158,461,719
-
5,000,000
30,000,000
50,959,029
85,959,029
-
-
-
-
-
475,000
22,777,692
45,000,000
80,959,027
149,211,719
(1) Resigned 29 September 2020.
Issue of Options
On 25 November 2020, at the Company’s Annual General Meeting (“AGM”), shareholders approved the issue of 120,000,000
Options to the Directors with an exercise price of $0.03 (3 cents) and an expiry date of 31 December 2023. In accordance with
Accounting Standard AASB 2 Share-Based Payment, these Options have been valued at 0.56 cents each for a total of $668,368
on the grant date, being the date of the AGM, and expensed during the current period.
The number of Options held during the financial year by each director is set out below:
2021
Ordinary shares
Alan Broome AM
Joshua Wellisch
Stephen Layton (1)
Adrien Wing
Balance at the
start of the year
Received as part
of remuneration
Exercised /
Expired
Disposals/
Other
Balance at the
end of the year
-
-
-
-
-
15,000,000
60,000,000
-
45,000,000
120,000,000
-
-
-
-
-
-
-
-
-
-
-
15,000,000
60,000,000
-
45,000,000
120,000,000
(1) Resigned 29 September 2020.
Page | 39
DIRECTORS’ REPORT
NAE Annual Report 30 June 2021
E Additional information
The earnings of the Group for the five years to 30 June 2021 are summarised below:
2017
$
2018
$
2019
$
2020
$
2021
$
Revenue
Net profit/(loss) before tax
Net profit/(loss) after tax
1,746,521
689,623
689,623
1,776,869
960,492
960,492
51,835
(1,158,486)
(1,158,486)
109,677
(4,965,036)
(4,965,036)
12,077
(5,524,106)
(5,524,106)
The factors that are considered to affect total shareholders return (TSR) are summarised below:
Share price at start of year ($)
Share price at end of year ($)
Basic earnings/(loss) per share
(cents per share)
Diluted earnings/(loss) per share
(cents per share)
2017
2018
2019
2020
2021
0.009
0.010
0.17
0.17
0.010
0.006
0.21
0.21
0.006
0.004
0.004
0.007
0.007
0.011
(0.15)
(0.56)
(0.49)
(0.15)
(0.56)
(0.49)
This concludes the remuneration report, which has been audited.
Page | 40
DIRECTORS’ REPORT
Shares under option
NAE Annual Report 30 June 2021
There were unissued ordinary shares of the Company under option at the balance date as follows:
-
-
15,000,000 exercisable at 2 cents each with an expiry date of 28 September 2023; and
254,618,667 exercisable at 3 cents each with an expiry date of 31 December 2023.
Shares issued on the exercise of options
No shares of the Company were issued during the year ended 30 June 2021 on the exercise of options granted.
Indemnity and insurance of officers
The Company has indemnified the Directors and executives for costs incurred in their capacity as a Director or executive for
which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives against
a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of
liability and the amount of the premium.
Indemnity and insurance of auditor
The Company has not, during or since the financial year, indemnified or agreed to indemnify the auditor of the Company or
any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company
or any related entity.
Proceedings on behalf of the Group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of
the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Group for all or part of those proceedings.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on
the following page.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
________________________________________________________
Joshua Wellisch
Executive Director
29 September 2021
Melbourne
Page | 41
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of New Age Exploration Limited and its controlled entities for
the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Dated: 29 September 2021
Melbourne, Victoria
Page | 42
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For The Year Ended 30 June 2021
Revenue from continuing operations
Other revenue
Expenses
Corporate expenses
Employee benefits expenses
Employee benefits expenses - options
Exploration and evaluation expenses
Exploration and evaluation impairment
Administrative expenses
Occupancy expenses
Legal expenses
Investor relations and marketing
(Loss)/profit before tax from continuing operations
Income tax expense
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note
Consolidated
30 June 2021
$
Consolidated
30 June 2020
$
4
12,077
109,677
(156,547)
(372,241)
(668,368)
(1,136,938)
(2,740,461)
(221,492)
(31,244)
(32,574)
(176,318)
(5,536,183)
(5,524,106)
-
(184,572)
(360,221)
-
(17,491)
(4,214,308)
(142,157)
(13,758)
(30,730)
(21,176)
(4,984,413)
(4,874,736)
-
11
6
(Loss)/profit after tax from continuing operations
(5,524,106)
(4,874,736)
Discontinued operations
(Loss)/profit after tax from discontinued operations
10
-
(90,300)
(Loss)/profit for the year
(5,524,106)
(4,965,036)
Other comprehensive income for the year
Items that may be reclassified subsequently to profit or loss
- Exchange differences on translation of foreign
operations
Other comprehensive income for the year, net of tax
84,719
84,719
(127,905)
(127,905)
Total comprehensive (loss)/income for the year
(5,439,387)
(5,092,941)
Earnings/(loss) per share from continuing operations
attributable to the owners of New Age Exploration Limited
Basic per share
Diluted per share
Earnings/(loss) per share from discontinued operations
attributable to the owners of New Age Exploration Limited
Basic per share
Diluted per share
Earnings/(loss) per share attributable to the owners of New
Age Exploration Limited
Basic per share
Diluted per share
21
21
21
21
21
21
Cents
Cents
(0.49)
(0.49)
(0.55)
(0.55)
Cents
Cents
-
-
(0.01)
(0.01)
Cents
Cents
(0.49)
(0.49)
(0.56)
(0.56)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying
notes.
Page | 43
STATEMENT OF FINANCIAL POSITION
As at 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note
Consolidated
30 June 2021
Consolidated
30 June 2020
Current assets
Cash and cash equivalents
Trade and other receivables
Prepayments
Other financial assets
Total current assets
Non–current assets
Property, plant and equipment
Exploration and evaluation assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Total current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
7
8
9
11
12
13
14
$
6,375,836
80,065
13,398
25,000
6,494,299
21,708
851,148
872,856
7,367,155
285,489
285,489
285,489
$
2,795,592
18,806
9,272
25,000
2,848,670
2,925
2,960,098
2,963,023
5,811,693
219,246
219,246
219,246
7,081,666
5,592,447
33,880,516
1,864,165
(28,663,015)
27,990,778
740,578
(23,138,909)
7,081,666
5,592,447
The above statement of financial position should be read in conjunction with the accompanying notes.
Page | 44
STATEMENT OF CHANGES IN EQUITY
For The Year Ended 30 June 2021
Consolidated
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Contributed
Equity
$
Reserves
$
Accumulated Losses
$
Total
$
At 1 July 2020
27,990,778
740,578
(23,138,909)
5,592,447
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
-
-
-
-
84,719
84,719
(5,524,106)
-
(5,524,106)
(5,524,106)
84,719
(5,439,387)
Transactions with owners in their
capacity as owners:
Issue of shares
Issue of options
Share-based payments
Share issue costs
6,465,508
-
-
(575,770)
-
450
876,868
161,550
-
-
-
-
6,465,508
450
876,868
(414,220)
As at 30 June 2021
33,880,516
1,864,165
(28,663,015)
7,081,666
At 1 July 2019
27,990,778
868,483
(18,173,873)
10,685,388
Loss for the year
Other comprehensive loss
Total comprehensive income for the
year
Transactions with owners in their
capacity as owners:
Issue of shares
As at 30 June 2020
-
-
-
-
-
(127,905)
(4,965,036)
-
(4,965,036)
(127,905)
(127,905)
(4,965,036)
(5,092,941)
-
-
-
27,990,778
740,578
(23,138,909)
5,592,447
The above statement of changes in equity should be read in conjunction with the accompanying notes.
Page | 45
STATEMENT OF CASH FLOWS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Cash flows from operating activities
Payments to suppliers and employees
Other receipts
Interest received
Note
Consolidated
30 June 2021
$
Consolidated
30 June 2020
$
(1,706,944)
-
12,008
(825,324)
3,934
109,458
Net cash flows used in operating activities
20 (a)
(1,694,936)
(711,932)
Cash flows from investing activities
Payments for exploration and evaluation assets
Payments for plant and equipment
Proceeds from sale of non-current asset held for sale
(318,663)
(25,598)
-
(153,011)
(2,999)
2,990,000
Net cash flows provided by/(used in) investing activities
(344,261)
2,833,990
Cash flows from financing activities
Proceeds from issue of shares
Share issue costs
5,758,000
(138,880)
-
(19,227)
Net cash flows (used in)/provided by financing activities
5,619,120
(19,227)
Net increase/(decrease) in cash and cash equivalents held
3,579,923
2,102,831
Cash and cash equivalents at beginning of the year
Effects of foreign exchange rate changes on cash
2,795,592
321
693,506
(745)
Cash and cash equivalents at the end of the year
7
6,375,836
2,795,592
The above statement of cash flows should be read in conjunction with the accompanying notes
Page | 46
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
General information
The consolidated financial report of New Age Exploration Limited as at and for the year ended 30 June 2021 comprises the
Company and its subsidiaries (together referred to as the “Group”).
The financial report is presented in Australian dollars, which is New Age Exploration Limited's functional and presentation
currency. New Age Exploration Limited is a listed for-profit public company limited by shares, incorporated and domiciled
in Australia. Its registered office and principal place of business is:
Level 2
480 Collins Street
Melbourne VIC 3000
A description of the nature of the Group's operations and its principal activities are included in the Directors' report. The
financial report was authorised for issue, in accordance with a resolution of directors, on the date of the signing of the
Directors’ declaration.
Note 1 Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
New, revised or amending Accounting Standards and Interpretations adopted
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to the Group and effective for the current annual reporting period. There has been no material
impact on the Group.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2021 reporting
periods and have not been early adopted by the group. These standards are not expected to have a material impact on the
entity in the current or future reporting periods and on foreseeable future transactions.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001. These financial
statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards
Board (‘IASB’).
Historical cost convention
The financial statements have been prepared on an accrual basis under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss.
Critical accounting estimates
The preparation of the financial statements 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 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity
only. Supplementary information about the parent entity is disclosed in note 22.
Principles of Consolidation
The consolidated financial statements are those of the consolidated entity, comprising the company (the ‘parent entity’) and
its controlled entities (the ‘Group’). Details of the controlled entities are contained in Note 18.
Page | 47
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Control is achieved when the Company:
• has power over the investee;
•
• has the ability to use its power to affect its returns.
is exposed, or has rights, to variable returns from its involvement with the investee; and
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company
loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains
control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the
non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the
non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line
with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the
Group are eliminated in full on consolidation. Financial statements for controlled entities are prepared for the same reporting
period as the parent entity, using consistent accounting policies. Controlled entities are fully consolidated from the date on
which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of
the Group.
Changes in the Group's ownership interests in existing subsidiaries
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries
are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the
non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity
and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the
Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred
to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the
former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting
under AASB 139 Financial Instruments: Recognition and Measurement, when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is
a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint
arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control.
The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements
using the equity method of accounting, except when the investment, or a portion thereof, is classified as disposal group held
for sale, in which case it is accounted for in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued
Operations. Under the equity method, an investment in an associate or a joint venture is initially recognised in the consolidated
statement of financial position at cost and adjusted thereafter to recognise the Group's share of the profit or loss and other
comprehensive income of the associate or joint venture. When the Group's share of losses of an associate or a joint venture
exceeds the Group's interest in that associate or joint venture (which includes any long-term interests that, in substance, form
part of the Group's net investment in the associate or joint venture), the Group discontinues recognising its share of further
losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made
payments on behalf of the associate or joint venture.
Page | 48
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee
becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the
cost of the investment over the Group's share of the net fair value of the identifiable assets and liabilities of the investee is
recognised as goodwill, which is included within the carrying amount of the investment. Any excess of the Group's share of the
net fair value of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the investment is acquired.
The requirements of AASB 9 are applied to determine whether it is necessary to recognise any impairment loss with respect to
the Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment
(including goodwill) is tested for impairment in accordance with AASB 136 Impairment of Assets as a single asset by comparing
its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount, Any impairment
loss recognised forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognised in
accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint
venture, or when the investment is classified as held for sale. When the Group retains an interest in the former associate or
joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date
and the fair value is regarded as its fair value on initial recognition in accordance with AASB 9. The difference between the
carrying amount of the associate or joint venture at the date the equity method was discontinued, and the fair value of any
retained interest and any proceeds from disposing of a part interest in the associate or joint venture is included in the
determination of the gain or loss on disposal of the associate or joint venture. In addition, the Group accounts for all amounts
previously recognised in other comprehensive income in relation to that associate or joint venture on the same basis as would
be required if that associate or joint venture had directly disposed of the related assets or liabilities. Therefore, if a gain or loss
previously recognised in other comprehensive income by that associate or joint venture would be reclassified to profit or loss
on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a
reclassification adjustment) when the equity method is discontinued.
The Group continues to use the equity method when an investment in an associate becomes an investment in a joint venture
or an investment in a joint venture becomes an investment in an associate. There is no remeasurement to fair value upon such
changes in ownership interests.
When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity
method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other
comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss
on the disposal of the related assets or liabilities. When a group entity transacts with an associate or a joint venture of the
Group, profits and losses resulting from the transactions with the associate or joint venture are recognised in the Group's
consolidated financial statements only to the extent of interests in the associate or joint venture that are not related to the
Group.
Foreign Currency
Functional and Presentation Currency
The financial statements of each group entity are measured using its functional currency, which is the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars,
as this is the parent entity’s functional and presentation currency.
Transactions and Balances
Transactions in foreign currencies of entities within the consolidated entity are translated into functional currency at the rate
of exchange ruling at the date of the transaction.
Foreign currency monetary items that are outstanding at the reporting date (other than monetary items arising under foreign
currency contracts where the exchange rate for that monetary item is fixed in the contract) are translated using the spot rate
at the end of financial year.
Resulting exchange differences arising on settlement or re-statement are recognized as revenues and expenses for the financial
year.
Page | 49
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Group Companies
The financial statements of foreign operations whose functional currency is different from the group’s presentation currency
are translated as follows:
•
•
•
Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
Income and expenses are translated at average exchange rates for the period where this rate approximates the rate at
the date of the transaction; and
All resulting exchange differences are recognized as a separate component of equity.
Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign currency
translation reserve as a separate component of equity in the statement of financial position.
On the disposal of a foreign operation (i.e. a disposal of the Group's entire interest in a foreign operation, a disposal involving
loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or
an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange
differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to
profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the Group
losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-
controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or
joint arrangements that do not result in the Group losing significant influence or joint control), the proportionate share of the
accumulated exchange differences is reclassified to profit or loss.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable.
Interest Revenue
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate
applicable.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and unused tax losses and under and over provision in prior periods, where applicable.
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 that are enacted or substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or
• When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint
ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse
in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets
recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying
amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there
are future taxable profits available to recover the asset.
Page | 50
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
Cash and cash equivalents
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade and other receivables are recognised at amortised cost, less any allowance for impairment.
Other Financial Assets
Other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement,
except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost
or fair value depending on their classification. Classification is determined based on both the business model within which such
assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being
avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial
assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are
acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as
such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity
intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the
consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has
increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other
comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over its expected useful life as follows:
Plant and equipment: 3-5 years
•
Residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at the reporting date
An item of plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated
entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation
surplus reserve relating to the item disposed of is transferred directly to retained profits
Page | 51
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 1 Significant accounting policies (cont’d)
Exploration and Evaluation Assets
Expenditure on acquisition, exploration and evaluation relating to an area of interest is carried forward at cost where rights to
tenure of the area of interest are current and:
It is expected that expenditure will be recouped through successful development and exploitation of the area of interest or
alternatively by its sale; and/or
Exploration and evaluation activities are continuing in an area of interest but at reporting date have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.
•
•
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in
relation to that area of interest. Where uncertainty exists as to the future viability of certain areas, the value of the area of
interest is written off or impaired.
Impairment
The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at the cash generating unit
level whenever facts and circumstances suggest that its carrying amount may exceed its recoverable amount.
An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount.
The asset or cash-generating unit is then written down to its recoverable amount. Any impairment losses are recognised in the
profit and loss.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a
receivable is recognised as an asset if it is virtually certain that reimbursement will be received, and the amount of the
receivable can be measured reliably.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and
which are unpaid. Due to their short-term nature, they are measured at amortised cost and not discounted. The amounts are
unsecured and are usually paid within 30 days of recognition.
Employee benefits
Wages and salaries, annual leave and sick leave
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave,
and sick leave when it is probable that settlement will be required, and they are capable of being measured reliably.
Liabilities recognised in respect of short-term employee benefits are measured at their nominal values using the remuneration
rate expected to apply at the time of settlement. Liabilities recognised in respect of long-term employee benefits are measured
as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by
employees up to reporting date.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Page | 52
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is
determined by reference to the share price.
The costs of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
the 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, together with non-vesting conditions that do not determine whether the Group
receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
The costs of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying the Black-
Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The
cumulative charge to profit or loss until settlement of the liability is calculated as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by
the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.
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.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of New Age Exploration Limited,
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 financial year.
Diluted earnings 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.
Goods and Services Tax (GST) and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the tax authority. In this case, it is recognised as part of the cost of the 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 tax authority is included in other receivables or other payables in the statement of financial position.
Page | 53
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 1 Significant accounting policies (cont’d)
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Cash flows are presented on a gross basis. The GST components of cash flows from investing or financing activities which are
recoverable from, or payable to, the tax authority are presented as operating cash flows.
Commitments and contingencies are disclosed net of the GST recoverable from, or payable to, the tax authority.
Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at
the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising
from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under
insurance contracts, which are specifically exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less
costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group),
but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the
date of the sale of the noncurrent asset (or disposal group) is recognised at the date of derecognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are
classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for
sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are
presented separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit or loss.
Note 2 Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenues and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, which management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements, 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 are discussed below.
Exploration and evaluation
Exploration and evaluation expenditure is capitalised if the activities in the area of interest have not yet reached a stage that
permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is
determined in the future that this capitalised expenditure is not recoverable and should be written off, profits and net assets
will be reduced in the period in which this determination is made.
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including
whether economically recoverable minerals are proven and whether the consolidated entity decides to exploit the related
lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.
Factors that would impact the future recoverability include the level of reserves and resources, future technological changes
(which would impact the cost of mining), future legal changes (including changes to environmental restoration obligations) and
changes to commodity prices.
Page | 54
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 3 Operating segments
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
The Group operated predominately as an explorer with the view to identify attractive mineral deposits of sufficient grade and
size to provide sustainable returns to shareholders.
The directors do not believe that there are any reportable segments that meet the requirements of Accounting Standard AASB
8 Segment Reporting, on the basis that the chief operating decision maker, being the Board of Directors, review geological
results and other qualitative measures as a basis for decision making.
Types of products and services
The Group currently has no significant revenue from products or services.
Major customers
The Group has no reliance on major customers.
Geographical areas
The Group’s exploration assets are located as follows:
• United Kingdom
• New Zealand
• Australia
Total
$nil (2020: $2,600,000)
$493,431 (2020: $360,098)
$357,717 (2020: $nil)
$851,148 (2020: $2,960,098)
Note 4 Other income
Consolidated
2021
$
Consolidated
2020
$
Interest from financial assets measured at amortised cost
12,077
109,677
Note 5 Expenses
Note
Consolidated
2021
$
Consolidated
2020
$
Loss before income tax includes the following expenses:
Superannuation expense (defined contribution)
Depreciation
9
2,355
6,815
1,710
74
Page | 55
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 6 Income tax expense
(a) Components of Tax expense
Current tax expense/(benefit)
Deferred tax expense
(b) Numerical reconciliation of income tax expense to prima
facie tax payable
(loss)/profit before income tax expense
Tax at the Australian tax rate of 26% (2020: 27.5%)
Share-based payments
Other non-deductible items
Current year tax losses not recognised
Income tax expense
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary
differences attributable to:
Tax losses
Capital losses
Temporary differences
Total deferred tax assets not recognised
Consolidated
2021
$
Consolidated
2020
$
(431,787)
431,787
-
(168,357)
168,357
-
(5,524,106)
(4,965,036)
(1,436,268)
(1,365,385)
282,976
721,505
(431,787)
431,787
-
-
1,197,028
(168,357)
168,357
-
3,517,843
522,679
18,863
4,059,385
3,204,066
1,382,833
22,041
4,608,940
The above potential tax benefit has not been recognised in the statement of financial position as the recovery of this benefit
is uncertain.
The taxation benefits of tax losses and temporary differences not brought to account will only be obtained if:
(i)
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the
deductions for the losses to be realised;
the Group continues to comply with the conditions for deductibility imposed by law; and
(ii)
(iii) no change in tax legislation adversely affects the Group in realising the benefits from deducting the losses.
Note 7 Cash and cash equivalents
Cash at bank
Short-term deposits
Consolidated
2021
$
Consolidated
2020
$
857,767
5,518,069
-
6,375,836
2,285,566
511,958
2,797,524
Page | 56
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 8 Trade and other receivables
Interest receivable
GST and VAT receivable
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Consolidated
2021
$
Consolidated
2020
$
288
79,777
80,065
-
219
18,587
18,806
Due to the short-term nature of the receivables, their carrying value is assumed to approximate their fair value. Given the
nature of the receivables as detailed, exposure to credit risk is not considered material.
Note 9 Property, plant and equipment
Office equipment – at cost
Accumulated depreciation
Office furniture – at cost
Accumulated depreciation
Movements during the year:
Opening balance – 1 July 2021
Additions
Depreciation
Closing balance – 30 June 2021
Note 10 Discontinued operations
Consolidated
2021
$
24,108
(5,561)
18,547
4,489
(1,328)
3,161
21,708
Office
Equipment
$
2,925
21,109
(5,487)
18,547
Consolidated
2020
$
2,999
(74)
2,925
-
-
-
2,925
Office
Furniture
$
-
4,489
(1,328)
3,161
In March 2019, NAE entered into an agreement to sell its 50% share in Cornwall Resources Ltd (“CRL”) to Strategic Minerals plc
(“SML”). The transaction was completed in July 2019 for a total consideration of $5.0m with the following terms:
- $3.0m in cash payments between June 2019 and June 2020 payable with a 5% p.a. interest payable on outstanding
balances calculated on a daily basis. The payments were secured by charges over CRL shares and property and an option
to NAE to convert any outstanding balances due to SML shares at a 10% discount to market price in the event of default.
An initial $10,000 payment was received in the 2019 financial year.
- $2.0m in royalty payments payable with $1m falling due when net smelter sales arising from Redmoor production reaches
A$50m and the final $1m falling due when net smelter sales arising from Redmoor production reaches A$100m.
Summarised financial information for joint ventures and associates
The following table includes, in aggregate, NAE’s share of profit and OCI of joint ventures and associates:
Corporate sale commission
Loss from discontinued operations
The net cash flows incurred from discontinued operations are as follows:
Operating activities
Investing activities
Consolidated
2021
$
-
-
-
-
Consolidated
2020
$
(90,300)
(90,300)
(36,300)
2,990,000
Page | 57
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
Note 11 Exploration and evaluation assets
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Consolidated
2021
$
Consolidated
2020
$
Exploration and evaluation assets
851,148
2,960,098
Reconciliations
Reconciliations of the written down values are set out below:
Balance at 1 July 2019
Additions
Impairment
Effect of foreign currency movements
Balance at 30 June 2020
Additions
Impairment
Balance at 30 June 2021
Exploration and
evaluation
$
7,064,325
237,241
(4,214,308)
(127,160)
2,960,098
631,511
(2,740,461)
851,148
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the continuation of the
Group's rights to tenure of the interests, results of future exploration and successful development or alternatively, sale of the
respective areas of interest.
In the 2020 year, the Directors conducted a review of the capitalised exploration and evaluation assets and determined that,
in light of current market conditions, there are indications of impairment relevant to the carrying value of the Lochinvar
exploration asset. A valuation was undertaken in September 2020 in accordance with a market-based valuation technique and
considered appropriate for the project’s current stage of development. Inputs under level 2 of the fair value hierarchy within
Accounting Standard AASB 13 ‘Fair Value Measurement’ were used for the valuation whereby observed similar market
transaction multiples were considered. The valuation supported a fair value of $2,600,000 and, as a result, an impairment
expense of $4,214,308 was incurred during the 2020 year.
In the 2021 year, the Directors reviewed of the capitalised exploration and evaluation assets and determined that, in light of
current market conditions, there were further indications of impairment relevant to the carrying value of the Lochinvar
exploration asset. In the current climate the development of new coal mines has become increasingly difficult due to the
inability to gain government approvals and secure funding. A valuation of $nil was determined and, as a result, an impairment
expense of $2,600,000 was incurred during the 2021 year.
Note 12 Trade and other payables
Trade creditors
Accruals and other payables
Note 13 Contributed equity
Consolidated
2021
$
201,851
83,638
-
285,489
Consolidated
2020
$
146,345
72,901
219,246
Page | 58
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Consolidated
2021
Number
Consolidated
2020
Number
Consolidated
2021
$
Consolidated
2020
$
Ordinary shares – fully paid
1,428,398,910
888,780,410
33,880,516
27,990,778
Movements in Ordinary Share Capital
No. of Shares
Issue Price
$
Balance 1 July 2019
Balance 30 June 2020
Placement of shares
Acquisition of tenements
Settlement of creditors
Acquisition facilitation fee
Settlement of creditors
Placement of shares
Placement of shares
Settlement of creditors
Issue costs
Balance 30 June 2021
888,780,410
888,780,410
269,750,000
25,000,000
3,500,000
30,000,000
2,512,500
182,000,000
18,000,000
8,856,000
-
1,428,398,910
$0.008
$0.008
$0.008
$0.010
$0.008
$0.018
$0.018
$0.018
27,990,778
27,990,778
2,158,000
200,000
28,000
300,000
20,100
3,276,000
324,000
159,408
(575,770)
33,880,516
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Group in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value.
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.
Capital risk management
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern so that it can provide
returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost
of capital. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares
or sell assets to reduce debt.
Note 14 Reserves
Foreign exchange reserve
Options reserve
Consolidated
2021
$
825,297
1,038,868
Consolidated
2020
$
740,578
-
-
1,864,165
740,578
The foreign exchange reserve is used to record exchange differences arising on translation of foreign controlled subsidiaries
with functional currency different from the Groups’ presentation currency.
The Options reserve records the value of equity benefits provided as consideration for remuneration and other expenses.
Movements during the year
Balance at beginning of the year
Foreign currency translation differences for foreign operations
Options issued
Foreign
Exchange
$
740,578
84,719
-
Options
$
-
-
1,038,868
Balance at end of the year
825,297
1,038,868
Page | 59
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 15 Financial instruments
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk, and foreign
currency risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure
different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign
exchange risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.
Risk management is carried out by the Board. The policies employed to mitigate risk include identification and analysis of the
risk exposure of the Group and appropriate procedures, controls and risk limits. The Board identifies risk and evaluates the
effectiveness of its responses.
Market risk
Interest rate risk
The Group's main exposure to interest rate risk is in relation to deposits held.
As at the reporting date, the Group had the following variable rate cash balances.
Cash and cash equivalents
Other financial assets
Consolidated
2021
$
6,375,836
25,000
Consolidated
2020
$
2,795,592
25,000
An increase/decrease in interest rate of 1 percent would have a favourable/adverse effect on loss before tax of $64,008 per
annum (2020: $28,206). The percentage change relates to the expected volatility of interest rates using market data and
analysts’ forecasts.
Credit risk
Credit risk is managed on a Group basis. Credit risk refers to the risk that the counterparty will default on its contractual
obligations resulting in financial loss to the Group. The Group has minimal exposure to credit risk as its only receivables relate
to security deposits, interest receivable, and GST refunds due. Deposits are held with reputable banking financial institutions.
Foreign Currency Risk
As a result of operations in the United Kingdom and New Zealand, the Group’s Statement of Financial Position can be affected
significantly by movements in the British Pound (GBP)/ Australian Dollar (AUD) exchange rate as well as the New Zealand Dollar
(NZD)/AUD exchange rate. The Group does not have a formal policy or strategy implemented to mitigate the effects of its
foreign currency exposure. As the majority of the Group’s operations occur within subsidiaries located in foreign countries,
foreign currency risk is considered to be an inherent risk of the Group. At 30 June, the Group had the following exposure to
GBP and NZD foreign currency that is not designated as cash flow hedges:
Assets
Liabilities
2021
$
2020
$
2021
$
2020
$
Net Exposure
2021
$
2020
$
GBP
NZD
16,539
-
14,586
-
(4,269)
(16,163)
(2,808)
-
12,270
(16,163)
11,778
-
Note 16 Remuneration of auditors
During the financial year, the following audit fees were paid or payable:
Audit and review of the financial reports
RSM Australia Partners
Consolidated
2021
$
Consolidated
2020
$
46,190
37,370
Page | 60
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 17 Commitments for expenditure
The Group pays minimal annual licence and lease fees related to its tenements. These payments are discretionary; however,
the Company intends to make these payments and maintain the licences in good standing.
Note 18 Related party disclosures
Key Management Personnel Compensation
The aggregate compensation made to Directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Share-based payment benefits
Controlled entities
Name of entity
Consolidated
2021
$
Consolidated
2020
$
341,140
668,368
1,009,508
451,675
-
451,675
Country of
incorporation
Class of
shares
Equity holding
%
2021
Equity holding
%
2020
Lochinvar Coal Limited
New Pilbara Gold Pty Ltd
United Kingdom
Australia
Ordinary
Ordinary
100
100
100
-
Note 19 Events occurring after the reporting date
Northern Pilbara Tenements Acquired
On 27 August 2021, the Group acquired northern Pilbara tenements from Monterey Minerals Inc. following a review of the
results received from the Phase 1 aircore reconnaissance drilling and ongoing interpretation of detailed aeromagnetic data.
Upfront consideration of 7,500,000 fully paid ordinary shares were issued under the terms of the purchase. Deferred
consideration payable consists of 30 million fully paid ordinary shares to be issued upon delineating a 250,000 ounce gold
indicated JORC resource on the tenements and a further 30 million fully paid ordinary shares to be issued upon delineating
a 500,000 ounce gold indicated JORC resource on the tenements.
COVID-19 Pandemic
The COVID 19 pandemic and the actions taken by governments and others to contain its spread have led to various
restrictions on movement being put in place and has affected the ability of how business take place. As at the date of this
report, the Group has not been adversely affected, however the COVID-19 outbreak continues to evolve and is therefore
uncertain as to the full impact that the pandemic could have on the Group’s financial condition, liquidity, and future result s.
Management is actively monitoring the global situation and its impact on the Group.
No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the
Group's operations, the results of those operations or the Group's state of affairs in future financial years.
Page | 61
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 20 Cash Flow statement information
Note 20 (a) Reconciliation of loss after income tax to net cash used in operating activities
Consolidated
2021
$
Consolidated
2020
$
Loss after income tax expense for the year
-
(5,524,106)
(4,965,036)
Adjustments for:
Share-based payment expenses
Depreciation and amortisation
Exploration impairment
Change in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase)/decrease in prepayments
Increase in trade and other payables
(Decrease) in employee benefits
1,088,368
6,815
2,740,461
(68,591)
(4,126)
66,243
-
-
74
4,214,308
15,581
(269)
41,415
(18,005)
Net cash used in operating activities
(1,694,936)
(711,932)
Note 20 (b) Non-cash investing and financing activities
During the 2021 financial year, the Group issued new shares and options valued at $1,088,368 as consideration for
remuneration and other expenses.
Note 21 Earnings per share
Loss after income tax from continuing operations
Loss after income tax from discontinued operations
Loss after income tax
Weighted average number of ordinary shares used in calculating basic and
diluted earnings per share
Basic and diluted earnings/(loss) per share from continuing operations
Basic and diluted earnings/(loss) per share from discontinued operations
Basic and diluted earnings/(loss) per share
The company has no options on issue that can affect the calculation of diluted EPS.
Consolidated
2021
$
(5,524,106)
-
(5,524,106)
Consolidated
2020
$
(4,874,736)
(90,300)
(4,965,036)
Number
Number
1,133,004,774
888,780,410
Cents
Cents
(0.49)
-
(0.49)
(0.55)
(0.01)
(0.56)
Page | 62
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 30 June 2021
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Note 22 Parent entity information
Financial position
Current assets
Non–current assets
Total assets
Current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Comprehensive loss for the year
2021
$
6,477,622
885,264
7,362,886
281,220
281,220
2020
$
2,404,130
2,971,877
5,376,007
216,439
216,439
7,081,666
5,592,446
33,880,516
1,038,868
(27,837,718)
27,990,778
-
(22,398,332)
7,081,666
5,592,446
(5,439,386)
(5,439,386)
(5,126,828)
(5,126,828)
The parent entity, New Age Exploration Limited, has not entered into any guarantees in respect to its controlled entities.
Capital Commitments
There are no commitments for the acquisition of plant and equipment contracted for at the reporting date.
Note 23 Contingent Assets
In March 2019, NAE entered into an agreement to sell its 50% share in Cornwall Resources Ltd (“CRL”) to Strategic Minerals plc
(“SML”). The transaction was completed in July 2019 with the consideration including $2.0m in royalty payments payable with
$1m falling due when net smelter sales arising from Redmoor production reaches A$50m and the final $1m falling due when
net smelter sales arising from Redmoor production reaches A$100m.
Note 24 Contingent Liabilities
In June 2016, NAE’s majority owned subsidiary, NAE Aurora JV Cesar SAS (liquidated in the commercial registry of the Chamber
of Commerce of Bogotá on 17 December 2015), received notice from the mining authority in Colombia for unpaid exploration
licence payments. No legal proceeding has been filed and based on legal advice, management believes that any payment on
this matter is unlikely. No liability has been recorded in the statement of financial position for this contingency.
Page | 63
DIRECTORS’ DECLARATION
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
In the directors’ opinion:
•
•
•
•
the attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
the attached financial statements and notes thereto comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in Note 1 to the financial statements;
the attached financial statements and notes thereto give a true and fair view of the Group’s financial position as at
30 June 2021 and of its performance for the financial year ended on that date; 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 required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors, made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the Directors
Joshua Wellisch
Executive Director
29 September 2021
Melbourne
Page | 64
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF NEW AGE EXPLORATION LIMITED
Opinion
We have audited the financial report of New Age Exploration Limited (“the Company”) and its subsidiaries
(together referred to as “the Group”), which comprises the consolidated statement of financial position as at
30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies, and the
directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
i.
giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial
performance for the year then ended; and
ii.
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to
our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Page | 65
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit of
the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Key Audit Matter
How our audit addressed this matter
Exploration and evaluation assets
Refer to Note 11 in the financial statements
As at 30 June 2021, the carrying value of the
Group’s capitalised Exploration and evaluation
assets amounts to $851,148, after the recognition of
an impairment loss of $2,740,461. We determined
this to be a key audit matter due to the materiality of
the impairment loss recognised during the year and
the significance of these assets in the statement of
financial position (34% of the total assets of the
Group). Also, there are significant management
estimates and judgments involved in assessing the
carrying value in accordance with AASB 6
Exploration for and Evaluation of Mineral Resources,
including:
Our audit procedures in relation to the carrying value
of exploration and evaluation assets included:
• Assessing and evaluating management’s
determination that the Lochinvar Coking Coal
project, located in the UK was impaired. This
included an assessment of the competency and
objectivity of management’s expert and of the
reasonableness of the conclusions reached;
• Critically reviewing the Group’s assessment that
no indicator of impairment existed in relation to the
Otago Pioneer Quartz Gold project in New
Zealand and Pilbara project in Western Australia;
• Determination of whether expenditure can be
• Enquiring with management and reviewing
associated with finding specific mineral
resources, and the basis on which that
expenditure is allocated to an area of interest.
• Assessing whether any indicators of impairment
are present, and if so, the judgments applied to
determine and quantify any impairment loss.
• Determination of whether exploration activities
have progressed to the stage at which the
existence of an economically recoverable
mineral reserve may be assessed.
• Corroborating the accuracy of the translation of
assets from GBP and NZD to AUD.
budgets and plans to determine that the Group will
incur substantive expenditure on further
exploration for and evaluation of mineral resources
in the specific areas of interests; and
• Discussions with management and a review of the
Group’s ASX announcements and other relevant
documentation, to assess management’s
determination that exploration activities have not
yet progressed to the point where the existence or
otherwise of an economically recoverable mineral
resource may be determined.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2021; but does not include the financial
report and the auditor's report thereon.
Page | 66
Other Information (continued)
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance; but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This
description forms part of our auditor's report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors' report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of New Age Exploration Limited for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Page | 67
Report on the Remuneration Report
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Dated: 29 September 2021
Melbourne, Victoria
Page | 68
SHAREHOLDER INFORMATION
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in the annual
report are set out below. The information was applicable as at 15 September 2021.
1. Shareholdings – Ordinary Shares
a. Distribution of Shareholders
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holdings less than a marketable parcel
b. Substantial Shareholders
Substantial holders in the Group are set out below.
Number
of holders
365
52
78
763
968
2,226
756
Number held
% of total
shares issued
NORTHERN STAR NOMINEES PTY LTD
105,959,027
7.38
c. Voting rights
The voting rights attached to ordinary shares are set out below.
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.
d. Restricted Securities
There are no restricted securities at 15 September 2021.
Page | 69
SHAREHOLDER INFORMATION
1. Shareholdings – Ordinary Shares (cont’d)
e. Twenty largest quoted equity security holders
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
The names of the twenty largest security holders of quoted equity securities are listed below.
Number held
% of total
shares issued
NORTHERN STAR NOMINEES PTY LTD
MR ROGER BLAKE & MRS ERICA LYNETTE BLAKE
BODIE INVESTMENTS PTY LTD
J K DEMARIA PTY LTD
KAIROS MINERALS LIMITED
LTJ INVESTMENTS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR MICHAEL DENIS BOYD
BODIE INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
MR VINCENZO MONTELEONE
WHITEHALL NOMINEES PTY LTD
MR VINCE TRUDA
H LOUEY PANG & CO PTY LTD
LUNA ROSSA NO 2 PTY LTD
WING INVESTMENT HOLDINGS PTY LTD
MR MATTHEW KEVIN WELLISCH & MR KEVIN FREDERICK WELLISCH
CAP HOLDINGS PTY LTD
SCOR GO LUATH LIMITED
MR AARON TSAMASIROS
105,959,027
40,000,000
37,000,000
35,000,000
34,230,770
30,777,692
25,120,469
25,000,000
25,000,000
22,061,205
20,000,000
20,000,000
20,000,000
16,950,000
15,000,000
15,000,000
14,000,000
13,509,953
12,500,000
12,000,000
7.38
2.79
2.58
2.44
2.38
2.14
1.75
1.74
1.74
1.54
1.39
1.39
1.39
1.18
1.04
1.04
0.97
0.94
0.87
0.84
539,109,116
37.55
2. Other
a. The name of the Company Secretaries are Adrien Wing and Pauline Moffatt.
b. The principal registered address in Australia is Level 2, 480 Collins Street, Melbourne, Victoria 3000.
c. Registers of securities are held at the following address: Link Market Services, Level 12, 250 St George’s Street, Perth
WA 6000.
d. Stock Exchange Listing: Quotation has been granted for all ordinary shares on all Member Exchanges of the ASX
Limited
Corporate Governance: A copy of the Company’s Corporate Governance Statement is available on the Company’s website at
http://www.nae.net.au.
Page | 70
SHAREHOLDER INFORMATION
NEW AGE EXPLORATION LTD
Annual Report 30 June 2021
List of Exploration Licences Held by the NAE Group
Licence No.
Project
Country
Area
(km2)
Licence Type
NAE Group
% Interest
CA11/EXP/0515/N
Lochinvar
CA11/UND/0176/N
Lochinvar
United
Kingdom
United
Kingdom
CA11/EXP/0545/N
Lochinvar
South
United
Kingdom
67.5
Exploration Licence
100%
67.5
Conditional
Underground Licence
and Option
Agreement
100%
51.0
Exploration Licence
100%
CA11/UND/0182/N
Lochinvar
South
United
Kingdom
51.0
Conditional
Underground Licence
and Option
Agreement
100%
CA11/EXP/570/N
Lochinvar
North
United
Kingdom
66.5
Exploration Licence
100%
CA11/OPC/0447/N
Lochinvar
North
United
Kingdom
66.5
Conditional Surface
and Underground
Licence and Option
Agreement
100%
EP60502
PP60544
MEP60807.01
Otago Pioneer
Quartz
New Zealand
71.55
Exploration Permit
100%
Lammerlaw
New Zealand
265.38 Prospecting Permit
100%
PPA60725.01
Marlborough New Zealand
500
PPA60716.01
Manorburn
New Zealand
221.8
Prospecting Permit
Application
Prospecting Permit
Application
100%
100%
E47/4406, E47/4407
E47/4408, E45/5724
E45/5725, E45/5726
E47/4435, E47/4450
E47/3891
E47/3887, E47/3886,
E47/4421
E47/3958, E47/5064
E47/5063, E47/5065
Quartz Hill
Pilbara
Western
Australia
Bullock Well
North Pilbara
Western
Australia
Western
Australia
1,690
Exploration Licence
100%
166.5
Exploration Licence
100%
538
Exploration Licence
100%
Page | 71