2015 Annual Report
CONTENTS
CORPORATE DIRECTORY .............................................................................................................................................. 2
CHAIRMAN’S REPORT .................................................................................................................................................. 3
OPERATIONS REPORT .................................................................................................................................................. 5
DIRECTORS’ REPORT .................................................................................................................................................. 31
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS ............................................................................... 42
CORPORATE GOVERNANCE STATEMENT ................................................................................................................... 43
DIRECTORS’ DECLARATION ........................................................................................................................................ 51
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................................................... 52
BALANCE SHEET ......................................................................................................................................................... 53
STATEMENT OF CHANGES IN EQUITY ........................................................................................................................ 54
STATEMENT OF CASH FLOWS .................................................................................................................................... 55
NOTES TO THE FINANCIAL STATEMENTS ................................................................................................................... 56
INDEPENDENT AUDIT REPORT ................................................................................................................................... 75
ADDITIONAL SHAREHOLDER INFORMATION ............................................................................................................. 77
TENEMENT SCHEDULE ............................................................................................................................................... 80
2015 Annual Report | Page 1
CORPORATE DIRECTORY
Directors
William Plyley (Non-Executive Chairman)
Christopher Cairns (Managing Director)
Jennifer Murphy (Technical Director)
Peter Ironside (Non-Executive Director)
Company Secretary
Amanda Sparks
Registered and Principal Office
First Floor, 168 Stirling Highway
Nedlands Western Australia 6009
Telephone: 08 9287 7630
08 9389 1750
Facsimile:
Web Page: www.stavely.com.au
Email: info@stavely.com.au
ABN
33 119 826 907
Share Registry
Computershare Investor Services Pty Ltd
Level 11
172 St Georges Terrace
Perth Western Australia 6000
Telephone: 1300 850 505
Facsimile: 08 9323 2033
Solicitors
Steinepreis Paganin
Level 4, Next Building
16 Milligan Street
Perth Western Australia 6000
Bankers
ANZ Bank
32 St Quentins Avenue
Claremont Western Australia 6010
Stock Exchange Listing
ASX Limited
Level 40, Central Park, 152-158 St Georges Terrace
Perth Western Australia 6000
ASX Code: SVY
Auditors
BDO Audit (WA) Pty Ltd
Chartered Accountants
38 Station Street
Subiaco Western Australia 6005
2015 Annual Report | Page 2
CHAIRMAN’S REPORT
Dear Shareholders
It is with pleasure that I present Stavely’s 2015 Annual Report, and remind myself, after an intense year, how
effective our team has been adding value in the Company.
We launched our public company in May 2014 with quality Copper and Gold deposits in western Victoria. We felt
that the existing Inferred Mineral Resources at the 100%-owned Ararat and Stavely Projects required more
material at similar grades to the Mt. Ararat deposit before we could consider mining. At the same time we
recognized the under-explored potential for the Stavely Project to host a bulk tonnage gold-rich copper porphyry
deposit that would be a game changer for the Company. We also planned to explore for gold on a small scale.
In all cases we have exceeded our expectations by fast-tracking exploration. At Ararat, we have been able to
expand our project copper mineralisation potential by identifying surface mineralisation at the Carroll’s Prospect.
At Stavely, we have had a near miss with the game changer at the Thursday’s Gossan Porphyry that has confirmed
we are on the right track. And, as a bonus, we have discovered gold mineralisation in the Ararat Project that has
the potential to develop into a major project for the Company.
The Carroll’s Base Metal Prospect at the Ararat Project now has the potential for a new zone of Volcanogenic
Massive Sulphides (VMS) mineralisation, similar in style to the Mt Ararat copper-gold-zinc deposit. Recent results
from Carroll’s demonstrate an ‘orders of magnitude’ spatially larger zinc-copper soil geochemical anomaly than at
the Company’s existing Mt Ararat copper-gold-zinc deposit. Carroll’s and other potential VMS prospects within
the 15 kilometre long prospective corridor in the Ararat Project could bring us much closer to our goal of
becoming a metal producer.
At the Stavely Project we have been closing on what we believe is a large copper-gold porphyry at the Thursday’s
Gossan Prospect that, if successful, could dwarf our VMS copper production aspirations at Ararat. Drill results
early in 2015 indicated we were within proximity of the core target when we hit an offsetting structure. We now
have a compelling and coherent body of evidence indicating that the porphyry core is preserved and offset
immediately north of holes drilled in late 2014. We are excited about drilling this target in the late 2015.
The Ararat district is also known for its historic 640,000-ounce alluvial gold production. However, the hard-rock
source of the alluvial gold has never been discovered. We now believe we have drilled the hard-rock gold source
at our White Lead Gold Prospect. Drilling at White Lead and surface sampling at the Cathcart Hill Gold Prospect
indicate mineralisation similar to that of the six-million ounce gold Stawell Goldfield located some 30 km to the
north. These exciting new gold targets will be an important part of next year’s programme.
We have been so encouraged by our results at our Victorian projects that we have expanded our tenement
holding 25% over the original holding in our May 2014 Prospectus. New porphyry targets such as Yarram Park are
already emerging from these low-cost acquisitions.
The Stavely team led by Managing Director Chris Cairns remains highly committed and continues to keep
exploration our core activity at all levels of the Company. Chris Cairns and fellow Executive Director, Jennifer
Murphy, have spent considerable time in the field walking the tenements, sampling and evaluating data. In FY
2015, Stavely was able to direct an impressive 79% of cash expenditure toward exploration. Our peer group would
be expected to spend 26-30% on exploration1. We are convinced that discovery through effective exploration of
our highly prospective projects will return the best value to shareholders.
Our drilling contractor is also convinced and has agreed to take up to 50% payment in Stavely shares. This
innovative agreement has allowed us to gain further exploration outcomes than would normally be expected.
At year-end, in a tough market, new sophisticated and institutional investors showed their enthusiasm for our
projects by strongly supporting our capital raise of $1.4 million. As a follow on to that share placement, you, our
1 Grant Thornton, October 2014; “Jumex Industry Position Survey”
2015 Annual Report | Page 3
CHAIRMAN’S REPORT
shareholders also demonstrated your commitment to our projects and our approach by taking up non-
renounceable entitlement issues raising an additional $1.58 million.
As at 30 June, the Company has an increased market capitalisation of 75% compared to the original IPO in May
2014. Importantly, we are debt-free and cashed-up with well-considered exploration programmes for an
increased number of opportunities to build upon our existing quality assets.
It is with admiration that I thank the Stavely Team for spending time away from their families to give us a year of
great outcomes from hard work.
Support from our shareholders, especially in this tough market has been outstanding; thank you very much.
I have no doubt that our range of projects, our expertise and our commitment will continue to provide manifold
opportunities for growth in our Company value.
WILLIAM (BILL) PLYLEY
2015 Annual Report | Page 4
Overview
EXPLORATION
The Company’s assets are located
in western Victoria and are
prospective
copper-gold
for
mineralisation with existing VMS-
style and porphyry deposits. The
two flagship projects, Ararat and
Stavely, host
Inferred Mineral
Resources that contain over 130Kt
of copper and over 19,000 ounces
of gold plus accessory zinc and
silver. Stavely Minerals is targeting
gold-copper
a
porphyry (Stavely Project), and a
Degrussa-style VMS (volcanogenic
massive sulphide) deposit (Ararat
Project). There are now also
indications of Stawell-style gold
mineralisation at Cathcart and
White Lead prospects
(Ararat
Project).
Cadia-type
VMS
copper
at 2.2%
The Ararat Project hosts Besshi-
style
copper-gold-zinc
mineralisation at Mt Ararat with
Total Mineral Resource of 1.3 Mt
at 2.0% copper, 0.5 g/t gold and
0.4% zinc and 6 g/t silver including
0.25Mt
in
Indicated Mineral Resources with
the remainder of the Total Mineral
Resource classified as
Inferred
Resources. Stavely’s initial drilling
at the Mount Ararat VMS deposit
confirmed its potential with every
hole intercepting copper - gold –
zinc
silver mineralisation,
including intervals of up to 5.98%
copper, 0.55 g/t gold, 2.31% zinc
and 17 g/t silver.
-
To the north of the existing
Mineral Resource,
recent soil
sampling has defined a large zinc-
copper geochemical anomaly that
is 1.5km in strike (open to the
north) with rock-chips of sub-
cropping gossan returning 10.8%
copper, 1.5 g/t gold and 0.4% zinc
at
the Carroll’s Base Metal
prospect.
mineralisation
1.38% copper and 0.25 g/t gold.
including 5m at
a
holes
low-angle
drilled
in
Detailed analysis of the three
at
diamond
Thursday’s Gossan
2014
indicated the porphyry target has
been transposed north and east
offset
beneath
structural zone.
Management
now have strong evidence based
on structural kinematic indicators,
3D modelling, spatial analysis of
alteration mineralogy,
sulphur
isotopes and geophysics indicating
the movement and location of the
target copper-gold zone to the
north and east.
from
results
Drill
previous
operators in the vicinity of the
new target zone include, 7.7m at
4.14% copper, 1.08 g/t gold and
77 g/t silver, and 9.5m at 2.93%
copper, 0.44 g/t gold and 42 g/t
silver and 32m at 0.8% copper and
0.4 g/t gold.
OPERATIONS REPORT
Also at the Ararat Project, recent
soil sampling has identified two
Stawell-style gold prospects at
Cathcart Hill and White Lead. Rock
chips have returned up to 5.6 g/t
gold at the White Lead prospect
from within a 1.2km long Stawell-
style soil geochemical anomaly.
high-grade
Significant
assay
results were received from a three
hole diamond drilling programme
at the White Lead Gold prospect,
including gold intercepts of up to
is
11.3 g/t gold. The drilling
considered
been
to
the
successful
structural orientations controlling
the hard
rock mineralisation
adjacent to the historic alluvial
Ararat Goldfield.
have
confirming
in
Both of
At Cathcart Hill, the soil anomaly
is 800m long and open to the
these gold
north.
prospects are on the western side
of
the Ararat Goldfield with
significant historic alluvial and
deep
lead production of circa
640,000 ounces of gold but with
no known hard-rock source.
targeting
In the Stavely Project, immediately
in May 2014, deep
post-IPO
diamond drilling of the Thursday’s
Gossan and Junction prospects
commenced
the
untested potential for mineralised
copper-gold porphyry(s) at depth.
The drill holes were designed to
test a combined geologic target
and a geophysical IP chargeability
anomaly.
of
The first phase of deep diamond
drilling into the Thursday’s Gossan
porphyry target returned broad
zones
copper
mineralisation, including 196m at
0.13% copper, 52m at 0.23%
copper, 82.3m at 0.12% copper
and 62m @ 0.17% copper.
low-grade
Deep diamond drilling at Junction
also returned broad zones of low-
copper mineralisation,
grade
including 62m at 0.17% copper, as
well as narrow higher grade
2015 Annual Report | Page 5
OPERATIONS REPORT
CORPORATE
In June 2015, Stavely Minerals
successfully raised $1.4 million
before costs through a share
placement at 25 cents (including a
for 2 attaching option) to
1
institutional
sophisticated and
investors.
Subsequent to the end of the
year, the Company raised an
additional $1.58 million through a
1-for-10 rights issue, also at 25
cents (including a 1 for 2 attaching
option).
subscription
2014. Under
Stavely Minerals entered into a
share
agreement
with Titeline Drilling Pty Ltd in
this
October
agreement, Titeline has agreed to
subscribe for up to $2 million of
shares, with Stavely Minerals
settle
having
monthly drilling charges by way of
50% cash payment and 50% by
way of offset of the price of
for
subscription
shares. To date approximately
$240,000 of the facility has been
used.
the option
application
to
Stavely Minerals completed two
transactions to expand its land
holding in western Victoria. In the
Stavely Project area, the Company
acquired EL 5478 from Diatreme
Resources
the
outright 100% purchase of the
tenement for $5,000.
Limited, with
The Company entered into a Joint
Venture with Minotaur Operations
Pty Ltd for EL 5403 and EL 5450 in
the Ararat Project area. Key terms
of the Earn-in and Joint Venture
Agreement
Minotaur
with
Operations Pty Ltd (a subsidiary of
Minotaur Exploration Limited) for
EL 5403 and EL 5450 are:
spend
Stavely must
a
minimum of $44,000 in the
first year before being able to
withdraw from the agreement
Figure 1. Ararat and Stavely Project Location Plan.
Stavely to spend $100,000 in
exploration and related costs
within
of
commencement to earn 51%
equity
years
3
Stavely to spend a further
$100,000 within 5 years of
commencement to earn a
further 24% equity
(75%
total)
Parties to contribute pro-rata
or dilute thereafter, and
Should Minotaur’s equity fall
below 5% it will revert to a 1%
NSR royalty.
2015 Annual Report | Page 6
Review of
Operations
Background
The Ararat and Stavely Projects
are
located approximately 200
kilometres west of Melbourne and
are respectively just west of the
regional centre of Ararat, Victoria
and just east of the regional town
of Glenthompson (Figure 1).
The Projects include exploration
tenements with a total area of 415
square kilometres of 100% owned
and 72 square kilometres of joint
venture tenure. The Projects have
excellent infrastructure and access
with
port
connection by railroad and a 62
located 8
MW wind
farm
kilometres
Stavely
Project. The primary land use is
grazing and broad acre cropping.
highways,
paved
from
the
Regional Geology
The Ararat and Stavely Projects,
while only 40 kilometres apart,
are hosted within materially
different geologic domains (Figure
2).
The Ararat Project is hosted in the
Stawell - Bendigo zone of the
Lachlan Fold Belt and is comprised
of Cambrian age mafic volcanic
and pelitic sedimentary units of
the Moornambool Metamorphics
which were metamorphosed to
greenschist to amphibolite facies
during the Silurian period.
of
The Stavely Project is hosted in
Cambrian
Delamerian
age
Orogeny submarine mafic and
intermediate volcanics and tuffs
which were overlain by quartz-rich
turbidite
the
sequences
Glenthompson Sandstone. These
sequences were deformed in the
seismic
late-Cambrian. Recent
Victorian
traverses
Department
Economic
Development, Jobs, Transport and
Resources
in western Victoria
have supported the interpretation
the
of
by
OPERATIONS REPORT
for
of an Andean-style convergent
margin environment
the
development of the buried Stavely
Arc beneath the Stavely Volcanic
Complex and environs (Cayley, in
prep, pers. comm., 2013). This
regional architecture is considered
conducive to the formation of
fertile copper / gold mineralised
porphyry systems (Crawford et al,
2003) as is the case with the
in New South
Macquarie Arc
Wales, which hosts the Cadia
Valley and North Parkes copper-
gold
porphyry
complexes.
mineralised
Lachlan
The
Fold Belt and
Delamerian sequences are in fault
contact
large-scale
thrusting along the east dipping
Moyston Fault (Cayley and Taylor,
2001).
through
Largely unconformably overlying
both these domains by low-angle
décollement is a structural outlier
of the younger Silurian fluvial to
to
shallow marine
the
mudstone
Grampians Group.
sequences of
sandstone
Mineral Resources
The Ararat and Stavely Projects
host Mineral Resources reported
in compliance with the 2012 JORC
Code:
(a) Ararat Project Mineral Resource
In the Ararat Project, the Mount
Ararat prospect hosts a Besshi-
style VMS deposit with an
estimated (using a 1% Cu lower
cut-off) Total Mineral Resource of
1.3Mt at 2.0% copper, 0.5 g/t
gold, 0.4% zinc and 6 g/t silver for
a contained 26kt of copper,
21,000 ounces of gold, 5.3kt of
zinc and 242,000 ounces of silver
(Table 1).
Figure 2. Geology of south-eastern Australia.
2015 Annual Report | Page 7
OPERATIONS REPORT
Table 1. The Mount Ararat Resource Estimate
Reporting
Threshold
Classification
Domain
Tonnes: Cu
Resource
(KT)
Cu
Grade
(%)
Tonnes: Au,Ag,Zn
Resource (KT)
Au Grade
(ppm)
Ag Grade
(ppm)
Zn Grade
(%)
1.0% Cu
2.0% Cu
Indicated
Inferred
Total 1% Cu
Indicated
Inferred
Total 2% Cu
Supergene
Fresh
Total
Weathered
Supergene
Fresh
Total
Supergene
Fresh
Total
Weathered
Supergene
Fresh
Total
50
200
250
170
30
870
1070
1320
30
80
110
30
20
230
280
390
2.4
2.2
2.2
1.7
2.2
1.9
1.9
2.0
2.9
2.9
2.9
2.9
3.0
3.0
3.0
2.9
170
80
1070
1320
1320
30
50
310
390
390
0.5
0.4
0.5
0.5
0.5
1.3
0.3
0.6
0.6
0.6
3.1
4.4
6.2
5.7
5.7
7.9
4.2
7.7
7.3
7.3
0.1
0.4
0.4
0.4
0.4
0.2
0.4
0.6
0.5
0.5
Table shows rounded estimates. This rounding may cause apparent computational discrepancies. Significant
figures do not imply precision. Nominal copper grade reporting cuts applied. Three material types reported as
varied economic factors will be applicable to the deposit base on reported material types.
The 2015 Mt Ararat Copper Resource Estimate has been classified as Indicated and Inferred Resources under
guidelines set out in the JORC Code (2012 Edition). The gold, silver and zinc estimates are classified as Inferred
Resources. The 2015 Mineral Resources estimate reports, at a 1%Cu cut-off, an 11% increase in total tonnes (up
from 1.19MT) at the same grades as the 2013 estimate.
(b) Stavely Project Mineral Resource
In the Stavely Project, at the Thursday’s Gossan Prospect, a near surface secondary chalcocite enriched blanket
with an estimated (using a 0.2% Cu grade lower cut-off) – 28Mt at 0.4% copper for 110kt of contained copper
(Table 2).
The Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2015, remains unchanged from the
Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2013. There has been no additional
data collected from the deposit and although economic circumstances affecting the mining industry have
changed since 2013 the assumptions utilised in 2013 remain valid, if not for the current situation but for future
situations.
2015 Annual Report | Page 8
OPERATIONS REPORT
Table 2. The Thursday Gossan Chalcocite Copper Inferred Resource Estimate (reviewed in 2015)
Table shows rounded estimates. This rounding may cause apparent computational discrepancies. Significant
figures do not imply precision. Nominal copper grade reporting cuts applied. Three mineralised thicknesses
reported as varied economic factors are likely to be applicable to each.
In accordance with the 2012 JORC
Code, all criteria for sections 1, 2
and 3 of the JORC Code Table 1
and 2 are reported in Appendices 1
and 2.
Ararat Project
Taylor,
2001).
extensive
The Mount Ararat copper deposit
and
lie
the Carroll’s prospect
within a small portion of a much
more
prospective
exhalative horizon on the contact
between the Carrolls Amphibolite
and the Lexington Schist (Cayley
and
The
identification of multiple gossan
horizons and historical copper
workings in the field have led to
the observation that rather than a
single copper trend along the
contact between
the Carrolls
Amphibolite and the Lexington
Schist there
‘VMS copper
is a
corridor’ which may extend up to
is
1km
for
interpreted
kilometres
approximately
within
Project
the
tenements and presents regional
exploration
reconnaissance
opportunities for Stavely Minerals
(Figure 3).
in width. This corridor
15
Ararat
continue
to
Figure 3. Ararat Project – Copper and Gold Prospects.
2015 Annual Report | Page 9
OPERATIONS REPORT
1m at 5.89% copper, 0.55 g/t
gold, 2.31% zinc and 17 g/t
silver1
In 2015 two diamond holes drilled
to test the White Lead Gold
mineralisation passed through the
Mt Ararat VMS deposit and
returned (Figure 7):
2m at 4.25% copper and
1.15% zinc from 62m depth,
including
o
1m at 5.91% copper and
1.3% zinc; and
3m at 1.77% copper and
0.59% zinc from 74m depth,
including
o
1m at 4.45% copper and
0.66% zinc
The grades returned from the RC
and diamond drilling are consistent
with those of the known VMS and
provide further encouragement as
to the prospectivity of the Ararat
Project to host significant VMS
mineralisation.
Two ‘Stawell-style’ gold prospects
– Cathcart Hill and White Lead,
have been identified in the Ararat
Project. These gold prospects are
located in the Cathcart Goldfield,
which had very significant alluvial
and ‘deep lead’ gold production in
the 1850’s and 1860’s. The
Cathcart area yielded a substantial
proportion of the gold produced
from the greater Ararat Goldfield,
estimated
which
production in excess of 20 tonnes
of
but,
significantly, was not associated
with any known hard-rock source.
(~640,000oz)
gold
had
an
The host lithologies to the Stawell
Gold Mine are analogous to the
lithologies in the Ararat Project.
The Stawell Goldfield has produced
over 6 million ounces of historic
and modern gold production.
i. Mt Ararat VMS Deposit
The Besshi-style VMS copper-gold-
zinc-silver mineralisation has been
identified over a 350 metre strike
extent (open at depth) at Mount
Ararat. In 2014, 7 RC holes were
drilled
northern
extensions of the known copper-
the
gold-zinc mineralisation at
Mount Ararat VMS to test for
as
mineralised
indicated
EM
conductors (Figure 4).
extensions
ground
into
the
by
All the holes intercepted significant
copper
- silver
mineralisation including (Figure 5):
- gold
- zinc
5m at 2.10% copper, 0.56 g/t
gold, 0.48% zinc and 9 g/t
silver, including
o
2m at 3.37% copper, 0.73
g/t gold, 0.47% zinc and 14
g/t silver
3m at 2.64% copper, 0.17 g/t
gold, 0.31% zinc and 3 g/t
silver
Figure 4. Ararat Project - Mt Ararat Copper Deposit and Carroll's Prospect
Drill Hole Location Plan.
1 * True widths are approximately 90-
95% of reported drill widths
2015 Annual Report | Page 10
OPERATIONS REPORT
The anomaly extends over a strike
length of 1.5km, is up to 500m
wide and remains open to the
Rock-chip
north
sampling
sub-cropping
mineralisation has returned very
strong assay results including:
south.
and
of
10.8% copper, 0.41% zinc and
1.54 g/t gold
Rock-chip
mineralised
extremely high
including:
sampling of copper
returned
results
assay
float
24.0% copper, 1.1% zinc and
0.52 g/t gold
The soil results demonstrate an
‘order of magnitude’
spatially
larger zinc-copper anomaly than at
the existing Mt Ararat copper-gold-
zinc deposit. Notwithstanding the
exceptional
copper
grades, the soil samples at the
Carroll’s Base Metal prospect
would appear to be more zinc-rich.
rock-chip
iii. White Lead Gold Prospect
Geochemical soil sampling was
conducted at the White Lead Gold
prospect to identify extensions to
the
gold
‘Stawell-style’
mineralisation intercepted at the
Mt Ararat Copper-Gold VMS
deposit. A gold zone averaging
12m at 0.97 g/t gold to end of
hole, within a broader 13m
interval, including a significantly
higher grade zone of 3m at 3.04
g/t gold, was intersected in the
copper
to
footwall
mineralisation.
the
Coincident arsenic, chromium, lead
and copper soil sample anomalies
extend over 1.2km in strike, and
remains open to the north and
The surficial
south (Figure 7).
geochemical
is very
similar to that described at the
Stawell Gold Deposit. Rock-chip
sampling of surficial
float has
returned gold anomalous results of
up to 5.57 g/t gold.
signature
2015 Annual Report | Page 11
Figure 5. Ararat Project - Mount Ararat Copper Prospect Drill Section SADD001.
ii.
Carroll’s Base Metal Prospect
At
the Carroll’s Base Metal
prospect, 6 RC drill holes and two
diamond tails were completed to
test an EM conductor. RC holes
drilled to 200m depth and the
diamond tails which extended to in
excess of 400m depth have
intercepted the top edge of a large
ground EM conductor extending to
800m depth (Figure 4).
Significantly, visual observations
and limited assay results indicate
that the top of the conductor
plates corresponds with copper-
gold - zinc - silver anomalism,
magnetite
manganese
and
enrichment. This is consistent with
a VMS exhalative horizon and
proves that the EM conductor is
not associated with graphitic
schists as was
supposed by
previous explorers.
targeting
Geochemical soil and rock-chip
sampling,
copper
mineralisation where gossanous
float was observed in the field, to
the west of the RC drilling has
identified a coincident zinc, copper
and chromium, with slightly offset
lead soil anomaly at the Carroll’s
Base Metal prospect (Figure 6).
OPERATIONS REPORT
There are numerous
shallow
historic gold workings commencing
along the White Lead gold trend
from
and progressing downhill
there into palaeo-alluvial gravels.
The White Lead area is part of the
Cathcart Goldfield, where alluvial
gold was first discovered at Pinky
Point in 1854 and at White Lead in
1855.
Three diamond holes were drilled
for a total of 603.5m targeting the
structures controlling hard-rock
mineralisation at the White Lead
Gold prospect
(Figure 7).The
drilling returned significant gold
assay results including (Figure 5):
2 metres at 6.43 g/t gold from
76 metres including
o 1 metre at 11.3 g/t gold, and
2 metres at 1.04 g/t gold from
122 metres
While these intercepts are narrow,
the high grade gold
is very
encouraging, in particular because
the host units are not considered
particularly favourable for well-
developed gold mineralisation.
of
this area
understanding
The
the
structural
controls
on
is
in
mineralisation
important to allow targeting of
zones of greater width and higher
grades where these structures are
traverse more
predicted
favourable host
the
sequence.
rocks
to
in
iv.
Cathcart Hill Gold Prospect
At the Cathcart Hill Gold prospect
geochemical soil sampling has
identified a coincident arsenic and
that
chromium
extends over 800 metres in strike
and remains open to the north and
south (Figure 8).
anomaly
soil
selected
area was
The
for
systematic soil sampling because a
number of very shallow air-core
drill holes drilled in 1996 returned
strong arsenic anomalism to 0.27%
arsenic but without coincident
gold anomalism. On review, it was
Figure 6. Ararat Project – Mt Ararat, White Lead and Carroll’s Prospect Zinc Anomaly.
of
the
concluded that the air-core arsenic
result of
anomaly was
gold-
weathering
nearby
and
sulphide mineralisation
in
subsequent
the weathering profile. As arsenic
is more soluble and mobile in this
environment than
is gold, the
arsenic anomaly could be expected
to travel much further and provide
lateral dispersion
spatially much larger anomaly than
gold would.
An
inclined diamond drill hole
drilled in 1977 located some 200m
to the northwest of the main soil
sample arsenic anomaly had
returned 2m at 5.0 g/t gold from
43m drill depth and is logged as a
bedrock intercept.
2015 Annual Report | Page 12
OPERATIONS REPORT
Figure 7. Ararat Project – White Lead Arsenic Anomaly and Drill Collar Location Plan.
2015 Annual Report | Page 13
OPERATIONS REPORT
Figure 8. Ararat Project – Cathcart Hill Gold Prospect Arsenic and Chromium
Anomalies.
v.
Langi Logan Gold Prospect
Stavely Project
for
targeted
During the year, one diamond drill
hole was drilled to 350m depth at
Langi Logan, targeting the western
margin of the basalt dome and
‘Stawell-style’
looking
mineralisation
associated with
arsenopyrite. An IP survey was
conducted to confirm the position
faulted
of
the
sediment/basalt
The
results of the IP survey together
with gravity/magnetic
inversions
were used to plan the location of
the diamond drill hole. Drilling
confirmed the presence of the
–
favourable
sulphidic sediments proximal to
the contact with the Langi Logan
basalt dome but failed to intercept
gold mineralisation.
significant
lithology
contact.
host
The Stavely Project is considered
to present significant opportunities
for discovery of porphyry copper-
gold and VMS base-metals +/- gold
deposits.
Company’s
The
exploraton
rationale at the Stavely Project is
that previous explorers did not drill
deep enough to test copper-gold
mineralisation associated with a
intrusion at depth. In
porphyry
2014, five deep diamond drill holes
were
provide
geological vectors towards the
quartz-sulphide
targeted
stockwork veining on the margins
the porphyry
and
intrusions
Thursday’s
Gossan and Junction prospects.
completed
apex of
the
to
at
i.
Thursday’s Gossan Porphyry
Prospect
Three diamond drill holes were
completed for a total of 1,697m at
Thursday’s Gossan (Figure 9).
Intersections of broad intervals of
low-grade copper mineralisation
geological
with
consistent
the well-
from
observations
developed
alteration
phyllic
included:
196m at 0.13% copper from
322m down-hole in SMD003,
82.3m at 0.12% copper from
440m down-hole to end-of-
hole in SMD001,
69m at 0.15% copper from
466m down-hole in SMD004,
52m at 0.23% copper from
39m down-hole in SMD004,
45.9m at 0.19% copper from
35.2m down-hole in SMD001.
Higher grade intervals associated
quartz-pyrite-bornite-
with
‘D’ veins
chalcopyrite sulphidic
included:
5.9m at 0.78% copper and 16
g/t silver from 71m down-hole
in SMD003.
In all three drill holes, a shallow
dipping fault has been recognised
which marks a sharp transition
phyllic
well-developed
from
alteration to more distal propylitic
alteration below the fault. It is
notable that
low-grade copper
mineralisation persists below the
fault into the propylitic alteration
and reinforces the potential for
well-developed
copper-gold
mineralisation associated with the
targeted potassic core of
the
porphyry system (Figure 10).
Multi-disciplinary analysis of drill
core from the deep diamond holes
completed by Stavely Minerals in
2014 indicates that below the low-
angle structural zone the character
of the hydrothermal alteration
demonstrated a marked change to
a more distal position.
2015 Annual Report | Page 14
OPERATIONS REPORT
exploration
targets
attractive
because
characteristically
have higher grades, especially for
gold.
they
with minor additional geophysical
work to refine targets, will need to
be drill tested.
ii.
Junction Porphyry Prospect
logging
structural
Structural
and
interpretation has confirmed the
low-angle
offset
interpretation and has identified
kinematic indicators of a strike-slip
movement of the block below the
structural zone being offset to the
north.
Collectively, the three independent
disciplines of kinematic indicators,
white mica SWNIR absorption
features and sulphur isotope data
are in broad agreement that the
lower block below the structure
has been transposed to the north
(Figure 11). Geophysical induced
polarisation (IP) survey coverage
was extended to the north and
east to
identify potential zones
sulphide
of
mineralisation below the structural
zone
New
those areas.
chargeability anomalies have been
identified by these surveys and,
disseminated
in
to
Two deep diamond drill holes were
drilled for a total of 1,227m at the
test a
Junction prospect
magnetic high and coincident
copper
geochemical
anomaly (Figure 9). Hole SMD002
returned the first instance of gold
being associated with copper
mineralisation with an attractive
intercept of:
soil/auger
5m at 1.38% copper, 0.25 g/t
gold and 11.8 g/t silver from
332m down-hole.
that
interval
to
this
disseminated
is
Given
in
patchy
pyrite - chalcopyrite - magnetite
mineralisation
associated with
potassic biotite and potassium
feldspar alteration and not a ‘D’
vein,
is encouraging as an
example of the attractive tenor of
the copper-gold-silver grade the
Junction system is capable of in the
it
This marked change across the
structural zone is supported by the
short wavelength near
infra-red
(SWNIR) wavelength absorption
features of white micas displaying
an abrupt transition from short
wavelengths to longer wavelengths
across the structure, particularly in
drill hole SMD003.
abrupt
transition
This
is
interpreted to reflect a proximal
the
magmatic signature above
structural zone to a distal signature
below the zone in SMD003.
features below
In contrast, the white mica SWNIR
absorption
the
structural zone indicate increasing
proximity to a magmatic source to
the north. These data support
the
movement
interpretation.
structural
sulphur
addition,
isotope
In
determinations taken from Stavely
Minerals’ and previous explorers’
diamond drill core broadly support
increasing
this
proximity to a porphyry magmatic
source.
interpretation of
the
low-angle
the sulphur
fault
Above
isotope
structure,
indications were of
increasing
proximity to the porphyry source
to the south; whereas below the
structure, the indications from the
isotopes are that the
sulphur
porphyry
been
source
transposed from south to north.
has
isotope
sulphur
values
The
observed at Thursday’s Gossan are
consistent with those observed at
the Goonumbla (North Parkes) and
Cadia Valley porphyry copper-gold
systems
in central New South
Wales and also porphyry copper-
gold deposits in British Columbia
such as Mt Polley, Red Chris and
Afton.
of
these
deposits
All
are
considered to be alkalic copper-
systems which,
gold porphyry
while typically smaller spatially
than calc-alkalic porphyries, are
Figure 9. Stavely Project – Thursday’s Gossan and Junction Porphyry Targets
Drill Hole Location Plan.
2015 Annual Report | Page 15
potassic altered zone.
intervals of
mineralisation
included:
Broad
low-grade copper
SMD002
from
62.0m at 0.17% copper from
35.2m down-hole,
15m at 0.10% copper from
89m down-hole, and
44.8m at 0.15% copper from
193.2m down-hole.
OPERATIONS REPORT
Figure 10. Stavely Project – Thursday’s Gossan Oblique Section for SMD003 and
SMD004.
Figure 11. Stavely Project – Thursday’s Gossan Prospect 3D Model.
2015 Annual Report | Page 16
OPERATIONS REPORT
JORC Compliance Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Mr Chris Cairns, a Competent Person who is a Member of the
Australian Institute of Geoscientists. Mr Cairns is a full-time employee of the Company. Mr Cairns is the Managing
Director of Stavely Minerals Limited, is a substantial shareholder of the Company and is an option holder of the
Company. Mr Cairns has sufficient experience that 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’. Mr Cairns consents
to the inclusion in the report of the matters based on his information in the form and context in which it appears.
With respect to reporting of the Mineral Resources at the Mt Ararat VMS copper-gold-zinc deposit and Thursday’s
Gossan chalcocite copper deposit, the information is extracted from the report entitled “Mount Ararat 2015 Resource
Estimate Report” dated 24 August 2015 and “Appendix 1, Reporting of Thursday Gossan Chalcocite Copper Resource
against criteria in Table 1 JORC Code 2012” authored by Mr Duncan Hackman of Hackman and Associates Pty Ltd. Mr
Hackman is a Member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style
of mineralisation and type of deposit under consideration and to the activity 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 (The JORC Code, 2012 Edition). Mr Hackman consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears
Bibliography
Australian Stratigraphic Names Database, 2012, Geoscience Australia.
Bastrakov, E. 2014. Stavely Regional Drilling Project, western Victoria: sulfur isotopic fingerprinting of Cambrian
copper systems. http://www.ga.gov.au/about-us/news-media/minerals-alert.html#e
Cayley, R.A., 1988, The structure and metamorphism of the Mount Ararat region Victoria. B.Sc. (Hons) thesis,
University of Melbourne, Melbourne (unpubl.).
Cayley, R.A and Taylor, D.H., 2001, Ararat: 1:100 000 map area geological report. Geological Survey of Victoria Report
115.
Crawford, A.J., 1988, Cambrian. in J.G. Douglas & J.A. Ferguson (eds.) Geology of Victoria. Geological Society of
Australia, Victorian Division, Melbourne, page 37- 62.
Corbett, G., 2012, Corbett, G. J., 2012 Comments on the potential for the Mount Stavely Volcanics to host porphyry
Cu-Au mineralisation. Unpublished report to the Geological Survey of Victoria, June 2012.
Corbett, G. & Menzies, D., 2013, Review of the Thursdays Gossan Project, Victoria for Northern Platinum Pty Ltd.
Internal company report.
Crawford, A.J., Cayley, R.A., Taylor, D.H., Morand, V.J., Gray, C.M., Kemp. A.I.S., Wohlt, K.E., Vandenberg, A.H.M.,
Moore, D.H., Maher, S., Direen, N.G., Edwards, J., Donaghy, A.G., Anderson, J.A., and Black, L.P., 2003,
Neoproterozoic and Cambrian continental rifting, continent-arc collision and post-collisional magmatism. in
Evolution of the Palaeozoic Basement. Geological Society of Australia, Sydney, Australia, pages 73 -93.
Halley, S., 2013, Interpretation of HyLogger Spectral Data from the Stavely Volcanic Belt, Western Victoria for
Northern Platinum Pty Ltd. Internal company report.
Hackman and Associates Pty Ltd., 2013a, Thursday Gossan Chalcocite Copper Deposit, Victoria, Australia 2013
Resource Estimate Report.
Hackman and Associates Pty Ltd., 2013b, Mount Ararat Copper Deposit, Victoria, Australia 2013 Resource Estimate
Report.
Hackman and Associates Pty Ltd., 2015, Mount Ararat, Victoria, Australia 2015 Resource Estimate Report.
Holliday, J.R., and Cooke, D.R., 2007, Advances in Geological Models and Exploration Methods for Copper ± Gold
Porphyry Deposits. in Proceedings of Exploration 07: Fifth Decennial International Conference on Mineral
Exploration, B Milkereit (ed), pages 791-809.
Spencer, A.A.S., 1996, Geology and Hydrothermal Alteration of Thursdays Gossan Porphyry System, Stavely, Victoria
BSc (Hons) Thesis La Trobe University (Unpublished).
Stuart-Smith, P.G. & Black, L.P., 1999. Willaura, sheet 7422, Victoria, 1:100 000 map geological report. Australian
Geological Survey Organisation Record 1999/38.
2015 Annual Report | Page 17
OPERATIONS REPORT
Appendix 1: Mt Ararat Mineral Resource Estimate
Summary:
The Mount Ararat August 2015 Inferred Resource Estimate is an inverse distance squared Cu, Au, Ag and Zn estimate
of the planar, steeply dipping VMS style mineralisation of the deposit and is tabulated below. The estimate was
undertaken, classified and reported according to the guidelines set out in The Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012 Edition).
The Mount Ararat Resource Estimate:
Table shows rounded estimates. This rounding may cause apparent computational discrepancies.
Significant figures do not imply precision. Nominal copper grade reporting cuts applied. Three
material types reported as varied economic factors will be applicable to the deposit base on reported
material types.
The estimate:
Is based on recent 2014-15 Stavely Minerals drilling and historic drilling data which is of unknown reliability
and quality that tests a discrete steeply dipping body of base metal mineralisation.
Extends for a strike length of 830m (towards 335deg), vertically for 350m and ranges mostly between 1m
and 3m thick (total massive + sub-massive + stringer mineralisation). The mineralisation is modelled
between 4m and 14m thick in the upper 50m (this may be real, due to supergene actions or introduced due
to the suspected wet/difficult RC drilling conditions).
Is underpinned by 309 Cu assays from 64 holes (271 nominal 1m composites). High grade restrictions are
applied to the Cu, Au, Ag and Zn grade interpolations (55m radius of influence). A tonnage factor of
3.17g/cc was applied to all mineralised blocks.
Reconciles well both statistically and spatially with the source assay data.
Was undertaken by Duncan Hackman who is a member of the Australian Institute of Geoscientists and has
sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to
the activity 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 (The JORC Code, 2012
Edition).
2015 Annual Report | Page 18
OPERATIONS REPORT
JORC 2012 Table 1, Sections 1, 2 and 3 criteria.
Section 1: Sampling Techniques and Data
Criteria
Explanation
Sampling techniques
Resource estimate underpinned by diamond drilling (DD) and reverse
circulation drilling (RC) drilling samples.
Drilling techniques
Drilling details for the Mount Ararat resource drillhole dataset
Drill sample recovery
Logging
Sub-sampling
sample preparation
techniques
and
Quality of assay data and
laboratory tests
No detailed information or data:
Historic reports state that diamond holes had relatively low core
recoveries, and RC drilling encountered water in the weathered and
oxidized mineralized zone. Limited data indicates that samples from
this material will be significantly compromised by drilling and sampling
conditions encountered.
lithological drill logs generated by workers but not utilised in generating
resource estimate.
Pennzoil: Half-core samples were taken from core showing visible
mineralisation.
Centaur Mining:
o MA24 to MA38: Half-core samples were taken from core showing
visible mineralisation. Sample reduction process unknown.
o MA39A to MA58: 130mm RC chips from drilling configuration
utilising back-end cross-over sub to return sample. Sample
collection by splitting (details unknown) and sample reduction
process unknown.
o M94_1 to M94_4: Half-core samples were taken from core
showing visible mineralisation. Sample reduction process
unknown.
Beaconsfield Gold:
o ARD001 to ARD004: diamond drilling – sampling method and
reduction unknown.
o ARC001 to ARC006: 84mm RC chips. Sample collected by passing
through 3 tiered riffle splitter. Sample reduction process
unknown.
Stavely Minerals:
o SADD001 to SADD003: diamond drilling – ½ HQ core sampled by
core saw. Crush-split and pulverise to 85% passing -75micon
o SARC00[1,2,4 - 9]: RC drilling – cone splitter. Crush-split and
pulverise to 85% passing -75micon
Pennzoil: A base metal suite was assayed via AAS (digestion not
specified) and Au was assayed via fire assay.
Centaur Mining:
o MA24 to MA38: A base metal suite was assayed via AAS (digestion
2015 Annual Report | Page 19
OPERATIONS REPORT
Criteria
Explanation
not specified) and Au was assayed via fire assay.
o MA39A to MA58: A base metal suite was assayed via AAS
(digestion not specified) and Au was assayed via fire assay.
o M94_1 to M94_4: A base metal suite was assayed 4 acid digest
with AAS finish and Au was assayed via fire assay.
Beaconsfield Gold:
o ARD001 to ARD004: Assay Lab – Onsite Lab Services. Cu initially
by method B101 - AR digest ICP finish. If higher than 5000ppm
then A101 - Ore grade digest (details unknown) with AA finish. Au
by PE01S - 25g Fire Assay.
o ARC001 to ARC006: Assay Lab – Onsite Lab Services. Cu initially by
method B101 - AR digest ICP finish. If higher than 5000ppm then
A101 - Ore grade digest (details unknown) with AA finish. Au by
PE01S - 25g Fire Assay.
No quality control samples submitted with any historic routine samples
Stavely Minerals:
o SADD00[1 – 3], SARC00[1,2,4 - 9]: Australian Laboratory Services,
Orange. Cu, Ag and Zn by four acid digest (including HF), ICP-AES
determination (ALS code ME-ICP61). Samples >1% Cu re-assayed
by ore grade four acid digest, ICP-AES determination (ALS code
ME-OG62). Au by 30g fire assay, AAS determination (ALS codes
Au-AA23 and Au-AA25). Client and Laboratory QC data inserted
with routine samples and establish acceptable reliability of assays.
sampling and
No available data available for analysis
Verification of
assaying
Location of data
Data spacing and distribution
Orientation of data in relation to
geological structure
Sample security
Audits or reviews
Historic drillholes originally located according to two local grids (details
unknown). Collar coordinates were converted to GDA94 zone 54S (MGA94
54S) by historic workers. Conversion details are unknown. Stavely Minerals
holes located in MGA94 54S. The estimate is undertaken using the supplied
MGA94 54S grid references.
GPS checking of 2 Pennzoil, 3 Centaur Mining and 4 Beaconsfield Gold hole
collar locations show holes located with acceptable accuracy for reporting of
Inferred and Indicated Resources.
Within the central 500m of mineralisation (strike length):
o Oxide mineralisation – drill tested on 50m centred section lines
o Fresh Indicated Resources –tested at nominal 50m centres.
Other areas and mineralisation extent tested by 8 holes
Holes drilled at 9degrees (Azimuth) to planar mineralisation.
Holes angled mostly between 50 and 70 degrees easterly. Mineralised
plane dips westerly ~60degrees
No available data to assess security
GPS checking of 9 hole collar locations
Basic checking of data integrity
Section 2: Reporting of Exploration Results
Criteria
Explanation
Mineral
tenure status
tenement and
land
Mineralisation straddles boundary between exploration licences EL4758
(expired 28/01/2014) and EL3019 (expired 21/12/2014) and is within
Retention Licence application RL2020. SVY’s tenure over the area
covered by expired licences EL4758 and EL3019 remains current
pending the grant of the retention licence.
Tenements currently held by Stavely Minerals Limited
2015 Annual Report | Page 20
OPERATIONS REPORT
Criteria
Explanation
Exploration done by other parties
Geology
Drill hole Information
Stavely Minerals have informed HA that the licences are in good
standing.
Pennzoil: 12 holes drilled into mineralisation.
Centaur Mining: 38 holes drilled into mineralisation.
Beaconsfield Gold: 10 holes drilled into mineralisation
Stavely Minerals: 9 holes drilled into mineralisation
Steeply westerly dipping, single planar massive sulphide horizon
(historically described as VMS)
82 holes drilled in the prospect area, 64 holes intercepted
mineralisation, 5 holes define the strike extent of mineralisation.
Collar locations verified as acceptable through field checking of 9 holes
Downhole surveys for describing hole trace and sample locations
available for 32 holes:
Assaying of those samples logged with visible sulphide mineralisation
Lithology logs available for all holes
Oxidation state available for 34 Centaur Mining holes.
Summary moisture data available for 18 Centaur Mining RC holes.
39 SG measurements taken from 4 Beaconsfield Gold holes ARD[001-
004]
Assay sample intervals:
Data aggregation methods
Relationship
mineralisation
intercept lengths
between
and
widths
Composited to 1m intervals for resource estimate.
No apparent association when data assessed by drill type and
mineralisation style breakdown.
Significant relationship differences when assessing DD vs RC holes:
o Smearing and/or preferential loss and/or cross-contamination of
samples may be present in RC drill sample assay dataset.
o Preferential loss of friable non-mineralised material may have
biased the DD drill sample assay dataset
o Both the RC and DD datasets may be preferentially weighted by
material with significantly different tenor of in situ grade
2015 Annual Report | Page 21
OPERATIONS REPORT
Criteria
Diagrammes
Explanation
Historic cross sections and plans were reviewed
Long section thickness and drillhole intercept figure:
Balanced reporting
substantive exploration
Other
data
Selective sampling of holes where mineralisation observed considered
acceptable for estimating sulphide resources. Any gold or silver
mineralisation intercepted by drilling with no associated sulphides will
not be identifiable in the current dataset. Stavely Minerals identified
younger gold only mineralisation proximal to but not genetically related
to the VMS mineralisation.
A further 53 holes have been drilled within the exploration tenements.
Further work
Mineralisation thins but is open at depth and opportunities for defining
drilling targets (thick shoots). Additional resources may be identified by
better definition of the thick mineralisation directly below the Indicated
Resources.
Section 3: Estimation and Reporting of Mineral Resources
Criteria
Explanation
Database integrity
Site visits
Geological interpretation
Dimensions
Estimation
techniques
and
modelling
Data management protocols and provenance unknown
Limited cross checks with paper records of drill hole and assay data
Field verification of 9 hole collar locations.
Relational and spatial integrity assessed and considered acceptable.
Not undertaken by CP
Stavely Minerals’ personnel verify existence of core. CP has viewed photos
of chip trays with mineralisation taken by Stavely Minerals’ Personnel.
Single planar mineralised massive sulphide body interpreted and modelled
for grade interpolation.
Oxide state modelled and utilised for reporting of resource estimate.
Mineralisation extends for a strike length of 830m (towards 335deg),
vertically for 350m and ranges mostly between 1m and 3m thick (total
massive + sub-massive + stringer mineralisation). The mineralisation is
modelled between 4m and 14m thick in the upper 50m (this may be real,
due to supergene actions or introduced due to the suspected wet/difficult
RC drilling conditions)
The block model and grade estimate encompasses the extent of the
mineralisation.
Copper, gold, silver and zinc grades were interpolated into a VulcanTM non-
regular block model with 10x10x10 metre parent blocks – subblocked to
1x1x1 metre minimum block dimensions.
1m composite intervals utilised.
Grades greater than:
6%Cu,
2015 Annual Report | Page 22
OPERATIONS REPORT
Criteria
Explanation
2.50ppmAu,
15ppmAg,
1%Zn,
were restricted to inform blocks within a 55m radius of their location.
Single pass ID2 interpolation run employed utilising 400m sample search
within the plane of mineralisation.
Minimum of 20 and maximum of 40 composites utilised to estimate grade.
The Mt Ararat resource is classified as Inferred under the guidelines set out
in the 2012 JORC Code.
15 of 18 RC holes drilled by Centaur Mining encountered wet drilling through
the mineralisation. Grade profiles suggest down hole smearing of grade
(cross-contamination) in the oxide/supergene mineralisation.
Core recovery averages 85% through the oxide/weathered mineralisation,
down from >97% recorded for the supergene and primary mineralisation.
There is no information or data to assess the affect core loss has on grade.
The resource is reported by mineralisation thickness and oxidation state.
Cuts of 0.5%, 1.0% and 2.0% copper were applied. These breakdowns and
grade tonnage plots are reported to allow differing economic assessment on
the project.
Not applied, however resource is reported at 1m and 2m thicknesses and by
oxidation state to allow for assessment of both underground and open cut
mining methods.
Not evaluated as risks associated with historic data over-riding feature
affecting the confidence of the estimate.
Not evaluated as risks associated with historic data over-riding feature
affecting the confidence of the estimate.
A single tonnage factor of 3.17 tonnes/m3 was applied to all mineralisation.
The estimate is classified as Inferred under the JORC Code (2012 Edition).
Absence of QA/QC and important data for evaluating risk to the estimate
(such as recover and moisture versus grade) are key factors in assigning an
Inferred Classification.
No Audit or Review of estimate undertaken.
Not undertaken other than that stated under the classification section.
Moisture and recovery
Cut-off parameters
Mining factors or assumptions
factors
or
factors
or
Metallurgical
assumptions
Environmental
assumptions
Bulk Density
Classification
Audits or reviews.
Discussion of relative accuracy/
confidence
2015 Annual Report | Page 23
OPERATIONS REPORT
Appendix 2: Thursday’s Gossan Mineral Resource Estimate
Summary:
The Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2015, remains unchanged from the
Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2013. There has been no additional data
collected from the deposit and although economic circumstances affecting the mining industry have changed since
2013 the assumptions utilised in 2013 remain valid, if not for the current situation but for future situations. Stavely
Minerals have advised that tenure over the Thursday Gossan Chalcocite deposit is in good standing and that there
are no impediments to undertaking further evaluation of the deposit.
Details of the 2013 resource estimate have been reported in “Thursday Gossan Copper, Victoria, Australia, 2013
Resource Estimate Report” prepared for Northern Platinum Pty Ltd, a forerunner for Stavely Minerals Limited who
now hold tenure over the project area. The following summary of the 2013 Inferred Resource Estimate applies to
the 2015 resources publically stated by Stavely and is repeated here unchanged to support their statement. The
reader can substitute 2015 for 2013 and Stavely Minerals for Northern Platinum in the text on the following pages.
The Thursday Gossan Chalcocite Copper August 2013 Inferred Resource estimate is an inverse distance squared Cu
estimate of the tabular sub-horizontal supergene style mineralisation of the deposit and is tabulated below. The
estimate was undertaken, classified and reported according to the guidelines set out in The Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserve (the JORC Code, 2012 Edition).
The Thursday Gossan Chalcocite Copper Inferred Resource Estimate:
Table shows rounded estimates. This rounding may cause apparent computational discrepancies. Significant
figures do not imply precision. Nominal copper grade reporting cuts applied. Three mineralised thicknesses
reported as varied economic factors are likely to be applicable to each.
The estimate:
Is based on historic drilling data of unknown reliability and quality however there are no obvious reasons to
question that the holes were drilled to test a flat lying supergene copper deposit.
Extends intermittently for a strike length of 4000m (NS) a breadth of 1500m and vertically up to 60m thick.
The model includes prospects known as Thursday Gossan Chalcocite Copper, Junction and Drysdale.
Is underpinned by 2355 Cu assays from 225 holes (1493 nominal 3m composites). Cu grades were
interpolated without any cuts or restrictions. A tonnage factor of 2.10g/cc was applied to all mineralised
blocks.
Reconciles well both statistically and spatially with the source assay data.
2015 Annual Report | Page 24
OPERATIONS REPORT
Was undertaken by Duncan Hackman who is a member of the Australian Institute of Geoscientists and has
sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to
the activity 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 (The JORC Code, 2012
Edition).
JORC 2012 Table 1, Sections 1,2 and 3 criteria.
Section 1: Sampling Techniques and Data
Criteria
Explanation
Sampling techniques
Drilling techniques
Resource estimate underpinned by diamond drilling (DD), aircore drilling
(AC), reverse air blast drilling (RAB) and reverse circulation drilling (RC)
samples:
Pennzoil (1 RC, 14 RAB holes): 2m Samples selected where mineralisation
observed. 13 RAB holes sampled every alternate 2m intervals. No details on
sampling methods.
North (4 DD, 1 AC, 85 RAB) and Newcrest (3 DD): Diamond holes ½ core
sampled. No details on sampling of RC, RAB and Aircore holes.
Beaconsfield Gold (2 DD, 78 AC): Diamond holes ½ core sampled. Aircore
holes were sampled by spearing of material on 2m or 3m intervals where no
mineralisation was observed and on 1m intervals where mineralisation was
observed.
TGM Group (26 AC): No details.
Drilling details for the TGC resource drillhole dataset
Drill sample recovery
Recovery data available for 2 DD holes.
Logging
Sub-sampling
sample preparation
techniques
and
Quality of assay data and
laboratory tests
Lithology logs through mineralisation available for all holes.
Incomplete oxidation-state and interval colour logging (utilised to determine
base of supergene zone).
Pennzoil (1 RC, 14 RAB holes): No details on sampling and sample
preparation methodology.
North (4 DD, 1 AC, 85 RAB) and Newcrest (3 DD): No details sample
preparation methodology.
Beaconsfield Gold (2 DD, 78 AC): No information on sample preparation
methodology.
TGM Group (26 AC): No details
Pennzoil (1 RC, 14 RAB holes): A base metal suite was assayed via AAS
(digestion not specified) and Au was assayed via fire assay.
North (4 DD, 1 AC, 85 RAB) and Newcrest (3 DD): A base metal suite was
assayed via Mixed Acid digest, AAS detection and Au was assayed via fire
2015 Annual Report | Page 25
OPERATIONS REPORT
Criteria
Explanation
assay.
Beaconsfield Gold (2 DD, 78 AC): OnSite Laboratory Services (Bendigo)
analysed all samples for Cu by aqua regia digest ICP-OES detection and
repeated assays for samples returning greater than 5000ppm Cu by Mixed
Acid Digest ICP-OES detection. Au was assayed via fire assay.
TGM Group (26 AC): No details. “Cherry-picking” of best assays from
reassayed samples (85 of 160 substituted) has introduced a +10% relative
bias for 9 holes used in the resource estimate.
No QC samples were inserted into any of the sample batches from the
Thursday Gossan drilling. No laboratory QC data was made available for
assessment as part of this resource estimate.
Beaconsfield Gold undertook a limited (selective) umpire laboratory
programme (29 samples), entire residual material assaying (94 intervals) and
66 sub-sample assays of residual material (66 intervals). These projects
provide limited insight into sampling and assay reliability. This data indicates
that:
Both significant bias and precision issues are suspected in the Beaconsfield
Gold dataset (OnSite Laboratory) and that there appears to be a period of
instrument malfunction or systems/procedural breakdown at grades greater
than 3000ppm Cu at the laboratory.
The spear vs total sample dataset shows a significant relative bias in favour
of the spear sample, manifesting greatest within samples containing higher
copper grades.
Beaconsfield Gold undertook a limited (selective) umpire laboratory
programme (29 samples), entire residual material assaying (94 intervals) and
66 sub-sample assays of residual material (66 intervals). These projects
provide limited insight into sampling and assay reliability.
Holes within the Thursday Gossan area are recorded as being surveyed
under three systems: AMG66 zone 54S, MGA zone 54 and GDA94 zone 54S.
All coordinates were converted to GDA94 zone 54S by previous workers.
These conversions have not been checked by NPT or HA. The August 2013
estimate is undertaken using the supplied GDA94 54S grid references.
Beaconsfield Gold holes were located by hand held GPS. No information on
survey methods for other workers.
Area showing the thickest and highest tenor of mineralisation tested at
nominal 50m centres by predominantly vertical holes.
Areas less well mineralised tested mostly at 100m centres by vertical
drillholes
Drill orientation appropriate for testing of flat-lying mineralisation
Underlying geology indicates that primary mineralisation may be sub
vertical. Supergene mineralisation is controlled by pre-existing geology,
groundwater movement and surface/weathering events. It is unknown from
the current dataset if there is any sub-vertical fabric within the supergene
mineralisation and if so then vertical holes will not adequately sample this
feature of the mineralisation.
No available data to assess security
Basic checking of data integrity
2015 Annual Report | Page 26
Verification of
assaying
sampling and
Location of data
Data spacing and distribution
Orientation of data in relation to
geological structure
Sample security
Audits or reviews
OPERATIONS REPORT
Section 2: Reporting of Exploration Results
Criteria
Explanation
Mineral
tenure status
tenement
and
land
Exploration done by other parties
Geology
Drill hole Information
The mineralisation is situated within exploration licence EL4556 (expires
05/04/2014) which is currently held by Northern Platinum Pty Ltd. Northern
Platinum advises that the tenement is considered in good standing by the
Victorian Department of Environment and Primary Industries and that they
cannot foresee any reasons that would inhibit the tenement being renewed
for a further term in 2014.
Pennzoil: 1 RC, 14 RAB holes
North: 4 DD, 1 AC, 85 RAB holes
TGM Group: 26 AC holes
Beaconsfield Gold: 2 DD, 78 AC holes
Beaconsfield Gold: Resource Estimate undertaken by Coffey Mining Pty Ltd
(2008)
Supergene enrichment of hydrothermally altered host rocks, where fine
grained chalcocite and covellite have partially replaced pyrite and
chalcopyrite grains.
225 holes drilled in the prospect.
Collar locations not verified however plot within acceptable levels from
SRTM derived topographic surface.
Downhole surveys for describing hole trace and sample locations available
for 4 of 40 angled holes. 185 vertical holes drilled.
Pennzoil assayed intervals logged with visible sulphide mineralisation.
Sampling interval breakdown:
Lithology logs through mineralisation available for all holes.
Incomplete oxidation-state and interval colour logging (utilised to determine
base of supergene zone).
Summary moisture data available for 28 AC/RC holes show that all bar one
hole encountered water through the mineralised interval.
Recovery data available for 2 DD holes.
SG measurements taken from Beaconsfield Gold hole TGDD46. No mention
of drying samples. May be more akin to bulk density measurements than
dry bulk density measurements.
Assays composited to 3m for resource estimation.
No obvious association other than, as expected with supergene
mineralisation, globally thicker mineralisation has higher tenor of copper.
2015 Annual Report | Page 27
Data aggregation methods
Relationship between
mineralisation widths and
intercept lengths
OPERATIONS REPORT
Criteria
Diagrammes
Explanation
No historic or client produced diagrammes available for review.
Thickness plan:
Copper grade plan:
2015 Annual Report | Page 28
OPERATIONS REPORT
Criteria
Explanation
Drillhole plan:
Balanced reporting
substantive exploration
Other
data
Further work
Selective sampling of holes where mineralisation observed considered
acceptable for estimating sulphide resources.
Alternative sampling and “cherry picking” practices assessed as having
negligible effect on global estimate but will be a limiting factor in lifting local
resources to higher than Inferred classification under the JORC Code (2012
Edition)
66 of the 225 holes terminate within mineralisation; however surrounding
holes adequately define the base of mineralisation.
A further 683 holes within and surrounding the prospect area were utilised
for defining the resource mineralisation.
Evaluation of area for discovery of styles of mineralisation other than the
defined supergene mineralisation.
Section 3: Estimation and Reporting of Mineral Resources
Criteria
Explanation
Database integrity
Site visits
Geological interpretation
Data management protocols and provenance unknown.
Limited cross checks with paper records of drill hole and assay data.
Relational and spatial integrity assessed and considered acceptable.
Not undertaken by CP
CP has viewed photos of chip trays with mineralisation taken by Northern
Platinum Personnel.
Single planar flat-lying horizon of supergene mineralisation containing areas
where mineralisation thickens and copper grade tenor increases. A 0.2%Cu
cut was utilised to domain the extents of the better mineralisation and this
2015 Annual Report | Page 29
OPERATIONS REPORT
Criteria
Explanation
Dimensions
Estimation
techniques
and
modelling
Moisture and Recovery
Cut-off parameters
Mining factors or assumptions
factors
or
factors
or
Metallurgical
assumptions
Environmental
assumptions
Bulk Density
Classification
Audits or reviews.
Discussion of relative accuracy/
confidence
domain used as a hard boundary for grade interpolation.
Extends intermittently for a strike length of 4000m (NS) a breadth of 1500m
and vertically up to 60m thick. The model includes prospects known as
Thursday Gossan Chalcocite Copper, Junction and Drysdale.
The block model and grade estimate encompasses the extent of the
mineralisation.
Copper grades were interpolated into a VulcanTM non-regular block model
with 20x20x10 metre parent blocks – subblocked to 2.5x2.5x2.5 metre
minimum block dimensions.
3m composite intervals utilised.
No high grade sample treatment applied.
Single pass ID2 interpolation run employed utilising 200m sample search
within the plane of mineralisation (97.8% of blocks within the TIN domain
estimated).
Minimum of 10 and maximum of 20 composites utilised to estimate grade.
The Mt Ararat resource is classified as Inferred under the guidelines set out
in the 2012 JORC Code.
27 of 28 AC/RC holes with moisture information recorded wet drilling
conditions through the mineralisation. It is unknown if the wet conditions
has introduced bias or contamination into the dataset as relevant/detailed
information is not available.
Available core recovery data suggests that biases caused by both loss and
enrichment may be affecting the resource dataset.
The resource estimate is reported at 0.2%, 0.3% and 0.5% Cu cuts and by
three mineralised thicknesses domains - <10m, 10-20m and >20m thick.
These breakdowns and grade tonnage plots are reported to allow differing
economic assessment on the project.
Not applied, however resource is reported at three thicknesses for input into
this discipline.
Not evaluated as risks associated with historic data over-riding feature
affecting the confidence of the estimate.
Not evaluated as risks associated with historic data over-riding feature
affecting the confidence of the estimate.
A single tonnage factor of 2.10 tonnes/m3 was applied to all mineralisation.
The estimate is classified as Inferred under the JORC Code (2012 Edition).
Absence of QA/QC, the indicated sampling and assaying issues and absence
of important data for evaluating other risks to the estimate (such as recover
and moisture versus grade) are key factors in assigning an Inferred
Classification.
No Audit or Review of estimate undertaken
Not undertaken other than that stated under the classification section.
2015 Annual Report | Page 30
DIRECTORS’ REPORT
Your Directors present their report for the year ended 30 June 2015.
DIRECTORS
The names and particulars of the Directors of the Company in office during the financial year and up to the date of this
report were as follows. Directors were in office for the entire year unless otherwise stated.
William Plyley
B.Sc (Metallurgical Engineering)
Non Executive Chairman (appointed 6 December 2013)
Mr William Plyley is a mining executive with over 35 years operational experience in exploration, mining, processing, and
management with substantial resources companies such as Placer Dome Inc, Normandy Mining Limited and Red Back
Mining Inc. He has been responsible for major mine developments in Ghana, West Africa and Australia. He has also had
significant roles in development and expansion of mines in Papua New Guinea and Australia. Mr Plyley retired, in late
2010, from a role as Chief Operating Officer of La Mancha Resources where he was responsible for the development of
the Frog’s Leg and White Foil mines near Kalgoorlie, Western Australia and the operation of mines in Sudan and Cote
d’Ivoire, Africa. Recently, Mr Plyley was a Director of Integra Mining Limited from November 2011 until the take over of
Integra by Silver Lake Resources Limited in January 2013.
Mr Plyley has a B.Sc. in Metallurgical Engineering from Mackay School of Mines, University of Nevada. He is a member of
Australian Institute of Mining and Metallurgy (MAusIMM) and Graduate of Australian Institute of Company Directors
(GAICD).
Mr Plyley is a member of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: Integra Mining Limited (until 1 January 2013).
Christopher Cairns
B.Sc (Hons)
Executive Managing Director (Appointed 23 May 2006)
Mr Christopher Cairns completed a First Class Honours degree in Economic Geology from the University of Canberra in
1992. Mr Cairns has extensive experience having worked for:
BHP Minerals as Exploration Geologist / Supervising Geologist in Queensland and the Philippines
Aurora Gold as Exploration Manager at the Mt Muro Gold Mine in Borneo
LionOre as Supervising Geologist for the Thunderbox Gold Mine and Emily Anne Nickel Mine drill outs
Sino Gold as Geology Manager responsible for the Jinfeng Gold Deposit feasibility drillout and was responsible
for the discovery of the stratabound gold mineralisation taking the deposit from 1.5Moz to 3.5Moz in 14
months.
Mr Cairns joined Integra Mining Limited in March 2004 and as Managing Director oversaw the discovery of three gold
deposits, the funding and construction of a new processing facility east of Kalgoorlie transforming the company from
explorer to gold producer with first gold poured in September 2010. In 2008 Integra was awarded the Australian Explorer
of the Year by Resources Stocks Magazine and in 2011 was awarded Gold Miner of the Year by Paydirt Magazine and the
Gold Mining Journal.
In January 2013, Integra was taken over by Silver Lake Resources Limited for $426 million (at time of bid) at which time
Mr Cairns resigned along with the whole Integra Board after having successfully recommended shareholders accept the
Silver Lake offer.
Mr Cairns is a member of the Australian Institute of Geoscientists, a member of the JORC Committee and a Board
member of the Australian Prospectors and Miners Hall of Fame.
Other directorships of listed companies in the last three years: Integra Mining Limited (until 1 January 2013).
2015 Annual Report | Page 31
DIRECTORS’ REPORT
Jennifer Murphy
B.Sc(Hons), M.Sc
Executive Technical Director (Appointed 8 March 2013)
Ms Jennifer Murphy completed a First Class Honours Degree in Geology in 1989, and subsequently a Master of Science
Degree in 1993 at the University of Witwatersrand in South Africa. Ms Murphy joined Anglo American Corporation in
1993 as an exploration geologist working in Tanzania and Mali. In 1996, she immigrated to Australia and joined
Normandy Mining Limited, working initially as a project geologist in the Eastern Goldfields and Murchison Greenstone
Provinces and afterwards was responsible for the development and management of the GIS and administration of the
exploration database.
Between 2004 and 2007, Ms Murphy provided contract geological services to a range of junior exploration companies.
Ms Murphy joined Integra Mining Limited in 2007, initially as an administration geologist, and in 2010 the role was
expanded to that of corporate geologist. In 2013 Ms Murphy joined Stavely Minerals as part of the management team to
provide technical and geological expertise. Ms Murphy is a member of the Australian Institute of Geoscientists and has a
broad range of geological experience ranging from exploration program planning and implementation, GIS and database
management, business development, technical and statutory, and ASX reporting, as well as corporate research and
analysis and investor liaison.
Ms Murphy is a member of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: Nil.
Peter Ironside
B.Com, CA
Non Executive Director (appointed 23 May 2006)
Mr Peter Ironside has a Bachelor of Commerce Degree and is a Chartered Accountant and business consultant with over
30 years experience in the exploration and mining industry. Mr Ironside has a significant level of accounting, financial
compliance and corporate governance experience including corporate initiatives and capital raisings. Mr Ironside has
been a Director and/or Company Secretary of several ASX listed companies including Integra Mining Limited and Extract
Resources Limited (before $2.18Bn takeover) and is currently a non-executive director of Zamanco Minerals Limited.
Mr Ironside is Chair of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: Zamanco Minerals Limited (current) and Integra Mining
Limited (until 1 January 2013).
COMPANY SECRETARY
Amanda Sparks
B.Bus, CA, F.Fin
Appointed 7 November 2013
Ms Amanda Sparks is a Chartered Accountant with over 26 years of resources related financial experience, both with
explorers and producers. Ms Sparks has extensive experience in financial management, corporate governance and
compliance for listed companies.
2015 Annual Report | Page 32
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, five meetings of directors were held. The number of meetings attended by each director
during the year is as follows:
W Plyley
C Cairns
J Murphy
P Ironside
Board of Directors
Audit and Risk Committee
Meetings
Held
5
5
5
5
Meetings
Attended
5
5
5
5
Meetings
Held
2
*
2
2
Meetings
Attended
2
*
2
2
* Not a member of the Audit and Risk Committee
DIRECTORS’ INTERESTS IN SHARES AND OPTIONS
The following table sets out each director’s relevant interest in shares and options in shares of the Company as at the
date of this report.
Name of Director
Number of Shares
(direct and indirect)
W Plyley
C Cairns
J Murphy
P Ironside
DIVIDENDS
22,000
15,007,419
3,467,097
30,157,419
Number of Unlisted
Options at 27 cents,
expiry 31/12/2017
1,000,000
5,032,258
1,561,290
5,032,258
Number of Listed
Options at 30 cents,
expiry 30/6/2016
1,000
160,000
30,000
240,000
No dividends were paid or declared during the year. The Directors do not recommend payment of a dividend.
ENVIRONMENTAL ISSUES
The Company’s environmental obligations are regulated by the laws of Australia. The Company has a policy to either
meet or where possible, exceed its environmental obligations. No environmental breaches have been notified by any
governmental agency as at the date of this report.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires
entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that there are no
current reporting requirements, but may be required to do so in the future.
CORPORATE INFORMATION
Corporate Structure
Stavely Minerals Limited is a limited liability company that is incorporated and domiciled in Australia.
Principal Activity
The Company’s principal activity was mineral exploration for the year ended 30 June 2015. There were no significant
changes in the nature of the principal activities during the year.
Operations review
Refer to the Operations Review preceding this report.
2015 Annual Report | Page 33
DIRECTORS’ REPORT
Change in Accounting Policy – Exploration and Evaluation Expenditure
Exploration expenditure of $2,815,163 was expensed to the income statement this year following a voluntary change in
the Company’s accounting policy. Under the new policy, exploration and evaluation expenditure is charged to the profit
and loss account as incurred. Exploration costs are only capitalised to the balance sheet if they result from an
acquisition. Comparative information has been restated.
Summary of Financial Position, Asset Transactions and Corporate Activities
A summary of key financial indicators for Stavely, with prior period comparison, is set out in the following table:
Cash and cash equivalents held at year end
Net profit/(loss) for the year after tax
Included in loss for the year:
Exploration costs
Equity-based payments
Interest expense
Year
Restated
Year
30 June 2015
30 June 2014
$
$
1,941,148
4,216,717
(3,497,173)
(2,160,087)
(2,815,163)
(1,272,542)
-
-
(284,404)
(72,548)
(5.45)
Basic profit/(loss) per share (cents) from continuing operations
(4.33)
Net cash (used in) operating activities
Net cash (used in) investing activities
Net cash from financing activities
During the year:
(3,490,417)
(3,255,474)
(116,189)
(113,577)
1,331,037
7,551,341
- On 30 June 2015, Stavely issued 5,600,000 new shares at an issue price of $0.25 per share together with
2,800,000 free attaching option under a placement to sophisticated investors. The options have an exercise
price of $0.30 each and expire 30 June 2016. Gross proceeds raised totalled $1,400,000.
-
In October 2014, Stavely Minerals entered into a $2 million Share Subscription Agreement with its existing
drilling contractor, Titeline Drilling Pty Ltd. Pursuant to this agreement, the drilling contractor has agreed to
subscribe for up to $2 million of shares, with Stavely Minerals having the option to settle monthly drilling charges
by way of cash payment and by way of offset of the price of subscription application for shares.
During the year ended 30 June 2015, 1,078,206 ordinary shares ($239,658) were issued pursuant to this
agreement.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Company during the financial year are detailed in the Operations Review
and Financial Summary in this report.
FUTURE DEVELOPMENTS
The Company anticipates to continue its exploration activities and consider corporate transactions to ensure further
development of its tenements.
2015 Annual Report | Page 34
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
A. INTRODUCTION
This report details the nature and amount of remuneration for each Director and Executive of Stavely Minerals Limited.
The information provided in the remuneration report includes remuneration disclosures that are audited as required by
section 308(3C) of the Corporations Act 2001.
For the purposes of this report key management personnel of the Company are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company, directly or
indirectly, including any Director (whether Executive or otherwise).
For the purposes of this report the term “Executive” includes those key management personnel who are not directors.
Details of Key Management Personnel During the Year
Non-Executive Directors
William Plyley
Peter Ironside
–
–
Non-executive Chairman (from 6 December 2013)
Director (from 23 May 2006)
Executive Directors
Christopher Cairns
Jennifer Murphy
Other Key Management Personnel
Amanda Sparks
B. REMUNERATION GOVERNANCE
–
–
–
Managing Director (from 23 May 2006)
Technical Director (from 8 March 2013)
Company Secretary (from 7 November 2013)
The Board is responsible for ensuring that the Company’s remuneration structures are aligned with the long-term
interests of Stavely and its shareholders
Once the Board is of a sufficient size and structure, and the Company’s operations are of a sufficient magnitude, to assist
the Board in fulfilling its duties, the Board will establish a Remuneration Committee. Until that time, the Board has taken
a view that the full Board will hold special meetings or sessions as required. The Board are confident that this process is
stringent and full details of remuneration policies and payments are provided to shareholders in the annual report and
on the web. The Board has adopted the following policies for Directors’ and executives’ remuneration.
C. PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
Remuneration Philosophy
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the Company
must attract, motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
provide competitive rewards to attract high calibre Executives;
link Executive rewards to shareholder value; and
establish appropriate, demanding performance hurdles in relation to variable Executive remuneration.
In accordance with best practice corporate governance, the structure of non-executive director and executive
compensation is separate and distinct.
2015 Annual Report | Page 35
DIRECTORS’ REPORT
Non-Executive directors’ remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
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 as at the time of the Director’s retirement or termination. Non-executive Directors’ remuneration may include an
incentive portion consisting of options, as considered appropriate by the Board, which may be subject to shareholder
approval in accordance with ASX listing rules. The option incentive portion is targeted to add to shareholder value by
having a strike price considerably greater than the market price at the time of granting.
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.
Executive Director Remuneration
Objective
The Company aims to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Company and so as to:
reward Executives for company, and individual performance;
ensure continued availability of experienced and effective management; and
ensure total remuneration is competitive by market standards.
Structure
In determining the level and make-up of Executive remuneration, the Board negotiates a remuneration to reflect the
market salary for a position and individual of comparable responsibility and experience. Remuneration is regularly
compared with the external market by participation in industry salary surveys and during recruitment activities generally.
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.
Remuneration consists of a fixed remuneration and a long term incentive portion as considered appropriate.
Fixed Remuneration - Objective
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the
position and is competitive in the market. Fixed remuneration is reviewed annually by the Board and the process consists
of a review of Company and individual performance, and relevant comparative remuneration in the market. As noted
above, the Board may engage an external consultant to provide independent advice.
Fixed Remuneration - Structure
The fixed remuneration is a base salary or monthly consulting fee.
Variable Pay — Long Term Incentives - Objective
The objective of long term incentives is to reward Executives in a manner which aligns this element of remuneration with
the creation of shareholder wealth. The incentive portion is payable based upon attainment of objectives related to the
Executive’s job responsibilities. The objectives vary, but all are targeted to relate directly to the Company’s business and
financial performance and thus to shareholder value.
Variable Pay — Long Term Incentives – Structure
Long term incentives granted to Executives are delivered in the form of options. The option incentives granted are aimed
to motivate Executives to pursue the long term growth and success of the Company within an appropriate control
framework and demonstrate a clear relationship between key Executive performance and remuneration. Director
options are granted at the discretion of the Board and approved by shareholders. Other key management employees
2015 Annual Report | Page 36
DIRECTORS’ REPORT
may be granted options. Performance hurdles are not attached to vesting periods; however the Board determines
appropriate vesting periods to provide rewards over a period of time to key management personnel.
During the year, no performance related payments were made.
D. SERVICE AGREEMENTS
On appointment to the board, all non-executive directors enter into a service agreement with the Company in the form
of a letter of appointment. The letter summarises the board policies and terms, including compensation, relevant to the
office of director.
Remuneration and other terms of employment for the executive directors and the other key management personnel are
also formalised in service agreements. The major provisions of the agreements relating to remuneration are set out
below.
Name
Directors
William Plyley
Term of agreement
Commenced 22/1/2014. Ongoing, subject to re-
elections
Christopher Cairns
Commenced 22/1/2014. No end date, subject to
termination clauses
Jennifer Murphy
Commenced 22/1/2014. No end date, subject to
termination clauses
Peter Ironside
Ongoing, subject to re-elections
Company Secretary
Amanda Sparks
No formal agreement
* Salary adjustments effective from 1 March 2015.
Base annual salary
exclusive of
superannuation at
30/6/2015
Termination
benefit
Waived to Nil*
(was $75,000)
$150,000*
(Was $250,000,
reduced by 40%)
$90,000*
(Was $150,000,
reduced by 40%)
Waived to Nil*
(Was $30,000)
None
12 months
12 months
None
2015 Annual Report | Page 37
DIRECTORS’ REPORT
E. REMUNERATION OF KEY MANAGEMENT PERSONNEL
Details of the remuneration of each key management personnel of the Company, including their personally-related
entities, during the year were as follows:
Post Employment
Share Based
Cash salary,
directors fees,
consulting fees,
insurances and
movement in
leave provisions
$
Superannuation
$
Total Cash
and
Provisions
$
Options (1)
$
Total
including
share based
payments
$
50,000
11,313
239,818
40,610
141,883
81,291
20,000
4,525
13,350
23,175
465,051
160,914
4,750
1,046
20,583
3,488
12,350
2,093
2,330
-
-
-
54,750
12,359
260,401
44,098
154,233
83,384
22,330
4,525
13,350
23,175
40,013
505,064
-
118,500
-
-
-
47,400
-
-
-
88,876
-
6,627
167,541
254,776
54,750
130,859
260,401
44,098
154,233
130,784
22,330
4,525
13,350
112,051
505,064
422,317
Directors
W Plyley(2)
C Cairns
J Murphy
P Ironside
Other KMP
A Sparks(3)
TOTAL
Year
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
(1) Equity based payments – options. These represent the amount expensed for options granted in the 2014 year.
(2) Appointed 6 December 2013.
(3) Appointed 7 November 2013.
There were no performance related payments made during the year. Performance hurdles are not attached to
remuneration options; however the Board determines appropriate vesting periods to provide rewards over a period of
time to key management personnel.
2015 Annual Report | Page 38
DIRECTORS’ REPORT
F. SHARE-BASED COMPENSATION
No share-based compensation was made in the 2015 year.
Shares issued to Key Management Personnel on exercise of compensation options
During the year to 30 June 2015, there were no compensation options exercised by Directors or other Key Management
Personnel.
G. EQUITY HOLDINGS AND MOVEMENTS DURING THE YEAR
(a) Shareholdings of Key Management Personnel
30 June 2015
Balance at
beginning of the year
Net change
during the year
Balance at
end of the year
Directors
W Plyley
C Cairns
J Murphy
P Ironside
Other KMP
A Sparks
20,000
14,687,419
3,407,097
29,677,419
250,000
48,041,935
-
-
-
-
-
-
20,000
14,687,419
3,407,097
29,677,419
250,000
48,041,935
All equity transactions with Key Management Personnel other than those arising from the exercise of remuneration
options have been entered into under terms and conditions no more favourable than those the entity would have
adopted if dealing at arms-length.
2015 Annual Report | Page 39
DIRECTORS’ REPORT
(b) Option holdings of Key Management Personnel
30 June 2015
Directors
W Plyley
C Cairns
J Murphy
P Ironside
Other KMP
A Sparks
Balance at
beginning of
the year
Granted as
remuneration
Granted as
shareholder
options
Balance at
end of the
year
Not
Exercisable*
Exercisable
1,000,000
5,032,258
1,561,290
5,032,258
750,000
13,375,806
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
5,032,258
5,032,258
1,561,290
1,561,290
5,032,258
5,032,258
-
-
-
-
750,000
-
750,000
13,375,806
12,625,806
750,000
* Escrowed for 24 Months until 7 May 2016.
H. OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Mr Peter Ironside, Director, is a shareholder and director of Ironside Pty Ltd. Ironside Pty Ltd is a shareholder of the 168
Stirling Highway Syndicate, the entity which owns the premises the Company occupies in Western Australia. During the
year an amount of $123,164 (net of GST) was paid for office rental and variable outgoings (2014: an amount of $200,162
(net of GST) was paid/payable to Ironside Pty Ltd for reimbursement of office rental, server costs and other expenses).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of Zamanco Minerals Limited (“Zamanco”).
Zamanco sub-leases office space in the premises the Company occupies. During the year an amount of $39,048 (net of
GST) was paid/payable by Zamanco to the Company for reimbursement of office rental and associated expenses (2014:
Nil).
I.USE OF REMUNERATION CONSULTANTS
No remuneration consultants were engaged by the Company during the year.
End of Audited Remuneration Report.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has paid a premium to insure the Directors and Officers of the Company and its controlled entities. Details
of the premium are subject to a confidentiality clause under the contract of insurance.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings that may be
brought against the officers in their capacity as officers of entities in the Company.
VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL GENERAL MEETING
The Company received 100% of ‘yes’ votes for its remuneration report for the 2015 financial year and did not receive any
specific feedback at the AGM or throughout the year on its remuneration practices.
2015 Annual Report | Page 40
DIRECTORS’ REPORT
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Unlisted Options
Listed Options
Number
14,400,000
5,966,298
Exercise Price
27 cents
30 cents
Expiry Date
31/12/2017
30/06/2016
No option holder has any right under the options to participate in any other share issue of the Company or any other
related entity.
No share options were exercised by employees or Key Management Personnel during the year.
SUBSEQUENT EVENTS
On 20 July 2015, Stavely issued 6,332,726 new shares at an issue price of $0.25 per share together with 3,166,373 free
attaching options under an Entitlements Issue. The options have an exercise price of $0.30 each and expire 30 June
2016. Gross proceeds raised totalled $1,583,181.
On 25 August 2015, Stavely issued 3,000,000 unlisted options to employees/consultants of the Company. These options
were granted to recognise the excellent performance of Stavely’s employees/consultants and provide a retention
incentive. The unlisted options are exercisable at 27 cents and expire on 1 December 2016. 1,000,000 of these options
were issued to Ms Amanda Sparks. Ms Sparks is considered key management personal. The assessed fair value of these
options for Ms Sparks is $74,115 which has been determined using a Black-Scholes option pricing model, taking into
account the exercise price, term of option, the share price at grant date and expected price volatility of the underlying
share, expected dividend yield and the risk-free interest rate for the term of the option.
There are no other matters or circumstances that have arisen since 30 June 2015 that have or may significantly affect the
operations, results, or state of affairs of the Company in future financial years.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Stavely
Minerals Limited support and adhere to the principles of corporate governance. The Company’s Corporate Governance
Statement is contained in this annual report.
AUDIT INDEPENDENCE AND NON-AUDIT SERVICES
Auditors' independence - section 307C
The Auditor’s Independence Declaration is included in the next page of this report.
Non-Audit Services
The following non-audit services were provided by the entity’s auditor, BDO. The Directors are satisfied that the
provision of non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act. The nature and scope of each type of non-audit service provided means that auditor independence
was not compromised. BDO received, or are due to receive, the following amounts for the provision of non-audit
services:
Taxation and Corporate advice services
Signed in accordance with a resolution of the Directors.
2015
$4,915
2014
$18,956
Christopher Cairns
Managing Director
Dated this 9th day of September 2015
2015 Annual Report | Page 41
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS
2015 Annual Report | Page 42
CORPORATE GOVERNANCE STATEMENT
This statement outlines the main corporate governance practices. These corporate governance practices comply with the
ASX Corporate Governance Council recommendations unless otherwise stated.
BOARD OF DIRECTORS
The Board operates in accordance with the broad principles set out in its charter, which is available from the corporate
governance information section of the Company website at www.stavely.com.au.
ROLE AND RESPONSIBILITIES OF THE BOARD
The Board is responsible for ensuring that the Company is managed in a manner which protects and enhances the
interests of its shareholders and takes into account the interests of all stakeholders. This includes setting the strategic
directions for the company, establishing goals for management and monitoring the achievement of these goals.
A summary of the key responsibilities of the Board include:
1.
2.
3.
4.
5.
6.
7.
Strategy - Providing strategic guidance to the Company, including contributing to the development of and
approving the corporate strategy;
Financial performance - Approving budgets, monitoring management and financial performance;
Financial reporting and audits - Monitoring financial performance including approval of the annual and half-year
financial reports and liaison with the external auditors;
Leadership selection and performance - Appointment, performance assessment and removal of the Managing
Director. Ratifying the appointment and/or removal of other senior management, including the Company
Secretary and other Board members;
Remuneration - Management of the remuneration and reward systems and structures for Executive management
and staff;
Risk management - Ensuring that appropriate risk management systems and internal controls are in place; and
Relationships with the exchanges, regulators and continuous disclosure - Ensuring that the capital markets are
kept informed of all relevant and material matters and ensuring effective communications with shareholders.
The Board has delegated to management responsibility for:
Strategies - Assisting in developing and implementing corporate strategies and making recommendations where
necessary;
Leadership selection and performance - Appointing management where applicable and setting terms of appointment
and evaluating performance;
Budgets - Developing the annual budget and managing day-to-day operations within budget;
Risk Management - Maintaining risk management frameworks; and
Communication - Keeping the Board and market informed of material events.
The Company Secretary is accountable directly to the Board, through the Chairman, on all matters to do with the proper
functioning of the Board. All directors have direct access to the Company Secretary.
2015 Annual Report | Page 43
CORPORATE GOVERNANCE STATEMENT
COMPOSITION OF THE BOARD
The names, skills, experiences and period of office of the Directors of the Company in office at the date of this Statement
are set out in the Director’s Report. A summary of these skills and experiences are provided in graph 1.
The composition of the Board is determined using the following principles:
Persons nominated as Non-executive Directors shall be expected to have qualifications, experience and expertise of
benefit to the Company and to bring an independent view to the Board’s deliberations. Persons nominated as
Executive Directors must be of sufficient stature and security of employment to express independent views on any
matter.
The Chairperson should ideally be independent, but in any case be Non-executive and be elected by the Board based
on his/her suitability for the position.
The roles of Chairperson and Managing Director should not be held by the same individual.
All Non-executive Directors are expected voluntarily to review their membership of the Board from time-to-time
taking into account length of service, age, qualifications and expertise relevant to the Company’s then current policy
and programme, together with the other criteria considered desirable for composition of a balanced board and the
overall interests of the Company.
The Company considers that the Board should have at least three Directors (minimum required under the Company's
Constitution) and to have a majority of independent Directors but acknowledges that this may not be possible at all
times due to the size of the Company. Currently the Board has four Directors, with only Mr William Plyley as
independent. The number of Directors is maintained at a level which will enable effective spreading of workload and
efficient decision making.
The Board has accepted the following definition of an independent Director:
An independent Director is a Director who is not a member of management (a Non-executive Director) and who:
(a) holds less than 5% of the voting shares of the Company and is not an officer of, or otherwise associated directly or
indirectly with, a shareholder of more than 5% of the voting shares of the Company;
(b) within the last three years has not been employed in an executive capacity by the Company or another group
member, or been a Director after ceasing to hold any such employment;
(c) within the last three years has not been a principal of a material professional adviser or a material consultant to the
Company or another group member, or an employee materially associated with the service provided;
(d) is not a material supplier or customer of the Company or other group member, or an officer of or otherwise
associated directly or indirectly with a material supplier or customer;
(e) has no material contractual relationship with the Company or another group member other than as a Director of the
Company;
(f) has not served on the board for a period which could, or could reasonably be perceived to, materially interfere with
the Director’s ability to act in the best interests of the Company; and
(g) is free from any interest and any business or other relationship which could, or could reasonably be perceived to,
materially interfere with the Director’s ability to act in the best interests of the Company.
The materiality thresholds are assessed on a case-by-case basis, taking into account the relevant Director’s specific
circumstances, rather than referring to a general materiality threshold.
2015 Annual Report | Page 44
CORPORATE GOVERNANCE STATEMENT
Graph 1: Skills and Experience Matrix of Stavely Directors
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Director 3
Director 2
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INDEPENDENT PROFESSIONAL ADVICE AND ACCESS TO COMPANY INFORMATION
Each Director has the right of access to all relevant Company information and to the Company’s Executives and, subject to
prior consultation with the Chairperson, may seek independent professional advice at the Company’s expense. A copy of
advice received by the Director is made available to all other members of the Board.
2015 Annual Report | Page 45
CORPORATE GOVERNANCE STATEMENT
NOMINATION COMMITTEE / APPOINTMENT OF NEW DIRECTORS
Because of the size of the Company and the size of the Board, the Directors do not believe it is appropriate to establish a
separate Nomination Committee. The Board has taken a view that the full Board will hold special meetings or sessions as
required. The Board are confident that this process for selection and review is stringent and full details of all Directors are
provided to shareholders in the annual report and on the web.
The composition of the Board is reviewed on an annual basis to ensure the Board has the appropriate mix of expertise
and experience. Where a vacancy exists, through whatever cause, or where it is considered that the Board would benefit
from the services of a new Director with particular skills, the Board determines the selection criteria for the position
based on the skills deemed necessary for the Board to best carry out its responsibilities and then appoints the most
suitable candidate who must stand for election at the next general meeting of shareholders.
All new non-executive directors are required to sign a letter of appointment which sets out the key terms and conditions
of their appointment, including roles and responsibilities, time commitments and remuneration. Executive directors and
other senior executives enter into an employment agreement which governs the terms of their appointment.
The Board undertakes appropriate checks prior to nominating a director for election by shareholders. These checks
include a police and reference checks. Shareholders are provided with all material information in its possession
concerning a director standing for election or re-election in the relevant notice of meeting.
An informal induction is provided to all new directors, which includes meeting with technical and financial personnel to
understand Stavely’s business, including strategies, risks, company policies and health and safety.
All directors are required to maintain professional development necessary to maintain their skills and knowledge needed
to perform their duties. In additional to training provided by relevant professional affiliations of the directors, additional
development is provided through attendance at seminars and provision of technical papers on industry related matters
and developments offered by various professional organisations, such as accounting firms and legal advisors.
TERM OF OFFICE
Under the Company's Constitution, the minimum number of Directors is three. At each Annual General Meeting, one
third of the Directors (excluding the Managing Director) must resign, with Directors resigning by rotation based on the
date of their appointment. Directors resigning by rotation may offer themselves for re-election.
PERFORMANCE OF DIRECTORS AND MANAGING DIRECTOR
The performance of all Directors, the Board as a whole and the Managing Director is reviewed annually.
The Board meets once a year with the specific purpose of conducting a review of its composition and performance. This
review includes:
Determining the appropriate balance of skills and experience required to suit the Company’s current and future
strategies;
Comparing the requirements above against the skills and experience of current Directors and Executives;
Assessing the independence of each Director;
Measuring the contribution and performance of each Director;
Assessing any education requirements or opportunities; and
Recommending any changes to Board procedures, Committees or the Board composition.
A review was undertaken on 2 June 2015.
2015 Annual Report | Page 46
CORPORATE GOVERNANCE STATEMENT
PERFORMANCE OF SENIOR EXECUTIVES
The Board meets at least annually to review the performance of senior Executives, considerations include the following:
The performance of the senior Executive in supplying the Board with information in a form, timeframe and quality
that enables the Board to effectively discharge its duties;
Feedback from other senior Executives; and
Any particular concerns regarding the senior Executive.
A review of senior executives was undertaken on 2 June 2015.
CONFLICT OF INTEREST
In accordance with the Corporations Act 2001 and the Company’s constitution, Directors must keep the Board advised, on
an ongoing basis, of any interest that could potentially conflict with those of the Company. Where the Board believes a
significant conflict exists, the Director concerned does not receive the relevant Board papers and is not present at the
Board meeting whilst the item is considered. Details of Directors related entity transactions with the Company are set out
in the related parties note in the financial statements.
DIVERSITY
Stavely recognises the benefits arising from employee and Board diversity, including a broader pool of high quality
employees, improving employee retention, accessing different perspectives and ideas and benefiting from all available
talent.
Diversity includes, but is not limited to, gender, age, ethnicity and cultural background.
Stavely’s Diversity Policy defines the initiatives which assist Stavely with maintaining and improving the diversity of its
workforce. A copy of Stavely’s Diversity Policy can be found on Stavely’s website at http://www.stavely.com.au/wp-
content/uploads/2014/03/Corporate-Governance-Plan.pdf.
In accordance with this policy and ASX Corporate
Governance Principles, the Board has established the following objectives in relation to gender diversity.
Proportion of Women
Organisation as a whole
Executive Management Team
Board and Company Secretary
REMUNERATION
Actual
57%
67%
40%
Objective
40%
40%
40%
The performance of the Company depends upon the quality of its Directors and Executives. To prosper, the Company
must attract, motivate and retain highly skilled Directors and Executives.
To this end, the Company embodies the following principles in its remuneration framework:
Provide competitive rewards to attract high calibre Executives;
Link Executive rewards to shareholder value; and
Establish appropriate performance hurdles in relation to variable Executive remuneration.
A full discussion of the Company’s remuneration philosophy and framework and the remuneration received by Directors
and Executives in the current year is included in the remuneration report, which is contained within the Report of the
Directors.
There are no schemes for retirement benefits for Non-executive Directors, other than superannuation.
2015 Annual Report | Page 47
CORPORATE GOVERNANCE STATEMENT
BOARD REMUNERATION COMMITTEE
Once the Board is of a sufficient size and structure, and the Company’s operations are of a sufficient magnitude, to assist
the Board in fulfilling its duties, the Board will establish a Remuneration Committee. Until that time, the Board has taken
a view that the full Board will hold special meetings or sessions as required. The Board are confident that this process is
stringent and full details of remuneration policies and payments are provided to shareholders in the annual report and
on the web.
AUDIT AND RISK COMMITTEE
The Audit and Risk Committee consists of the following directors:
Mr Peter Ironside (non-executive director). Chairman of the Committee. Appointed 16 January 2014.
Ms Jennifer Murphy (technical executive director). Appointed 16 January 2014.
Mr William Plyley (non-executive director). Appointed 16 January 2014.
Full details of the qualifications of the Committee members can be found in the Report of the Directors.
A copy of Stavely’s Audit and Risk Committee Charter can be
http://www.stavely.com.au/wp-content/uploads/2014/03/Corporate-Governance-Plan.pdf.
found on Stavely’s website at
The Committee held two meetings during the year ended June 2015. Details of attendance are disclosed in the Directors’
Report. The Board reviewed the performance of this committee on 2 June 2015.
RISK OVERSIGHT AND MANAGEMENT
The Board determines the Company’s ‘risk profile’ and is responsible overseeing and approving risk management strategy
and policies, internal compliance and internal control systems. In summary, the Company policies are designed to ensure
strategic, operational, legal, reputation and financial risks are identified, assessed, effectively and efficiently managed and
monitored to enable achievement of the Company’s business objectives.
The Company’s Risk Register identifies the material risks for the Company. These risks include loss of a significant
tenement, failure to raise future capital, insufficient new reserves converted from resources and the occurrence of a
fatality or permanent disabling injury to persons whom Stavely has a duty of care. The Risk Register records all current
controls in place to minimise the risks, and identifies the overall control effectiveness. The Board and Audit and Risk
Committee review the Risk Register on a regular basis.
The Board reviewed the Risk Management Framework, including the policies, procedures and the Company’s Risk
Register on 2 June 2015.
A summary of Stavely’s Risk Management review procedures can be found in the corporate governance information
section of the Company website at www.stavely.com.au.
Considerable importance is placed on maintaining a strong control environment. The Board actively promotes a culture of
quality and integrity.
Control procedures cover management accounting, financial reporting, compliance and other risk management issues.
No internal audit function is currently in place due to the size of the Company, however the Audit and Risk Committee
regularly assess the need for an internal audit function. The Board encourages management accountability for the
Company’s financial reports by ensuring ongoing financial reporting during the year to the Board. Quarterly, the Financial
Controller (or equivalent) and the Managing Director are required to state in writing to the Board that in all material
respects:
Declaration required under s295A of the Corporations Act 2001 -
the financial records of the Company for the financial period have been properly maintained;
the financial statements and notes comply with the accounting standards;
2015 Annual Report | Page 48
CORPORATE GOVERNANCE STATEMENT
the financial statements and notes for the financial year give a true and fair view; and
any other matters that are prescribed by the Corporations Act regulations as they relate to the financial
statements and notes for the financial year are satisfied.
Additional declaration required as part of corporate governance -
the risk management and internal compliance and control systems in relation to financial risks are sound,
appropriate and operating efficiently and effectively.
These declarations were received for the June 2015 financial year.
CODE OF CONDUCT
The Company has developed a Code of Conduct (the Code) which has been fully endorsed by the Board and applies to all
directors and employees. The Code is regularly reviewed and updated as necessary to ensure it reflects the highest
standards of behaviour and professionalism and the practices necessary to maintain confidence in the Company’s
integrity.
The Code of Conduct embraces the values of:
Integrity
Excellence
Commercial Discipline
The Board encourages all stakeholders to report unlawful/unethical behaviour and actively promotes ethical behaviour
and protection for those who report potential violations in good faith.
TRADING IN STAVELY SECURITIES BY DIRECTORS, OFFICERS AND EMPLOYEES
The Board has adopted a specific policy in relation to Directors and officers, employees and other potential insiders
buying and selling shares.
Directors, officers, consultants, management and other employees are prohibited from trading in the Company’s shares,
options and other securities if they are in possession of price-sensitive information.
The Company's Security Trading Policy is provided to each new employee as part of their induction training. Stavely
personnel must receive written approval prior to any dealing in Stavely securities.
The Directors are satisfied that the Company has complied with its policies on ethical standards, including trading in
securities.
CONTINUOUS DISCLOSURE
The Board has a Market Disclosure Policy to ensure the compliance of the Company with the various laws and ASX Listing
Rule obligations in relation to disclosure of information to the market. The Managing Director is responsible for ensuring
that all employees are familiar with and comply with the policy.
Stavely is committed to:
(a)
(b)
(c)
ensuring that shareholders and the market are provided with timely and balanced information about its
activities;
complying with the general and continuous disclosure principles contained in the ASX Limited (“ASX”)
Listing Rules and the Corporations Act 2001; and
ensuring that all market participants have equal opportunities to receive externally available information
issued by Stavely.
2015 Annual Report | Page 49
CORPORATE GOVERNANCE STATEMENT
SHAREHOLDER COMMUNICATIONS STRATEGY
The Company places significant importance on effective communication with shareholders. The Company has adopted a
Shareholder Communications Strategy which can be accessed from Stavely’s website at http://www.stavely.com.au/wp-
content/uploads/2014/03/Corporate-Governance-Plan.pdf.
Information is communicated to shareholders through the annual and half yearly financial reports, quarterly reports on
activities, announcements through the Australian Stock Exchange and the media, on the Company’s web site and through
the Chairman’s address at the annual general meeting. After the Annual General Meeting, the Managing Director
provides shareholders with a presentation. Afterwards all directors are available to meet with any shareholders and
answer questions.
Shareholders are encouraged to contact Stavely through the Contact Us section on Stavely’s website to submit any
questions via email, or call.
Stavely’s website provides communication details for its Share Registry, including an email address for shareholder
enquiries direct to the Share Registry.
In addition, news announcements and other information are sent by email to all persons who have requested their name
to be added to the email list. If requested, the Company will provide general information by email.
The Company will, wherever practicable, take advantage of new technologies that provide greater opportunities for more
effective communications with shareholders.
Stavely ensures that its external auditor is present at all Annual General Meetings to enable shareholders to ask questions
relevant to the audit directly to the auditor.
COMPANY WEBSITE
Stavely has made available details of all its corporate governance principles, which can be found in the corporate
governance information section of the Company website at www.stavely.com.au.
2015 Annual Report | Page 50
DIRECTORS’ DECLARATION
1.
In the opinion of the directors:
a) The financial statements and notes are in accordance with the Corporations Act 2001, including:
i)
giving a true and fair view of the Company’s financial position as at 30 June 2015 and of its performance
for the year then ended; and
ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations), the
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
iii) complying with International Financial Reporting Standards (IFRS) as stated in note 1 of the financial
statements; and
b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2.
This declaration has been made after receiving the declarations required to be made to the directors in accordance
with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015.
This declaration is signed in accordance with a resolution of the Board of Directors.
Christopher Cairns
Managing Director
Dated this 9th day of September 2015
2015 Annual Report | Page 51
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015
Revenue and Income
Interest revenue
Rental sub-lease revenue
Expenses
Administration and corporate expenses
Administration – equity based expenses
Exploration expensed
Finance costs
Total expenses
Year ended
30 June 2015
Restated *
Year ended
30 June 2014
Note
$
$
36,499
42,048
22,594
-
78,547
22,594
2(a)
13
2(b)
2(c)
(760,557)
-
(2,815,163)
-
(553,187)
(284,404)
(1,272,542)
(72,548)
(3,575,720)
(2,182,681)
Profit/(loss) before income tax
(3,497,173)
(2,160,087)
Income tax expense
Profit/(loss) after income tax attributable to members of
Stavely Minerals Limited
3
-
-
(3,497,173)
(2,160,087)
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Other
Other comprehensive income/(loss) for the year, net of tax
-
-
-
-
Total comprehensive profit/(loss) for the year
(3,497,173)
(2,160,087)
Loss per share for the year attributable to the members of
Stavely Minerals Limited
Basic earnings/(loss) per share
4
Cents Per
Share
(4.33)
Cents Per
Share
(5.45)
* Refer to Note 1(c) for more information regarding prior year restatement.
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
2015 Annual Report | Page 52
BALANCE SHEET
AS AT 30 JUNE 2015
30 June 2015
$
Note
Restated *
30 June 2014
$
Restated *
1 July 2013
$
5
6
6
7
8
9
10
1,941,148
101,948
2,043,096
40,000
101,814
2,982,126
3,123,940
4,216,717
150,857
4,367,574
30,000
87,441
2,980,752
3,098,193
34,427
310,491
344,918
30,000
647
2,969,400
3,000,047
5,167,036
7,465,767
3,344,965
265,097
31,303
296,400
548,089
4,642
552,731
2,107,587
50,000
2,157,587
296,400
552,731
2,157,587
4,870,636
6,913,036
1,187,378
11
12
10,556,136
284,404
(5,969,904)
9,101,363
284,404
(2,472,731)
1,500,022
-
(312,644)
4,870,636
6,913,036
1,187,378
ASSETS
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Receivables
Property, plant and equipment
Deferred exploration expenditure
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Provisions
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
* Refer to Note 1(c) for more information regarding prior year restatement.
The above balance sheet should be read in conjunction with the accompanying notes.
2015 Annual Report | Page 53
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015
At 1 July 2013 – Restated *
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year, net of tax
Transactions with owners in their capacity as
owners:
Issue of share capital
Cost of issue of share capital
Share based payments
Issued
Capital
$
1,500,022
-
-
-
8,286,400
(685,059)
Reserves
$
Accumulated
Losses
$
Total
Equity
$
-
-
-
-
-
-
(312,644)
1,187,378
(2,160,087)
(2,160,087)
-
-
(2,160,087)
(2,160,087)
-
-
-
-
8,286,400
(685,059)
284,404
7,885,745
-
284,404
7,601,341
284,404
As at 30 June 2014 – Restated *
9,101,363
284,404
(2,472,731)
6,913,036
At 1 July 2014 – Restated *
9,101,363
284,404
(2,472,731)
6,913,036
Profit/(loss) for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year, net of tax
-
-
-
Transactions with owners in their capacity as
owners:
Issue of share capital
Cost of issue of share capital
Share based payments
1,639,658
(184,885)
-
1,454,773
-
-
-
-
-
-
-
(3,497,173)
(3,497,173)
-
-
(3,497,173)
(3,497,173)
-
-
-
-
1,639,658
(184,885)
-
1,454,773
As at 30 June 2015
10,556,136
284,404
(5,969,904)
4,870,636
* Refer to Note 1(c) for more information regarding prior year restatement.
The above statement of changes in equity should be read in conjunction with the accompanying notes.
2015 Annual Report | Page 54
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015
Year ended
30 June 2015
Restated *
Year ended
30 June 2014
Note
$
$
Cash flows from operating activities
Receipts in the ordinary course of activities (mostly GST)
Payments to suppliers and employees
Interest received
Interest paid
402,250
(3,929,166)
36,499
-
385,652
(3,591,172)
22,594
(72,548)
Net cash flows used in operating activities
5(i)
(3,490,417)
(3,255,474)
Cash flows from investing activities
Payments for plant and equipment
Payments for exploration expenditure capitalised
Refunds for exploration expenditure capitalised
Payments for bonds
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
Advances / loans from related parties
Repayment of advances / loans from related parties
Net cash flows from financing activities
(64,815)
(5,000)
3,626
(50,000)
(116,189)
1,400,000
(68,963)
-
-
1,331,037
(102,225)
(11,352)
-
-
(113,577)
6,286,400
(685,059)
2,355,000
(405,000)
7,551,341
Net increase/(decrease) in cash and cash equivalents
held
(2,275,569)
4,182,290
Add opening cash and cash equivalents brought forward
4,216,717
34,427
Closing cash and cash equivalents carried forward
5
1,941,148
4,216,717
* Refer to Note 1(c) for more information regarding prior year restatement.
The above statement of cashflows should be read in conjunction with the accompanying notes.
2015 Annual Report | Page 55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
These financial statements are general purpose financial statements, which have been prepared in accordance
with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a
historical cost basis.
The financial report is presented in Australian dollars, which is the Company’s functional and presentation
currency.
Stavely Minerals Limited is a for-profit entity for the purpose of preparing the financial statements.
The annual report of Stavely Minerals Limited for the year ended 30 June 2015 was authorised for issue in
accordance with a resolution of the Directors on 8 September 2015.
(b)
Statement of Compliance
These financial statements comply with Australian Accounting Standards and International Financial Reporting
Standards (IFRS).
(c)
Adoption of new and revised standards and Change in Accounting Standards
Early adoption of accounting standards
The Company has not elected to apply any pronouncements before their operative date in the annual reporting
year beginning 1 July 2015.
New and amended standards adopted by the Company
None of the new standards and amendments to standards that are mandatory for the first time for the financial
year beginning 1 July 2014 affected any of the amounts recognised in the current year or any prior period and are
not likely to affect future periods.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June
2015 reporting year. The Company’s assessment of the impact of these new standards and interpretations that
may have an impact on the Company is set out below:
AASB 9 Financial Instruments (effective from 1 January 2015)
AASB 9 includes requirements for the classification and measurement of financial assets. There is no material
impact for Stavely. This standard is not applicable until the financial year commencing 1 July 2018.
Voluntary Change in Accounting Policy - Exploration and evaluation expenditure and recognition of assets
The report for the year ended 30 June 2015 has been prepared on the basis of a retrospective application of a
voluntary change in accounting policy relating to exploration and evaluation expenditure.
The previous accounting policy was to capitalise and carry forward exploration and evaluation expenditure as an
asset when rights to tenure of the area of interest are current and either:
• such expenditure is expected to be recovered through successful development and commercial exploitation of
•
the area of interest; or
the exploration activities in the area of interest have not yet reached a stage which permits reasonable
assessment of the existence of economically recoverable reserves and active and significant operations in, or
in relation to, the area of interest are continuing.
Accumulated exploration expenditure, which no longer satisfied the above policy, was written off to profit and
loss to the extent to which they are considered to be impaired.
2015 Annual Report | Page 56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
The new exploration and evaluation expenditure accounting policy is to charge exploration and evaluation
expenditure against profit and loss as incurred; except for acquisition costs and for expenditure incurred after a
decision to proceed to development is made, in which case the expenditure will be capitalised as an asset.
The new accounting policy was adopted as at 30 June 2015 and has been applied retrospectively. Management
judges that the change in policy will result in the financial report providing more relevant and no less reliable
information. Recognition treatment of exploration and evaluation assets are inherently uncertain and expensing
as incurred results in a more transparent Balance Sheet and Profit and Loss. Both the previous and new
accounting policies are compliant with AASB 6 Exploration for and Evaluation of Mineral Resources.
The impacts of the accounting policy change are set out below:
The capitalised exploration and evaluation asset previously reported as at 30 June 2014 has decreased by
$1,389,070 (2013: decreased by $190,116). The Statement of Profit or Loss and Other Comprehensive Income
increased the loss for the 2014 year by $1,198,954 and increased the accumulated losses brought forward at 1
July 2013 by $190,116.
Basic loss per share has also been restated. This has resulted in an increase in the loss per share by 3.02 cents per
share for the year ended 30 June 2014.
Exploration and evaluation expenditure that is expensed is included as part of cash outflows from operating
activities, and exploration and evaluation expenditure that is capitalised is included as cash flows from investing
activities. This change in accounting policy has resulted in additional cash outflows from operating activities for
the year to 30 June 2014 to be increased by $2,878,378 with a corresponding decrease in cashflows from
investing activities.
(d)
Significant accounting estimates and judgments
Significant accounting judgments
In the process of applying the Company’s accounting policies, management has made the following judgments,
apart from those involving estimations, which have the most significant effect on the amounts recognised in the
financial statements.
Exploration assets
The Company’s accounting policy for exploration expenditure is set out at Note 1(i). The application of this policy
necessarily requires management to make certain estimates and assumptions as to future events and
circumstances. Any such estimates and assumptions may change as new information becomes available. If, after
having capitalised acquisition expenditure under the policy, it is concluded that the expenditures are unlikely to
be recovered by future exploitation or sale, then the relevant capitalised amount will be written off to profit or
loss.
2015 Annual Report | Page 57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of
future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of certain assets and liabilities within the next annual reporting year are:
Impairment of assets
In determining the recoverable amount of assets, in the absence of quoted market prices, estimations are made
regarding the present value of future cash flows using asset-specific discount rates and the recoverable amount of
the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a
number of key estimates.
Share-based payment transactions
The Company measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.
Commitments - Exploration
The Company has certain minimum exploration commitments to maintain its right of tenure to exploration
permits. These commitments require estimates of the cost to perform exploration work required under these
permits.
(e)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(f)
(g)
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as
described above, net of outstanding bank overdrafts.
Trade and other receivables
Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for
doubtful debts. Current receivables for GST are due for settlement within 30 days and other current receivables
within 12 months. Cash on deposit is not due for settlement until rights of tenure are forfeited or performance
obligations are met.
Impairment of financial assets
The Company assesses at each balance sheet date whether a financial asset or Company of financial assets is
impaired. If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost
has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that have not been incurred)
discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial
recognition). The carrying amount of the asset is reduced either directly or through use of an allowance account.
The amount of the loss is recognised in profit or loss.
(h)
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment - 2 to 5 years
- 2 to 5 years
Motor vehicles
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
2015 Annual Report | Page 58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or
loss in the year the asset is derecognised.
(i)
Exploration and evaluation expenditure
Exploration expenditure is expensed to the profit or loss statement as and when it is incurred and included as part
of cash flows from operating activities. Exploration costs are only capitalised to the balance sheet if they result
from an acquisition.
Evaluation expenditure is capitalised to the balance sheet. Evaluation is deemed to be activities undertaken from
the beginning of the pre-feasibility study conducted to assess the technical and commercial viability of extracting a
mineral resource before moving into the Development phase. The criteria for carrying forward the costs are:
-
-
Such costs are expected to be recouped through successful development and exploitation of the area of
interest, or alternatively by its sale; or
evaluation activities in the area of interest which has not yet reached a state which permits a reasonable
assessment of the existence or otherwise of economically recoverable reserves, and active and significant
operations in, or in relation to, the area are continuing.
Costs carried forward in respect of an area of interest which is abandoned are written off in the year in which the
abandonment decision is made.
(j)
Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired.
Where an indicator of impairment exists, the Company makes a formal estimate of recoverable amount. Where
the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written
down to its recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual
asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does
not generate cash inflows that are largely independent of those from other assets or groups of assets, in which
case, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset in prior
years.
2015 Annual Report | Page 59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
(k)
Other financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as
either financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, or
available-for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at
fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transactions
costs. The Company determines the classification of its financial assets after initial recognition and, when allowed
and appropriate, re-evaluates this designation at each financial year-end.
All regular way purchases and sales of financial assets are recognised on the trade date, i.e. the date that the
Company commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets
under contracts that require delivery of the assets within the period established generally by regulation or
convention in the marketplace.
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through
profit or loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the
near term. Gains or losses on investments held for trading are recognised in profit or loss. The fair values of quoted
investments are based on last trade prices. If the market for financial assets is not active (and for unlisted
securities), the Company establishes fair value by using valuation techniques.
Loans and receivables
(ii)
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses
are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through
the amortisation process.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the Company prior to the end of the financial year that are unpaid and arise when the Company
becomes obliged to make future payments in respect of the purchase of these goods and services.
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Wages, salaries and, annual leave
Employee leave benefits
(i)
Liabilities for wages and salaries, including non-monetary benefits and annual leave and expected to be settled
wholly within 12 months of the reporting date are recognised in other payables in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual leave not expected to be settled wholly within 12 months of the
reporting date are recognised in the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date using
the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of
employee departures, and period of service. Expected future payments are discounted using market yields at the
reporting date on corporate bonds with terms to maturity and currencies that match, as closely as possible, the
estimated future cash outflows. The obligations are presented as current liabilities if the Company does not have
an unconditional right to defer settlement for at least 12 months of the reporting date, regardless of when actual
settlement is expected to occur.
(l)
(m)
(n)
2015 Annual Report | Page 60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
(o)
(p)
(q)
(r)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as
lessee are classified as operating leases. Payments made under operating leases (net of any incentives received
from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured.
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
Share-based payment transactions
Equity settled transactions:
The Company provides benefits to executive directors, employees and consultants of the Company in the form of
share-based payments, whereby those individuals render services in exchange for shares or rights over shares
(equity-settled transactions).
When provided, the cost of these equity-settled transactions with these individuals is measured by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value of options is
determined using a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Stavely Minerals Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
individuals become fully entitled to the award (the vesting date).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects:
(i)
(ii)
(iii)
the grant date fair value of the award;
the extent to which the vesting period has expired; and
the number of awards that, in the opinion of the Directors of the Company, will ultimately vest taking into
account such factors as the likelihood of non-market performance conditions being met.
This opinion is formed based on the best available information at balance date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. If an equity-settled award is forfeited, any expense
previously recognised for the award is reversed. However, if a new award is substituted for a cancelled award and
designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if
they were a modification of the original award, as described in the previous paragraph.
2015 Annual Report | Page 61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
(s)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and that, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or interests
in joint operations, and the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be
utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint operations, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the
extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income legislation and the anticipation that the Company will derive sufficient
future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law.
2015 Annual Report | Page 62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
(t)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in
which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables, which are stated with the amount of GST included.
(u)
(v)
(w)
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the balance sheet. Cash flows are included in the Cash Flow Statement on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable from, or payable to,
the taxation authority, are classified as operating cash flows. Commitments and contingencies are disclosed net
of the amount of GST recoverable from, or payable to, the taxation authority.
Borrowing Costs
Borrowing costs are expensed in the period in which they are incurred except borrowing costs that are directly
attributable to the acquisition, construction, or production of a qualifying asset that necessarily takes a substantial
period to get ready for its intended use or sale. In this case, borrowing costs are capitalised as part of the cost of
such a qualifying asset.
Earnings per share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any
costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution
of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
Segment reporting
An operating segment is a component of an entity that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components of
the same entity), whose operating results are regularly reviewed by the entity's chief operating decision maker to
make decisions about resources to be allocated to the segment and assess its performance and for which discrete
financial information is available. This includes start up operations which are yet to earn revenues. Management
will also consider other factors in determining operating segments such as the existence of a line manager and the
level of segment information presented to the board of Directors.
Operating segments have been identified based on the information provided to the chief operating decision
makers – being the executive management team.
The Company aggregates two or more operating segments when they have similar economic characteristics, and
the segments are similar in each of the following respects:
- Nature of the products and services,
- Type or class of customer for the products and services,
- Methods used to distribute the products or provide the services, and if applicable
- Nature of the regulatory environment.
Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately.
However, an operating segment that does not meet the quantitative criteria is still reported separately where
information about the segment would be useful to users of the Financial Statements.
2015 Annual Report | Page 63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 2 - EXPENSES
(a) Administration and Corporate Expenses
Administration and corporate expenses include:
Depreciation - administration
Operating lease rental expense
Other administration and corporate expenses
(b) Exploration Costs Expensed
Exploration costs expensed include:
Depreciation - exploration
Other exploration costs expensed
(c) Finance Costs
Interest paid to related parties – refer note 15
Other
NOTE 3 - INCOME TAX EXPENSE
(a) Income Tax Expense
The reconciliation between tax expense and the product of
accounting profit/(loss) before income tax multiplied by the
Company’s applicable income tax rate is as follows:
Profit/(loss) for year
Prima facie income tax (benefit) @ 30%
Tax effect of non-deductible items
Net deferred tax assets not brought to account
Income tax attributable to operating loss
(b) Net deferred tax assets not recognised relate to the following:
DTA - Tax losses
DTL - Other Timing Differences
Year ended
30 June 2015
Restated
Year ended
30 June 2014
$
$
1,396
123,848
635,313
760,557
699
164,177
388,311
553,187
43,925
2,771,238
2,815,163
14,732
1,257,810
1,272,542
-
-
-
72,301
247
72,548
(3,497,173)
(2,160,087)
(1,049,152)
(648,026)
-
1,049,152
-
97,321
550,705
-
2,629,834
(879,960)
1,749,874
1,538,219
(894,226)
643,993
These deferred tax assets have not been brought to account as it is not probable that tax profits will be available
against which deductible temporary differences can be utilised.
(c) Franking Credits
The franking account balance at year end was $nil (2014: $nil).
2015 Annual Report | Page 64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 4 - EARNINGS PER SHARE
Basic earnings/(loss) per share
Year ended
30 June 2015
Restated
Year ended
30 June 2014
Cents
(4.33)
Cents
(5.45)
$
$
Profit/(loss) attributable to ordinary equity holders of the Company used in
calculating:
- basic loss per share
(3,497,173)
(2,160,087)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share
Number
of shares
Number
of shares
80,761,349
39,663,978
For the year ended 30 June 2015, diluted earnings per share was not disclosed because potential ordinary
shares, being options granted, are not dilutive and their conversion to ordinary shares would not demonstrate
an inferior view of the earnings performance of the Company.
$
$
NOTE 5 - CASH AND CASH EQUIVALENTS
Cash at bank and on hand
1,941,148
4,216,717
(i) Reconciliation of loss for the period to net cash flows used in operating
activities
Profit/(loss) after income tax
Non-Cash Items:
Depreciation
Share-based payments expensed - options
Exploration – non-cash*
Change in assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash flows used in operating activities
(3,497,173)
(2,160,087)
45,321
-
239,658
15,431
284,404
-
88,910
170,444
(393,794)
(1,570,308)
26,661
4,642
(3,490,417)
(3,255,474)
* 1,078,206 ordinary shares ($239,658) were issued pursuant to the Share Subscription Agreement with
Titeline Drilling Pty Ltd and Greenstone Property Pty Ltd. Refer to note 11.
(ii) Non-Cash Financing and Investing Activities
The following non-cash financing and investing activities were undertaken:
2014 - In April 2014, the Company issued 15,000,000 shares in satisfaction of the repayment of $2,000,000
loan facility from Chaka Investments Pty Ltd, a company of which Mr Peter Ironside (Stavely Director) is the
sole director and Mr Ironside’s wife is shareholder. Refer to note 15.
2015 Annual Report | Page 65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 6 – TRADE AND OTHER RECEIVABLES
Current
GST refundable
Bonds – credit card
Other
Total current receivables
Non-Current
Cash on deposit - security bonds
Fair Value and Risk Exposures:
30 June 2015
$
30 June 2014
$
59,690
40,000
2,258
149,537
-
1,320
101,948
150,857
40,000
30,000
(i) Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair
value.
(ii) The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security.
(iii) Details regarding interest rate risk exposure are disclosed in note 18.
(iv) Other current receivables generally have repayments between 30 and 90 days.
Receivables do not contain past due or impaired assets as at 30 June 2015 (2014: none).
NOTE 7 - PROPERTY, PLANT AND EQUIPMENT
Motor vehicles- at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
28,273
(12,723)
15,550
134,294
(48,030)
86,264
28,273
(4,241)
24,032
74,599
(11,190)
63,409
Total property, plant and equipment
101,814
87,441
Reconciliation of property, plant and equipment:
Motor Vehicles
Carrying amount at beginning of year
Additions
Depreciation
Carrying amount at end of year
Plant and Equipment
Carrying amount at beginning of year
Additions
Depreciation
Carrying amount at end of year
24,032
-
(8,482)
15,550
63,409
59,694
(36,839)
86,264
-
28,273
(4,241)
24,032
647
73,952
(11,190)
63,409
2015 Annual Report | Page 66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 8 - DEFERRED EXPLORATION EXPENDITURE
Deferred exploration acquisition costs brought forward
Capitalised expenditure incurred during the year, net
Deferred exploration costs carried forward
30 June 2015
$
Restated
30 June 2014
$
2,980,752
2,969,400
1,374
11,352
2,982,126
2,980,752
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas.
NOTE 9 – TRADE AND OTHER PAYABLES
Current
Trade creditors
Accruals
Fair Value and Risk Exposures
30 June 2015
$
30 June 2014
$
232,779
32,318
265,097
483,118
64,971
548,089
(i) Due to the short term nature of these payables, their carrying value is assumed to approximate their fair
value.
(ii) Trade and other payables are unsecured and usually paid within 60 days of recognition.
NOTE 10 – PROVISIONS
Current
Employee entitlements
31,303
4,642
2015 Annual Report | Page 67
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 11 – ISSUED CAPITAL
(a)
Issued Capital
87,110,206 (2014: 80,432,000) ordinary shares fully paid
10,556,136
9,101,363
30 June 2015
$
30 June 2014
$
(b) Movements in Ordinary Share Capital
Summary of Movements
Number of
Shares
29,000,000 Opening balance at 1 July 2013
2,000,000 Issue of shares on 31 July 2013
4,000,000 Share split on 13 March 2014
15,000,000 Issue of shares on conversion of loans – refer note 15(b)
30,432,000 Initial public offering
- Costs of placement - cash
80,432,000 Closing Balance at 30 June 2014
80,432,000 Opening balance at 1 July 2014
169,194 Issue of shares – Share Subscription Agreement 5 Dec 2014
176,528 Issue of shares – Share Subscription Agreement 18 Dec 2014
472,891 Issue of shares – Share Subscription Agreement 21 April 2015
259,593 Issue of shares – Share Subscription Agreement 18 May 2015
5,600,000 Issue of shares – Placement 30 June 2015
Costs of equity issues
87,110,206 Closing Balance at 30 June 2015
$
1,500,022
200,000
-
2,000,000
6,086,400
(685,059)
9,101,363
9,101,363
56,172
42,190
89,377
51,919
1,400,000
(184,885)
10,556,136
Placement
On 30 June 2015, Stavely issued 5.6 million fully-paid ordinary shares at 25c a share and 2.8 million free
attaching options (to be issued on a one-for-two basis) with an exercise price of 30 cents and expiry date of
30 June 2016 under a share placement to sophisticated and institutional investors. Gross proceeds were
$1.4 million.
Share Subscription Agreement
In October 2014, Stavely Minerals entered into a $2 million Share Subscription Agreement with its existing
drilling contractor, Titeline Drilling Pty Ltd. Pursuant to this agreement, the drilling contractor has agreed to
subscribe for up to $2 million of shares, with Stavely Minerals having the option to settle monthly drilling
charges by way of cash payment and by way of offset of the price of subscription application for shares.
During the year ended 30 June 2015, 1,078,206 ordinary shares ($239,658) were issued pursuant to the
Share Subscription Agreement with Titeline Drilling Pty Ltd and Greenstone Property Pty Ltd as trustee for
the Titeline Property Trust. As at 30 June 2015, cumulative subscriptions totalled $239,658.
2015 Annual Report | Page 68
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 11 – ISSUED CAPITAL - continued
(c) Options on issue at 30 June 2015
Unlisted Options
Listed Options
Number
14,400,000
2,800,000
Exercise Price
27 cents
30 cents
Expiry Date
31 December 2017
30 June 2016
17,200,000
During the year:
(i)
(ii)
(iii)
(iv)
(v)
2,800,000 listed options were granted under the placement on 30 June 2015;
No unlisted options were granted to shareholders (2014: 12,000,000);
No unlisted options were granted as share-based payments (2014: 2,400,000);
No unlisted options expired (2014: nil); and
No unlisted options were exercised (2014: nil).
(d) Terms and conditions of issued capital
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at shareholders’ meetings. In the event of winding up of the Company, ordinary shareholders rank
after all other shareholders and creditors are fully entitled to any proceeds of liquidations.
(e) Capital management
When managing capital, management's objective is to ensure the entity continues as a going concern as well as
maintains optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a
capital structure that ensures the lowest cost of capital available to the entity.
Management may in the future adjust the capital structure to take advantage of favourable costs of capital and issue
further shares in the market. Management has no current plans to adjust the capital structure. There are no plans to
distribute dividends in the next year.
NOTE 12 - RESERVES
Equity-based payments reserve
284,404
284,404
30 June 2015
$
30 June 2014
$
Equity-based payments reserve
Balance at the beginning of the year
Equity-based payments expense
Balance at the end of the year
Nature and purpose of the reserve:
The Equity-based payments reserve is used to recognise the fair value of
options issued but not exercised.
284,404
-
284,404
-
284,404
284,404
2015 Annual Report | Page 69
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 13 – EQUITY-BASED PAYMENTS
(a) Value of equity based payments in the financial statements
Expensed in the profit and loss:
Equity-based payments- options
(b) Summary of equity-based payments granted during the year:
Year ended 30 June 2015: None.
Year ended 30 June 2014:
30 June 2015
30 June 2014
$
-
$
284,404
Granted to key management personnel and a consultant as equity compensation:
2,400,000 options expiring 31 December 2017, exercisable at 27 cents each.
The assessed fair values of the options were determined using a Black-Scholes option pricing model, taking into account
the exercise price, term of option, the share price at grant date and expected price volatility of the underlying share,
expected dividend yield and the risk-free interest rate for the term of the option. The inputs to the model used were:
Grant date
Option exercise price ($)
Expected life of options (years)
Dividend yield (%)
Expected volatility (%)
Risk-free interest rate (%)
Underlying share price ($)
Value of Option ($)
28/4/2014
0.27
3.68
-
97
2.47
0.20
0.1185
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome. No other features of options granted were incorporated into
the measurement of fair value.
(c) Weighted average fair value
The weighted average fair value of equity-based payment options granted during the year was nil (2014: $0.1185).
(d) Range of exercise price
The range of exercise price for options granted as share based payments outstanding at the end of the year was $0.27
(2014: $0.27).
(e) Weighted average remaining contractual life
The weighted average remaining contractual life of share based payment options that were outstanding as at the end
of the year was 2.5 years (2014: 3.5 years).
2015 Annual Report | Page 70
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 13 – EQUITY-BASED PAYMENTS - continued
(f) Weighted average exercise price
The following table shows the number and weighted average exercise price (“WAEP”) of share options granted as share
based payments.
12 Months to
30 June 2015
Number
12 Months to
30 June 2015
WAEP $
12 Months to
30 June 2014
Number
12 Months to
30 June 2014
WAEP $
Outstanding at the beginning of year
2,400,000
Granted during the year
Exercised during the year
-
-
0.27
-
-
-
2,400,000
-
Outstanding at the end of the year
2,400,000
0.27
2,400,000
Exercisable at year end
1,000,000
0.27
1,000,000
The weighted average share price for options exercised during the year was nil (2014: nil).
-
0.27
-
0.27
0.27
NOTE 14 – COMMITMENTS AND CONTINGENCIES
Operating leases (non-cancellable):
(a)
Within one year
More than one year but not later than five years
30 June 2015
$
30 June 2014
$
125,376
103,820
229,196
26,998
4,695
31,693
These non-cancellable operating leases are primarily for office premises, residential premises at site and a ground lease.
(b)
Exploration Commitments
Tenement Expenditure Commitments:
The Company is required to maintain current rights of tenure to
tenements, which require outlays of expenditure in 2015/2016. Under
certain circumstances these commitments are subject to the possibility of
adjustment to the amount and/or timing of such obligations, however, they
are expected to be fulfilled in the normal course of operations.
375,400
375,300
Contingencies
(c)
The Company is party to a Deed of Option and Royalty relating to the Stavely tenement EL 4556. The Company had no
other contingent liabilities at year end (2014: same).
NOTE 15 – RELATED PARTIES
(a) Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Equity-based payment
30 June 2015
$
30 June 2014
$
465,051
40,013
-
505,064
160,914
6,627
254,776
422,317
2015 Annual Report | Page 71
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 15 – RELATED PARTIES - continued
(b) Other transactions and balances with Key Management Personnel
Loans from Key Management Personnel
Balance at beginning of the year
Loans advanced
Loans repaid by equity
Loans repaid by cash
Interest charged
Interest paid
Balance at end of the year
30 June 2015
$
30 June 2014
$
-
-
-
-
-
-
-
-
2,050,000
(2,000,000)
(50,000)
72,301
(72,301)
-
In 2013, the Company entered into a loan facility with Chaka Investments Pty Ltd, a company associated with director Mr
Peter Ironside. The facility was for an amount of $2,500,000 with interest at 7%. Interest and the principal were to be
repaid by 30 June 2014. During the year, drawdowns of $2,050,000 were made. In April 2014, the Company issued
15,000,000 shares in satisfaction of the repayment of $2,000,000 loan facility from Chaka Investments Pty Ltd, a
company of which Mr Peter Ironside (Stavely Director) is the sole director and Mr Ironside’s wife is shareholder. The
remaining $50,000 was repaid in cash on 14 May 2014. Interest paid on these loans of $72,301 was paid on 30 June
2014.
Cash Advances from Key Management Personnel
Balance at beginning of the year
Loans advanced
Loans repaid by cash
Interest charged
Balance at end of the year
-
-
-
-
-
50,000
305,000
(355,000)
-
-
In 2014, cash advances were made by Mr Christopher Cairns to Stavely totalling $50,000. These advances were repaid by
the Company on 14 May 2014. Ironside Pty Ltd, a company of which Mr Peter Ironside is a director and shareholder,
made advances totalling $255,000 during the year to the Company. The Company repaid these advances during the
year.
Other Transactions with Key Management Personnel
Mr Peter Ironside, Director, is a shareholder and director of Ironside Pty Ltd. Ironside Pty Ltd is a shareholder of the 168
Stirling Highway Syndicate, the entity which owns the premises the Company occupies in Western Australia. During the
year an amount of $123,164 (net of GST) was paid for office rental and variable outgoings (2014: an amount of $200,162
(net of GST) was paid/payable to Ironside Pty Ltd for reimbursement of office rental, server costs and other expenses).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of Zamanco Minerals Limited (“Zamanco”).
Zamanco sub-leases office space in the premises the Company occupies. During the year an amount of $39,048 (net of
GST) was paid/payable by Zamanco to the Company for reimbursement of office rental and associated expenses (2014:
Nil).
(c) Transactions with Other Related Parties
There were no transactions with other related parties (2014: none).
2015 Annual Report | Page 72
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 16 - AUDITORS' REMUNERATION
Amount received or due and receivable by the auditor for:
Auditing the financial statements, including audit review - current year audits
Other services – taxation and corporate advisory
Total remuneration of auditors
NOTE 17 – SEGMENT INFORMATION
30 June 2015
$
30 June 2014
$
45,969
4,915
50,884
15,855
18,956
34,811
Management has determined the operating segments based on the reports reviewed by the board of directors that are
used to make strategic decisions. The Company does not have any material operating segments with discrete financial
information. The Company does not have any customers and all its’ assets and liabilities are primarily related to the
mining industry and are located within Victoria. The Board of Directors review internal management reports on a
regular basis that is consistent with the information provided in the statement of profit or loss and other
comprehensive income, balance sheet and statement of cash flows. As a result no reconciliation is required because
the information as presented is what is used by the Board to make strategic decisions.
NOTE 18 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s principal financial instrument comprises cash. The main purpose of this financial instrument is to provide
working capital for the Company’s operations.
The Company has various other financial instruments such as sundry debtors, security bonds and trade creditors, which
arise directly from its operations.
It is, and has been throughout the year under review, the Company’s policy that no trading in financial instruments shall
be undertaken.
The main risk arising from the Company’s financial instruments is interest rate risk. The Board reviews and agrees on
policies for managing each of these risks and they are summarised below.
Interest rate risk
At balance date the Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s
cash and bonds. The Company constantly analyses its exposure to interest rates, with consideration given to potential
renewal of existing positions, the mix of fixed and variable interest rates and the period to which deposits may be fixed.
At balance date, the Company had the following financial assets exposed to variable interest rates that are not
designated in cash flow hedges:
Financial Assets:
Cash and cash equivalents - interest bearing
Trade and other receivables - bonds
Net exposure
30 June 2015
$
30 June 2014
$
478,927
40,000
518,927
4,203,309
30,000
4,233,309
Sensitivity
At 30 June 2015, if interest rates had increased by 0.5% from the year end variable rates with all other variables held
constant, post tax profit and equity for the Company would have been $2,795 higher (2014: changes of 0.5% $21,166
higher). The 0.5% (2014: 0.5%) sensitivity is based on reasonably possible changes, over a financial year, using an
observed range of historical RBA movements over the last year.
2015 Annual Report | Page 73
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 18 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued
Liquidity risk
The Company has no significant exposure to liquidity risk as there is effectively no debt. The Company manages liquidity
risk by monitoring immediate and forecast cash requirements and ensuring adequate cash reserves are maintained.
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the
Company. The Company has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient
collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The
Company measures credit risk on a fair value basis.
Significant cash deposits are with institutions with a minimum credit rating of AA (or equivalent) as determined by a
reputable credit rating agency e.g. Standard & Poor.
The Company does not have any other significant credit risk exposure to a single counterparty or any group of
counterparties having similar characteristics.
Fair value
Disclosure of fair value measurements by level are as follows:
• Level 1 – the fair value is calculated using quoted prices in active markets
• Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly (as prices) or indirectly (derived from prices)
• Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data
The Company has no assets or liabilities measured at fair value.
NOTE 19 – SUBSEQUENT EVENTS
On 20 July 2015, Stavely issued 6,332,726 new shares at an issue price of $0.25 per share together with 3,166,373 free
attaching options under an Entitlements Issue. The options have an exercise price of $0.30 each and expire 30 June
2016. Gross proceeds raised totalled $1,583,181.
On 25 August 2015, Stavely issued 3,000,000 unlisted options to employees/consultants of the Company. These options
were granted to recognise the excellent performance of Stavely’s employees/consultants and provide a retention
incentive. The unlisted options are exercisable at 27 cents and expire on 1 December 2016. 1,000,000 of these options
were issued to Ms Amanda Sparks. Ms Sparks is considered key management personal. The assessed fair value of these
options for Ms Sparks is $74,115 which has been determined using a Black-Scholes option pricing model, taking into
account the exercise price, term of option, the share price at grant date and expected price volatility of the underlying
share, expected dividend yield and the risk-free interest rate for the term of the option.
There are no other matters or circumstances that have arisen since 30 June 2015 that have or may significantly affect the
operations, results, or state of affairs of the Company in future financial years.
2015 Annual Report | Page 74
INDEPENDENT AUDIT REPORT
.
2015 Annual Report | Page 75
INDEPENDENT AUDIT REPORT
2015 Annual Report | Page 76
ADDITIONAL SHAREHOLDER INFORMATION
Information as at 27 August 2015
a) Substantial Shareholders (who have lodged notices with Stavely Minerals Limited)
Name
Peter Reynold Ironside
Christopher John Cairns
b) Shareholder Distribution Schedule
Size of Holding
1 -
1,001 -
5,001 -
10,001 -
1,000
5,000
10,000
100,000
100,001 and over
Total
Number of shareholders holding less
than a marketable parcel
c) Voting Rights
Number of
Ordinary Shares
30,157,419
Percentage of
Issued Capital
32.24%
15,007,419
16.05%
Number of
Listed
Optionholders
99
83
31
88
13
314
Number of
Shareholders
19
97
137
312
90
655
57
(i)
at meetings of members entitled to vote each member may vote in person or by proxy or attorney, or in the
case of a member which is a body corporate, by representative duly appointed under section 250D;
(ii) on a show of hands every member entitled to vote and present in person or by proxy or attorney or
representative duly authorised shall have one (1) vote;
(iii) on a poll every member entitled to vote and present in person or by proxy or attorney or representative duly
authorised shall have one (1) vote for each fully paid share of which he is the holder and in the case of
contributing shares until fully paid shall have voting rights pro rata to the amount paid up or credited as paid
up on each such share; and
(iv) a member shall not be entitled to vote at general meeting or be reckoned in a quorum in respect of any shares
upon which any call or other sum presently payable by him is unpaid.
d) Restricted Securities
31,499,903 Fully Paid ordinary shares
13,400,000 Unlisted options
Escrowed for 24 months from date of listing (7 May 2014 to 7 May 2016).
2015 Annual Report | Page 77
ADDITIONAL SHAREHOLDER INFORMATION
e)
Twenty largest shareholders:
Name
1
2
3
4
5
6
7
8
Ironside Pty Ltd
Ironside Pty Ltd
Goldwork Asset Pty Ltd
Chaka Investments Pty Ltd
Goldwork Asset Pty Ltd
Citicorp Nominees Pty Limited
Jennifer Elaine Murphy
Dr Anthony Cairns
9 Michelle Maria Skinner
10 DK & SJ Pty Ltd
11
12
Trading Pursuits Group
JC Holdings Pty Ltd
13 Mick Ashton Nominees Pty Ltd
14
Sanluri Pty Ltd
15 Mr Harle John Mossman
16 Greenstone Property Pty Ltd
17
Chertor Pty Ltd
18 ABN AMRO Clearing Sydney Nominees Pty Ltd
19 Mr John O'Connor
20 DDH 1 Drilling Pty Ltd
Shares on issue at 27 August 2015
f) Twenty largest listed optionholders:
Name
Chaka Investments Pty Ltd
1
2 Mr Harle John Mossman
3
4
5
S D'Arcy Pty Ltd
Carmant Pty Ltd
Contango Nominees Pty Limited
6 Mr Jamie Pherous
7
8
9
10
11
UBS Wealth Management Australia Nominees Pty Ltd
Colvic Pty Ltd
Buckingham Investment Financial Services Pty Ltd
Lotus Research Pty Ltd
Citicorp Nominees Pty Limited
12 Mr Robert Ian Charles
13
JG Group Holdings Pty Ltd
Number of
Ordinary
Shares
14,677,419
10,000,000
9,759,032
5,480,000
5,238,387
3,890,510
3,427,097
2,600,000
2,358,065
1,250,000
1,250,000
1,250,000
1,250,000
1,233,000
1,225,000
1,078,206
610,000
603,977
560,000
500,000
68,240,693
93,528,707
% of Issued
Capital
15.69
10.69
10.43
5.86
5.60
4.16
3.66
2.78
2.52
1.34
1.34
1.34
1.34
1.32
1.31
1.15
0.65
0.65
0.60
0.53
72.96
Number of
Listed Options
240,000
% of Listed
Options
4.02
237,500
203,672
200,000
200,000
200,000
180,000
160,000
150,000
145,000
135,253
130,000
121,000
3.98
3.41
3.35
3.35
3.35
3.02
2.68
2.51
2.43
2.27
2.18
2.03
2015 Annual Report | Page 78
100,000
100,000
100,000
93,500
90,000
82,500
80,000
2,948,425
5,966,298
1.68
1.68
1.68
1.57
1.51
1.38
1.34
49.42
ADDITIONAL SHAREHOLDER INFORMATION
14 Mr Stewart Arthur Beavis
15 Mr Oliver Burke + Ms Holly Burke + Ms Judyanne Donnellan
K R Don Pty Ltd
X F Holdings Pty Ltd
16
17
18 Mr John Charles Holmes Clark + Mrs Rebecca Katrina Clark
19 Wolseley Road #1 Pty Limited
20 Goldwork Asset Pty Ltd
Listed options on issue at 27 August 2015
g) Unlisted Options
Name
Directors:
W Plyley
C Cairns
J Murphy
P Ironside
Others:
H Forgan
M Skinner
A Sparks
Q Te Tai
h) Use of Funds
01/12/2016
27 cents
31/12/2017
27 cents
-
-
-
-
1,000,000
500,000
1,000,000
500,000
3,000,000
1,000,000
5,032,258
1,561,290
5,032,258
-
774,194
750,000
250,000
14,400,000
The Company confirms that the use of cash from date of ASX admission has been used in a way consistent with
the business objectives as stated in its Initial Public Offering Prospectus dated 17 March 2014.
2015 Annual Report | Page 79
TENEMENT SCHEDULE
Tenement
Grant Date/
(Application Date)
Size
(Km2)
EL 3019
EL 4758
EL 4556
EL 5478
EL 5470
EL 5486
ELA 5487
RLA 2020
RLA 2017
EL 5403
EL 5450
21 December 1989
29 January 2004
5 April 2001
26 July 2013
17 June 2013
10 July 2014
(21 June 2013)
(12 June 2014)
(20 May 2014)
25 January 2012
21 February 2013
42
12
139
132
110
2
5
28
139
68
4
Area Name
Mt Ararat
Ararat
Stavely
Stavely
Mortlake
Mt Ararat
Mt Ararat
Ararat
Stavely
Ararat
Ararat
2015 Annual Report | Page 80
STAVELY MINERALS LIMITED
ABN 33 119 826 907
www.stavely.com.au