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2023 Report2018 | Annual Report
STAVELY MINERALS LIMITED
ABN 33 119 826 907
www.stavely.com.au
CONTENTS
CORPORATE DIRECTORY ..................................................................................................................................... 2
CHAIRMAN’S REPORT .......................................................................................................................................... 3
OPERATIONS REPORT .......................................................................................................................................... 4
DIRECTORS’ REPORT .......................................................................................................................................... 26
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS ....................................................................... 36
DIRECTORS’ DECLARATION ............................................................................................................................... 37
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................ 38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................... 39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................................................... 40
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................. 41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ................................................................................ 42
INDEPENDENT AUDIT REPORT .......................................................................................................................... 60
ADDITIONAL SHAREHOLDER INFORMATION ..................................................................................................... 63
TENEMENT SCHEDULE ....................................................................................................................................... 65
2018 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
2018 Annual Report | Page 2
CHAIRMAN’S REPORT
Welcome,
It is my pleasure to present the Stavely Minerals Limited 2018 Annual Report.
It has been an extremely busy year for Stavely Minerals. The success over the past year was built upon the judicious
application of some advanced techniques in the search for the best mineralised portion of the core of the copper-
gold porphyry at the Thursday’s Gossan prospect. These techniques included short-wavelength infra-red analysis of
clay alteration minerals, sulphur isotope analyses and good-old sweat looking and relooking at the geology and
mineralogy with the assistance of notable experts in their field, like Dr Greg Corbett. While my technical background
is metallurgy and I do have an understanding of the techniques the exploration team is employing, we are aware
that it is challenging to convey the excitement of the Stavely team as the results to-date all indicate we are in the
hunt for a significant copper-gold porphyry.
Since July 2017 your Company began intercepting significant widths of strong copper-gold mineralisation in RC
drilling at the Thursday’s Gossan porphyry prospect. As the drilling programme at Thursday’s Gossan was
accelerated with the completion of diamond drill hole tails to some of the shallower RC drill holes, Stavely started
reporting copper-gold intercepts in excess of 100 metres length. Of greatest encouragement was that it was
apparent that the drilling to-date was not yet in the best portion of the mineralised system and that even higher-
grades could be expected when that ‘core’ was located.
As the drilling programmes developed with the addition of two and then three diamond drill rigs, your Company
began to intercept porphyry ‘M’ veins over intervals in excess of 100 metres drill length. The significance was
immediately recognised as these veins were characteristic of gold-rich porphyry systems and are typically located
proximal to the mineralised ‘core’ Stavely Minerals had been seeking.
However, our target copper-gold porphyry is 500 million years old, has been structurally disrupted and our
exploration team have successfully followed the ‘M’ veins across the Low-Angle Structure (LAS) and are now
pursuing them across the North-South Structure. This challenge is not unexpected given the age of the system and
the regional structural history.
At the Fairview gold prospect, broad intervals of moderate-grade gold mineralisation were intercepted from
surface. This material is currently subject to metallurgical test work to assess its amenability to low-cost processing
and gold recovery.
At the Yarram Park Project, drill testing of Induced Polarisation (IP) geophysical targets provided some surprising
results with circa 200 metre widths of bedded sedimentary units with abundant disseminated pyrrhotite sulphides.
While these results are ambiguous, there remains a porphyry to be found at the Toora West prospect as indicated
by previous drilling from 2017.
Likewise, the Mount Stavely porphyry prospect remains untested despite confirmation from Geoscience Australia
and the Geological Survey of Victoria analysis from stratigraphic drilling they conducted - as part of their Stavely Arc
research project - showing the chemistry of pyrites peripheral to Mount Stavely are chemically similar to notable
gold mineralised systems at Lihir (epithermal) and Wafi-Golpu (porphyry).
In the Ravenswood Project, the Area 8 low-sulphidation gold and the Connolly North Ravenswood-style intrusive-
related gold prospects have been progressed to drill-ready status and are set for drill testing in late 2018.
While the primary focus in 2018-19 will remain the Thursday’s Gossan copper-gold porphyry search, other
opportunities in both Victoria and Queensland will also be pursued.
Your Company continues to run ‘lean and mean’ providing excellent value for the investment dollar considering
approximately 80% of expenditure, including field-based salaries, is spent on ‘in-the-ground’ activities. As a Board,
we believe this spend on ‘in the ground’ activities is the key to success for Shareholder returns.
I and the rest of the Stavely Minerals’ Board and management team sincerely appreciate your continued support
and are working hard to deliver the rewards we all are seeking through significant discovery.
BILL PLYLEY
2018 Annual Report | Page 3
Overview
EXPLORATION
The Company’s assets, located in
western Victoria and in northern
Queensland, are prospective for
copper-gold 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 a Cadia-type
copper-gold porphyry (Stavely and
Yarram Park Projects), and a
Degrussa-style VMS (volcanogenic
massive sulphide) deposit at the
Ararat Project.
Fairview
low-sulphidation
The
mesothermal to epithermal gold
prospect, in the Stavely Project, is
potentially analogous to a Lake
Cowal gold deposit. There are also
indications of ‘Stawell-style’ and
‘intrusive-related’
gold
the Ararat
mineralisation
Project.
at
Project
Queensland
in
The Ravenswood
is
northern
intrusive-related
prospective for
gold mineralisation,
porphyry
hosted copper-molybdenum and
epithermal gold mineralisation, as
well as rare-earth elements.
Almost 10,000 metres of diamond
drilling has been conducted at the
Thursday’s Gossan copper-gold
prospect, in the Stavely Project, at
copper-gold
the
prospect,
the Yarram Park
Project, at the Black Range JV
Project and at the Carroll’s and
the
Honeysuckle prospects
Toora West
in
in
OPERATIONS REPORT
Ararat Project in western Victoria
during the 2018 financial year.
rock-
Reconnaissance mapping,
chip sampling, soil and stream
sediment sampling have been
conducted at the Ravenswood
Project in Queensland. IP Surveys
were conducted at the Connolly
North prospect in the Ravenswood
West Project and Area 8 prospect
in
in
the Dreghorn Project
Queensland.
~15km
At Connolly North, there are large
areas of flat, platy quartz vein float
which could be indicative of a
larger vein system similar to those
the Sarsfield and Nolans
at
deposits at the Ravenswood Gold
Mine,
Surface
sampling
at Connolly North
returned rock chip samples with
results of up to 14.8 g/t gold and
several stream sediment results in
excess of 1 g/t gold. The IP survey
at Connolly North
identified a
coherent IP chargeability anomaly.
away.
signature
At Area 8, the quartz textures and
geochemical
are
consistent with a low-sulphidation
epithermal gold-silver system. The
IP survey at Area 8 returned a well
constrained resistivity anomaly.
Since
late 2017, drilling at
Thursday’s Gossan has been
systematically progressing with the
objective of discovering copper-
gold mineralisation associated with
an alkalic porphyry system, similar
to the Cadia Valley or the North
Parkes
in
central New South Wales. The
Cadia-Ridgeway
copper-gold
deposit had total production to
March 2012 of 76.7Mt at 0.63%
copper and 1.83 g/t gold for a
tonnes of
contained 483,000
copper-gold mines
copper and 4.5 million ounces of
gold1. Gold production was at a net
negative cash-cost due to the
revenue from copper production
paying
the mining and
processing costs.
for
Drilling at Thursday’s Gossan has
been continuous since November
2017, with two drill rigs operating
since March 2018. Drilling
is
targeting the main body of the
mineralised copper-gold porphyry
below the Low-Angle structure
(LAS).
has
veining
enhanced
The recent drilling at Thursday’s
Gossan
the
Company’s confidence that the
observations of multiple phases of
alteration,
and
mineralisation and the types of
veining are all strong indications of
proximity to the main body of the
mineralised copper-gold porphyry,
and that we are at the top of the
system. The main body of the
mineralisation
be
preserved.
should
The current drilling programme at
Thursday’s Gossan
is targeting
porphyry ‘M’ veins as a vector to
the hottest part of the mineralised
system, where higher-grade copper
and significantly higher-grade gold
are expected.
in
of
existence
The maiden drilling during the
previous year at the Toora West
the Yarram Park
prospect,
successfully confirmed
Project,
‘blind’
the
intrusive complex compositionally
texturally consistent with
and
a
copper-gold
environment. Petrographic analysis
of core confirmed porphyry-style
alteration.
porphyry
a
1 Source: Porter GeoConsultancy Pty
Ltd.
2018 Annual Report | Page 4
OPERATIONS REPORT
CORPORATE
the
addition,
In February/March 2018, Stavely
Minerals completed a capital
raising which was underpinned by
a Share Placement of 20 million
shares at 34 cents per share to
sophisticated
institutional
and
investors to raise $6.8 million
before costs. The Share Placement
was substantially oversubscribed.
In
Company
completed a Share Placement Plan
(SPP), also at 34 cents to allow
existing shareholders to participate
in the capital raising on the same
terms as the Share Placement.
Stavely
eligible
offered
shareholders the opportunity to
subscribe for new shares up to a
maximum value of $15,000 per
eligible shareholder to raise a
further $2 million.
Photo 1. Grampian’s in the mist.
The Toora West porphyry prospect
remains a priority target for follow-
up drilling.
intensive
deformed
Drilling of
IP
an
chargeability anomaly during the
current year at Toora West
intersected a sequence of silicified
shale
and
and
containing
disseminated pyrrhotite and vein-
hosted
pyrite, with minor
arsenopyrite, the significance of
which is still under review.
black
laminated
the
The drilling at the Carroll’s VMS
prospect and Honeysuckle Gold
in the Ararat Project
prospect
were
exploration
final
programmes co-funded by the
Victorian Government TARGET
initiative.
minerals exploration
Unfortunately the drilling did not
return any significant results.
The funds raised through the
combined Share Placement and
SPP are primarily being used to
accelerate drilling programmes in
western Victoria testing a suite of
targets,
copper-gold
porphyry
including the advanced exploration
at the Thursday’s Gossan prospect
where
recent deep diamond
drilling has delivered exciting
results indicating proximity to a
potentially large-scale copper-gold
porphyry. Follow-up exploration
programmes were also planned in
Queensland targeting epithermal
and
gold
intrusive-related
mineralisation.
The Share Subscription Agreement
between Stavely Minerals and
Titeline Drilling Pty Ltd, under
which the Company has the option
to settle monthly drilling charges
by way of a cash payment and/or
2018 Annual Report | Page 5
is
in
shares,
place.
still
Approximately $1.13 million of the
total $2 million facility has been
used as at the end of June 2018.
During the year, the Company
received payments of $86k from
the Victorian Government under
the TARGET exploration initiative
for exploration that was completed
initiative during the
under the
previous year. Refunds for co-
funded drilling conducted at the
Ararat Project during the year have
the
received. All
yet
exploration
for which Stavely
Minerals has been eligible for
TARGET co-funding has now been
completed.
to be
-
Company
distributed
The
distributed
Exploration Development Incentive
Scheme (EDI) credits of $422,455
(27.5% of the Company’s eligible
2016
exploration
2017
expenditure of $1.536 million) to
Shareholders in June 2018. The EDI
credits were
to
Shareholders pro-rata relative to
the number of shares held and the
total shares on issue (122,985,569)
on the Record date of 21 February
2018. The EDI enables eligible
exploration companies to create
exploration credits by giving up a
portion of their carried forward
losses from eligible exploration
expenditure and distributing these
exploration
to equity
credits
shareholders.
intended
EDI was
The
to
encourage shareholder investment
companies
in
undertaking greenfields mineral
exploration in Australia.
exploration
During the year, the Company
into an Earn-in and
entered
Joint Venture Agreement with
Black Range Metals Pty Ltd
(“Black Range” - a wholly-owned
OPERATIONS REPORT
subsidiary of Navarre Minerals
Limited, “Navarre Minerals”) for
Black Range’s Exploration Licence
5425. EL5425 is located adjacent
to Stavely’s Yarram Park Project
and surrounds the 100%-owned
Stavely Copper Project in western
Victoria (Figure 1).
terms of
Key
included:
the agreement
• Stavely Minerals may earn up to
an 80% interest in EL5425 in
two stages –
o All other Joint Venture terms
are as per industry standard.
Stavely Minerals had a total of
$6.56M cash on hand at the end of
June 2018, with a further $0.87M
available pursuant to the Share
Subscription Agreement with the
drilling contractor, Titeline Drilling
Pty Ltd.
o In the first earn-in stage,
Stavely Minerals must sole
fund $150,000 of exploration
costs in the first two years to
earn a 51% interest, and
o After completion of the first
Stavely
earn-in
to
Minerals may
proceed to the second earn-in
stage,
stage,
elect
o In the second earn-in stage,
Stavely Minerals must sole
fund an additional $300,000
of exploration costs in the
next three years to earn an
additional 29% interest,
to
o After
relative
the second earn-in
period, both parties are to
contribute to Joint Venture
expenditure on a pro-rata
basis
their
participating interest or dilute
their interest in accordance
with a specified formula,
o If a participant’s interest falls
below 5%, that participant’s
interest will convert to a Net
Smelter Return (NSR) royalty
of 1%,
o If a participant’s interest is
converted to the NSR royalty,
the other participant
is
granted an option to redeem
the
royalty
the NSR
payment of $200,000 within
two years of the conversion,
for
2018 Annual Report | Page 6
Review of
Operations
Background
approximately
The Ararat and Stavely Projects are
located
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 Victorian Projects
include
exploration tenements with a total
area of 252 square kilometres of
100% owned and 201 square
kilometres of joint venture tenure.
OPERATIONS REPORT
have
Projects
The
excellent
infrastructure and access with
paved highways, port connection
by railroad and a 62 MW wind farm
located 8 kilometres from the
Stavely Project. The primary land
use
is grazing and broad acre
cropping.
The Ravenswood Project is located
90km south of Townsville and
10km south west of Ravenswood in
north Queensland. The Mingela-
Ravenswood - Burdekin Dam road
passes down the eastern boundary
of the Project (Figure 2).
topography
The Queensland Project includes
four granted exploration licences
with a total area of 548 square
kilometres. The
is
made up of rolling hills alternating
with sandy flats. The Burdekin
River runs through the Project
area. Access within the tenements
is by 4WD via station tracks.
Figure 1. Ararat, Stavely, Yarram Park Project Location
Plan.
Figure 2. Ravenswood Project Location Plan.
2018 Annual Report | Page 7
OPERATIONS REPORT
Regional
Victoria
Geology Western
The Ararat and Stavely Projects,
while only 40 kilometres apart, are
hosted within materially different
geologic domains (Figure 3).
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.
submarine
The Stavely Project is hosted in
Cambrian age fault-bounded belts
calc-alkaline
of
volcanics, namely
the Mount
Stavely Volcanics, structurally in
contact with the older quartz-rich
turbidite
the
sequence
Glenthompson Sandstone and the
Williams Road Serpentinite.
of
of
These sequences were deformed in
the Late Cambrian Delamerian
Orogeny. Seismic traverses and a
recent study by the Victorian
Department
Economic
Development, Jobs, Transport and
Resources in western Victoria have
supported the interpretation of an
Andean-style convergent margin
environment for the development
of the buried Stavely Arc beneath
the Stavely Volcanic Complex and
environs (Schofield, A. (ed) 2018).
is
This
considered
the
formation of fertile copper / gold
systems
mineralised porphyry
(Crawford et al, 2003) as is the case
with the Macquarie Arc in New
South Wales, which hosts the Cadia
Valley and North Parkes copper-
gold
porphyry
complexes.
architecture
mineralised
conducive
regional
to
Figure 3. Geology of south-eastern Australia.
Lachlan
Fold Belt and
The
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
mudstone
the
Grampians Group.
sequences of
sandstone
Regional
Queensland
Geology
North
The dominant rock types within the
Ravenswood Project are typically I-
type
calcic hornblende-biotite
granodiorite to tonalite of the
Ravenswood Batholith of Middle
Silurian to Middle Devonian age
(Figure 4).
Ravenswood
A major structure, the Mosgardies
Shear Zone, cuts east-west through
the
Batholith
adjacent to three gold centres. The
shear zone is up to 2.5km wide. The
main reef at Ravenswood, the
”Buck Reef”, is contained within
the Mosgardies Shear Zone. The
majority of faults in the area are
transverse to the Morgardies Shear
Zone and trend 30o to 40o either
side of north. The bulk of the
auriferous quartz reefs and leaders
are hosted by shears with NW to NS
orientation.
2018 Annual Report | Page 8
OPERATIONS REPORT
More widespread phyllic (quartz-
sericite) and potassic
(biotite)
alteration is reported suggestive of
style alteration and
porphyry
mineralisation. This style of deposit
offers bulk tonnage potential.
in
intrusive
Cu-Au-Mo occurs
breccias (“pipes”) at Three Sisters
and Mt Wright outside the Project
area. Paleo-placer gold deposits
occur in Quaternary sediments on
the flanks of Tertiary laterites.
Mineralisation is associated with
shear hosted quartz veins and is
dominated by pyrite-chalcopyrite-
are
The
galena-gold.
generally narrow and of limited
strike
style of
mineralisation is widespread but of
low tonnage.
length. This
veins
chalcopyrite
Copper as
(and
molybdenum-gold) mineralisation
is also associated with quartz
porphyry stocks. Mineralisation is
contained both in sparse quartz
veins and disseminated within the
intrusive.
Figure 4. Ravenswood West Project – Regional Geology Plan.
2018 Annual Report | Page 9
OPERATIONS REPORT
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).
Refer to ASX release dated 8
September 2015 for all criteria for
sections 1, 2 and 3 of the JORC
Code Table 1 and 2.
The Mt Ararat Copper Indicated
and Inferred Resource Estimate,
August 2017, remains unchanged
from
the Mt Ararat Copper
Indicated and Inferred Resource
Estimate, August 2015. There has
been no additional drill data
collected from the deposit and
although economic circumstances
affecting the mining industry have
changed since 2015, the underlying
assumptions utilised
in 2015
Mineral Resource estimate remain
valid.
(b) Stavely
Project Mineral
Resource
secondary
In the Stavely Project, at the
Thursday’s Gossan prospect, a near
surface
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’s Gossan Chalcocite
Copper Inferred Mineral Resource
Estimate remains unchanged from
the Thursday’s Gossan Chalcocite
Resource
Inferred
Copper
Estimate, August 2013. Although
economic circumstances affecting
the mining industry have changed
since
underlying
assumptions utilised in the 2013
Mineral Resource estimate remain
valid.
2013,
the
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.
2018 Annual Report | Page 10
OPERATIONS REPORT
Table 2. The Thursday’s Gossan Chalcocite Copper Inferred Resource Estimate (reviewed in 2017).
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.
Ararat Project
The Ararat Project is prospective for
VMS
copper-gold-zinc-silver
mineralisation as well as ‘Stawell-
style’ and
intrusion-related gold
mineralisation.
Diamond drilling was conducted at
the Honeysuckle Gold prospect and
at the Carroll’s VMS prospect to
follow-up
chargeability
anomalies and a off-hole DHEM
anomaly, respectively (Figure 5).
IP
the
The drilling was part of
Victorian Government
TARGET
exploration initiative co-funding.
The Mount Ararat copper deposit
and the Carroll’s prospect lie within
a small portion of a much more
extensive prospective exhalative
horizon on the contact between the
Carroll’s Amphibolite and
the
Lexington Schist.
Figure 5. Ararat Project Copper and Gold Targets.
2018 Annual Report | Page 11
OPERATIONS REPORT
The Ararat Goldfield has significant
historic alluvial and deep
lead
production of circa 640,000 ounces
of gold but with no known
substantial hard-rock source.
i. Carroll’s Base Metal Prospect
to
One diamond hole (SADD010) was
the Carroll’s VMS
drilled at
prospect
the off-hole
test
response returned from the DHEM
survey conducted on diamond hole
SADD005 completed during the
previous year (Figure 6).
in 2013
Drill hole SADD005 returned a distal
off-hole EM response, which was
modelled
establish
to
the projected downhole depth.
Simultaneous modelling with the
Fixed Loop Electromagnetic data
indicated a
collected
projected intersection at a depth of
500m. This predicted depth agreed
with independent modelling of only
the DHEM data. SADD010 was
drilled to a depth of 527.5m and
intercepted fine grained, foliated
metabasalt to 182.7m, then a
highly foliated quartz-biotite schist
unit interbedded with metabasalt
to the end of hole. Disseminated
chalcopyrite,
trace
sphalerite and pyrrhotite were
observed throughout the hole.
Selective sampling of the drilling
did not return any significant gold
or base metals intercepts or any
interesting pathfinder elements.
pyrite,
ii. Honeysuckle Mine
Gold
Prospect
There are a number of historic
mines, including the Honeysuckle
Mine, hosted within a late-phase
intrusive
the
granite
Ararat Project (Figure 7). Field
identified
investigations
alteration which may indicate the
presence of a reasonably sized gold
although
mineralised
system,
have
in
Figure 6. Carroll’s VMS Prospect Drill Collar Location Plan.
historic mining
narrow, high-grade reefs.
focussed upon
Gold in the Honeysuckle area was
discovered in 1897 with reported
grades of up to 7.5 g/t gold. With
the gold being hosted within an
intrusive, IP was considered likely
to be effective
identifying
sulphides potentially associated
with gold mineralisation. An IP
survey
at
Honeysuckle during the previous
year.
conducted
was
in
is
low amplitude anomalous IP
A
chargeable
located
feature
beneath the historical Honeysuckle
gold workings and this was the
target of diamond drill hole
SADD008. This hole was drilled to a
depth of 317m and predominantly
intersected a medium grained
granodiorite. Trace disseminated
chalcopyrite is present through the
granodiorite to a depth of 45m.
Magnetite is present throughout
the granodiorite. The granodiorite
is cross cut by the occasional micro
diorite porphyry and by weakly
developed 1-40mm linear quartz ±
biotite veins.
Category
addition,
IP which
a
anomaly
In
1
chargeability
was
is
the
in
identified
moderately resistive and coincident
with a strong magnetic feature. It is
mapped as coincident with a
section
Carroll’s
of
Amphibolite.
the
2018 Annual Report | Page 12
OPERATIONS REPORT
Figure 7. Honeysuckle Gold Prospect Drill Collar Location Plan.
Elsewhere the amphibolite is not
chargeable and this anomaly was
the target of diamond drill hole
SADD009. This hole intersected a
fine grained, variably
foliated,
strongly magnetic meta-basalt
from fresh rock at 20.7m to the end
of hole at 293.6m.
Selective sampling was conducted
on the two holes but failed to
return any significant results.
Stavely Project
opportunities
The Stavely Project hosts several
significant
for
discovery of porphyry copper-gold
and VMS base-metals +/- gold
deposits.
During the year, the Company
conducted diamond drilling at the
porphyry
Gossan
Thursday’s
prospect,
three
completing
diamond tails on RC pre-collars for
378m and fifteen diamond holes
for 7,815m.
Exploration during the year has
Stavely Minerals’
supported
conceptual model that there were
two phases of mineralisation at
Thursday’s Gossan. The early
porphyry phase
low-grade
copper-only phase that previous
explorers had identified and is of
little economic interest. Stavely’s
original interest in the Project was
based on
in
previous explorer’s drill core, of
recognition,
is a
the
strong
evidence of intense high-level acid-
sulphate alteration and hematite
alteration of feldspars associated
copper-gold
with
mineralisation. The Company’s
belief was that these attributes
that
indications
were
a
copper-gold
porphyry existed at depth that had
not yet been seen in the historical
drilling (Figure 8).
second-phase
intercepted
In late 2017 drilling encountered
the first incidence of ‘M’ veining at
Thursday’s Gossan. In drill hole
SMD015 a ~100m
interval of
magnetite-actinolite and quartz-
magnetite ± pyrite ± chalcopyrite
and
veining was
interpreted to be comparable to
the E-1A and E-1B phases of
magnetite veins noted from the
Cadia-Ridgeway
copper-gold
deposit, which occur at the outer
extent of the high-grade gold-
related E-2 veins. Hole SMD017
intercepted ~80m of moderate to
strong quartz-magnetite ‘M’ veins
which were similar to the E-1A and
E-1B veins as well as the wider,
laminated quartz magnetite ‘M’
veins with fine-grained chalcopyrite
inter-grown with the magnetite
similar to the E-2 veins described at
Cadia-Ridgeway.
‘M’
Laminated
veins were
intersected in holes SMD017 and
SMD024 below the LAS but were
developed in conditions that were
too cool to be conducive to the
precipitation of chalcopyrite and
bornite.
LAS,
from
Apart
some
the
additional structural complexities
have been encountered relating to
a north-south fault. This is not
unexpected, with a porphyry that is
500Ma old, however the offset on
the fault is not projected to be
significant.
2018 Annual Report | Page 13
OPERATIONS REPORT
Figure 8. Thursday’s Gossan Porphyry Conceptual Model.
Current drilling at Thursday’s
Gossan is pusuing the porphyry ‘M’
veins as a vector to the hotter part
of the mineralised system, where
higher-grade
and
significantly higher-grade gold are
expected.
copper
i. Thursday’s Gossan Porphyry
Prospect
STRC019D
During the year three diamond tails
(STRC014D,
and
STRC020D) were completed on pre-
collars that were drilled during the
previous year at Thursday’s Gossan
(Figure 10).
Four sections of five holes each for
a total of 20 RC holes were drilled
during the previous year to confirm
an interpretation that high-grade
copper-gold mineralisation near
surface at Thursday’s Gossan is
hosted by sulphide-rich ‘D’ veins in
structures
a
‘leaking’
porphyry intrusion at depth.
from
The drilling confirmed that the
fluids responsible for the copper-
gold mineralsiation at Thursday’s
up
Gossan
structures from a porphyry source
below and returned wide intervals
of copper-gold mineralisation over
a strike extent of more that 400
have migrated
metres, with the mineralised zone
remaining open in all directions.
Results included:
• 124 metres at 0.31% copper,
0.12 g/t gold and 13 g/t silver,
including
o 13 metres at 0.31% copper
0.35 g/t gold and 18 g/t
silver, and including
o 6 metres at 2.35% copper,
1.05 g/t gold and 48 g/t
silver
• 36 metres at 0.43% copper, 0.20
g/t gold and 7 g/t silver,
including
o 20 metres at 0.65% copper,
0.30 g/t gold and 12 g/t
silver, including
o 1 metre at 5.17% copper,
1.26 g/t gold and 24 g/t
silver
• 85 metres at 0.35% copper, 0.18
g/t gold and 3 g/t silver,
including
o 35 metres at 0.44% copper,
0.28 g/t gold and 4 g/t silver
• 53 metres at 0.37% copper, 0.15
g/t gold and 8 g/t silver,
including
o 23 metres at 0.57% copper,
0.20 g/t gold and 12 g/t
silver
• 88 metres at 0.22% copper,
0.10g/t gold and 4 g/t silver,
including
o 3 metres at 0.92% copper,
0.32 g/t gold and 28 g/t
silver
was
from
chalcopyrite
Of significance is the fact that the
copper-gold mineralised
best
associated
intercept
bornite
with
/
mineralisation
157-158
in drill hole STRC008D,
metres
which returned 5.17% copper and
1.26 g/t gold. The target potassic
core to the porphyry system should
host the best developed bornite
mineralisation and this result is
considered a strong indication for
the presence of high-grade copper-
gold mineralisation in the deeper
target zone.
2018 Annual Report | Page 14
OPERATIONS REPORT
Figure 9. Thursday’s Gossan Porphyry Copper-Gold Prospect – Drill Collars over aeromagnetic 1VD image.
2018 Annual Report | Page 15
OPERATIONS REPORT
drill
diamond
From November 2017 to June 2018,
fifteen
holes,
SMD013 to SMD026, inclusive and
SMD028, were drilled at Thursday’s
Gossan. The drilling was targeting
the potassic ‘core’ where the best
developed copper and gold grades
are expected to be loacted and is
yet to be discovered.
SMD013 was drilled to a depth of
574 metres targeting the down-dip
extension of the mineralisation
intersected in STRC019D at 153m
(27 metres at 0.39% copper and
0.16 g/t gold including 3 metres at
2.65% copper and 1.17 g/t gold)
(Figure 11).
SMD013 returned a broad interval
of copper mineralisation from very
shallow depth:
• 283 metres at 0.16% copper
from 26 metres drill depth,
including:
o 34 metres at 0.31% copper
chalcocite-
in
enriched
mineralisation
from 27 metres drill depth;
and
secondary
o 6 metres at 0.50% copper,
0.14 g/t gold; and
o 9metres at 0.34% copper,
0.10 g/t gold; and
• 1 metre at 8.44% lead and 98
g/t silver hosted in a narrow
galena vein at 412 metres
located well below the LAS.
SMD014 was drilled to a depth of
739m to the west of SMD013
(Figure 11) and returned:
• 28 metres at 0.28% copper in
secondary chalcocite-enriched
mineralisation from 32 metres
drill depth,
• 6 metres at 0.38% copper from
357 metres,
• 4 metres at 0.34 g/t gold, 8.83
g/t silver and 0.39% copper
from 388 metres, and
• 31 metres at 0.46% zinc from
483 metres in an interval in
Figure 10. Thursday’s Gossan Chalcocite Deposit – Collar Location Plan.
which
and
rhodochrosite has been noted.
sphalerite
Drill hole SMD015 was drilled to a
depth of 448 metres to the west of
STRC008D which
returned an
anomalous interval of 36 metres at
0.43% copper and 0.20 g/t gold,
intersected a ~100 metres interval
of porphyry ‘M’ veins above the LAS
Massive pyrite-
(Figure 12).
chalcopyrite-bornite-chalcocite
posphyry ‘D’ veins returned:
• 4 metres at 5.85% copper and
0.27 g/t gold from 196 metres,
including
o 1 metre at 10.75% copper
and 0.60 g/t gold from 196
metres, and
• 1 metre at 1.28% copper and
0.27 g/t gold from 204m
• 9 metres of 2.62% copper and
0.28 g/t gold from 248 metres,
including
o 4 metres at 5.41% copper
and 0.35 g/t gold from 253
metres, including
o 1 metre at 14.75% copper
and 0.33 g/t gold from 254
metres.
SMD016 was collared 85 metres to
the west of SMD015 and drilled to
a depth of 468 metres to test at
2018 Annual Report | Page 16
OPERATIONS REPORT
depth
the mineralisation and
alteration seen in SMD015 and
STRC008
(Figure 12). SMD016
magnetite-rich
intersected
porphyry ‘M’ veins above the LAS,
as well as the first instance of
sulphide-rich porphyry ‘D’ veins
below the LAS, with assay results
including:
• 92 metres at 0.34% copper, 0.12
g/t gold and 4.4 g/t silver from
307 metres, including
o 4 metres at 1.83% copper,
0.23 g/t gold and 7.5 g/t
silver from 333 metres, and
o 30 metres at 0.50% copper,
0.22 g/t gold and 7.3 g/t
from 343 metres,
silver
including
▪ 2 metres at 1.75% copper,
0.54 g/t gold and 37 g/t
silver from 367 metres
metres
SMD017 was drilled 210 metres to
the west of SMD016 to a depth of
12).
794
Significantly, the hole intersected
‘M’ veining below the LAS along
with porphyry ‘A’ style quartz veins.
(Figure
results
from drill hole
Assay
SMD017 included:
• 37 metres at 0.17% copper from
21 metres in the chalcocite-
enriched blanket outside the
current Mineral
Resource
including 3 metres at 0.75 g/t
gold,
the
demonstrating
presence of significant shallow
in this system not yet
gold
the Mineral
included
Resource;
in
• 2 metres at 2.80 g/t gold, 15.3
g/t silver and 2.06% zinc from
653 metres in quartz-carbonate
veins demonstrating significant
late/cooler
telescoping
of
metals-
carbonate-base
precious metals mineralisation
overprinting earlier porphyry-
style mineralisation
Figure 11. Thursday’s Gossan Prospect – Schematic Cross Section SMD014 – STRC016.
Drill hole SMD018 was drilled on a
section 80 metres to the south of
SMD015 (Figure 9), however due to
drilling issues was abandoned at
96.3 metres. Assays were pending
at year end.
SMD019 was drilled to test beneath
SMD018 to a depth of 478 metres
(Figure 9). Beneath the LAS drilling
encountered the occassional ‘D’
vein and then carbonate - pyrite ±
base metal veins towards the end
of hole. Assays were pending at
year end.
Drill hole SMD020 was drilled to a
depth of 465 metres to test
beneath SMD019 (Figure 9). Drill
hole SMD020 intercepted a large,
low-grade interval of 194 metres at
0.16% copper with patchy gold
from 180 metres depth (Figure 13)
including:
• 13 metres at 0.14 g/t gold and
0.33% copper from 337 metres
depth, including
o 3 metres at 0.29 g/t gold and
0.44% copper
• 1 metre at 0.45 g/t gold and
0.22% copper from 180 metres
2018 Annual Report | Page 17
• 1 metre at 0.28 g/t gold and
0.48% copper from 222 metres
• 1 metre at 0.35 g/t gold and
0.81% copper from 302 metres
• 2 metres at 0.19 g/t gold and
0.60% copper from 310 metres
• 1 metre at 0.31 g/t gold and
0.86% copper from 324 metres
quartz-pyrite
The broad low-grade mineralised
associated with
interval was
moderate
±
chalcopyrite
molybdenite
±
stockwork veins and occasional
quartz-pyrite ± molybdenite ±
chalcopyrite ± chalcocite porphyry
‘D’ veins. These
intercepts are
considered part of the peripheral
inner-propyllitic alteration halo.
interval
SMD021 was drilled 140 metres to
the south east to a depth of 535
metres (Figure 9). Above the LAS a
strongly
narrow
of
and
disseminated
veined
trace quartz-
magnetite with
magnetite-pyrite-chalocopyrite
veining was observed. Assays were
pending at year end.
Drill hole SMD022 was drilled on a
section 80 metres to the north-
west of SMD015 to a depth of 406
metres (Figure 9). Massive and
sutured quartz ± magnetite ± pyrite
± chalcopyrite stockwork veins
occurred within the quartz diorite
to 180m. SMD022
from 40m
intervals of
returned sporadic
mineralisation
copper-gold
associated with porphyry ‘D’ veins
including (Figure 14):
• 1 metre at 0.26% copper and
0.22 g/t gold from 165 metres
• 1 metre at 0.20% copper and
0.26 g/t gold from 173 metres
• 1 metre at 0.26% copper and
0.19 g/t gold from 177 metres
• 22 metres at 0.13% copper from
233 metres with patchy gold
including
OPERATIONS REPORT
Figure 12. Thursday’s Gossan Prospect – Schematic Cross Section SMD026 –
STRC004D
o 2 metres at 0.21% copper
and 0.14 g/t gold copper
from 253 metres which is
associated with chalcopyrite
intergrown with magnetite
in ‘M’ veins.
• 62 metres at 0.17% copper from
293 metres with patchy gold
including
o 1 metre at 0.77% copper and
0.36 g/t gold from 293
metres
o 1 metre at 0.77% copper and
0.48 g/t gold from 300
metres
o 1 metre at 0.46% copper and
0.17 g/t gold from 314
metres
o 1 metre at 0.29% copper and
0.23 g/t gold from 311
metres, and
o 11 metres at 0.54% copper,
0.10 g/t gold and 22.5 g/t
silver
from 344 metres,
including
▪ 1 metre at 1.94% copper,
0.18 g/t gold, 77.4 g/t
silver from 344 metres,
and
▪ 1 metre at 1.75% copper,
0.44 g/t gold, 183 g/t silver
from 350 metres
which is associated with peripheral
propylitic hematite alteration with
epidote veins and patches.
Drill hole SMD023 was also drilled
on the section 80 metres to the
north-west of SMD015 (Figure 9) to
a depth of 331m. Quartz ±
magnetite ± hematite stockwork
veining was first observed at a
depth of 120m.
This veining
became intense from 150m down
subsequently
and
to
decreased in intensity down to a
SMD023
depth
of
peripheral
intersected
sulphide-rich
mineralisation
strong
in
243m.
224m
2018 Annual Report | Page 18
OPERATIONS REPORT
magnetite ± hematite stockwork
veining
in a variable hematite
altered quartz diorite porphyry. It is
interpreted that the drill hole
intersected the edge of this unit
and veining above the LAS and is
offset by the LAS. Assays were
pending at year end.
SMD026 was drilled to a depth of
796 metres to test the area beneath
the LAS down dip of the ‘M’ vein
intersection in SMD017 (Figure 9).
Above
trace
LAS
disseminated magnetite was
observed
in the quartz diorite
porphyry with minor quartz-
magnetite veins and hematite
fine
the
black
alteration. Beneath the LAS and to
the east of the north-south shear
sulphidic
shales were
moderate
with
intersected
anhydrite veining and weak to
moderate pyrite and carbonate
veining. Assays were pending at
year end.
Drill hole SMD028 was drilled to a
depth of 777 metres to test the
down-dip extensions of the ‘M’
veins in SMD024 (Figure 9).
the north-south
fault
East of
intermittent magnetite has been
encountered with patches of weak
potassic alteration. Assays were
pending at year end.
porphyry ‘D’ veins, with assays
including (Figure 14):
• 14 metres at 0.36% copper from
29 metres
• 16 metres at 0.34% copper from
74 metres, including
o 3 metres at 0.44% copper,
0.16 g/t gold and 9 g/t silver
from 85 metres
• 10 metres at 0.37% copper, 0.20
g/t gold and 93 g/t silver from
130 metres, including
o 3 metres at 0.51% copper,
0.31 g/t gold and 206 g/t
silver from 132 metres.
SMD024 was drilled to a depth of
510 metres to test the area beneath
the LAS north of the ‘M’ vein
intersection in SMD017 (Figure 9).
A major north-south
trending
structure was intersected at 375m,
beneath which
strong quartz-
magnetite ± pyrite ± chalcopyrite
veining which has been overprinted
by strong pyrite veining was
encountered.
intersected
SMD024
polymetallic mineralisation
porphyry
‘D’ and
including (Figure 14):
strong
in
‘M’ veins,
• 3 metres at 1.24% copper, 0.35
g/t gold, 13 g/t silver, 2.45% zinc
and 0.40%
from 190
lead
metres
• 70 metres at 0.22% copper from
372 metres, including:
o 3m at 1.01% copper, 0.16 g/t
gold and 8 g/t silver from
372 metres
• 13 metres at 0.38% copper and
4 g/t silver from 479 metres.
the
Drill hole SMD025 was drilled to a
depth of 399 metres to test the
area north of
‘M’ vein
intersection in SMD023 (Figure 9).
Occasional pyrite ± chalcopyrite ±
chalcocite veins are seen, as well as
quartz-
to moderate
weak
Figure 13. Thursday’s Gossan Prospect – Schematic Cross Section SMD020 – SMD018.
2018 Annual Report | Page 19
OPERATIONS REPORT
anomaly is located approximately
800m to the south of the previous
drilling and was a Priority 1 drill
target for Stavely Minerals. One
diamond drill hole was drilled to
test this target at the Toora West
prospect during the year (Figure
15).
Figure 14. Thursday’s Gossan Prospect – Schematic Cross Section SMD022 – SMD028.
ii.
Fairview Gold Prospect
intercepted
During the previous year, RC drilling
was conducted at the Fairview Gold
prospect to specifically target the
revised geometry interpretation of
the gold mineralised veins. Broad
zones of low grade mineralisation
was
from surface,
including 57 metres at 0.57 g/t gold
and 68 metres at 0.42 g/t gold.
These mineralised
envelopes
included higher grade intercepts of
17 metres at 1.23 g/t gold from 23
metres and 16 metres at 1.04 g/t
gold from 6 metres.
low-grade gold
Given that the
intervals commence
mineralised
from
surface, composite bulk
samples have been collected for
to
metallurgical
determine
the
mineralisation may be amenable to
low-cost heap leach gold recovery.
Test work results were pending at
year end.
test work
whether
Yarram Park Project
beneath
The Yarram Park Project is located
within an area where interpretation
of the regional aeromagnetic data
has identified the presence of an
offset portion of either the Mount
the parallel
Stavely Belt, or
Bunnagul Belt,
the
Quaternary cover. Both the Mount
Stavely Belt and the Bunnagul Belt
to be highly
are considered
intrusive-related
prospective
for
copper-gold
porphyry
and
gold
diatreme-hosted
mineralisation. Maiden drilling
during the previous year confirmed
the existence of the right host rocks
with
of
distal porphyry-style alteration.
presence
the
An IP survey conducted during the
previous year identified a very large
and very strong, up to 50mV/V
IP
chargeability anomaly. This
Figure 15. Yarram Park Project – Toora West IP Chargeability Anomaly on
Magnetics.
2018 Annual Report | Page 20
OPERATIONS REPORT
i.
Toora West Prospect
Black Range Joint Venture Project
is
The Black Range Joint Venture
located
EL5425
tenement
adjacent to Stavely Minerals 100%-
owned Yarram Park Project and
surrounds the 100%-owned Stavely
Project in western Victoria (Figure
1) and significantly expands the
Company’s exploration footprint
the highly prospective
within
Stavely Volcanic Belt.
During the year one diamond hole
was drilled at the Black Range Joint
Diamond hole STWD003 drilled to a
depth of 391 metres to test an
intensive +50mV/V chargeability
anomaly,
thick
intersected
package of thin-bedded turbidite
sedimentary rocks with abundant
pyrrhotite sulphides to 10% in the
shale tops to the beds.
a
Laser ablation inductively coupled
plasma mass spectrometry (LA-
ICPMS) analysis was conducted on
representative core from STWD003
at the Centre for Ore Deposits and
Earth Sciences (CODES) at the
University of Tasmania. The analysis
identified
the drill hole
intersected a sequence of silicified
and deformed (Cambrian?) black
shale
laminated
pyrrhotite and vein-hosted pyrite,
with minor arsenopyrite.
containing
that
Venture Project (Figure 16). Hole
SMD027 was drilled to a depth of
251 metres to test a discrete
a
along
feature
magnetic
major
structure,
north-south
approximately 2 kilometres north
of the Thursday’s Gossan copper-
gold porphyry prospect.
Disseminated magnetite was
observed in a gabbro intrusive in
the top 175 metres of the hole and
would
the magnetic
anomaly.
explain
rather
diagenetic,
In contrast,
The study concluded that the
pyrrhotite is enriched in a suite of
trace elements (i.e., Co-Ni-Ag-Sb-
Te-Tl-Pb-Bi) which is characteristic
of
than
hydrothermal
pyrrhotite
the
development.
pyrite was found to be notably
depleted in As (commonly below
limit of
the average detection
0.5ppm), but it does contain high
Co and Ni, and also has up to 8 ppm
gold in one analysis. Tungsten (W) is
also consistently enriched at the 1-
10 ppm level in the pyrite.
The arsenopyrite was found to be
intergrown with both pyrite and
pyrrhotite, and it also has a Co-Ni-
Se-Sb-Te-Pb-Bi signature, with low-
level Au (~1ppm) and relatively high
Pt (1-10ppm). The results suggest
that the area around STWD003 is
prospective for sediment-hosted
orogenic
gold mineralisation,
in the
possibly similar to that
Ordovician Bendigo-Ballarat district
to the east and ultramafic-hosted
Ni-PGE mineralisation.
Figure 16. Black Range JV – Drill Collar Location.
2018 Annual Report | Page 21
Ravenswood Project
orogenic
The Ravenswood Project is highly
gold-copper
for
prospective
excellent
mineralisation, with
and
potential
for
intrusive-related
gold
mineralisation, epithermal gold
mineralisation as well as having
copper-
four
prospects
molybdenum-gold
identified (Figure 17).
porphyry
exploration
The
programmes
during the year have led to the
identification of the Connolly North
quartz-vein hosted gold target on
the Ravenswood West tenement
and the Area 8 low-sulphidation
epithermal gold-silver target on the
Dreghorn tenement. Drill testing of
these two prospects is planned for
late 2018.
OPERATIONS REPORT
During the year, reconnaissance
field mapping, rock-chip sampling,
soil and stream sediment sampling
Induced Polarisation
and
Surveys were conducted at the
Ravenswood Project.
two
on
the
sampling
Rock-chip
Dreghorn tenement has returned
high-grade silver and base metal
results of up to 14.2% copper,
279ppm silver, 0.8% zinc and 0.57%
lead at the Bowerbird prospect and
spectacular gold grades of up to
68.3 g/t gold from the Albion/
Queenslander trend (Figure 18).
Rock-chips of quartz veins at the
Trieste prospect in the Ravenswood
West tenement returned 5.54 g/t
gold and 2.18 g/t gold (Figure 19).
At the Kirker’s prospect also on the
Ravenswood tenement rock chips
returned 3.71 g/t gold and 1.88 g/t
Figure 17. Ravenswood Project – Prospect Location Plan.
The Keane’s
gold (Figure 19).
porphyry
copper-molybdenum
prospect returned 18.3% copper in
a rock chip (Figure 19).
Numerous significant copper, gold
and silver assays were generated
from rock-chip sampling on the
Ravenswood North
tenement
(Figure 20). A rock chip at Wilber’s
Hill prospect returned 0.43 g/t gold
and 262 g/t silver. At the Smith’s
prospect a rock chip assayed 1.03
g/t gold and 2.07% copper.
sampling
sediment
Stream
in
tributaries to the Elphinstone Creek
returned gold values of up to 6.28
g/t gold.
i.
Connolly North Prospect
During the year, field mapping, rock
chip and soil sampling conducted at
the Ravenswood West Project lead
to the identification of the Connolly
North Prospect.
At Connolly North, mapping has
confirmed the occurrence of quartz
veins in low-angle structures similar
to those seen in the Sarsfield open
pit at the Ravenswood Gold Mine,
~15km away. Rock chip sampling in
the Connolly North area returned
gold results of 14.8 g/t, 12.75 g/t,
2.07 g/t and 1.42 g/t (Figure 21).
The stream sediment samples
taken in tributaries to the Connolly
Creek and draining the Connolly
North prospect area
returned
anomalous gold values of 1.61 g/t,
1.20 g/t and 1.18 g/t. Previous rock
chip sampling earlier in the year
returned a 36.6 g/t gold result from
a 5-10cm thick low-angle quartz
vein at
the Connolly North
prospect.
During the year an IP survey was
conducted at Connolly North to
determine if a response from the
higher density quartz veins and
associated disseminated sulphide
2018 Annual Report | Page 22
OPERATIONS REPORT
indicates that there is abundant red
garnet in the stream and outcrop of
pegmatite with large garnets was
located nearby. It is not known if
this is associated with the gold in
stream sample anomalism.
halos could be detected. The IP
survey
+10mV/V
a
chargeability anomaly.
returned
ii.
Area 8 Prospect
in-fill
At the Area 8 prospect, surface
rock-chips returned assay results of
up to 0.65 g/t gold, 106 g/t silver,
397 ppm arsenic and 837 ppm
antimony
from crustiform and
colloform quartz veins and quartz
breccia
(Figure 19). The
quartz textures and geochemical
signature are consistent with a low-
sulphidation epithermal gold-silver
system. A notable example of a low-
sulphidation epithermal gold-silver
system is the Pajingo Gold Mine,
located 20km south-west of the
Area 8 prospect.
IP
the
from
Results
survey
conducted over Area 8 during the
year have not identified a strong
chargeability anomaly, however
this is not surprising given that the
low-sulphidation
style of gold
mineralisation often does not
provide a response. At Area 8, the
a well
survey
IP
returned
constrained
resistivity anomaly
typical of epithermal deposits.
The presence of +0.5 g/t gold with
very strong silver, arsenic and
antimony results within banded
quartz veins is a very encouraging
there may be
indication
significant mineralisation at depth.
that
iii.
Elphinstone Creek
very
returned
In tributaries to Elphinstone Creek,
recent reconnaissance exploration
significant
has
stream sediment assay
results
including 6.28 g/t gold, 1.1 g/t gold,
0.45 g/t gold and 0.42 g/t gold in an
area of widespread gold anomalism
but no known hard-rock workings
(Figure 21).
Figure 18. Ravenswood Project – Dreghorn Soil and Rock Chip Sample Locations
Figure 19. Ravenswood Project – Ravenswood West Surface Geochemistry Sample
Locations
Initial follow-up in the creek hosting
the 1.1 g/t gold and 6.28 g/t gold
anomalies
stream
sediment
2018 Annual Report | Page 23
OPERATIONS REPORT
Figure 20. Ravenswood Project – Ravenswood North Rock Chip Location Plan
Figure 21. Ravenswood Project – Stream Sediment Sampling Gold Results
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” and “Appendix
1, Reporting of Thursday Gossan Chalcocite Copper Resource against criteria in Table 1 JORC Code 2012” dated 24 August 2015
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).
2018 Annual Report | Page 24
OPERATIONS REPORT
As there has been no new information generated from the Mineral Resource areas, Mr Cairns has reviewed the underlying
assumptions in the 2015 Mineral Resources reports and finds that there have been no material changes and that the underlying
assumptions and technical parameters remain valid. There are therefore no changes to the Mineral Resources estimates from this
annual review.
Stavely Minerals’ policy for Mineral Resources estimates is to have the estimates done by suitably qualified and experienced external
consultants and have these estimates reviewed internally by suitably qualified and experienced Stavely Minerals’ personnel.
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.
Schofield, A. (ed) 2018, Regional geology and mineral systems of the Stavely Arc, western Victoria. Record 2018/02.
Geoscience Australia, Canberra.
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.
2018 Annual Report | Page 25
DIRECTORS’ REPORT
Your Directors present their report for the year ended 30 June 2018.
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 36 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 takeover 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: None.
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: None.
2018 Annual Report | Page 26
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: None.
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).
COMPANY SECRETARY
Amanda Sparks
B.Bus, CA, F.Fin
Appointed 7 November 2013
Ms Amanda Sparks is a Chartered Accountant with over 30 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.
2018 Annual Report | Page 27
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, 3 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
4
4
4
4
Meetings
Attended
3
4
4
4
Meetings
Held
2
*
2
2
Meetings
Attended
2
*
2
2
* Not a member of the Audit and Risk Committee
In addition to formal Board meetings, the Chairman talks to the Managing Director on a weekly basis. All other directors
(Chris Cairns, Jennifer Murphy and Peter Ironside) work in the same office and hold discussions on a daily basis.
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
3,487,097
30,295,361
Number of Unlisted
Options at 19 cents,
expiry 31/12/2018
750,000
2,500,000
1,800,000
950,000
Number of Unlisted
Options at 21 cents,
expiry 31/12/2020
300,000
2,500,000
1,800,000
300,000
No dividends were paid or declared during the year. The Directors do not recommend payment of a dividend.
ENVIRONMENTAL REGULATIONS
The Group’s environmental obligations are regulated by the laws of Australia. The Group 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. Stavely Minerals
Limited has prepared a consolidated financial report incorporating the entities that it controlled during the financial year
as follows:
Stavely Minerals Limited
Ukalunda Pty Ltd
-
-
parent entity
100% owned controlled entity
Principal Activity
The Group’s principal activity was mineral exploration for the year ended 30 June 2018. There were no significant changes
in the nature of the principal activities during the year.
2018 Annual Report | Page 28
DIRECTORS’ REPORT
Operations review
Refer to the Operations Review on pages 4 to 25.
Summary of Financial Position, Asset Transactions and Corporate Activities
A summary of key financial indicators for the Group, with prior period comparison, is set out in the following table:
Cash and cash equivalents held at year end
Net loss for the year after tax
Included in loss for the year:
Exploration costs
Equity-based payments
Year
Year
30 June 2018
30 June 2017
$
$
6,559,041
2,539,101
(6,921,479)
(3,915,242)
(5,119,491)
(2,394,120)
(1,106,742)
(1,020,234)
Basic loss per share (cents) from continuing operations
(5.21)
(3.54)
Net cash used in operating activities
Net cash used in investing activities
Net cash from financing activities
(4,234,312)
(2,294,238)
(133,414)
(29,090)
8,387,666
3,342,263
During the year:
- On 4 July 2017, Stavely issued 283,019 shares at an issue price of 10.6 cents per share as consideration for the
extension of the Stavely Royalty Option with New Challenge Resources Pty Ltd.
- On 8 February 2018, Stavely issued 20,000,000 shares at 34 cents per share pursuant to a placement to
sophisticated and institutional investors. Gross proceeds were $6,800,000.
- On 23 February 2018, Stavely issued 5,888,972 shares at 34 cents per share pursuant to a Share Purchase Plan.
Gross proceeds were $2,002,250.
- On 11 April 2018 and 13 June 2018, Stavely issued 100,000 and 400,000 shares respectively at 19 cents per share
upon exercise of unlisted consultant options. Gross proceeds were $95,000.
-
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 2018, 1,969,207 shares ($349,004) were issued pursuant to this agreement.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Group during the financial year are detailed on pages 4 to 25 of this report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group anticipates to continue its exploration activities and consider corporate transactions to ensure further
development of its tenements.
2018 Annual Report | Page 29
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The Directors present the 2018 Remuneration Report, outlining key aspects of Stavely’s remuneration policy and
framework, together with remuneration awarded this year.
The report is structured as follows:
A. Key management personnel (KMP) covered in this report
B. Remuneration policy, link to performance and elements of remuneration
C. Contractual arrangements of KMP remuneration
D. Remuneration of key management personnel
E.
Equity holdings and movements during the year
F. Other transactions with key management personnel
G. Use of remuneration consultants
H. Voting of shareholders at last year’s annual general meeting
A. KEY MANAGEMENT PERSONNEL (KMP) COVERED IN THIS REPORT
For the purposes of this report key management personnel of the Group are defined as those persons having authority
and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including
any Director (whether Executive or otherwise).
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
–
–
Managing Director (from 23 May 2006)
Technical Director (from 8 March 2013)
B. REMUNERATION POLICY, LINK TO PERFORMANCE AND ELEMENTS OF REMUNERATION
Remuneration Governance
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.
2018 Annual Report | Page 30
DIRECTORS’ REPORT
Remuneration Philosophy
The performance of the Group depends upon the quality of its Directors and Executives. To prosper, the Group must
attract, motivate and retain highly skilled Directors and Executives.
To this end, the Group embodies the following principles in its remuneration framework:
•
•
•
provide competitive rewards to attract high calibre Executives;
link Executive rewards to shareholder value; and
in the future, will 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.
Non-Executive directors’ remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Group 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 Group aims to reward Executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Group 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 Group 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.
2018 Annual Report | Page 31
DIRECTORS’ REPORT
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 Group’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 Group 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 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 cash payments were made.
C. CONTRACTUAL ARRANGEMENTS OF KMP REMUNERATION
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
Term of agreement
Base annual salary
exclusive of
statutory
superannuation at
30/6/2018
Termination
benefit
William Plyley
Commenced 22/1/2014. Ongoing, subject to re-elections
$50,000
None
Christopher Cairns
Commenced 22/1/2014 (varied effective 1/11/2017)
$200,000
12 months
Jennifer Murphy
Commenced 22/1/2014 (varied effective 1/11/2017)
$120,000
12 months
Peter Ironside
Ongoing, subject to re-elections
Waived to Nil
None
2018 Annual Report | Page 32
DIRECTORS’ REPORT
D. REMUNERATION OF KEY MANAGEMENT PERSONNEL
Details of the remuneration of each key management personnel of the Group, including their personally-related entities,
during the year were as follows:
Cash salary,
directors fees,
consulting fees,
insurances and
movement in
leave provisions
$
37,499
-
195,510
168,112
112,001
96,719
-
-
345,010
264,831
Year
2018
2017
2018
2017
2018
2017
2018
2017
2018
2017
Post Employment
Share Based
Superannuation
$
Total Cash
and
Provisions
$
Options (1)
$
3,562
-
17,417
14,250
10,450
8,550
-
-
31,429
22,800
41,061
-
212,927
182,362
122,451
105,269
-
-
376,439
287,631
64,978
175,911
345,306
246,276
248,621
147,766
75,441
70,365
734,346
640,318
Total
including
share based
payments
$
106,039
175,911
558,233
428,638
371,072
253,035
75,441
70,365
1,110,785
927,949
Directors
W Plyley
C Cairns
J Murphy
P Ironside
TOTAL
(1) Equity based payments – options. These represent the amount expensed for options granted and vested in the year.
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.
Share-based Compensation
During the year the following options were granted as equity compensation benefits to Directors and other Key
Management Personnel. These options vested at grant date.
2018
Directors
W Plyley
C Cairns
J Murphy
P Ironside
Number of Options
at 19 cents,
expiry 31/12/2018
Value* per option
at grant date
$
Number of Options
at 21 cents,
expiry 31/12/2020
Value* per option
at grant date
$
750,000
2,500,000
1,800,000
950,000
0.0523
0.0523
0.0523
0.0523
300,000
2,500,000
1,800,000
300,000
0.0858
0.0858
0.0858
0.0858
These options were granted to recognise the efforts of Stavely’s directors and provide a retention incentive. It is important
to note that in March 2015, all directors and staff agreed to reduce their salaries / fees in order to maximise cash for
exploration expenditure. Issue of these Director options were approved by Shareholders at the Company’s Annual General
Meeting held on 18 October 2017.
* Value at grant date has been calculated in accordance with AASB 2 Share-based Payment. Stavely used a Black Scholes
option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share
price at grant date and the expected volatility of the underlying share, the expected dividend yield and the risk-free interest
rate for the term of the option. Further details are in note 3 of the financial statements.
Shares issued to Key Management Personnel on exercise of compensation options
During the year to 30 June 2018, there were no compensation options exercised by Directors or other Key Management
Personnel.
2018 Annual Report | Page 33
DIRECTORS’ REPORT
E.. EQUITY HOLDINGS AND MOVEMENTS DURING THE YEAR
(a) Shareholdings of Key Management Personnel
30 June 2018
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
22,000
15,007,419
3,497,097
30,257,419
48,783,935
-
-
-
37,942
37,942
22,000
15,007,419
3,497,097
30,295,361
48,821,877
All equity transactions with Key Management Personnel have been entered into under terms and conditions no more
favourable than those the entity would have adopted if dealing at arms-length.
(b) Option holdings of Key Management Personnel
30 June 2018
Directors
W Plyley
C Cairns
J Murphy
P Ironside
Balance at
beginning of
the year
Granted as
remuneration
Expired
during the
year
Balance at
end of the
year
Exercisable
3,500,000
1,050,000
(3,500,000)
1,050,000
1,050,000
8,532,258
5,000,000
(8,532,258)
5,000,000
5,000,000
3,661,290
3,600,000
(3,661,290)
3,600,000
3,600,000
6,032,258
1,250,000
(6,032,258)
1,250,000
1,250,000
21,725,806
10,900,000
(21,725,806)
10,900,000
10,900,000
F. 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 $134,611 (net of GST) was paid/payable for office rental and variable outgoings (2017: $149,310 (net
of GST)).
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 $36,948 (net of
GST) was paid/payable by Zamanco to the Company for reimbursement of office rental and associated expenses (2017:
$40,326 (net of GST)).
G. USE OF REMUNERATION CONSULTANTS
No remuneration consultants were engaged by the Company during the year.
H. VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL GENERAL MEETING
The Company received 99.45% of ‘yes’ votes for its remuneration report for the 2017 financial year and did not receive
any specific feedback at the AGM or throughout the year on its remuneration practices.
End of Audited Remuneration Report.
2018 Annual Report | Page 34
DIRECTORS’ 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.
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Unlisted Options
Unlisted Options
Number
9,587,500
7,050,000
Exercise Price
19 cents
21 cents
Expiry Date
31/12/2018
31/12/2020
No option holder has any right under the options to participate in any other share issue of the Company or any other
related entity.
500,000 unlisted consultant options with an exercise price of 19 cents were exercised during the year. No options were
exercised by Key Management Personnel (2017: nil).
EVENTS OCCURRING AFTER THE REPORTING PERIOD
There are no matters or circumstances that have arisen since 30 June 2018 that have or may significantly affect the
operations, results, or state of affairs of the Group 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. Please refer to the Company’s website for
details of corporate governance policies: https://www.stavely.com.au/corporate-governance.
AUDIT INDEPENDENCE AND NON-AUDIT SERVICES
Auditor’s independence - section 307C
The Auditor’s Independence Declaration is included on page 36 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.
2018
$9,810
2017
$19,116
Christopher Cairns
Managing Director
Dated this 12th day of September 2018
2018 Annual Report | Page 35
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS
2018 Annual Report | Page 36
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 Group’s financial position as at 30 June 2018 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 2018.
This declaration is signed in accordance with a resolution of the Board of Directors.
Christopher Cairns
Managing Director
Dated this 12th day of September 2018
2018 Annual Report | Page 37
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2018
Revenue and Income
Interest revenue
Rental sub-lease revenue
Expenses
Administration and corporate expenses
Administration – equity based expenses
Exploration expensed
Total expenses
Consolidated
Year ended
30 June 2018
Year ended
30 June 2017
Note
$
$
86,128
36,948
45,875
40,326
123,076
86,201
2(a)
3
2(b)
(818,322)
(1,106,742)
(5,119,491)
(587,089)
(1,020,234)
(2,394,120)
(7,044,555)
(4,001,443)
Loss before income tax
(6,921,479)
(3,915,242)
Income tax expense
Loss after income tax attributable to members of
Stavely Minerals Limited
4
-
-
(6,921,479)
(3,915,242)
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 loss for the year
(6,921,479)
(3,915,242)
Loss per share for the year attributable to the members of
Stavely Minerals Limited
Basic loss per share
5
Cents Per
Share
(5.21)
Cents Per
Share
(3.54)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
2018 Annual Report | Page 38
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2018
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
Consolidated
30 June 2018
$
Note
30 June 2017
$
6
7
7
8
9
10
11
6,559,041
292,011
6,851,052
42,500
128,605
3,006,057
3,177,162
2,539,101
113,034
2,652,135
42,500
51,768
3,006,057
3,100,325
10,028,214
5,752,460
1,732,473
64,308
1,796,781
1,796,781
8,231,433
415,014
57,946
472,960
472,960
5,279,500
12
13
24,744,232
3,295,853
(19,808,652)
15,977,562
2,189,111
(12,887,173)
8,231,433
5,279,500
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
2018 Annual Report | Page 39
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2018
At 1 July 2016
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
As at 30 June 2017
At 1 July 2017
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
$
Reserves
$
Accumulated
Losses
$
Total
Equity
$
12,325,646
1,168,877
(8,971,931)
4,522,592
-
-
-
3,841,153
(189,237)
-
-
-
-
-
-
1,020,234
3,651,916
1,020,234
(3,915,242)
(3,915,242)
-
-
(3,915,242)
(3,915,242)
-
-
-
-
3,841,153
(189,237)
1,020,234
4,672,150
15,977,562
2,189,111
(12,887,173)
5,279,500
15,977,562
2,189,111
(12,887,173)
5,279,500
-
-
-
9,276,254
(509,584)
-
-
-
-
-
-
1,106,742
8,766,670
1,106,742
(6,921,479)
(6,921,479)
-
-
(6,921,479)
(6,921,479)
-
-
-
-
9,276,254
(509,584)
1,106,742
9,873,412
As at 30 June 2018
24,744,232
3,295,853
(19,808,652)
8,231,433
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
2018 Annual Report | Page 40
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
Consolidated
Year ended
Year ended
30 June 2018
30 June 2017
Note
$
$
Cash flows from operating activities
Receipts in the ordinary course of activities (mostly GST
and Victorian Government Co-Funding)
Payments to suppliers and employees
Interest received
361,006
561,044
(4,675,228)
(2,901,157)
79,910
45,875
Net cash flows used in operating activities
6(i)
(4,234,312)
(2,294,238)
Cash flows from investing activities
Payments for plant and equipment
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
Net cash flows from financing activities
Net increase in cash and cash equivalents held
Add opening cash and cash equivalents brought forward
(133,414)
(133,414)
(29,090)
(29,090)
8,897,250
(509,584)
8,387,666
4,019,940
2,539,101
3,531,500
(189,237)
3,342,263
1,018,935
1,520,166
Closing cash and cash equivalents carried forward
6
6,559,041
2,539,101
The above consolidated statement of cashflows should be read in conjunction with the accompanying notes.
2018 Annual Report | Page 41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
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 Group’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 2018 was authorised for issue in
accordance with a resolution of the Directors on 12 September 2018.
(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 Group has not elected to apply any pronouncements before their operative date in the annual reporting year
beginning 1 July 2017.
New and amended standards adopted by the Group
None of the new standards and amendments to standards that are mandatory for the first time for the financial
year beginning 1 July 2017 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
2018 reporting year. The Group’s assessment of the impact of these new standards and interpretations that may
have an impact on the Group is set out below:
AASB 9 Financial Instruments
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.
AASB 15 Revenue from Contracts with Customers
AASB 15 deals with revenue recognition and establishes principles for reporting useful information to users of
financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an
entity’s contracts with customers. It also introduces new cost guidance which requires certain costs of obtaining
and fulfilling contracts to be recognised as separate assets when specified criteria are met. This standard is not
applicable until the financial year commencing 1 July 2018, and there will be no impact on Stavely’s financial
statements.
AASB 16 Leases
AASB 16 requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months.
Stavely has not yet determined the impact on the group accounts, however it is likely that the rental of office
premises in WA, residential premises used for site-based staff in Victoria and miscellaneous items such as a
photocopier will require Stavely to recognise lease liabilities and right-of-use assets on its’ statement of financial
position. This standard is not applicable until the financial year commencing 1 July 2019.
2018 Annual Report | Page 42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
(d)
Significant Accounting Estimates and Judgments
Significant accounting judgments
In the process of applying the Group’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.
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:
Share-based payment transactions
The Group 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 Group 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)
Basis of Consolidation and Business Combinations
The consolidated financial statements comprise the financial statements of Stavely Minerals limited (“Company” or
“Parent Entity”) and its subsidiaries as at 30 June each year (the Group). Subsidiaries are all entities over which the
group has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
-
-
-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities
of the investee),
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns
The financial statements of the subsidiaries are prepared for the same period as the parent entity, using consistent
accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and
expenses and profit or losses resulting from intra-group transactions have been eliminated in full. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the
date on which control is transferred out of the Group. Control exists where the company has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The purchase
method of accounting involves allocating the cost of the business combination to the fair value of the assets acquired
and the liabilities and contingent liabilities assumed at the date of acquisition. Accordingly, the consolidated financial
statements include the results of subsidiaries for the period from their acquisition.
2018 Annual Report | Page 43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
The purchase method of accounting is used to account for all business combinations regardless of whether equity
instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or
liabilities incurred or assumed at the date of exchange plus costs directly attributable to the combination. Where
equity instruments are issued in a business combination, the fair value of the instruments is their published market
price as at the date of exchange, adjusted for any conditions imposed on those shares. Transaction costs arising on
the issue of equity instruments are recognised directly in equity.
All identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date. The excess of the cost of the business combination over
the net fair value of the Group's share of the identifiable net assets acquired is recognised as goodwill. If the cost of
acquisition is less than the Group's share of the net fair value of the identifiable net assets of the subsidiary, the
difference is recognised as a gain in the statement of profit or loss and other comprehensive income, but only after
a reassessment of the identification and measurement of the net assets acquired.
NOTE 2 - EXPENSES
(a) Administration and Corporate Expenses
Administration and corporate expenses include:
Depreciation - administration
Operating lease rental expense
Other administration and corporate expenses
Equity based payments expense – refer note 3
(b) Exploration Costs Expensed
Exploration costs expensed include:
Depreciation - exploration
Exploration drilling – non-cash - refer note 12
Exploration other – non-cash – refer note 6(ii)
Other exploration costs expensed
Victorian Government Co-Funding for exploration
Year ended
30 June 2018
Year ended
30 June 2017
$
$
3,577
134,612
680,133
818,322
1,106,742
1,925,064
53,000
349,004
30,000
4,753,404
(65,917)
5,119,491
2,439
150,056
434,594
587,089
1,020,234
1,607,323
60,115
279,653
30,000
2,319,067
(294,715)
2,394,120
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses)
Equity settled transactions:
The Group provides benefits to executive directors, employees and consultants of the Group 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.
2018 Annual Report | Page 44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
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 reporting 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.
(a) Value of equity based payments in the financial statements
Expensed in the profit or loss:
Equity-based payments- options
30 June 2018
30 June 2017
$
$
1,106,742
1,020,234
(b) Summary of equity-based payments granted during the year:
Granted to key management personnel and consultants as equity compensation:
Grant Date Number of
Terms
Options
2017/2018
20/10/17
9,587,500
Expire 31/12/2018 at 19c exercise price
20/10/17
7,050,000
Expire 31/12/20 at 21c exercise price
- 3,587,500
granted
Company
Secretary, employees and consultants
as incentives.
to
- 6,000,000 granted to Directors as
on
Shareholders
by
approved
18/10/2017.
- 2,150,000
granted
Company
Secretary, employees and consultants
as incentives.
to
- 4,900,000 granted to Directors as
on
Shareholders
by
approved
18/10/2017.
2016/2017
24/11/16
5,150,000
30/11/16
9,100,000
Expire 31/12/2017 at 21c exercise price Granted
Secretary,
employees and consultants as incentives.
Expire 31/12/2017 at 26c exercise price Granted to Directors as approved by
Company
to
14/03/17
500,000
Expire 30/6/2017 at 19c exercise price
Shareholders on 30/11/2016.
Granted to consultants as incentives.
2018 Annual Report | Page 45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
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 ($)
20/10/2017
20/10/2017
0.19
1.20
-
98.69
1.92
0.15
0.21
3.20
-
98.69
2.28
0.15
0.0523
0.0858
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 $0.0665 (2017: $0.0692).
(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 $0.19 to
$0.21 (2017: $0.19 to $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 1.35 years (2017: 0.51 years).
(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 2018
Number
12 Months to
30 June 2018
WAEP $
12 Months to
30 June 2017
Number
12 Months to
30 June 2017
WAEP $
Outstanding at the beginning of year
17,150,000
Granted during the year
Granted during the year
Granted during the year
Exercised during the year
Lapsed during the year
Lapsed during the year
Lapsed during the year
Outstanding at the end of the year
Exercisable at year end
9,587,500
7,050,000
-
(500,000)
(2,400,000)
(5,150,000)
(9,100,000)
16,637,500
16,637,500
0.24
0.19
0.21
-
0.19
-
-
-
0.20
0.20
15,400,000
5,150,000
9,100,000
500,000
-
(3,000,000)
(10,000,000)
-
17,150,000
17,150,000
0.27
0.21
0.26
0.19
-
-
-
-
0.24
0.24
The weighted average share price for options exercised during the year was $0.19 (2017: nil).
2018 Annual Report | Page 46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 4 - INCOME TAX EXPENSE
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 reporting date.
Deferred income tax is provided on all temporary differences at the reporting 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 reporting 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 reporting 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 reporting 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 Group will derive sufficient future assessable
income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
2018 Annual Report | Page 47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 4 - INCOME TAX EXPENSE - continued
(a) Income Tax Expense
The reconciliation between tax expense and the product of
accounting loss before income tax multiplied by the Group’s
applicable income tax rate is as follows:
Loss for year
Prima facie income tax (benefit) @ 27.5% (2017: 27.5%)
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, net
Year ended
30 June 2018
Year ended
30 June 2017
$
$
(6,921,479)
(3,915,242)
(1,903,407)
(1,076,692)
313,773
1,589,634
-
290,906
785,786
-
4,110,677
(206,407)
2,841,723
(124,572)
3,904,270
2,717,151
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.
Tax Consolidation
The Company and its 100% owned subsidiary have formed a tax consolidated group. Members of the Group have entered
into a tax sharing arrangement in order to allocate income tax expense to the wholly owned controlled entities on a pro-
rata basis. The agreement provides for the allocation of income tax liabilities between the entities should the head entity
default on its tax payment obligations. At reporting date, the possibility of default is remote. The head entity of the tax
consolidated group is Stavely Minerals Limited.
Tax effect accounting by members of the tax consolidated group
Members of the tax consolidated group have entered into a tax funding agreement. The tax funding agreement provides
for the allocation of current taxes to members of the tax consolidated group. Deferred taxes are allocated to members
of the tax consolidated group in accordance with a group allocation approach which is consistent with the principles of
AASB 112 Income Taxes. The allocation of taxes under the tax funding agreement is recognised as an increase/decrease
in the controlled entities intercompany accounts with the tax consolidated group head company, Stavely Minerals
Limited.
(c) Franking Credits
The franking account balance at year end was $nil (2017: $nil).
2018 Annual Report | Page 48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 5 - 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.
Basic loss per share
Year ended
30 June 2018
Year ended
30 June 2017
Cents
(5.21)
Cents
(3.54)
$
$
Loss attributable to ordinary equity holders of the Company used in
calculating:
- basic loss per share
(6,921,479)
(3,915,242)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share
132,742,263
110,562,327
For the year ended 30 June 2018, 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.
Number
of shares
Number
of shares
2018 Annual Report | Page 49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 6 - 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.
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.
Cash at bank and on hand
(i) Reconciliation of loss for the period to net cash flows used in operating
activities
Loss after income tax
Non-Cash Items:
Depreciation
Share-based payments expensed - options
Exploration drilling – non-cash*
Exploration other – non-cash **
Change in assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Year ended
30 June 2018
$
Year ended
30 June 2017
$
6,559,041
2,539,101
(6,921,479)
(3,915,242)
56,577
62,554
1,106,742
1,020,234
349,004
30,000
(178,976)
1,317,458
6,362
279,653
30,000
(15,331)
230,861
13,033
Net cash flows used in operating activities
(4,234,312)
(2,294,238)
* 1,969,207 shares ($349,004) were issued pursuant to the Share Subscription Agreement with Titeline Drilling
Pty Ltd and Greenstone Property Pty Ltd. Refer to note 12.
** In July 2017, the Company issued 283,019 shares ($30,000) to New Challenge Resources Pty Ltd as
consideration for extension of the Stavely Royalty Agreement.
(ii) Non-Cash Financing and Investing Activities
No non-cash financing and investing activities were undertaken during the year (2017: none).
NOTE 7 – 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.
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.
▪
2018 Annual Report | Page 50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 7 – TRADE AND OTHER RECEIVABLES - continued
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables
in the statement of financial position. 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.
Current
GST refundable
Bonds – credit card
Other
Total current receivables
Non-Current
Cash on deposit - security bonds
Fair Value and Risk Exposures:
30 June 2018
$
30 June 2017
$
237,218
40,000
14,793
292,011
55,112
40,000
17,922
113,034
42,500
42,500
(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 2018 (2017: none).
NOTE 8 - 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
Motor vehicles
- 0 to 4 years
- 3 to 5 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each
financial year end.
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.
2018 Annual Report | Page 51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 8 - PROPERTY, PLANT AND EQUIPMENT - continued
Motor vehicles- at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
30 June 2018
30 June 2017
$
95,650
(47,508)
48,142
278,105
(197,642)
80,463
$
57,364
(35,909)
21,455
182,977
(152,664)
30,313
Total property, plant and equipment
128,605
51,768
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
NOTE 9 - DEFERRED EXPLORATION EXPENDITURE
21,455
38,286
(11,599)
48,142
30,313
95,128
(44,978)
80,463
7,069
29,091
(14,705)
21,455
78,162
-
(47,849)
30,313
Exploration expenditure is expensed to the statement of profit or loss and other comprehensive income as and when it is
incurred and included as part of cash flows from operating activities. Exploration costs are only capitalised to the
statement of financial position if they result from an acquisition.
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.
30 June 2018
$
30 June 2017
$
Deferred exploration acquisition costs brought forward
Capitalised acquisition expenditure incurred during the year, net
Deferred exploration costs carried forward
3,006,057
3,006,057
-
-
3,006,057
3,006,057
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas.
2018 Annual Report | Page 52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 10 - TRADE AND OTHER PAYABLES
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods and services.
Trade creditors
Accruals
30 June 2018
30 June 2017
$
755,879
976,594
1,732,473
$
396,295
18,719
415,014
Fair Value and Risk Exposures
(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 11 – PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that 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
(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.
Other long-term employee benefit obligations
(ii)
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 Group 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.
Current
Employee entitlements
30 June 2018
30 June 2017
$
$
64,308
57,946
2018 Annual Report | Page 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 12 – 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.
(a)
Issued Capital
149,868,317 (2017: 121,227,119) ordinary shares fully paid
(b) Movements in Ordinary Share Capital
30 June 2018
$
30 June 2017
$
24,744,232
15,977,562
95,490,593 Opening balance at 1 July 2016
270,270
13,333,334
10,210,000
895,180
1,027,742
Issue of shares – New Challenge Royalty 5 July 2016
Issue of shares – Placement 16 November 2016
Issue of shares – Share Purchase Plan 8 December 2016
Issue of shares – Share Subscription Agreement 21 December 2016
Issue of shares – Share Subscription Agreement 4 March 2017
Costs of equity issues
121,227,119 Closing Balance at 30 June 2017
121,227,119 Opening balance at 1 July 2017
283,019
623,845
417,520
434,066
20,000,000
5,888,972
100,000
493,776
400,000
Issue of shares – New Challenge Royalty 4 July 2017
Issue of shares – Share Subscription Agreement 6 July 2017
Issue of shares – Share Subscription Agreement 14 September 2017
Issue of shares – Share Subscription Agreement 13 December 2017
Issue of shares – Placement 8 February 2018
Issue of shares – Share Purchase Plan 23 February 2018
Issue of shares – Exercise of Unlisted Consultant Options 11 April 2018
Issue of shares – Share Subscription Agreement 13 April 2018
Issue of shares – Exercise of Unlisted Consultant Options 13 June 2018
Costs of equity issues
149,868,317 Closing Balance at 30 June 2018
12,325,646
30,000
2,000,000
1,531,500
145,019
134,634
(189,237)
15,977,562
15,977,562
30,000
63,008
61,375
82,907
6,800,000
2,002,250
19,000
141,714
76,000
(509,584)
24,744,232
New Challenge Royalty
On 4 July 2017, Stavely issued 283,019 fully paid ordinary shares at 10.6c a share as consideration for the
extension of the Stavely Royalty Option with New Challenge Resources Pty Ltd.
Placement
On 8 February 2018, Stavely issued 20,000,000 fully-paid ordinary shares at 34c a share pursuant to a
placement to sophisticated and institutional investors. Gross proceeds were $6,800,000.
Share Purchase Plan
On 23 February 2018, Stavely issued 5,888,972 fully-paid ordinary shares at 34c a share pursuant to a Share
Purchase Plan. Gross proceeds were $2,002,250.
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 2018, 1,969,207 ordinary shares ($349,004) 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 2018, cumulative subscriptions totalled $1,134,694 (2017: $785,689).
2018 Annual Report | Page 54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 12 – ISSUED CAPITAL - continued
(c) Options on issue at 30 June 2018
Exercise Price
19 cents
21 cents
Expiry Date
31/12/2018
31/12/2020
Number
9,587,500
7,050,000
16,637,500
Unlisted Options
Unlisted Options
During the year:
(i)
(ii)
(iii)
16,637,500 unlisted options were granted as share-based payments (2017: 14,750,000);
28,650,000 unlisted options expired (2017: 13,000,000); and
500,000 unlisted options were exercised at an exercise price of 19 cents (2017: 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 13 - RESERVES
Share-based payment transactions
The Group 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 option pricing model.
Equity-based payments reserve
Balance at the beginning of the year
Equity-based payments expense
Balance at the end of the year
30 June 2018
$
30 June 2017
$
2,189,111
1,106,742
3,295,853
1,168,877
1,020,234
2,189,111
Nature and purpose of the reserve: The Equity-based payments reserve is used to recognise the fair value of options
granted.
2018 Annual Report | Page 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 14 – COMMITMENTS AND CONTINGENCIES
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group 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.
Operating leases (non-cancellable):
(a)
Within one year
More than one year but not later than five years
30 June 2018
$
30 June 2017
$
127,260
96,605
223,865
115,331
8,028
123,359
These non-cancellable operating leases are primarily for office premises, residential premises at site and a ground lease.
Exploration Commitments
(b)
The Group 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.
Tenement Expenditure Commitments:
The Group is required to maintain current rights of tenure to tenements,
which require outlays of expenditure in 2018/2019. 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.
30 June 2018
$
30 June 2017
$
531,200
561,700
Contingencies
(c)
The Company is party to a Deed of Option and Royalty relating to the Stavely tenement EL 4556. The Group had no
other contingent liabilities at year end (2017: same).
NOTE 15 – RELATED PARTIES
(a) Compensation of Key Management Personnel
Short-term employment benefits
Post-employment benefits
Equity-based payment
30 June 2018
$
30 June 2017
$
345,010
31,429
734,346
1,110,785
264,831
22,800
640,318
927,949
(b) Other transactions and balances with Key Management Personnel
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 $134,611 (net of GST) was paid/payable for office rental and variable outgoings (2017: $149,310 (net
of GST)).
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 $36,948 (net of
GST) was paid/payable by Zamanco to the Company for reimbursement of office rental and associated expenses (2017:
$40,325 (net of GST)).
2018 Annual Report | Page 56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 15 – RELATED PARTIES - continued
(c) Transactions with Other Related Parties
There were no transactions with other related parties (2017: none).
NOTE 16 – AUDITOR’S REMUNERATION
30 June 2018
$
30 June 2017
$
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
34,611
9,810
44,421
33,923
19,116
53,039
NOTE 17 – SEGMENT INFORMATION
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. 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 Group 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.
Management has determined the operating segments based on the reports reviewed by the board of directors that are
used to make strategic decisions. The Group does not have any material operating segments with discrete financial
information. The Group does not have any customers and all its’ assets and liabilities are primarily related to the mining
industry and are located within Australia. 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,
statement of financial position 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.
2018 Annual Report | Page 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 18 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Interest revenue
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
The Group’s principal financial instrument comprises cash. The main purpose of this financial instrument is to provide
working capital for the Group’s operations.
The Group 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 Group’s policy that no trading in financial instruments shall be
undertaken.
The main risk arising from the Group’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 reporting date the Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s cash
and bonds. The Group 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 reporting date, the Group 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 2018
$
30 June 2017
$
6,559,041
80,000
6,639,041
2,435,603
80,000
2,515,603
Sensitivity
At 30 June 2018, 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 Group would have been $32,576 higher (2017: changes of 0.5% $12,577 higher).
The 0.5% (2017: 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.
Liquidity risk
The Group has no significant exposure to liquidity risk as there is effectively no debt. The Group 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
Group. The Group 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 Group 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 Group does not have any other significant credit risk exposure to a single counterparty or any group of counterparties
having similar characteristics.
2018 Annual Report | Page 58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
NOTE 19 – PARENT ENTITY INFORMATION
Statement of Financial Position Information
Current assets
Non-current assets
Current liabilities
Net Assets
Issued capital
Reserves
Accumulated losses
Profit or loss information
Loss for the year
Comprehensive loss for the year
Commitments and contingencies
Company
30 June 2018
$
30 June 2017
$
6,821,894
3,150,733
(1,773,327)
8,199,300
2,647,469
3,073,896
(472,961)
5,248,404
24,744,232
15,977,562
3,295,853
2,189,111
(19,840,785)
8,199,300
(12,918,269)
5,248,404
(6,922,516)
(6,922,516)
(3,945,101)
(3,945,101)
There are no commitments or contingencies, including any guarantees entered into by Stavely Minerals Limited
on behalf of its subsidiaries.
Subsidiaries
30 June 2018
30 June 2017
Name of Controlled Entity
Class of Share
Place of Incorporation
% Held by Parent Entity
Ukalunda Pty Ltd
Ordinary
Australia
100%
100%
NOTE 20 – EVENTS OCCURRING AFTER THE REPORTING PERIOD
There are no matters or circumstances that have arisen since 30 June 2018 that have or may significantly affect the
operations, results, or state of affairs of the Group in future financial years.
2018 Annual Report | Page 59
INDEPENDENT AUDIT REPORT
.
2018 Annual Report | Page 60
INDEPENDENT AUDIT REPORT
2018 Annual Report | Page 61
INDEPENDENT AUDIT REPORT
2018 Annual Report | Page 62
ADDITIONAL SHAREHOLDER INFORMATION
Information as at 6 September 2018
a) Substantial Shareholders
Name
Peter Reynold Ironside
Christopher John Cairns
Greenstone Property Pty Ltd and Associates
Number of Ordinary Shares
per Notice given to
Stavely Minerals Limited
30,295,361
15,007,419
7,568,014
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
Shareholders
76
196
209
653
160
1,294
141
(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.
2018 Annual Report | Page 63
ADDITIONAL SHAREHOLDER INFORMATION
d)
Twenty largest shareholders:
Name
1
2
3
4
5
6
7
8
Chaka Investments Pty Ltd
Goldwork Asset Pty Ltd
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