2022 Annual Report
Stavely Minerals Limited
STAVELY MINERALS LIMITED
ABN 33 119 826 907
www.stavely.com.au
CONTENTS
ONTENTS
CORPORATE DIRECTORY ............................................................................................................... 2
WHO WE ARE, OUR PURPOSE AND OUR VALUES .......................................................................... 3
SUSTAINABILITY ............................................................................................................................ 4
OPERATIONS REPORT ................................................................................................................... 7
DIRECTORS’ REPORT ................................................................................................................... 55
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS .................................................. 67
DIRECTORS’ DECLARATION ......................................................................................................... 68
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......... 69
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................................................... 70
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................................................................ 71
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................ 72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................................................... 73
INDEPENDENT AUDITOR’S REPORT ............................................................................................. 96
ADDITIONAL SHAREHOLDER INFORMATION ............................................................................. 100
TENEMENT SCHEDULE ............................................................................................................... 102
2022 Annual Report | Page 1
CORPORATE DIRECTORY
ORPORATE DIRECTORY
Directors
Christopher Cairns (Executive Chair and Managing Director)
Jennifer Murphy (Technical Director)
Peter Ironside (Non-Executive Director)
Amanda Sparks (Non-Executive Director)
Robert Dennis (Non-Executive Director)
Company Secretary
Amanda Sparks
Chief Operating Officer
Mark Mantle
Registered and Principal Office
First Floor, 168 Stirling Highway
Nedlands Western Australia 6009
Telephone: 08 9287 7630
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
Level 9, Mia Yellagonga Tower
5 Spring Street
Perth Western Australia 6000
2022 Annual Report | Page 2
WHO WE ARE, OUR PURPOSE AND OUR VALUES
ORPORATE DIRECTORY
WHO WE ARE
An Australian ASX listed company focused on exploration and development of minerals to support a low carbon
future.
Our team has a track record of success through focusing on collaboration and quality exploration and
development.
OUR PURPOSE
To discover and develop the minerals needed for a sustainable low carbon future.
OUR VALUES
Integrity and Honesty
We conduct ourselves with strong moral and ethical behaviours.
We are open and transparent with all our stakeholders.
Health and Safety
We are committed to ensuring our employees, contractors and the
community can work and live in a safe and healthy way.
Respect and Diversity
We strive to ensure that every member of our workforce and our
stakeholders are treated fairly and with respect.
Social Performance
We respect human rights and engage meaningfully with
stakeholders. We seek to make a positive impact to the social and
economic development of the communities in which we operate.
Environment
We are committed to understanding and minimising the potential
impacts of our activities.
Technical Effectiveness
We create value by fostering technical effectiveness, cultivating a
collaborative approach to problem solving and encouraging
innovation.
2022 Annual Report | Page 3
SUSTAINABILITY
ORPORATE DIRECTORY
SOCIAL AND COMMUNITY
Stavely Minerals Limited recognises that responsible community engagement is a key part of our Company’s
exploration activities, and fundamental to Stavely’s future as a successful exploration and mineral development
company.
We have a commitment to the communities in which we operate, and consider that communication with all
stakeholders, including local residents, landowners, shareholders, employees, contractors and the broader
community is essential.
We are committed to regular, open and honest communication with the community so that local stakeholders
are consulted with regarding our exploration activities and given the opportunity to express any concerns they
might have.
Stavely Minerals recognises our ability to operate depends on treating all stakeholders with respect and fairness.
We seek to protect the environment and enrich the communities in which we work. Community engagement
works best where it is an ongoing cumulative process enabling relationships and trust to build and strengthen
over time and is essential for a viable future.
Our website has a dedicated Community section, which includes information sheets to assist our local
communities to understand how Stavely manages noise mitigation, rehabilitation of drill sites and fire
prevention, and provides information on the processes of mineral exploration and the stages of exploration to
mining.
Stavely Minerals has a long-standing relationship with Laura Chibnall of Grounded Resource Advisory Pty Ltd
who consults to the Company on environmental and stakeholder engagement matters. Ms Chibnall is a very
experienced consultant in the exploration and mining industry across Victoria.
Under the guidance of Bruce Harvey of resolution88 Pty Ltd, Stavely Minerals is in the process of formalising a
Stakeholder Engagement Plan. Resolution88 is a consultancy specialising in ‘Social Licence’ solutions for the
extractive industry.
Stavely supports our local communities. We are a proud Gold Sponsor of the Glenthompson Dunkeld Football
Club and a sponsor of the Glenthompson Art Show.
Stavely Minerals holding a community briefing
2022 Annual Report | Page 4
SUSTAINABILITY
ORPORATE DIRECTORY
PEOPLE
The health, safety and well-being of our people is essential to the success of Stavely and our community.
Inductions, training and being familiar with our Company policies form the basis of safety on site. The well-being
of our people is of the utmost importance, and as a result we provide first aid courses that include mental health.
As technology in the mining industry continues to increase, it is essential that our people are given the
opportunity to continue their professional development. Stavely brings experts to site to not only provide
technical consulting for our operations, but to also develop the technical skills of our people. We provide
opportunities for external training and technical conferences.
Where possible, Stavely employs its people from the local community. We are proud of the gender diversity
that we have on site with 17% of employees being women, which we aim to increase where possible.
A Stavely Minerals’ geologist inspecting a rock chip from an aircore drill program.
GOVERNANCE / RISK MANAGEMENT
We are proud of our strong governance within our Company, and we believe that this is reflected in the
reputation of our Board and management.
Our Board agenda always includes risk. We have implemented a detailed Risk Register that identifies key risks
for Stavely, including social, environmental and financial risks. Each risk is assigned to specific manager and the
risk is assessed for potential causes, impacts and current controls. The control effectiveness is determined, and
each risk is given a rating. Further controls that may be required are recorded with expected dates for
implementation.
Further details of our governance is included in our annual Corporate Governance Statement, and our Corporate
Governance section on our website.
ENVIRONMENT
Stavely Minerals is committed to minimising the impact on land and fully rehabilitating farmland and the
environment immediately following its mineral exploration activities.
Prior to drilling of an exploration site, a photographic record is taken and any significant vegetation is identified
and fenced off.
All reasonable measures are taken to minimise the impact of the drilling operation on the environment.
2022 Annual Report | Page 5
SUSTAINABILITY
ORPORATE DIRECTORY
On completion, the drill site is fully rehabilitated to as good as, if not better, than its previous state.
Our rehabilitation process involves:
• Cut any protruding drill collars to 40cm below ground level and plug the hole;
• Backfill hole and mound with surplus material to allow for settling;
• Restore original land contours of drill site;
• Remove all foreign material and samples and dispose of in an approved waste
facility;
•
Shallow rip of the site and associated access tracks (if required) to overcome soil
compaction; and
• Apply seed to achieve desired rehabilitation outcome (eg. pasture, crop, native
seed) if required.
Stavely works closely with the local communities when undertaking activities. In 2021,
Stavely undertook an airborne gravity survey over the Stavely Project. Prior to the survey,
our Stakeholder Relations Manager worked with the local shire councils to ensure that all
local landowners were made aware of this upcoming survey and who we are. We were
thanked publicly by the Wildwood Wildlife Shelter in Glenthompson as we were able to
reschedule the portion of the survey affecting them at the request of the shelter.
In 2021, Stavely engaged Deloitte Access Economics to produce a Phase 1 Economic Impact
Study for the community and government to assess the potential employment and
economic impacts and benefits, of a proposed Stavely mining project.
The results suggest that the Stavely Project, if developed as envisaged, is likely to deliver
significant increases in economic activity and additional employment opportunities for the
local communities. This report is available on our website.
Our Commodity – The development and production of Stavely’s resource, primarily
copper, is essential for the future of technology, including electric vehicles, energy
transformers and wind farms. Copper can significantly contribute towards a low carbon future. Copper is one
of the few materials that can be recycled, again and again, without any loss in performance. Recycled copper
can be used in the same way as primary (mined) metal. In addition, end-of-life products (scrap) containing
copper are much more likely to be collected for recycling because of their residual economic value. Our mission
- to discover and develop the copper needed for a sustainable low-carbon future.
2022 Annual Report | Page 6
OPERATIONS REPORT
Overview
EXPLORATION
The Company’s exploration assets including the Stavely, Ararat and Yarram Park Projects are located in western
Victoria.
The Company’s focus during the year was completing the Mineral Resource drilling to delineate the high-grade,
near-surface copper-gold-silver mineralisation discovered at the Cayley Lode in September 2019, and to
subsequently deliver the initial Mineral Resource Estimate (MRE) for the Cayley Lode.
This initial Mineral Resource Estimate for the Cayley Lode mineralisation is a significant milestone for the
Company and our shareholders.
The Mineral Resource drill-out at the Cayley Lode has taken a total of two and half years to complete. In excess
of 45,000m (45km) of dedicated Mineral Resource drilling was undertaken, with the vast majority of that being
diamond drilling with some 1,300m being Sonic drilling. In excess of 50,000 assays have been completed,
including duplicate sampling of selected holes and routine insertion of duplicates and standards for QA/QC
assessment.
The reasons for the length of time to complete the drill-out include:
• All drilling had to be conducted by diamond drilling. Due to the shallow and mildly saline water table,
it was not possible to utilise percussion drilling methods due to large volumes of near-surface saline
water and it could not be contained.
• Diamond drilling allowed all fluids to be contained to 3 cascading rain-water tanks and at the end of
•
each hole, all fluids and drill cuttings could be removed and disposed off-site.
The majority of the drilling was conducted on a 40m by 40m grid to ensure that a large proportion of
the total MRE could be classified as Indicated Resources.
• With above-average rainfall over the last two years in the Stavely region it was not possible to continue
drilling during the winter months from May to September.
• Delays in negotiating access to the paddock south of the railway line to complete the drill-out.
The team on-site has done an outstanding job, under difficult circumstances, including living with COVID-19
restrictions and the associated stresses of living through a pandemic, to produce high-quality technical work
which has underpinned the very robust initial MRE for the Cayley Lode.
Of the proportion of the initial Cayley Lode MRE that falls within an optimised open pit shell, 73% of this material
is in the higher-confidence Indicated Resources category. Additionally, the revised chalcocite-enriched blanket
MRE, also constrained within an open pit optimisation, now includes 85% Indicated Resources. This highlights
the quality of the initial MRE for the Cayley Lode and the revised MRE for the chalcocite-enriched blanket, which
will underpin the initial Economic Studies.
The initial Cayley Lode MRE is considered as a starting point for this Project, with enormous potential to extend
the mineralisation at depth below the initial open pit.
The deposit remains open in a number of directions and we have already seen considerable potential for further
high-grade mineralisation along strike to the south-east and at depth.
Recent drill intercepts at depth on the Cayley Lode to the south-east indicate that there remains significant scope
to define high-grade mineralisation by extending the initial Mineral Resource estimate as indicated by recent
drill holes SMD182 and SMD173, which were included in the underground MRE.
The Carroll’s MRE is considered to satisfy the reasonable prospects for eventual economic extraction (RPEEE) as
it is being considered a satellite development to the larger Cayley Lode and chalcocite-enriched blanket potential
development located 35km away at the Stavely Project.
Drilling at the Toora West Prospect on the Yarram Park Project confirmed the presence of porphyry-style copper
and molybdenum mineralisation as well as a later phase of high-grade gold mineralisation. The Stavely Minerals
geological team has concluded that while exploration at Toora West was successful in identifying porphyry-style
2022 Annual Report | Page 7
OPERATIONS REPORT
Cu-Mo-Au mineralisation beneath 30 to 40m of transported cover, the intensity of the veining and alteration
encountered is insufficient to warrant further exploration.
During the year the Company commenced with the largest regional exploration initiative since the early 1970’s.
The Stavely Project encompasses some 115km of strike of the Stavely, Bunnugal, Elliott, Narrapumelap and
Dryden volcanic belt segments which are highly prospective for major porphyry and intrusive-related copper
and gold discoveries.
Stavely geologists identified and prioritised 19 regional targets for follow-up reconnaissance exploration. While
the known prospects in the Stavely Volcanic Belt are partially exposed in a small window of sub-crop extending
over ~20km of strike, the vast majority (~95km) of the prospective volcanic belt segments are hidden under
younger cover. While some of these targets have been known for some time, most of the regional targets have
had very little, if any previous exploration.
The regional targeting methodology has successfully identified ‘blind’ targets under basalt and transported cover
with a success rate of around 80% of drill holes intersecting quartz veining / alteration / sulphides to date.
The assays for the regional auger soil sampling and aircore drilling programs conducted during the year have
been received. The results are in the process of being spatially assessed and, following field checking, will be
subject to target ranking. Further work on the priority targets will be planned.
CORPORATE
Black Range Joint Venture
In December 2021, Stavely Minerals notified Black Range Metals Pty Ltd that the sole funding of the Second
Contribution had been met entitling the Company to a further 29% Participating Interest. The Participating
Interests of the Participants are:
(i)
(ii)
Stavely 80%; and
Black Range 20%.
In accordance with the Joint Venture, a Management Committee was formed. The Joint Venture costs have been
verified and Black Range Metals Pty Ltd have elected not to contribute and hence will be diluted as per the Joint
Venture Agreement.
Appointment of Chief Operating Officer
In March 2022, the Company announced the appointment of experienced mining executive Mark Mantle as Chief
Operating Officer.
Property Purchase
Also in March 2022, Stavely Minerals announced that it had entered into a property purchase agreement for a
524-acre farm, residence and an additional residential block adjacent to the Thursday’s Gossan prospect.
The terms of the agreement included the payment of an initial deposit of $1,000,000, with payment of $2.4
million on settlement on or before 15 August 2022.
The purchase cost was within the valuation range obtained from an independent licensed property valuer.
Subsequent to the end of the reporting period:
•
The Company issued 26,666,667 shares (Placement Shares) on 12 July 2022, pursuant to a placement
to sophisticated and institutional investors. Gross proceeds were $4,000,000.
The issue price of $0.15 per Placement Share represented a 25.0% discount to the last traded price of
the Company's ordinary shares on ASX of $0.20 and a 24.7% discount to the 5-day volume weighted
average price of the Company's ordinary shares as traded on ASX of $0.199 over the period up to and
including 30 June 2022.
2022 Annual Report | Page 8
OPERATIONS REPORT
•
The Company issued 35,326,537 shares on 5 August 2022 at the same price as the Placement Shares,
pursuant to a Share Purchase Plan (SPP). Gross proceeds raised under the SPP were $5,298,980.
Funds raised from the Placement and SPP will be applied to the next phase of exploration and resource
definition drilling at the Company’s Stavely Copper-Gold Project in western Victoria and working capital.
• On 15 August 2022, the Company settled on the property purchase of a 524-acre farm, residence and
an additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned
Stavely Copper-Gold Project in western Victoria.
$1.6 million of loan funding was used towards the acquisition of the land. The funding was provided by
two parties to Stavely’s wholly owned subsidiary, Stavely Pastoral Pty Ltd, as follows:
Under a loan agreement with Legal Mortgage Holdings Pty Ltd (LMH), LMH advanced $1 million on the
following terms:
Interest payable at 10% pa, payable quarterly in advance
-
- Term of 24 months with a minimum term of 12 months
- Secured via a 1st mortgage on the land with a guarantee provided by Stavely Minerals Limited
Under a loan agreement with Anthony Cairns, Anthony Cairns advanced $0.6 million on the following
terms:
Interest payable at 10% pa, payable quarterly in advance
-
- Term of 24 months with a minimum interest term of 12 months
- Unsecured, with a guarantee provided by Stavely Minerals Limited
2022 Annual Report | Page 9
OPERATIONS REPORT
Review of Operations
Background
The Ararat and Stavely Projects are located approximately 200 kilometres west of Melbourne and are respectively
just west of the regional centre of Ararat and just east of the regional town of Glenthompson in Victoria (Figure
1).
The western Victorian Projects include retention licences with a total area of 109 square kilometres (100%
owned), an exploration tenement with a total area of 930 square kilometres (100% owned), 100 square
kilometres of joint venture tenure (80% earned to date) and 47 square kilometres of tenement application area
(100% owned).
The Projects have excellent infrastructure and access with paved highways, port connection by railroad and a 62
MW wind farm located 5 kilometres from the Stavely Project. The primary land use is grazing and broad-acre
cropping.
Figure 1. Project location plan.
Regional Geology Western Victoria
The Ararat and Stavely Projects, while only 40 kilometres apart, are hosted within materially different geologic
domains (Figure 2).
The Ararat Project is hosted in the Stawell - Bendigo zone of the Lachlan Fold Belt and is comprised of Cambrian
age mafic volcanic and pelitic sedimentary units of the Moornambool Metamorphics which were
metamorphosed to greenschist to amphibolite facies during the Silurian period.
The Stavely Project is hosted in Cambrian age fault-bounded belts of submarine calc-alkaline volcanics, namely
the Mount Stavely Volcanics, structurally in contact with the older quartz-rich turbidite sequence of the
Glenthompson Sandstone and the Williamsons Road Serpentinite.
2022 Annual Report | Page 10
OPERATIONS REPORT
Figure 2. Geology of South-eastern Australia.
These sequences were deformed in the Late Cambrian Delamerian Orogeny. Seismic traverses and a recent study
by the Victorian Department of Economic Development, Jobs, Transport and Resources in western Victoria have
supported the interpretation of an Andean-style continental convergent margin environment for the
development of the buried Stavely Arc beneath the Stavely Volcanic Complex and environs (Schofield, A. (ed)
2018). This regional architecture is considered conducive to the formation of fertile copper / gold mineralised
porphyry systems (Crawford et al, 2003) as is the case with the younger Macquarie Arc in New South Wales,
which hosts the Cadia Valley and North Parkes copper-gold mineralised porphyry complexes.
The Lachlan Fold Belt and Delamerian sequences are in fault contact through large-scale thrusting along the east
dipping Moyston Fault (Cayley and Taylor, 2001).
Unconformably overlying both these domains by low-angle décollement is a structural outlier of the younger
Silurian fluvial to shallow marine sandstone to mudstone sequences of the Grampians Group.
2022 Annual Report | Page 11
OPERATIONS REPORT
Mineral Resources
The Ararat and Stavely Projects host Mineral Resources reported in compliance with the 2012 JORC Code:
The Total Mineral Resource Estimate for the Company is 28.3Mt at 0.75% copper, 0.11g/t gold and 3.5g/t silver
for a contained 210,000t of copper, 100,000oz gold and 3.2Moz silver and 2,400kt Zn (Table 1).
Table 1. The Total Mineral Resource Estimate, June 2022.
Cut-
off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
1
1
21.5
6.8
0.61
1.2
Cont.
Metal
(Mlbs
Cu)
288
175
Grade
Cont.
Metal
Grade
Cont.
Metal
Grade
Cont.
Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
(Zn %)
(kt Zn)
0.10
0.1
67,301
32,797
3.1
4.7
2,153,972
1,043,839
0.3
0.2
28.3
0.75*
463
0.11*
100,000
3.5
3,200,000
0.2
8
16
24
Resource
Category
Indicated
Inferred
Total
Stavely
Minerals
*Note: Mineral Resource grades reported to 2 significant digits on the basis that the majority of the resources are in the higher-confidence
Indicated Resources category (76% by tonnes, 62% by contained copper)
(a) Ararat Project Mineral Resource
In the Ararat Project, the Carroll’s prospect (previously known as the Mount Ararat prospect) hosts a Besshi-
style VMS deposit with an estimated (using a 1% Cu lower cut-off) Total Mineral Resource of - 1.01Mt at 2.2%
copper, 0.4g/t gold, 0.2% zinc and 5.6g/t silver for a contained 22kt of copper, 13,900 ounces of gold, 2,400t
of zinc and 181,300 ounces of silver (Table 2).
Table 2. The Carroll’s Mineral Resource Estimate, June 2022.
Classification
Oxidation
Indicated
Inferred
SUBTOTALS
Oxide
Fresh
Oxide
Fresh
Oxide
Fresh
kt
-
260
131
617
131
878
GRAND TOTAL
1009
Ag g/t
Au g/t
Cu %
Zn % Ag oz
Au koz
Cu kt
Zn kt
-
5.3
2.9
6.3
2.9
6.0
5.6
-
0.5
0.3
0.4
0.3
0.4
0.4
-
2.0
2.1
2.3
2.1
2.2
2.2
-
0.3
0.2
0.2
0.2
0.3
0.2
-
44.3
12.3
124.7
12.3
169.0
181.3
-
3.9
1.3
8.7
1.3
12.6
13.9
-
5.3
2.7
14.1
2.7
19.3
22.0
-
0.8
0.2
1.4
0.2
2.2
2.4
Effective date of September 2021.
Notes:
•
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
• Mineral Resources are reported at a block cut-off grade of 1% Cu.
• Mineral Resources are reported without any explicit RPEEE constraints, but reporting of all flagged
Inferred+Indicated material in the model is partially supported by SO studies undertaken on the fresh material.
Figures may not add up due to rounding.
•
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Comparison of the 2015 and 2021 MREs for the Carroll’s VMS
The 2021 MRE for the Carroll’s VMS was more tightly constrained spatially, especially on the edges of data limits
(Figure 3). A comparison of the 2015 and 2021 MREs is presented in Table 3. It is clear that there is an
opportunity to grow the scale of the resource by drilling further at depth and to convert Inferred Resources to
Indicated Resources with in-fill drilling.
2022 Annual Report | Page 12
OPERATIONS REPORT
Table 3. Comparison of the 2015 and 2021 Carroll’s VMS Mineral Resource Estimates.
Estimate
Date
2015
Category
Indicated
Inferred
Total
Indicated
2021
Inferred
1.0
Total
Change
Cut-off
Tonnes
(Cu %)
1.0
Grade
(Cu %)
2.22
1.91
1.97
2.0
2.3
2.2
12%
Cont. Cu
(kt)
5.4
20.5
25.9
5.2
17.3
22.5
-13%
Au
(g/t)
0.39
0.47
0.45
0.50
0.38
0.42
-7%
Cont. Au
(koz)
3.0
16.3
19.3
4.2
9.2
13.4
-30%
(kt)
245
1,073
1,318
260
750
1,001
-24%
Figure 3. Long section looking west – Carroll’s MRE classification (current and previous). Historical
holes in blue, Stavely drilling to 2020 in green and the two new 2021 Stavely holes in
red.
2022 Annual Report | Page 13
Cube2021Hackman 2015IndicatedInferredUnclassifiedIndicatedInferredUnclassified
OPERATIONS REPORT
(b) Stavely Project Mineral Resource
In the Stavely Project, the Thursday’s Gossan prospect, which includes the Cayley Lode and the chalcocite-
enriched blanket, hosts a Total Mineral Resource Estimate (using a 0.2% Cu grade lower cut-off for open pit
material and 1.0% Cu lower cut-off for underground material) of – 27.3Mt at 0.69% copper, 0.10g/t gold and
3.4 g/t silver for 416Mlbs of contained copper, 86,000 ounces of gold and 3Mt of silver (Table 4).
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 4. Thursday’s Gossan Total Mineral Resource Estimate.
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Indicated
Inferred
0.2
0.2
Total Thursday's Gossan
21.2
6.1
27.3
0.59
1.0
0.69*
Cont.
Metal
(Mlbs
Cu)
276
140
416
Grade
Cont.
Metal
Grade
Cont.
Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
0.09
0.12
63,122
23,000
0.10*
86,000
3.1
4.6
3.4
2,109,668
900,000
3,000,000
*Note: Mineral Resource grades reported to 2 significant digits on the basis that the majority of the resources are in the higher-confidence
Indicated Resources category (76% by tonnes, 62% by contained copper)
The initial Mineral Resource estimate for the Cayley Lode (using a 0.2% Cu cut-off for open pit and 1.0% cut-off
for underground) is 9.3Mt at 1.2% copper, 0.2g/t gold and 7.1g/t silver for 252Mlbs of contained copper,
65,000 ounces of gold and 2.1Mt of silver (Table 5).
Table 5. Cayley Lode Initial Mineral Resource Estimate
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Cont.
Metal
(Mlbs
Cu)
Grade
Cont.
Metal
Grade
Cont. Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
Primary
Mineralisation
(OP)
Indicated
Inferred
Sub-Total Primary OP
Primary
Mineralisation
(UG)
Indicated
Inferred
0.2
0.2
1.0
1.0
Sub-Total Primary UG
Total Cayley Lode
5.87
1.04
134.4
0.23
43,407
1.7
7.6
-
1.7
1.7
9.3
1.3
1.1
-
1.8
1.8
1.2
49
183
-
69
69
252
0.2
0.2
-
0.2
0.2
0.2
11,000
54,338
11,000
11,000
7
9
1,321,074
500,000
7.4
1,808,158
-
6
6
330,000
330,000
65,000
7.1
2,100,000
At the Thursday’s Gossan prospect, a near surface secondary chalcocite-enriched blanket with an estimated
(using a 0.2% Cu grade lower cut-off) – 18Mt at 0.4% copper for 75kt of contained copper (Table 6).
Table 6. Revised Chalcocite- Enriched Blanket Mineral Resource Estimate.
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Chalcocite
Indicated
Inferred
0.2
0.2
Sub-Total Chalcocite
15.3
2.7
18
0.42
0.4
0.41
Cont.
Metal
(Mlbs
Cu)
141.6
22
164
Grade
Cont.
Metal
Grade
Cont. Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
0.04
0.02
0.04
19,715
1,700
21,000
1.6
1
1.6
788,594
87,000
900,000
The wireframes from previous MRE for the chalcocite-enriched blanket were adjusted to include a large number
of diamond drill holes completed since the previous MRE (see the Stavely Minerals Prospectus, 2014). The
majority of the predominantly diamond and a lesser number of RC drill holes drilled to target the Cayley Lode
2022 Annual Report | Page 14
OPERATIONS REPORT
also passed through the secondary chalcocite-enriched blanket mineralisation in the shallow portions of those
drill holes. These drill holes have been included in the revised MRE for the chalcocite-enriched blanket and this
has resulted in re-classification of a large proportion of Indicated Resources in the 2022 MRE compared to no
Indicated Resources in the 2015 MRE (Table 7).
Table 7. Comparison of the 2013 and 2022 Thursday’s Gossan Chalcocite-enriched blanket Mineral
Resource Estimates.
Estimate Date
Category
May-13
Jun-22
Change
Indicated
Inferred
Indicated
Inferred
Total
Cut-off
(Cu %)
0.2
0.2
Tonnes
(Mt)
-
28.0
15.3
2.7
18.0
-36%
Grade
(Cu %)
-
0.38
0.42
0.4
0.4
5%
Contained Cu
(kt)
-
107
64.3
10.8
75.0
-30%
Figure 4. Stavely, Yarram Park and Ararat Project location plan.
2022 Annual Report | Page 15
OPERATIONS REPORT
Stavely Project
The Stavely Project hosts several significant opportunities for discovery of porphyry copper-gold and VMS base-
metals +/- gold deposits (Figure 4).
During the year, the Company completed the resource drill-out of the shallow portion of the high-grade
structurally-controlled copper-gold-silver mineralisation at the Cayley Lode.
Stavely’s field team have done a fantastic job conducting the Mineral Resource drill-out. With a relatively small
crew of geologists and field staff, the team has managed up to 6 diamond drill rigs operating concurrently and,
at times, when the regional exploration programs were underway, an aircore rig and soil auger drilling as well.
During the year, the Company embarked on a major new regional exploration initiative, comprising aircore
drilling and auger soil sampling across the Company’s 100%-owned Stavely Copper-Gold Project and the Black
Range Joint Venture tenement in western Victoria.
Photo 1. Part of the core yard at Stavely Minerals’ core farm near Glenthompson.
Thursday’s Gossan Porphyry Prospect
During the year, assay results were received for the two diamond holes, SMD114 and SMD117, drilled during
the previous year at Thursday’s Gossan to test the two deep interpreted porphyry targets generated by the the
two seismic lines shot in the previous year.
SMD114 was drilled along the trace of the northern seismic section shot in late 2020. While the drill hole did not
intersect the deep porphyry target, it did return an interval of mineralisation characterised by Dr Greg Corbett
as porphyry G veins – a distal expression of porphyry wall-rock mineralisation.
SMD114 intersected:
o
12m at 1.43% Cu, 0.23g/t Au and 7.4g/t Ag from 830m down-hole (Figure 5), including:
▪
2m at 4.98% Cu, 0.61g/t Au and 25g/t Ag from 839m
Drill hole SMD117 did not return any significant results.
2022 Annual Report | Page 16
OPERATIONS REPORT
Figure 5. SMD114 drill section.
2022 Annual Report | Page 17
OPERATIONS REPORT
Cayley Lode Copper – Gold Mineralisation
During the year, twenty diamond drill holes SMD163 to SMD182 were drilled for a total of 6,491m targeting the
high-grade structurally-controlled copper-gold-silver mineralisation at the Cayley Lode at the Thursday’s Gossan
prospect. The drill collar locations are shown in Figures 6 and 7 and the details are given in the Cayley Lode
Collar Table.
All assays have been received for the drilling conducted during the current year as well as those outstanding at
the end of the previous year - SMD141 to SMD150, SMD155 and SMD157 to SMD162. The significant
intersections are presented in Cayley Lode Intercept Table.
During the current year the intensive resource drill-out of the mineralisation at the Cayley Lode continued with
up to 6 diamond drill rigs. Drilling during the year was focused on the southern portion of the currently defined
resource area. The over-all extent of the currently defined mineralisation is 1.5 kilometres. Drilling in the
southern area was conducted on roughly a 60m x 60m drill grid. The resource drill out of the open pittable
mineralisation has been completed. Several deeper holes were completed to test the Cayley Lode below the Low
Angle Structure to confirm the potential for underground development.
The assays for SMD141 to SMD150, SMD155 and SMD157 to SMD162 which were outstanding at the end of the
previous reporting period have been received.
Drill hole SMD147, located in the north-west of the drill grid, intersected shallow gold mineralisation including
Figure 8):
o
o
6.2m at 1.38g/t Au from 11.8m down-hole, followed by a mixed copper-gold-silver zone
including:
13m at 0.72% Cu, 0.65g/t Au and 3.4g/t Ag from 19m, including:
▪
5m at 1.14% Cu, 1.64g/t Au and 7.1g/t Ag from 27m
SMD147 also intersected:
o
o
4m at 1.29% Cu from 132m down-hole; and
3.6m at 3.31% Cu, 0.43g/t Au and 38g/t Ag from 160.4m
Drill holes SMD163 to SMD172, SMD174 to SMD175, SMD177 to SMD180 were drilled in the paddock to the
south of the railway line, targeting the Cayley Lode mineralisation above the Low Angle Structure and the
southern extension of the chalcocite blanket.
Drill hole SMD165 (Figure 9), drilled on the first section south of the railway, has intersected:
o 30m at 0.51% Cu from 29m in the chalcocite-enriched blanket
o 1m at 1.08% Cu, 0.48g/t Au and 15g/t Ag from 157m
o 3.2m at 7.08% Cu, 0.46g/t Au and 11g/t Ag from 215.1m, including
▪ 1m at 16.35% Cu, 0.81g/t Au and 24g/t Ag from 215.1
Drill hole SMD164 (Figure 10), drilled on the second section south of the railway, has intersected:
o 16m at 0.39% Cu from 29m in the chalcocite-enriched blanket
o 1m at 2.59% Cu, 0.7g/t Au and 13g/t Ag from 91m
o 44m at 0.93% Cu, 0.13g/t Au and 4.3g/t Ag from 161m, including
▪
5.8m at 5.38% Cu, 0.77g/t Au and 23g/t Ag from 198m, including
•
0.8m at 16% Cu, 0.71g/t Au and 42g/t Ag from 203m
As was expected, the Cayley Lode has lost intensity in the south eastern most drill holes as the chalcocite-
enriched blanket dog-legs into a more north-south orientation.
2022 Annual Report | Page 18
OPERATIONS REPORT
Drill holes SMD173, SMD176, SMD181 and SMD182 were drill to test some Cayley Lode positions below the low
angle structure to determine the potential of the system at depth. These holes also tested the southern extension
of the chalcocite blanket.
Diamond drill hole SMD173, drilled from the southern paddock south of the railway, was designed to target the
Cayley Lode at depth below the Low-Angle Structure (Figures 6 & 7). The intention was to test the south-easterly
plunge of high-grade copper-gold-silver mineralisation.
SMD173 has intersected an interval of inter-fingered micro-diorite and Cayley Lode sulphide mineralisation from
328.2m to 420.3m down-hole (Figure 10). The sulphides are variably massive to semi-massive sulphides to
disseminated and veins of pyrite with variable abundances of copper sulphides including chalcopyrite, bornite
and chalcocite.
The overall 92.1m interval is cut and pre-existing mineralisation potentially ‘stoped-out’ by a late, barren micro-
diorite intrusion.
The result is an upper footwall zone of mineralisation that included:
o 3m at 3.81% Cu, 0.11g/t Au and 457g/t Ag from 328m down-hole, including
▪ 1.10m at 2.53% Cu, 0.10g/t Au and 1,225g/t silver from 328m
Of note is that unusually high abundances of silver, in the kilogram per tonne ranges that are normally seen in
association with the lead sulphide, galena. In this instance, the lead abundance is 17ppm, precluding the
presence of galena. The modest gold grade also precludes electrum. The deportment of the significant
abundance of silver is subject to further investigations.
Below the late micro-diorite intrusion, a second thicker interval of lode-style mineralisation was encountered
with:
o 43m at 2.60% Cu, 0.42g/t Au and 10g/t Ag from 378m down-hole, including
▪ 3m at 10.38% Cu, 3.00g/t Au and 71g/t Ag, from 396m, including
•
1m at 19.65% Cu, 8.29g/t Au and 202g/t Ag from 397m
Diamond drill hole SMD182, designed to test the south-easterly plunge of the Cayley Lode mineralisation below
the Low-Angle Structure, has intersected two zones of copper-gold-silver mineralisation, including the deepest
intercept seen to date (Figure 11).
The upper high-grade intercept includes:
o 10.40m at 4.34% Cu, 3.17g/t Au and 11g/t Ag from 421.1m down-hole, including:
▪ 4.90m at 6.74% Cu, 6.45g/t Au and 19g/t Ag from 426m, including:
•
0.9m at 7.17% Cu, 30.6g/t Au and 52g/t Ag from 430m
And a lower intercept of:
o 14m at 1.24% Cu, 0.72g/t Au and 8.2g/t Ag from 503m down-hole, including:
▪ 2m at 3.56% Cu, 3.33g/t Au and 25g/t Ag, from 515m
The high-grade intercept in SMD182 provides further confidence in the interpreted south-easterly plunge of
mineralisation and, significantly, that very high-grade mineralisation continues to depths that may be available
for potential future underground development (Figure 12). The increasing gold grades in drill holes SMD173 and
SMD182 will require further drilling to confirm a change in the copper to gold ratio noted in these drill holes.
2022 Annual Report | Page 19
OPERATIONS REPORT
Figure 6. Thursday’s Gossan prospect – drill collar location plan.
2022 Annual Report | Page 20
OPERATIONS REPORT
Figure 7. Thursday’s Gossan prospect – drill collar location plan over aeromagnetic image.
2022 Annual Report | Page 21
OPERATIONS REPORT
Figure 8. SMD147 drill section.
2022 Annual Report | Page 22
OPERATIONS REPORT
Figure 9. SMD165 – SMD166 drill section.
2022 Annual Report | Page 23
OPERATIONS REPORT
Figure 10. SMD173 - SMD164 drill section.
2022 Annual Report | Page 24
OPERATIONS REPORT
Figure 11. SMD182 drill section.
2022 Annual Report | Page 25
OPERATIONS REPORT
Figure 12. Cayley Lode long-section drill hole pierce points showing location of both upper and lower intersections
from SMD182. Note the peripheral base-metal / precious metal intercepts along strike and beneath the
plunge of the well-developed copper-gold-silver lode-style mineralisation. This zonation is characteristic of
Magma, Arizona lode-style mineralised systems.
Regional Exploration
During the year, the Company embarked on a major new regional exploration initiative across its Stavely Project.
The new multi-pronged exploration program follows the outcomes of an intensive regional prospect review
which has identified 19 priority exploration targets.
The porphyry-prospective Stavely Volcanic Arc is comprised of several volcanic arc segments that have been
“structurally dislocated by overprinting deformation events, particularly Siluro-Devonian structures developed
during (deformation phase) D41.” The Siluro-Devonian D4 deformation sequence is summarised in Figure 13 and
explains the transposition of the various arc segments to their current-day position. Figure 14 shows the current-
day distribution of the arc segments and their magnetic responses. Prospective arc segments within the Stavely
Volcanic Arc include the Stavely, Narrapumelap, Dryden, Bunnugal, Elliot, Glenisla and Black Range segments.
Stavely Minerals has a majority holding of all of these segments with the exception of the Glenisla and Black
Range segments.
Figure 15 shows the known prospects that are largely exposed or located in areas of sub-crop that have been
previously identified by either reconnaissance mapping or stream/soil geochemical sampling programs.
Soil auger sampling was completed in areas of sub-crop including Thursday’s Gossan, Mount Stavely, Mount
Stavely East, Fairview, Highway, Northern Flexure and the Southern Intrusion prospects.
1 Regional geology and mineral systems of the Stavely Arc, western Victoria, Schofield A. ed., 2018. Geoscience Australia
Record 2018/02.
2022 Annual Report | Page 26
OPERATIONS REPORT
In addition to the known historical prospects, the Stavely Minerals’ geology team has identified a large number
of additional priority targets under shallow cover. A large number of these ‘blind’ prospects have never been
previously tested. The priority target locations are shown in Figure 16.
Due to the lack of geological data owing to pervasive “Newer Volcanic” basalt cover, targeting is reliant on the
interpretation based on aeromagnetics and gravity. Aircore drilling was completed at the Yarram Gap, Muirhead,
S4, S41, S29, Mt Elliot East, Neekeya and Buninjon prospects. The aircore program was designed as wide-spaced
first-pass (400m x 400m) drilling and had identified porphyry/ intrusive phases associated with argillic/phyllic
alteration, quartz veining and sulphide mineralisation.
Aircore drilling at the Neekeya, Buninjon, Mt Elliot East, S4, S29 and S41 Prospects was co-funded by the
Government of Victoria through a TARGET grant associated with the Stavely Tender Block 3 (now EL6870).
At the end of the year, the Company had received all the outstanding assays for the regional auger soil sampling
and aircore drilling programs. The results of the regional exploration program are in the process of being spatially
assessed and following field checking will be subject to target ranking. Follow-up work on the priority targets
will subsequently be planned for the following year.
Black Range Joint Venture Project
During the year, work conducted on the Black Range JV included aircore drilling at the Yarram Gap and Muirhead
Prospects and soil auger sampling at the Pollockdale and Lexington prospects as part of the regional exploration
initiative across the Stavely Prospect (Figures 15 & 16).
Pollockdale is an intrusion-related copper-gold target located between the Stavely and Bunnugal volcanic belts.
Two adjacent samples in the northeast corner of the Pollockdale soil auger sample grid returned weakly
anomalous gold results of 17ppb and 6ppb.
Results have been received for the aircore drilling and the soil auger sampling at Lexington. At the end of the
year detailed assessment of the results was in progress and, when ranking of the prospects is completed, follow-
up work will be planned.
Yarram Park Project
The Yarram Park Project is located within an area where interpretation of regional aeromagnetic data has
identified an offset portion of the Bunnagul Belt (another volcanic belt located to the west of the Stavely Belt),
beneath the Quaternary cover. Both the Mount Stavely Belt and the Bunnagul Belt are considered to be highly
prospective for intrusive-related porphyry copper-gold and diatreme-hosted gold mineralisation. Maiden drilling
in 2017 confirmed the existence of the right host rocks with the presence of distal porphyry-style alteration.
During the year, diamond drilling and further aircore drilling was conducted at the Toora West prospect to follow-
up anomalous aircore results returned during the previous work year.
A high-resolution drone magnetic survey was completed over the Yarram Park tenements during the year. The
new drone magnetic survey demonstrates a significant improvement in resolution compared to the wide-spaced
government aeromagnetic data (Figure 17). In addition, ground gravity was completed over recently granted
tenement EL7628 and areas of EL5478 that had not previously been covered.
2022 Annual Report | Page 27
OPERATIONS REPORT
Figure 13. Evolution of the Stavely Volcanic Arc segmentation during the Devonian D4
deformation (after Stavely geologist Dr Michael Agnew).
2022 Annual Report | Page 28
OPERATIONS REPORT
Figure 14. Aeromagnetic image showing Stavely Volcanic Arc segments.
2022 Annual Report | Page 29
OPERATIONS REPORT
Figure 15. Aeromagnetic image showing historical prospects.
2022 Annual Report | Page 30
OPERATIONS REPORT
Figure 16. Aeromagnetic image showing ‘blind’ prospects under shallow cover.
Toora West Prospect
Aircore drilling conducted during the previous year at the Toora West prospect, ~15km north-west of Thursday’s
Gossan, returned strong indications of an underlying copper-molybdenum porphyry system (Figure 16).
Four diamond drill holes (STWD005 to STWD008) were drilled at the Toora West Prospect during the year. In
addition, follow-up aircore drilling was also conducted at Toora West during the year (Figure 17).
2022 Annual Report | Page 31
OPERATIONS REPORT
Diamond drilling has confirmed the presence of porphyry-style copper and molybdenum mineralisation as well
as a later phase of high-grade gold mineralisation associated with the copper sulphide tetrahedrite.
Diamond drill hole STWD005 (Figure 18) intersected two high-grade gold zones including:
o 0.6m @ 4.27g/t Au, 0.31% Cu, 2.6g/t Ag and 130ppm Mo from 274.2m, and
o 0.6m @ 8.72g/t Au, 1.85% Cu, 5.2g/t Ag & 151ppm Mo from 286.7m
Drill hole STWD006 intersected an interval of low-grade copper anomalism including:
o 27m @ 0.15% Cu from 112m
The copper intersection in STWD006 (Figure 19) – the northernmost diamond drill hole – was hosted in a
porphyritic microdiorite and was terminated by a steeply south-west dipping structure.
Drill hole STWD007 (Figure 20) intersected an interval of silver mineralisation near-surface and deeper narrow
intervals of copper and molybdenum mineralisation:
o 16m @ 16g/t Ag from 52m down-hole, including
▪
1m @ 150g/t Ag from 65m
o 27m at 0.14% Cu from 268m
o 2m @ 0.24% Cu, 0.19 g/t Au, 1.8g/t Ag & 103 ppm Mo from 335m
o 1m @ 0.19% Mo from 477m
o 1m @ 0.13% Mo from 495m
Geological logging of previous and recently completed air-core drilling has identified a potassic alteration zone,
characterised by potassium feldspar alteration selvedges on quartz in the north of the Toora West prospect,
coincident with a magnetic high with a surrounding magnetic low annulus located just north of hole STWD006
(Figure 17). Diamond hole SWD008 was drilled to test this compelling porphyry target.
STWD008 returned only very weakly mineralised intercepts including:
o 1m @ 0.41% Cu and 2.8 g/t Ag from 39m
o 1m @ 0.19% Cu from 393m, and
o 16m @ 0.10% Cu from 581m
Aircore hole STWAC071 returned a significant gold intercept of:
o 1m @ 11.5 g/t Au from 41m
Examination of the aircore chips and diamond core by Dr Greg Corbett has led him to conclude that while the
abundance of intrusion types suggests Toora West as an interesting porphyry-related magmatic system, none
of the intrusions contain anything other than a simple and single porphyry Cu-Au style episode of
mineralisation. Dr Corbett further concluded that the Cu-Au vein mineralisation in the drill holes is more typical
of veins hosted within wall rocks and is likely related to deeper porphyry source rocks.
The Stavely Minerals geological team has concluded that while exploration at Toora West was successful in
identifying porphyry-style Cu-Mo-Au mineralisation beneath 30 to 40m of transported cover, the intensity of
the veining and alteration encountered is insufficient to warrant further exploration.
2022 Annual Report | Page 32
OPERATIONS REPORT
Figure 17. Alteration zonation noted from aircore drilling. Drone magnetics as the background.
Note the potassic alteration zone logged from aircore drill chips in the north of the Toora
West prospect and the NW magnetic high with a surrounding magnetic low annulus
located just north of STWD006.
2022 Annual Report | Page 33
OPERATIONS REPORT
Figure 18. STWD005 drill section.
2022 Annual Report | Page 34
OPERATIONS REPORT
Figure 19. STWD006 drill section.
2022 Annual Report | Page 35
OPERATIONS REPORT
Figure 20. STWD007 drill section.
2022 Annual Report | Page 36
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Collar Table
MGA 94 zone 54
Hole id
Hole Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
Comments
SMD050
SMD051
SMD052
SMD053
SMD054
SMD055
SMD056
SMD057
SMD058
SMD059
SMD060
SMD061
SMD062
SMD063
SMD064
SMD065
SMD066
SMD067
SMD068
SMD069
SMD070
SMD071
SMD072
SMD073
SMD074
SMD076
SMD078
SMD079
SMD080
SMD081
SMD082
SMD083
SMD084
SMD085
SMD086
SMD087
SMD089
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
642070
5836609
-60/59.5
642160
5836476
-60/59.5
642238
5836421
-60/59.5
642302
5836355
-60/59.5
642048
5836641
-60/59.5
642032
5836595
-60/59.5
642031
5836590
-60/59.5
642386
5836309
-60/59.5
642115
5836542
-60/59.5
642122
5836461
-60/59.5
642137
5836508
-60/59.5
642276
5836435
-60/59.5
642337
5836367
-60/59.5
642063
5836585
-60/59.5
642041
5836619
-60/59.5
642427
5836356
-60/239.5
641936
5836807
-60/59.5
641884
5836880
-60/59.5
642342
5836414
-60/239.5
641725
5837063
-60/59.5
642199
5836451
-60/59.5
642616
5835650
-60/59.5
641585
5837196
-60/59.5
641473
5837155
-60/59.5
642162
5836437
-60/59.5
642174
5836523
-60/59.5
642237
5836464
-60/59.5
642099
5836496
-60/59.5
642196
5836406
-60/59.5
642837
5835899
-60/51
642264
5836342
-60/59.5
642599
5835995
-60/49.5
642236
5836364
-60/59.5
642444
5836022
-60/49.5
642465
5836370
-60/239.5
642060
5836522
-60/59.5
642502
5836384
-60/239.5
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
264
268
264
264
264
264
264
264
262
132.6
220.9
271.7
273.6
245.5
169.9
185.8
242.2
140.5
317.8
203.2
219.5
227.70
162.7
184.9
350
294
236
342
130.7
399.6
562.6
100.9
409.9
302
198.4
274.9
306.7
309.3
197
313.4
433.1
278.1
522.3
385.9
268.3
502.1
Hole failed prior to target depth
Hole failed prior to target depth
Re-entered 1 June 2021
2022 Annual Report | Page 37
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Collar Table
MGA 94 zone 54
Hole id
Hole Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
Comments
SMD090
SMD091
SMD092
SMD093
SMD093W1
SMD094
SMD094W1
SMD095
SMD096
SMD097
SMD098
SMD099
SMD100
SMD101
SMD102
SMD103
SMD104
SMD105
SMD106
SMD107
SMD108
SMD109
SMD110
SMD111
SMD112
SMD113
SMD114
SMD115
SMD116
SMD117
SMD118
SMD119
SMD120
SMD121
SMD122
SMD123
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
642068
5836563
-60/59.5
642374
5836383
-60/59.5
642346
5836411
-60/59.5
642153
5836294
-60/59.5
262
262
262
262
213.8
191
222
515.1
642153
5836294
-60/57.4
262
339.1
642205
5836237
-60/59.5
262
608.3
642205
5836237
-60/57.0
262
281.1
642205
5836237
-60/59.5
642319
5836284
-60/71.5
642319
5836284
-60/88.5
642102
5836364
-60/59.5
642063
5836352
-60/59.5
642396
5836495
-60/239
642044
5836427
-70/59
642471
5836355
-60/223
642196
5836425
-60/59
642225
5836386
-60/59
642009
5836628
-60/59
642015
5836661
-60/59
642471
5836359
-60/59
642031
5836548
-60/59
642261
5836257
-60/59
642000
5836699
-60/59
641977
5836648
-60/59
641971
5836718
-60/59
642031
5836553
-58/56
641558
5835953
-65/59
641995
5836579
-60/59
641972
5836613
-60/58
641940
5835842
-60/58
641936
5836691
-60/52
641927
5836771
-60/59
641896
5836793
-62/58
641875
5836711
-60/60
641926
5836671
-60/58
642209
5836316
-60/59
262
262
262
262
262
259
260
260
261
261
258
258
260
260
260
260
260
260
260
260
261
261
261
261
262
261
261
261
261
304.6
287.7
298.6
449.1
531
451.8
379.7
350.6
214.6
285.6
315.6
193.8
232.8
310.7
399.2
252.4
294.2
274.4
280.3
1844.8
296.3
304.2
1711.8
247.9
246.5
233
292.9
292.6
380.1
SMD093W1 is wedged off SMD093 in
order to recover lost core through the
Cayley Lode in SMD093
SMD094W1 is wedged off SMD094 in
order to recover lost core through the
Cayley Lode in SMD093
2022 Annual Report | Page 38
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Collar Table
MGA 94 zone 54
Hole id
Hole Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
Comments
SMD124
SMD125
SMD126
SMD127
SMD128
SMD129
SMD130
SMD131
SMD132
SMD133
SMD134
SMD135
SMD136
SMD137
SMD138
SMD139
SMD140
SMD141
SMD142
SMD143
SMD144
SMD145
SMD146
SMD147
SMD148
SMD149
SMD150
SMD151
SMD152
SMD153
SMD154
SMD155
SMD156
SMD156W1
SMD157
SMD158
SMD159
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
641858
5836779
-60/59
641885
5836827
-60/59
641846
5836813
-60/59
641849
5836739
-60/59
641887
5836759
-60/59
641821
5836766
-60/59
641824
5836837
-60/59
641851
5836885
-60/59
641898
5836677
-60/53
641858
5836854
-60/59
641806
5836878
-60/59
641773
5836945
-60/59
641736
5836932
-60/59
641731
5837009
-60/59
641691
5836994
-60/59
641728
5836900
-60/59
641801
5836887
-60/59
641704
5837042
-60/59
641685
5837073
-60/59
641665
5837027
-60/59
641661
5836957
-60/130
641648
5837059
-60/59
641777
5836855
-60/59
641799
5836823
-60/59
641981
5836424
-60/59
641930
5836640
-60/59
641815
5836800
-60/59
642129
5836210
-60/59
642196
5836351
-60/59
642029
5836513
-60/59
641845
5836570
-60/59
641903
5836490
-60/59
642157
5836387
-60/59
642157
5836387
-60/59
642077
5836264
-60/59
642054
5836182
-60/59
642536
5836394
-60/180
261
261
257
258
257
258
260
262
261
261
261
261
261
257
258
258
257
257
257
258
259
257
257
257
257
257
257
257
257
257
262
262
262
262
262
262
262
242.8
168.5
248
289.9
256.5
269.7
234.5
196.6
302.8
214.7
184.6
188.8
273.4
211
249.3
240.5
264
237.2
232.9
249.4
279.4
264.3
298.9
316.9
651.5
326.5
278.5
901.4
354.2
19.1
451
463.6
355.9
291.1
533.2
669.4
642.6
Abandoned
2022 Annual Report | Page 39
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Collar Table
MGA 94 zone 54
Hole id
Hole Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
Comments
SMD160
SMD161
SMD162
SMD163
SMD164
SMD165
SMD166
SMD167
SMD168
SMD169
SMD170
SMD171
SMD172
SMD173
SMD174
SMD175
SMD176
SMD177
SMD178
SMD179
SMD180
SMD181
SMD182
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
DD
642167
5836085
-60/49
642393
5835880
-60/49
642480
5835930
-60/49
642542
5835856
-60/49
642433
5836177
-60/52
642383
5836217
-60/50
642418
5836238
-60/50
642469
5836199
-60/50
642483
5836138
-60/50
642532
5836095
-60/50
642573
5836258
-60/50
642580
5836125
-60/50
642547
5836125
-60/50
642313
5836113
-60/50
642500
5836147
-60/50
642594
5836062
-60/50
642271
5836155
-60/50
642534
5836167
-60/50
642374
5836143
-60/50
642330
5836184
-60/50
642408
5836101
642383
5836050
642372
5835979
-60/50
-60/50
-60/50
SMS001D
Sonic/DD
642197
5836489
-60/59.5
SMS002AD
Sonic/DD
642275
5836478
-60/59.5
SMS003
Sonic
642207
5836523
-60/59.5
SMS004
Sonic
642150
5836555
-60/59.5
SMS005
SMS006
SMS007
SMS008
SMS009
SMS009A
SMS010
SMS011
SMS012
SMS013
Sonic
Sonic
Sonic
Sonic
Sonic
Sonic
Sonic
Sonic
Sonic
Sonic
642125
5836587
-60/59.5
642102
5836620
-60/59.5
642085
5836654
-60/59.5
642055
5836680
-60/59.5
642011
5836730
-60/59.5
642011
5836730
-60/59.5
642083
5836614
-60/59.5
642106
5836581
-60/59.5
642193
5836530
-60/239.5
642212
5836497
-60/234.5
262
262
262
262
262
262
262
262
262
263
261
262
260
262
262
262
262
262
262
262
262
262
262
264
264
264
264
264
264
264
264
264
264
264
264
261
262
717.5
718.7
593.4
630.8
276
267.3
247.9
232.3
180.3
260
118.7
247.6
226.8
538.6
235.7
233.7
480.1
198.5
334.4
317.6
322.8
533.2
616.6
212
105.4
97
131.5
85.5
76
64
64
54
80
83
88
80
58
Failed to test target - drilled to east of
Cayley Lode
Failed to test target - drilled to east of
Cayley Lode
Failed to test target - drilled to east of
Cayley Lode
Failed to test target - drilled to east of
Cayley Lode
Abandoned
Re-drill of SMS009A
2022 Annual Report | Page 40
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD050
DD
642070
5836609
-60/59.5
264
132.6
Incl.
and
19
62
82
85
28
94
94
87
9
32
12
2
0.32
5.88
1.00
58
14.3
2.26
40
3.00
145
517
96.7
101.1
4.4
3.98
SMD051
DD
642160
5836476
-60/59.5
264
220.9
Incl.
and
22
98
29
157
106.6
115.1
134.0
137.0
177.0
185
Incl.
179.0
181.0
SMD052
DD
642238
5836421
-60/59.5
264
271.7
Incl.
Incl.
SMD053
DD
642302
5836355
-60/59.5
264
273.6
25
76
77
30
92
92
84
52
176
178
7
59
8.5
3.0
8.0
2.0
67
16
7
22
2
0.40
1.80
0.43
15.4
4.38
0.87
32.7
5.66
0.29
4.60
9.69
0.40
16.8
17.30
0.57
13.1
0.38
0.10
0.63
0.28
0.98
0.23
0.37
2.5
7.0
12
1.17
1.23
4.1
201
211.3
10.3
3.09
1.69
22.6
SMD054
DD
642048
5836641
-60/59.5
264
245.52
Incl.
and
and
Incl.
Incl.
202
203
204
22
55
86
90
92
96
SMD055
DD
642032
5836595
-60/59.5
264
169.9
21.4
Incl.
SMD056
DD
642031
5836590
-60/59.5
264
185.8
Incl.
24
78
156
162
24
79
207
204
205
29
57
97
97
95
101
59
29
83
157
163
82
82
5
1
1
7
2
5
5
1
1
58
3
5.81
3.20
43.6
8.42
1.77
97
2.91
8.69
23.9
0.41
1.89
0.56
11
4.62
0.57
7.10
0.72
10.87
0.67
7
3
5
37.6
0.41
1.00
0.32
1.37
0.17
1.18
0.72
3.64
0.60
43
0.29
1.68
0.18
8
16
25
39
52
7
8
8
1.42
SMD057
DD
642386
5836309
-60/59.5
264
242.2
26
37
Incl.
157
160
3
11
3.75
0.25
10.2
0.32
157
165.3
8.3
1.65
0.23
7.2
2022 Annual Report | Page 41
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD058
DD
642115
5836542
-60/59.5
264
140.5
SMD059
DD
642122
5836461
-60/59.5
264
317.8
Incl.
19
68
88
21
22
197
235
48
91
91
22
39
202
253
29
23
3
1
17
5
18
0.37
1.34
0.26
6.33
0.27
3.15
0.41
0.23
3.28
0.27
1.00
0.10
SMD060
DD
642137
5836508
-60/59.5
264
203.2
19.2
135.4
102.31
0.68
Incl.
245.8
252.6
6.8
1.85
0.17
Incl.
Incl.
and
Incl.
74
74
135.4
48.22
1.04
0.31
86
12
1.55
0.63
111
135.4
13.63
1.90
0.38
129
135.1
6.10
3.55
0.73
116.6
119
2.44
SMD061
SMD062
DD
DD
642276
586435
-60/59.5
264
219.5
160.2
164.5
642337
5836367
-60/59.5
264
227.70
3.5
2.9
25
4.5
13
3
6
14
13
33
41
23
11
16
31
35
1.20
Incl.
and
SMD063
DD
642063
5836585
-60/59.5
264
162.7
SMD064
DD
642041
5836619
-60/59.5
264
184.9
SMD065
SMD066
DD
DD
642427
5836356
-60/239.5
264
350
641936
5836807
-60/59.5
264
294
Incl.
SMD067
DD
641884
5836880
-60/59.5
264
236
Incl.
SMD068
DD
642342
5836414
-60/239.5
264
342
Incl.
SMD069
DD
641725
5837063
-60/59.5
264
130.7
128
156
160
160
21
131
162
162
161
40
106
107
20
121
128
15
17
16
25
107
50.3
98
285
22
26
47
129
129
18
30
34
27
109
102
102
287
37
37
4.3
3.0
6.0
2.0
1.0
19
1.0
27
8.0
1.0
3
13
18
2.0
2.0
4
2
15
11
2.06
0.44
2.43
0.25
3.95
0.38
7.46
0.61
10.5
0.86
0.30
1.10
0.16
5.5
0.26
5.12
1.48
34
26.8
8.48
201
No Significant Results
0.41
0.53
0.11
8.0
51.7
0.39
0.43
0.35
1.21
0.27
1.32
1.75
0.31
0.26
0.65
0.12
13
27
8
16
1.8
0.32
0.12
6.7
2022 Annual Report | Page 42
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD070
DD
642199
5836451
-60/59.5
264
275.9
Incl.
and
and
SMD071
SMD072
SMD073
DD
DD
DD
642616
5835650
-60/59.5
264
562.6
641585
5837196
-60/59.5
264
100.9
641473
5837155
-60/59.5
264
409.9
20
65
69.3
71
95
84
73
72
149
359
153
364
Incl.
361.1
362
75.0
0.60
0.19
19.0
1.48
0.40
3.7
1.0
6.02
1.18
9.23
2.67
125
No Significant Results
No Significant Results
4.0
5.0
0.9
1.31
0.31
0.25
1.67
0.42
4.58
SMD074
DD
642162
5836437
-60/59.5
264
302
25
59
34.0
0.32
176
183.6
7.6
1.36
0.24
193
197.7
4.35
1.94
0.27
213
234.3
21.3
1.31
0.43
SMD076
DD
642174
5836523
-60/59.5
264
198.4
Incl.
128
139
144
144
16
5
1.01
0.24
6.5
2.42
0.55
SMD078
DD
642237
5836464
-60/59.5
264
274.9
227.2
231
3.8
4.97
3.08
SMD079
DD
642099
5836496
-60/59.5
264
306.7
SMD080
DD
642196
5836406
-60/59.5
264
309.3
24
86
141
153
159
41
87
144
154
161
17
0.31
1
3
1
2
1.29
0.41
1.38
0.15
1.16
0.31
0.64
1.82
207.9
211
3.1
3.16
0.70
23
25
25
52
2
27
1.75
0.58
5
15
66
6
27
51
7
10
6
14
81
9
5
8
8.4
30
154
157.95
3.95
3.78
0.43
54
Incl.
156
157.95
1.95
7.02
0.35
102
189
196
7
1.07
0.26
224.2
230.6
6.4
2.71
0.52
23
8.3
SMD081
DD
642837
5835899
-60/51
268
197
No Significant Results
SMD082
DD
642264
5836342
-60/59.5
264
313.4
Incl.
Incl.
32
99
117.3
85.3
0.82
117.3
18.3
2.56
0.16
9.4
104.5
116
11.5
3.76
0.23
243
247.8
4.8
2.42
0.31
14
25
SMD083
DD
642599
5835995
-60/49.5
264
433.1
29
41
12
0.29
2022 Annual Report | Page 43
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD084
DD
642236
5836364
-60/59.5
264
278.1
SMD085
DD
642444
5836022
-60/49.5
264
522.3
Incl.
Incl.
Incl.
Incl.
43
132
157
197
28
339
357
72
201
201
201
67
362
361
358
359
29
69
44
4
39
23
4
1
0.44
1.00
0.18
1.43
0.26
4.16
0.61
0.41
1.07
0.11
4.44
0.26
9.44
0.22
SMD086
DD
642465
5836370
-60/239.5
264
385.9
142
154
12
1.01
0.18
Incl.
149
153
261
262
301
308
318
321
326
327
SMD087
DD
642060
5836522
-60/59.5
264
268.3
24
40
5.4
7.3
23
7.9
6.4
2.6
5.3
7.9
15
0.32
4
1
7
3
1
16
87
24
2
2.33
0.42
2.17
7.06
0.16
0.48
0.49
0.29
3.4
5.90
0.33
47
0.37
1.74
0.57
4.19
1.27
11.75
1.45
20
53
66
140
2276
163
187
170
172
181.7
183.2
1.5
13.28
2.58
209
185.6
186.4
0.8
24.1
1.16
249
185
187
218
227
226
227
2
9
1
9.95
0.71
107
0.89
4.09
1.83
1.30
10.05
39
48
Incl.
and
and
and
and
Incl.
and
SMD088
DD
642427
5836445
-60/239.5
264
405.5
212.3
242.3
30
1.98
0.23
9.1
Incl.
and
Incl.
and
and
216
226.8
10.8
3.20
0.31
233.2
239
5.8
3.54
0.43
319.5
370
50.5
0.88
0.11
319.5
331.2
11.7
1.42
0.15
342
357.6
15.6
1.26
0.17
365.6
370
4.4
1.61
0.20
16
14
3.8
4.5
5.0
5.7
2022 Annual Report | Page 44
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD089
DD
642502
5836384
-60/239.5
262
SMD090
DD
642068
5836563
-60/59.5
262
502.1
Incl.
Incl.
Incl.
Incl.
Incl.
213.8
Incl.
SMD091
DD
642374
5836383
-60/59.5
262
191
SMD092
DD
642346
5836411
-60/59.5
262
222
SMD093
DD
642153
5836294
-60/59.5
262
515.1
Incl.
Incl.
87
91
98.8
11.8
1.54
0.42
94
3
3.28
1.09
214
233.9
19.9
2.40
0.35
219
226.1
7.1
4.30
0.52
219
222
3
6.02
0.71
271
280.7
9.7
3.10
0.97
14
34
17
35
52
26
88
273
275
273
274
58
56
2
1
35
2
7.86
2.09
11.05
2.73
131
0.40
1.10
1.06
18
23
54
35
35
36
No Significant Results
No Significant Results
334.7
299.7
0.40
99
54
64
18
0.68
1.11
SMD094
DD
642205
5836237
-60/59.5
262
608.3
50
103
Incl.
306
310
4
53
3.17
0.26
0.39
304.6
334.7
30.1
1.44
0.21
4.4
7.5
347
351.9
4.9
2.14
0.33
9.8
SMD095
DD
642205
5836237
-60/59.5
262
304.6
28
78
224
234
SMD096
DD
642319
5836284
-60/71.5
262
287.7
33
58
152
154
220
235
Duplicate Sample
220
235
Incl.
222
223
SMD097
DD
642319
5836284
-60/88.5
262
298.6
38
56
50
10
25
2
15
15
1
18
0.40
2.33
0.45
20
0.52
1.25
3.26
0.62
3.59
2.73
10
16
18
2.41
24.6
16.5
0.63
SMD098
DD
642102
5836364
-60/59.5
262
449.1
SMD099
DD
642063
5836352
-60/59.5
262
531
255.8
260.6
4.8
3.56
0.46
29
64
51
89
131
183
184
25
80
1
0.26
0.31
1.79
0.47
6.4
2022 Annual Report | Page 45
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD100
DD
642396
5836495
-60/239
259
451.8
118
121.6
3.6
0.34
0.21
222
226
297
305
4
8
0.20
0.51
0.66
0.27
332.2
341
8.8
1.57
0.24
SMD101
DD
642044
5836427
-70/59
260
379.7
24
31
93
40
51
94
144
149
SMD102
DD
642471
5836355
-60/223
260
350.6
50
54
16
20
1
5
4
0.21
0.61
1.22
0.17
0.30
0.11
0.16
13
2.7
7.2
4.5
3.9
9.7
2.2
134
177
43
0.24
248.1
253
4.9
1.54
0.29
4.8
270
290
320
321
20
1
0.25
1.13
1.44
4.4
SMD103
DD
642196
5836425
-60/59
261
214.6
24.4
59.6
35.2
0.25
24.4
190
165.6
0.33
24.4
59.6
35.2
0.25
117
147.2
30.2
0.35
0.17
185
188
3
5.52
0.45
Incl.
and
Incl.
SMD104
DD
642225
5836386
-60/59
261
285.6
Incl.
Incl.
35
95
179
151
179
SMD105
DD
642009
5836628
-60/59
258
315.6
22
29
SMD106
DD
642015
5836661
-60/59
258
193.8
857
133
126
139
84
28
7
13
48
1.55
0.23
3.31
0.49
0.30
0.40
0.37
1.39
6.33
179
144
1.04
0.15
2
10
3.4
5.0
7.1
8
12
29
38
Incl.
Incl.
and.
SMD107
DD
642471
5836359
-60/59
260
232.8
Incl.
1158
131.7
16.7
3.13
17.93
116
118
2
0.74
132
130.8
131.7
0.9
21.10
17.45
232
26
45
46
60
53
49
34
0.61
0.07
8
3
1.37
0.18
2.51
0.36
14
40
63
2022 Annual Report | Page 46
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD108
DD
642031
5836548
-60/59
260
310.7
22
90
68
0.27
150.9
172.6
21.7
2.06
0.53
Incl.
164.9
171.2
6.3
3.57
1.17
17
25
254.6
264.6
10
1.33
0.16
7.8
Incl.
255.2
259.6
4.4
2.24
0.29
12
SMD109
DD
642261
5836257 -60/59
260
399.2
35
77
262
265
42
3
0.53
1.35
0.20
283.5
295
11.5
2.74
0.35
Incl.
292
294.1
2.1
7.25
0.67
2.7
4.5
11
SMD110
DD
642000
5836699
-60/59
260
252.4
Incl.
20
33
97
65
41
106
Incl.
102
105
45
0.28
8
9
3
0.44
0.20
2.5
2.34
0.56
4.50
0.87
12
17
SMD111
DD
641977
5836648
-60/59
260
294.2
Incl.
Incl.
and
36.7
83
87
87
131
166
131
148
164
166
50.3
0.27
0.14
2.5
4
35
17
2
0.82
0.97
10
0.46
0.92
9.4
0.42
1.34
2.85
2.25
10
45
SMD112
DD
641971
5836718
-60/59
260
274.4
119.6
147.6
28
0.79
0.16
5.4
SMD113
DD
642031
5836553
-58/56
260
280.3
25
71
153
174
134.1
146
11.9
1.56
0.29
Incl.
Incl.
135
139
4
46
21
2.49
0.41
0.35
0.50
0.15
230
239.9
9.9
1.08
0.06
SMD114
DD
641558
5835953
-65/59
260
1844.8
830
842
Incl.
839
841
SMD115
DD
641995
5836579
-60/59
261
296.3
SMD116
DD
641972
5836613
-60/58
261
304.2
23
23
62
72
12
2
39
49
1.43
0.23
4.98
0.61
0.26
0.35
SMD117
DD
641940
5835842
-60/58
261
1711.8
No Significant Results
SMD118
DD
641936
5836691
-60/52
261
247.9
No Significant Results
SMD119
DD
641927
5836771
-60/59
262
246.5
No Significant Results
SMD120
DD
641896
5836793
-62/58
261
233
No Significant Results
12
19
6.5
5.9
7.4
25
2.7
2022 Annual Report | Page 47
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD121
DD
641875
5836711
-60/60
261
292.9
26
41
104
177
15
73
0.31
0.64
0.70
6.8
SMD122
DD
641926
5836671
-60/58
261
292.6
21
27
SMD123
DD
642209
5836316
-60/59
261
380.1
Incl.
101
119
158
160
172
189
31
52
78
62
231
233
SMD124
DD
641858
5836779
-60/59
261
242.8
16
24
110.4
112
1.6
1.72
20.47
150
177
27
1.04
0.46
Incl.
and
Incl.
170
177
246
247
30
11
19
2.56
1.00
1.67
0.18
39.4
0.32
0.15
1.4
0.26
25
0.26
1.71
7.3
0.65
0.13
10
0.59
1.15
1.73
0.41
1.6
7
1
6
18
2
17
47
10
2
8
SMD125
DD
641885
5836827
-60/59
261
168.5
122
135
13
0.41
12
SMD126
DD
641846
5836813
-60/59
257
248
No Significant Results
SMD127
DD
641849
5836739
-60/59
258
289.9
22
44
22
0.37
126
200.8
74.8
0.37
0.23
5.9
Incl.
Incl.
and
151
159
156
158
8
2
1.36
0.81
2.78
1.26
199.3
200.8
1.5
2.46
0.81
SMD128
DD
641887
5836759
-60/59
257
256.5
No Significant Results
SMD129
DD
641821
5836766
-60/59
258
269.7
No Significant Results
SMD130
DD
641824
5836837
-60/59
260
234.5
Incl.
15
37
74
40
59
3
0.48
1.82
127
140.05
13.05
0.83
0.26
Incl.
138
140.05
2.05
1.76
0.39
17
33
37
5.5
7.0
35
181
186
Incl.
181
182
5
1
1.24
0.87
1.67
149
SMD131
DD
641851
5836885
-60/59
262
196.6
Incl.
Incl.
18
28
32
83
45
37
36
90
27
0.85
0.12
5.3
9
4
7
1.82
0.20
3.11
0.26
1.65
0.41
11
20
30
2022 Annual Report | Page 48
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
6.5
6.2
17
44
8
29
SMD132
DD
641898
5836677
-60/53
261
302.8
SMD133
DD
641858
5836854
-60/59
261
214.7
27
96
55
112
28
16
0.35
0.34
0.24
SMD134
DD
641806
5836878
-60/59
261
184.6
101
149.8
44.29
0.61
0.26
Incl.
Incl.
134
149.8
11.29
1.71
0.59
148.4
149.8
1.4
3.18
0.39
SMD135
DD
641773
5836945
-60/59
261
188.8
Incl.
Incl.
66.6
66.6
93
73
67.3
68.3
121
134
Incl.
133
134
SMD136
DD
641736
5836932
-60/59
261
273.4
SMD137
DD
641731
5837009
-60/59
257
211
SMD138
DD
641691
5836994
-60/59
258
249.3
SMD139
DD
641728
5836900
-60/59
258
240.5
SMD140
DD
641801
5836887
-60/59
257
264
Incl.
29
30
94
94
37
26.410
1.17
0.17
6.410
4.02
0.50
1
13
1
75
21.2
1.75
142
1.54
2.2
203
10.05
25.2
2540
0.32
104
35.8
5.8
1.39
0.19
8
No Significant Results
No Significant Results
173
103
57
79
9
20
0.38
0.10
4.7
1.25
0.18
19
0.27
93.8
143
49.2
0.96
0.28
94.4
97
2.6
2.16
0.55
114
118
127
136
4
9
2.42
0.56
1.95
0.43
Incl.
and
and
SMD141
DD
641704
5837042
-60/59
257
237.2
SMD142
DD
641685
5837073
-60/59
257
232.9
SMD143
DD
641665
5837027
-60/59
258
249.4
No Significant Results
No Significant Results
No Significant Results
SMD144
DD
641661
5836957
-60/130
259
279.4
186
212
26
0.44
0.14
SMD145
DD
641648
5837059
-60/59
257
264.3
148
152
Incl.
186
188
2
4
1.40
0.27
0.87
0.19
11
10
25
17
2.6
5.4
29
SMD146
DD
641777
5836855
-60/59
257
298.9
130.8
149
18.2
0.59
0.24
8.1
SMD147
DD
641799
5836823
-60/59
257
316.9
11.8
19
27
18
32
32
Incl.
132.2
135
132
136
2.8
6.2
13
5
4
1.74
0.72
20
1.38
0.72
0.65
1.14
1.64
3.4
7.1
1.29
Incl.
160.4
164
3.6
3.31
0.43
38
2022 Annual Report | Page 49
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD148
DD
641981
5836424
-60/59
257
651.5
SMD149
DD
641930
5836640
-60/59
257
326.5
Incl.
42
22
22
76
32
24
209
211
34
10
2
2
0.39
0.49
0.15
1.01
0.60
3.27
1.13
1.8
3.8
6.8
SMD150
DD
641815
5836800
-60/59
257
278.5
22
37
15
0.33
144
149
181
183
5
2
0.96
0.18
9.3
1.47
0.88
21
SMD151
DD
642129
5836210
-60/59
257
901.4
Incl.
77
78
194
117
0.48
99
21
8
1.38
1.04
0.10
6
410
418
SMD152
DD
642196
5836351
-60/59
257
354.2
26.7
138
111.3
0.35
Incl.
27.6
35
7.4
1.44
219
283.1
64.1
1.04
0.13
219
237
249
254
18
5
1.49
0.10
1.65
0.27
273.4
283.1
9.7
2.48
0.38
3.5
4.0
5.6
8.6
Incl.
and
and
SMD153
DD
642029
5836513
-60/59
257
19.1
Hole abandoned – no samples
SMD154
DD
641845
5836570
-60/59
262
451
Incl.
21
21
210
189
0.25
50
29
0.40
355
364.3
9.3
0.26
4.2
SMD155
DD
641903
5836490
-60/59
262
463.6
No Significant Results
SMD156
DD
642157
5836387
-60/59
262
355.9
Incl.
Incl.
and
28
35
45
39
17
4
0.77
1.78
247
269.8
22.811
2.27
0.38
247
250
3
6.86
1.00
265.1
269.8
4.712
4.07
0.78
SMD156W1
DD
642157
5836387
-60/59
262
291.1
246.9
270
23.113
1.67
0.25
Incl.
246.9
250
3.114
6.21
0.69
SMD157
DD
642077
5836264
-60/59
262
533.2
SMD158
DD
642054
5836182
-60/59
262
669.4
Incl.
54
28
89
200
146
0.33
56
99
28
10
0.77
0.70
213
330
117
0.30
19
11
77
19
77
2022 Annual Report | Page 50
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
(m)
(m)
(m)
(%)
(g/t)
(g/t)
Ni
(%)
SMD159
DD
642536
5836394
-60/180
262
642.6
348.9
351
1.1
4.58
0.33
375
376
419
420
1
1
1.21
0.13
1.73
474.3
480.2
5.9
3.92
0.45
496
498.1
2.1
2.49
0.27
528
554.8
26.8
1.55
0.35
Incl.
547.3
553.3
6
3.81
1.05
24
4.3
5.3
7.4
11
10
23
SMD160
DD
642167
5836085
-60/49
262
717.5
No Significant Results
SMD161
DD
642393
5835880
-60/49
262
718.7
SMD162
DD
642480
5835930
-60/49
262
593.4
34
28
71
42
544
545
572
574
37
14
1
2
0.26
0.29
5.01
0.17
1.16
5.8
SMD163
DD
642542
5835856
-60/49
262
630.8
No Significant Results
SMD164
DD
642433
5836177
-60/52
262
276
29
91
45
92
161
205
16
1
44
0.39
2.59
0.70
13
0.93
0.13
4.3
SMD165
DD
642383
5836217
-60/50
262
Incl.
Incl.
267.3
198
203.8
5.8
5.38
0.77
203
203.8
0.8
16
0.71
29
59
157
158
30
1
0.51
1.08
0.48
215.1
218.3
3.2
7.08
0.46
SMD166
DD
642418
5836238
-60/50
262
247.9
SMD167
DD
642469
5836199
-60/50
262
232.3
26
25
67
71
205
206
Incl.
215.1
216.1
1
41
46
1
16.35
0.81
0.26
0.18
2.82
SMD168
DD
642483
5836138
-60/50
262
180.3
No Significant Results
SMD169
DD
642532
5836095
-60/50
263
260
35
61
26
0.27
SMD170
DD
642573
5836258
-60/50
261
118.7
SMD171
DD
642580
5836125
-60/50
262
247.6
No Significant Results
No Significant Results
SMD172
DD
642547
5836125
-60/50
260
226.8
24
36
12
0.23
23
42
15
11
24
2022 Annual Report | Page 51
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMD173
DD
642313
5836113
-60/50
262
538.6
62
86
328
331
24
3
0.37
3.81
0.11
457
Incl.
Incl.
and
328
329.1
1.1
2.53
0.10
1,225
378
421
43
2.60
0.42
396
399
397
398
3
1
10.38
3.00
19.65
8.29
202
10
71
SMD174
DD
642500
5836147
-60/50
262
235.7
SMD175
DD
642594
5836062
-60/50
262
233.7
Incl.
and
27
27
79
44
45
59
105
61
85
SMD176
DD
642271
5836155
-60/50
262
480.1
340
344
32
26
17
40
4
0.25
0.24
0.46
0.58
1.29
0.12
7.7
131
104
0.20
SMD177
DD
642534
5836167
-60/50
262
198.5
No Significant Results
SMD178
DD
642374
5836143
-60/50
262
334.4
SMD179
DD
642330
5836184
-60/50
262
317.6
SMD180
DD
642408
5836101
-60/50
262
322.8
SMD181
DD
642383
5836050
-60/50
262
533.2
34
39
31
30
0.30
41
67
128
7
28
99
0.74
0.36
43.3
13.315
0.21
43.8
67
60
77
421
425
15.2
0.48
10
4
0.56
0.87
0.23
SMD182
DD
642372
5835979
-60/50
262
616.6
58
77
1916
0.49
421.1
431.5
10.4
4.34
3.17
Incl.
and
426
430.9
4.9
6.74
6.45
430
430.9
0.9
7.17
30.6
11
19
52
503
517
Incl.
515
517
14
2
1.24
0.72
8.2
3.56
3.33
25
SMS001D
SMS002AD
Sonic/
DD
Sonic/
DD
642197
5836489
-60/59.5
264
212
No Significant Results
642275
5836478
-60/59.5
264
105.4
No Significant Results
SMS003
Sonic
642207
5836523
-60/59.5
264
97
No Significant Results
SMS004
Sonic
642150
5836555
-60/59.5
264
131.5
No Significant Results
SMS005
Sonic
642125
5836587
-60/59.5
264
85.5
No Significant Results
2022 Annual Report | Page 52
OPERATIONS REPORT
Thursday’s Gossan Prospect – Cayley Lode Intercept Table
MGA 94 zone 54
Intercept
Hole id
Hole
Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
From
To
Width
Cu
Au
Ag
Ni
(m)
(m)
(m)
(%)
(g/t)
(g/t)
(%)
SMS006
Sonic
642102
5836620
-60/59.5
264
76
SMS007
Sonic
642085
5836654
-60/59.5
264
64
Incl.
Incl.
Incl.
SMS008
Sonic
642055
5836680
-60/59.5
264
64
SMS009
Sonic
642011
5836730
-60/59.5
264
54
Incl.
Incl.
SMS009A
Sonic
642011
5836730
-60/59.5
264
80
SMS010
Sonic
642083
5836614
-60/59.5
264
83
Incl.
SMS011
Sonic
642106
5836581
-60/59.5
264
88
SMS012
Sonic
642193
5836530
-60/239.5
261
80
Incl.
Incl.
SMS013
Sonic
642212
5836497
-60/234.5
262
58
Incl.
Incl.
1.46
3
19
45
13
22
24
42
20
20
32
51
43
20
38
22
43
46
52
10
31
38
51
51
47
39
42
39
45
45
23
54
54
49
79
41
42
77
55
55
40
40
39
48
32
2
26
20
15
3
25
3
22
3
6
59
3
20
34
9
3
30
9
1
0.29
0.26
1.42
0.32
12
0.77
1.36
0.85
1.68
1.09
12
14
0.45
1.13
1.01
0.69
0.13
1.87
0.47
3.00
0.59
0.44
0.20
1.33
0.84
0.31
0.90
0.24
16
3.6
16
15
2.2
6.5
2.24
0.67
18.0
5.20
1.46
30.0
0.23
1.13
0.60
3.52
2.53
4.2
14
Chalcocite Blanket results are shown in blue.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Excluding 13.9m of core loss
Excluding 13.2m of core loss
Excluding 10.8m of core loss
1.8m of core loss immediately above this interval
0.4m of core loss included in this interval
0.3m of core loss included in this interval
0.6m core loss included in this interval
0.3m core loss included in this interval
4.6m core loss included in this interval
10. 0.5m core loss included in this interval
11. 1.3m core loss included in this interval
12. 0.9m core loss included in this interval
13. 0.4m core loss included in this interval
14. 0.4m core loss included in this interval
15. 0.7m core loss included in this interval
16. 1.1m core loss included in this interval
.
2022 Annual Report | Page 53
OPERATIONS REPORT
JORC Compliance Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Mr Chris Cairns, a Competent Person who is a Fellow of the Australian Institute of
Geoscientists (#2862) and a Fellow of the Australasian Institute of Mining and Metallurgy (#990900). Mr Cairns is a full-time
employee of the Company. Mr Cairns is Executive Chair and Managing Director of Stavely Minerals Limited and is a
shareholder and 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.
The information in this Annual Report regarding Mineral Resource Estimates is extracted from the report entitled ‘Standout
Initial Mineral Resource Estimate for the Cayley Lode’ created on 14 June 2022 and is available to view on www.asx.com.au;
ticker SVY, and, www.stavely.com.au. Mr Cairns was the compiling Competent Person for the 14 July 2022 Mineral Resource
report. The Mineral Resource was reviewed for the annual report by Mr Christopher Cairns in September 2022. 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.’ The Company confirms that it is not aware of
any new information or data that materially affects the information included in the original market announcement and, in
the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.’
Bibliography
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., 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.
Schofield, A. (ed) 2018, Regional geology and mineral systems of the Stavely Arc, western Victoria. Record
2018/02. Geoscience Australia, Canberra.
2022 Annual Report | Page 54
DIRECTORS’ REPORT
Your Directors present their report for the year ended 30 June 2022.
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.
Christopher Cairns
B.Sc (Hons)
Executive Chair and Managing Director (Appointed 23 May 2006, appointed Chair 14 September 2018)
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 Fellow of the Australian Institute of Geoscientists, a Fellow of the Australian Institute of Mining
and Metallurgy, a member of the JORC Committee and a member of the Society of Economic Geologists and
Chair of the Australian Prospectors and Miners Hall of Fame.
Other directorships of listed companies in the last three years: E79 Gold Mines Limited.
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.
Other directorships of listed companies in the last three years: None.
2022 Annual Report | Page 55
DIRECTORS’ REPORT
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 E79 Gold Mines Limited.
Mr Ironside is a member of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: E79 Gold Mines Limited.
Amanda Sparks
B.Bus, CA, F.Fin
Non Executive Director (Appointed 14 September 2018) and Company Secretary (Appointed 7 November 2013)
Ms Amanda Sparks is a Chartered Accountant and a Fellow of the Financial Services Institute of Australasia.
Ms Sparks has over 30 years of resources related financial experience, both with explorers and producers.
Amanda brings a range of important skills to the Board with her extensive experience in financial management,
corporate governance and compliance for listed companies.
Ms Sparks is a member of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: None.
Robert (Rob) Dennis
B.App.Sc, FAusIMM
Non Executive Director (Appointed 24 May 2021)
Mr Robert (Rob) Dennis is a mining engineer with over 45 years’ experience in the nickel, copper, gold and
alumina industries. Rob is a skilled leader and has extensive base metals and precious metals operational,
technical and project development experience. Past positions included, CEO and MD of Poseidon Nickel
Limited, COO for the Independence Group (IGO) where he was responsible IGO’s nickel, copper, zinc and gold
operations including overseeing the development and commissioning of IGO’s Nova Nickel Project.
Prior to that, he held positions including COO Aditya Birla Minerals Ltd where he managed the expansion and
development of the Nifty Copper Project in the North West of Western Australia and the Mt Gordon operation
in North Queensland, General Manager Project Development for Lionore Australia, General Manager
Operations for Great Central Mines and Chief Mining Engineer for Western Mining Corporation.
Mr Dennis is Chair of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: None.
2022 Annual Report | Page 56
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, 6 meetings of directors were held. The number of meetings attended by each
director during the year is as follows:
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
Board of Directors
Audit and Risk Committee
Meetings
Held**
6
6
6
6
6
Meetings
Attended
6
6
6
6
6
Meetings
Held**
*
2***
2
2
2
Meetings
Attended
*
2***
2
2
2
* Not a member of the Audit and Risk Committee
** Number of meetings held where the Director was a member of the Board or Committee.
*** Resigned from the Audit and Risk Committee on 3 March 2022.
In addition to formal Board meetings, four of the Directors work in the same office and hold discussions on a
regular 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
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
DIVIDENDS
Number of
Shares
(direct and
indirect)
8,232,268
5,346,704
32,087,982
2,371,206
644,444
Number of
Unlisted
Options at
$1.47,
expiry
30/11/2022
750,000
550,000
375,000
375,000
-
Number of
Unlisted
Options at
$0.66,
expiry
30/11/2022
-
-
-
-
250,000
Number of
Unlisted
Options at
$1.20,
expiry
31/10/2023
1,000,000
850,000
575,000
575,000
-
Number of
Unlisted
Options at
$0.71,
expiry
30/11/2024
1,000,000
850,000
575,000
575,000
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
Stavely Pastoral Pty Ltd*
Energy Metals Australia Pty Ltd**
*(formerly Van Diemens Gold Pty Ltd)
**(formerly Stavely Tasmania Operations Pty Ltd)
-
-
-
parent entity
100% owned controlled entity
100% owned controlled entity
2022 Annual Report | Page 57
DIRECTORS’ REPORT
Principal Activity
The Group’s principal activity was mineral exploration for the year ended 30 June 2022. There were no
significant changes in the nature of the principal activities during the year.
Operations review
Refer to the Operations Review on pages 7 to 54.
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
Year
Year
30 June 2022
30 June 2021
$
$
922,218
13,819,962
(13,971,797)
(21,174,282)
(10,493,200)
(19,929,496)
Net fair value loss on financial assets at fair value through profit or loss
(1,117,161)
(125,488)
Equity-based payments
Basic loss per share from continuing operations
Net cash used in operating activities
Net cash used in investing activities
Net cash (used in)/from financing activities
During the year:
(802,995)
(1,238,784)
(5.35) cents
(8.28) cents
(11,954,730)
(21,490,322)
(846,846)
(171,462)
(96,168)
26,056,814
- On 17 March 2022, the Company entered into a property purchase agreement for a 524-acre farm,
residence and an additional residential block adjacent to the Thursday’s Gossan prospect, part of its
100%-owned Stavely Copper-Gold Project in western Victoria. An initial deposit of $1,000,000 was paid
during the year, with the balance of $2.4 million paid on settlement which occurred after the reporting
period.
-
Expenditure on exploration totalled $10,493,200 (2021: $19,929,496).
- Net fair value loss on financial assets at fair value through profit or loss was $1,117,161 (2021: loss of
$125,488). In June 2022, these financial assets were sold for a further loss of $40,819.
-
Share based payments expense for options granted of $802,995 (2021: $1,238,784).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group anticipates to continue its exploration activities.
2022 Annual Report | Page 58
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The Directors present the 2022 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
Peter Ironside
Amanda Sparks
Robert Dennis
Executive Directors
Christopher Cairns
Jennifer Murphy
Other
Mark Mantle
–
–
–
–
–
-
Director (from 23 May 2006)
Director (from 14 September 2018)
Director (from 24 May 2021)
Executive Chair and Managing Director (from 23 May 2006,
Chair from 14 September 2018)
Technical Director (from 8 March 2013)
Chief Operating Officer (from 20 January 2022)
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.
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 near future, will establish appropriate, demanding performance hurdles in relation to variable
Executive remuneration.
2022 Annual Report | Page 59
DIRECTORS’ REPORT
As Stavely is an exploration company, not yet generating income, a greater use of equity-based remuneration is
considered appropriate both to preserve capital and to retain and incentivise the Directors.
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 a portion consisting of options, as considered appropriate by the Board, which are
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. The aggregate remuneration for non-Executive Directors is
currently $250,000 per annum approved by Shareholders with the adoption of the Company’s Constitution on
7 November 2013.
Executive 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 short and long-term incentive portions 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.
Variable Pay – Short and Long-Term Incentives - Objective
The objective of short and long-term incentives is to reward Executives in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As Stavely is an exploration company, there are usually
no performance hurdles attached to equity awards. The Board however may include an incentive portion that
2022 Annual Report | Page 60
DIRECTORS’ REPORT
is payable based upon attainment of objectives related to the Executive’s job responsibilities. The objectives will
vary, but are to be targeted to relate directly to the Group’s business and financial performance and thus to
shareholder value.
Variable Pay — Short and Long-Term Incentives – Structure
Short and long-term incentives granted to Executives are delivered in the form of options and/or performance
rights. The option and performance rights are incentives aimed to motivate Executives to pursue the 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. Performance hurdles may be attached and 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.
Variable Pay — For 2022/2023
The Board, excluding the Executive Directors, has established criteria for Performance Rights for Executive
Directors, Christopher Cairns and Jennifer Murphy, and Chief Operating Officer, Mark Mantle, for the 2022/2023
year. The Board considers Performance Rights are an appropriate form of incentive as it provides incentive
milestones for the Performance rights to be satisfied. Milestones will be based on criteria relevant to the
Executive, which may include share price targets and other Company’s internal goals, eg ESG performance and
securing government funding. The Performance Rights for the Executive Directors, together with quantum and
criteria, will be provided in Stavely’s 2022 Notice of Annual General Meeting and are subject to Shareholder
approval. In addition, Options to be granted to Executive Directors for 2022/2023, will require a retention period
prior to vesting. These proposed Options will be detailed in Stavely’s 2022 Notice of Annual General Meeting
and are subject to Shareholder approval.
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.
Director Name
Term of agreement
Christopher Cairns
Commenced 22/1/2014 (varied effective
1/11/2017, 1/12/2019 & 1/7/2021)
Jennifer Murphy
Commenced 22/1/2014 (varied effective
1/11/2017, 15/10/2018, 31/12/2019 &
1/7/2021)
Base annual salary
exclusive of
statutory
superannuation at
30/6/2022
Termination
benefit
$340,000
12 months
$260,000
12 months
Peter Ironside
Ongoing, subject to re-elections
$50,000
None
Amanda Sparks
Ongoing, subject to re-elections
$100,000
None
Robert Dennis
Ongoing, subject to re-elections
$50,000
None
Other KMPs
Term of agreement
Base annual
salary exclusive
of statutory
superannuation
at 30/6/2022
Termination
benefit
Mark Mantle
Commenced 20 January 2022
$320,000
12 months
2022 Annual Report | Page 61
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:
Short Term
Long Term
Post
Employment
Share Based
Cash salary,
directors fees,
consulting fees,
insurances and
movement in
current leave
provisions
$
331,676
305,938
285,875
219,300
50,000
50,000
100,000
100,000
50,000
5,250
139,897
-
957,448
680,488
Directors
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
Other KMPs
Mark Mantle(2)
TOTAL
Year
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Movement in
non-current
leave provisions
$
Superannuation
$
Total Cash
and
Provisions
$
-
4,749
-
3,482
-
-
-
-
-
-
148
-
148
8,231
23,568
21,694
23,568
20,900
5,000
4,749
10,000
9,500
5,000
499
9,820
-
76,956
57,342
355,244
332,381
309,443
243,682
55,000
54,749
110,000
109,500
55,000
5,749
149,865
-
1,034,552
Total including
share based
payments
$
519,944
612,381
449,438
481,682
149,703
215,749
204,703
270,500
99,434
32,249
149,865
-
1,573,087
Options (1)
$
164,700
280,000
139,995
238,000
94,703
161,000
94,703
161,000
44,434
26,250(3)
-
-
538,535
746,061
866,250
1,612,311
(1) Equity based payments – options. These represent the amount expensed for options granted and vested in the year.
(2) Appointed as a KMP from 20 January 2022.
(3) Options issued after end of financial year after Shareholder approval.
There were no performance related payments made during the year. Performance hurdles were not attached
to remuneration options as these options were to provide an incentive component of remuneration to motivate
and reward the performance of the recipients and to provide a cost-effective way for the Company to
remunerate, which allows the Company to spend a greater proportion of its cash reserves on exploration than
it would if alternative cash forms of remuneration were given.
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.
2022
Directors
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
Other KMPs
M Mantle(1)
Number of Options
at $1.20,
expiry 30/11/2024
Number of Options
At $0.66
expiry 30/11/2022
Value* per option
at grant date
$
1,000,000
850,000
575,000
575,000
300,000
-
-
-
-
-
250,000
-
0.16
0.16
0.16
0.16
0.16/0.09
-
(1) No options granted post appointment as Chief Operating Officer.
These options were granted to recognise the contribution made by the Directors, and to acknowledge that the
inclusion of options as remuneration is preferable for the Company rather than paying a higher cash base
2022 Annual Report | Page 62
DIRECTORS’ REPORT
remuneration, which adds value for Shareholders. By offering these incentives in the form of options, rather
than cash, the Company can maximise the availability of cash for the Company’s future exploration activities.
The issue of these Director options was approved by Shareholders at the Company’s Annual General Meeting
held on 12 November 2021.
* Value at grant date has been calculated in accordance with AASB 2 Share-based Payment. The options were
valued using the Hoadley Trading & Investment Tools ES02 trinomial option valuation model, taking into account
the exercise price, term of option, the share price at grant date, the expected early exercise multiple, expected
price volatility of the underlying share, expected dividend yield and the risk-free interest rate for the term of the
option. The expected early exercise multiple is factored into the valuation using the binomial model. The model
incorporates an exercise factor, which determines the conditions under which an option holder is expected to
exercise their options. It is defined as a multiple of the exercise price (eg 2.5 reflects that on average employees
tend to exercise their options when the stock price reaches 2.5 times the exercise price). The expected future
volatility is based on historical volatility over one, two and three year trading periods.
The inputs to the models used were:
Grant date
Spot price ($)
Exercise price ($)
Vesting date
Expiry date
Expected future volatility (%)
Risk-free rate (%)
Early exercise multiple
Dividend yield (%)
Value of Each Option ($)
Number of Options Granted
Valuation Method
12/11/2021
12/11/2021
0.48
0.66
0.48
0.71
immediately
immediately
30/11/2022
30/11/2024
70
0.61
2.5x
-
0.0851
250,000
Trinomial
70
1.02
2.5x
-
0.1647
3,300,000
Trinomial
Shares issued to Key Management Personnel on exercise of compensation options
During the year ended 30 June 2022, no shares were issued to Key Management Personnel on exercise of
compensation options.
2022 Annual Report | Page 63
DIRECTORS’ REPORT
E. EQUITY HOLDINGS AND MOVEMENTS DURING THE YEAR
(a) Shareholdings of Key Management Personnel
30 June 2022
Balance at
beginning of the year
Increase from
Exercise of Options
Other Net change
during the year
Balance at
end of the year
Directors
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
Other KMPS
M Mantle
8,032,268
5,146,705
31,887,982
2,171,206
-
-
47,238,161
-
-
-
-
-
-
-
-
-
-
-
444,444
8,032,268
5,146,705
31,887,982
2,171,206
444,444
-
-
444,444
47,682,605
(b) Option holdings of Key Management Personnel
30 June 2022
Directors
C Cairns
J Murphy
P Ironside
A Sparks
R Dennis
Other KMPs
M Mantle
Balance at
beginning of
the year
Granted as
remuneration
Exercised
during the
year
Balance at
end of the
year
Exercisable
1,750,000
1,000,000
1,400,000
950,000
950,000
-
-
850,000
575,000
575,000
550,000
300,000(1)
5,050,000
3,850,000
-
-
-
-
-
-
-
2,750,000
2,750,000
2,250,000
2,250,000
1,525,000
1,525,000
1,525,000
1,525,000
550,000
550,000
300,000
300,000
8,900,000
8,900,000
(1) Options granted prior to appointment as Chief Operating Officer.
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 $142,213 (net of GST) was paid/payable for office rental and variable
outgoings (2021: $136,588, net of GST).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of E79 Gold Mines Limited (“E79
Gold”). Mr Chris Cairns, Director, is a shareholder and non-executive chair of E79 Gold. E79 Gold sub-leases
office space in the premises the Company occupies. During the year an amount of $27,656 (net of GST) was
paid/payable by E79 Gold to the Company for reimbursement of office rental and associated expenses (2021:
$20,136, net of GST). Stavely Minerals Limited also sold a second-hand motor vehicle to E79 Gold during the
year. The agreed price was $38,173 (excl GST) which was determined after researching prices of similar vehicles
with similar mileage.
2022 Annual Report | Page 64
DIRECTORS’ REPORT
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 98.71% of ‘yes’ votes for its remuneration report for the 2021 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.
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
Unlisted Options
Unlisted Options
Unlisted Options
Number
2,700,000
4,102,500
200,000
250,000
4,737,500
Exercise Price
$1.47
$1.20
$0.56
$0.66
$0.71
Expiry Date
30/11/2022
31/10/2023
30/11/2022
30/11/2022
30/11/2024
No option holder has any right under the options to participate in any other share issue of the Company or any
other related entity.
No options were exercised during the year (2021: None).
EVENTS OCCURRING AFTER THE REPORTING PERIOD
Placement
26,666,667 shares were issued on 12 July 2022, pursuant to a placement to sophisticated and institutional
investors. Gross proceeds were $4,000,000.
Share Purchase Plan
35,326,537 shares were issued on 5 August 2022, pursuant to a Share Purchase Plan (SPP). Gross proceeds
raised under the SPP were $5,298,980.
Property Purchase and Loan Funds
On 15 August 2022, the Company settled on the property purchase of for a 524-acre farm, residence and an
additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned Stavely Copper-
Gold Project in western Victoria.
$1.6 million of loan funding was used towards the acquisition of the land. The funding was provided by two
parties to Stavely’s wholly owned subsidiary, Stavely Pastoral Pty Ltd, as follows:
Under a loan agreement with Legal Mortgage Holdings Pty Ltd (LMH), LMH advanced $1 million on the following
terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum term of 12 months
Secured via a 1st mortgage on the land with a guarantee provided by Stavely Minerals Limited
Under a loan agreement with Anthony Cairns, Anthony Cairns advanced $0.6 million on the following terms:
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum interest term of 12 months
2022 Annual Report | Page 65
DIRECTORS’ REPORT
- Unsecured, with a guarantee provided by Stavely Minerals Limited
There are no other matters or circumstances that have arisen since 30 June 2022 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 67 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 services
2022
$18,410
2021
$19,330
This report is made in accordance with a resolution of directors, pursuant to section 298(2)a of the Corporations
Act 2001. Signed in accordance with a resolution of the Directors.
Christopher Cairns
Executive Chair and Managing Director
Dated this 27th day of September 2022
2022 Annual Report | Page 66
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS
2022 Annual Report | Page 67
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)
ii)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
performance for the year then ended; and
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 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
Christopher Cairns
Executive Chair and Managing Director
Dated this 27th day of September 2022
2022 Annual Report | Page 68
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Revenue and Income
Interest revenue
Rental sub-lease revenue
Profit on sale of fixed assets
Government subsidies
Expenses
Administration and corporate expenses
Administration – equity based expenses
Exploration expenses
Interest expense
Total expenses
Other gains/(losses)
Net fair value losses on financial assets at fair value through
profit or loss
Loss on disposal of financial assets
Gain on disposal of subsidiaries
Total other gains
Loss before income tax
Income tax expense
Loss after income tax attributable to members of
Stavely Minerals Limited
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
Loss per share for the year attributable to the members of
Stavely Minerals Limited
Basic loss per share
Consolidated
Year ended
30 June 2022
Year ended
30 June 2021
Note
$
$
20,895
42,190
38,173
-
101,258
90,370
40,889
12,000
50,000
193,259
2(a)
3
2(b)
2(c)
(1,610,408)
(802,995)
(10,493,200)
(8,472)
(12,915,075)
(1,745,610)
(1,238,784)
(19,929,496)
(13,645)
(22,927,535)
4
4
5
6
7
(1,117,161)
(125,488)
(40,819)
-
(1,157,980)
-
1,685,482
1,559,994
(13,971,797)
(21,174,282)
-
-
(13,971,797)
(21,174,282)
-
-
(13,971,797)
-
-
(21,174,282)
Cents Per
Share
(5.35)
Cents Per
Share
(8.28)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
2022 Annual Report | Page 69
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
ASSETS
Current Assets
Cash and cash equivalents
Other receivables
Financial assets as fair value through profit or loss
Total Current Assets
Non-Current Assets
Other receivables
Right of use assets
Property, plant and equipment
Deferred exploration expenditure acquisition costs
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Lease liabilities – right of use assets
Provisions
Total Current Liabilities
Non-Current Liabilities
Lease liabilities –right of use assets
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
30 June 2022
$
Note
30 June 2021
$
8
9
4
9
10
11
12
13
10
14
10
14
922,218
411,244
-
1,333,462
1,095,013
70,252
157,070
3,672,126
4,994,461
6,327,923
849,613
94,291
289,842
1,233,746
-
45,180
45,180
1,278,926
5,048,997
13,819,962
624,804
1,485,853
15,930,619
75,013
139,644
157,564
3,672,126
4,044,347
19,974,966
1,352,194
86,333
161,947
1,600,474
93,696
62,267
155,963
1,756,437
18,218,529
15
16
76,523,067
7,848,968
(79,323,038)
76,523,797
7,045,973
(65,351,241)
5,048,997
18,218,529
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
2022 Annual Report | Page 70
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
At 1 July 2020
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
Share based payments
Issued
Capital
$
50,033,910
Reserves
$
6,147,189
Accumulated
Losses
$
(44,176,959)
Total
Equity
$
12,004,140
-
-
-
27,787,000
(1,637,113)
-
-
-
-
-
-
1,238,784
340,000
(340,000)
26,489,887
898,784
(21,174,282)
(21,174,282)
-
-
(21,174,282)
(21,174,282)
-
-
-
-
-
27,787,000
(1,637,113)
1,238,784
-
27,388,671
As at 30 June 2021
76,523,797
7,045,973
(65,351,241)
18,218,529
At 1 July 2021
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
76,523,797
7,045,973
(65,351,241)
18,218,529
-
-
-
-
(730)
-
(730)
-
-
-
-
-
802,995
802,995
(13,971,797)
(13,971,797)
-
-
(13,971,797)
(13,971,797)
-
-
-
-
(79,323,038)
-
(730)
802,995
802,265
5,048,997
As at 30 June 2022
76,523,067
7,848,968
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
2022 Annual Report | Page 71
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Consolidated
Year ended
Year ended
30 June 2022
30 June 2021
Note
$
$
Cash flows from operating activities
Receipts in the ordinary course of activities (incl. GST)
Payments to suppliers and employees
Interest received
Net cash flows used in operating activities
8(i)
1,259,012
(13,236,566)
22,824
(11,954,730)
2,017,122
(23,614,812)
107,368
(21,490,322)
Cash flows from investing activities
Payments for plant and equipment
Proceeds from disposal of plant and equipment
Payment for exploration acquisitions (capitalised)
Other – sale of subsidiaries
Other – sale of investments
Other – deposits paid
Payment for bonds
Bonds repaid
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
Payment of lease liabilities (right of use assets)
Net cash flows (used in)/from financing activities
4
9
(75,392)
38,173
(17,500)
-
327,873
(1,000,000)
(120,000)
-
(846,846)
(175,941)
12,000
(587,021)
510,000
-
-
(2,000)
71,500
(171,462)
-
(730)
(95,438)
(96,168)
27,787,000
(1,637,113)
(93,073)
26,056,814
Net (decrease)/increase in cash and cash equivalents
held
Add opening cash and cash equivalents brought forward
(12,897,744)
4,395,030
13,819,962
9,424,932
Closing cash and cash equivalents carried forward
8
922,218
13,819,962
The above consolidated statement of cashflows should be read in conjunction with the accompanying notes.
2022 Annual Report | Page 72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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.
For the year ended 30 June 2022, the Group made a loss of $13,971,797 and had cash outflows from
operating activities of $11,954,730. The Board believe that the measures it has taken enable the Company
to prepare the financial report on a going concern basis. Subsequent to 30 June 2022, the Company
successfully completed a placement and share purchase plan with gross proceeds of $9,298,980. Refer
to Note 23 for further details. The Group has sufficient funding to fund operations over the next 12
months.
The annual report of Stavely Minerals Limited for the year ended 30 June 2022 was authorised for issue
in accordance with a resolution of the Directors on 27 September 2022.
(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
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
New Accounting Standards and Interpretations not yet mandatory or early adopted
The following new/amended accounting standards and interpretations have been issued but are not
mandatory for financial years ended 30 June 2022. In all cases the Group intends to apply these standards
from application date as indicated in the table below.
Standards likely to have a financial impact:
AASB 2021-2 (issued March 2021) ‘Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies and Definition of Accounting Estimates’. Application Date: Annual reporting period
beginning on 1 July 2023.
Nature of Change
Introduces a definition of ‘accounting estimate’, i.e. monetary
amounts in financial statements that are subject to estimation
uncertainty, such as estimating expected credit losses for
receivables, or estimating the fair value of an item recognised in
the financial statements at fair value.
Accounting estimates are developed using measurement
techniques and inputs. Measurement techniques comprise
estimation techniques (such as used to determine expected
credit losses or value in use) and valuation techniques (such as
the income approach to determine fair value).
The amendments clarify that a change in an estimate occurs
when there is either a change in a measurement technique or a
change in an input.
Impact on Initial Application
There will be no impact on the
financial statements when these
amendments are
first adopted
because they apply prospectively to
changes in accounting estimates that
occur on or after the beginning of the
first annual reporting period to which
these amendments apply, i.e. annual
period beginning on 1 July 2023.
2022 Annual Report | Page 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Standards likely to have a disclosure impact only:
AASB 2021-2 (issued March 2021) ‘Amendments to Australian Accounting Standards – Disclosure of
Accounting Policies and Definition of Accounting Estimates’. Application Date: Annual reporting period
beginning 1 July 2023.
Impact on Initial Application
Disclosure impact only.
Nature of Change
Only ‘material’ accounting policy information must be disclosed
in the financial statements, i.e. if it relates to material
transactions, other events or conditions and:
• The entity has changed its accounting policy during the
period
• There are one or more accounting policy options in
Accounting Standards
• The accounting policy was developed applying the
hierarchy in AASB 108 because there is no specific IFRS
dealing with the transaction
• Significant
judgement was required
in applying the
accounting policy
• The accounting is complex, e.g. more than one IFRS applies
to the transaction.
(d)
Significant Accounting Estimates and Judgments
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances.
The key judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of certain assets and liabilities are as follows:
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 Hoadley Trading &
Investment Tools ES02 trinomial option valuation model or a Black-Scholes model taking into account the
terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying
amounts of assets and liabilities within the next annual reporting period but may impact profit or loss
and equity. Refer to note 3 for further information.
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.
2022 Annual Report | Page 74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Fair Value Measurement
The Group is required to classify all assets and liabilities, measured at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement,
being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs
for the asset or liability. Considerable judgement is required to determine what is significant to fair value
and therefore which category the asset or liability is placed in can be subjective.
Deferred Exploration Expenditure Acquisition Costs
The Group capitalises acquisition expenditure relating to exploration and evaluation where it is
considered likely to be recoverable or where the activities have not reached a stage which permits a
reasonable assessment of the existence of reserves. While there are certain areas of interest from which
no reserves have been extracted, the Directors are of the continued belief that such expenditure should
not be written off since exploration activities in such areas have not yet concluded.
(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.
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.
2022 Annual Report | Page 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
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
Depreciation – right of use assets
Office premises expenses
Personnel costs – administration and corporate
Other administration and corporate expenses
Equity based payments expense – refer note 3
(b) Exploration Costs Expensed
Exploration costs expensed include:
Depreciation - exploration
Other exploration costs expensed
(c) Interest Expensed
Interest on right of use assets
Year ended
30 June 2022
$
Year ended
30 June 2021
$
40,394
70,620
48,710
811,570
639,114
1,610,408
802,995
2,413,403
55,201
70,984
46,446
972,484
600,495
1,745,610
1,238,784
2,984,394
35,492
10,457,708
10,493,200
135,538
19,793,958
19,929,496
8,472
13,645
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 Hoadley Trading & Investment Tools ES02 trinomial option valuation model or a Black-Scholes
model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Stavely Minerals Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
individuals become fully entitled to the award (the vesting date).
2022 Annual Report | Page 76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
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
Equity-based payments- options not yet issued (note 3(c))
30 June 2022
$
30 June 2021
$
802,995
-
802,995
1,212,534
26,250
1,238,784
(b) Summary of equity-based payments granted during the year:
Granted to key management personnel and employees as equity compensation:
During the year, the following unlisted options were granted:
-
-
-
200,000 unlisted options granted on 30 August 2021 to an employee pursuant to the Company’s Employee
Incentive Plan.
3,550,000 unlisted options as approved by shareholders at the 2021 Annual General Meeting held on
12 November 2021, granted to directors or their nominees. These unlisted options were allotted on 15
November 2021.
1,437,500 unlisted options granted and allotted on 15 November 2021 to employees/consultants
pursuant to the Company’s Employee Incentive Plan.
(c) Summary of equity-based payments not yet issued during the year:
In May 2021, as part of the appointment of Robert Dennis as a Director, the Board offered Mr Dennis 250,000 unlisted
options which were to be granted upon Shareholder approval. For accounting purposes, in 2021, an estimated value
of $26,250 was expensed for these options (based on the Black-Scholes option pricing model). Shareholder approval
was received on 12 November 2021 and the value of these options was recalculated in the current period.
2022 Annual Report | Page 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
Grant date
Spot price ($)
Exercise price ($)
Vesting date
Expiry date
30/08/2021
12/11/2021
12/11/2021
15/11/2021
0.43
0.56
0.48
0.66
0.48
0.71
0.495
0.71
immediately
immediately
immediately
Immediately
30/11/2022
30/11/2022
30/11/2024
30/11/2024
Expected future volatility (%)
Risk-free rate (%)
Early exercise multiple
Dividend yield (%)
63
0.0
N/A
-
70
0.61
2.5x
-
70
1.02
2.5x
-
70
0.97
2.5x
-
Value of Each Option ($)
Number of Options Granted
0.0802
200,000
0.0851
250,000
0.1647
0.1728
3,300,000
1,437,500
Valuation Method
Black-Scholes
Trinomial
Trinomial
Trinomial
Black-Scholes option pricing model
The assessed fair values of the options issued on 30 August 2021 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 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.
Hoadley Trading & Investment Tools ES02 trinomial option valuation model
The assessed fair values of the options granted on 12 and 15 November 2021 were determined using the Hoadley
Trading & Investment Tools ES02 trinomial option valuation model, taking into account the exercise price, term
of option, the share price at grant date, the expected early exercise multiple, expected price volatility of the
underlying share, expected dividend yield and the risk-free interest rate for the term of the option. The expected
early exercise multiple is factored into the valuation using the binomial model. The model incorporates an
exercise factor, which determines the conditions under which an option holder is expected to exercise their
options. It is defined as a multiple of the exercise price (eg 2.5 reflects that on average employees tend to
exercise their options when the stock price reaches 2.5 times the exercise price). The expected future volatility
is based on historical volatility over one, two and three year trading periods.
(d) Weighted average fair value
The weighted average fair value of equity-based payment options granted during the year was $0.1599 (2021:
$0.2956).
(e) Range of exercise price
The range of exercise price for options granted as share based payments outstanding at the end of the year was
$0.56 to $1.47 (2021: 1.20 to $1.47).
(f) 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 1.56 years (2021: 1.97 years).
2022 Annual Report | Page 78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
(g) 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 2022
Number
12 Months to
30 June 2022
WAEP $
12 Months to
30 June 2021
Number
12 Months to
30 June 2021
WAEP $
Outstanding at the beginning of year
Granted during the year
Exercised during the year
Lapsed during the year
Outstanding at the end of the year
Exercisable at year end
6,802,500
5,187,500
-
-
11,990,000
11,990,000
1.31
0.70
-
-
1.05
1.05
2,700,000
4,102,500
-
-
6,802,500
6,802,500
1.47
1.20
-
-
1.31
1.31
The weighted average share price for options exercised during the year was $nil (2021: $nil).
NOTE 4 - FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement
is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, are used, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a reassessment of the lowest level of input
that is significant to the fair value measurement.
Investments in equity instruments are categorised as financial assets at fair value through profit or loss.
When these financial assets are recognised initially, they are measured at fair value. At each reporting date,
gains or losses on these financial assets are recognised in profit or loss using Level 1 inputs of unadjusted quoted
prices in active markets at the measurement date.
2022 Annual Report | Page 79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 4 - FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - continued
Financial Assets
Investments in equity instruments
Initial recognition of financial assets at fair value (refer note 5)
Net fair value (losses) at the beginning of the period
Net fair value loss on financial assets at fair value through profit or
loss for the year
Proceeds received from the sale of financial assets
Less: carrying amount of net financial assets
Loss on sale of financial assets
NOTE 5 - SALE OF SUBSIDIARIES
Net gain on sale of subsidiary, Stavely Tasmania Pty Ltd (a)
Net gain on sale of subsidiary, Ukalunda Pty Ltd (b)
30 June 2022
30 June 2021
$
-
1,611,341
(125,488)
$
1,485,853
1,611,341
-
(1,117,161)
(125,488)
368,692
1,485,853
327,873
(368,692)
(40,819)
-
-
-
30 June 2022
30 June 2021
$
-
-
-
$
1,298,159
387,323
1,685,482
(a) On 16 December 2020, the Company completed the sale of its subsidiary, Stavely Tasmania Pty Ltd, to
Nubian Resources Limited (‘Nubian’), an entity listed in Canada on the TSV. The Company received
$100,000 cash payment and 4,195,708 Nubian shares as consideration (valued at $1,611,341).
The gain of $1,298,159 on sale of the subsidiary was realised in the profit or loss for the year ended 30 June
2021.
Consideration received – cash
Consideration received – shares in Nubian (refer to note 4)
Total consideration received
Less: carrying amount of net assets of subsidiary sold held by the group
Total gain from disposal of subsidiary
30 June 2021
$
100,000
1,611,341
1,711,341
(413,182)
1,298,159
2022 Annual Report | Page 80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 5 - SALE OF SUBSIDIARIES - continued
(b) On 31 March 2021, the Company completed the sale of its subsidiary, Ukalunda Pty Ltd. The Company
received a cash payment of $410,000, comprising a $10,000 option fee and $400,000 for the subsidiary).
The gain of $387,323 on sale of the subsidiary was realised in the profit or loss for the year ended 30 June
2021.
Consideration received – cash
Less: carrying amount of net assets of subsidiary sold held by the group
Total gain from disposal of subsidiary
30 June 2021
$
410,000
(22,677)
387,323
NOTE 6 - 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.
2022 Annual Report | Page 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 6 - INCOME TAX EXPENSE - continued
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.
(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) @ 30% (2021: 30%)
Tax effect of non-deductible items
Net deferred tax assets not brought to account
Income tax attributable to operating loss
(b) Net deferred tax assets not recognised relate to the following:
DTA - Tax losses
DTA/(DTL) - Other Timing Differences, net
Year ended
30 June 2022
Year ended
30 June 2021
$
$
(13,971,797)
(4,191,539)
591,089
3,600,450
(21,174,282)
(6,352,285)
544,440
5,807,845
-
-
16,652,696
604,733
17,257,429
14,298,059
(647,833)
13,650,226
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. Losses may be carried forward and utilised
against future taxable income provided the relevant loss recoupment tests are met.
Tax Consolidation
The Company and its 100% owned subsidiaries have formed a tax consolidated group. Under the tax
consolidation regime, all members of a tax consolidated group are jointly and severally liable for the tax
consolidated group’s income tax liabilities. The head entity of the tax consolidated group is Stavely Minerals
Limited.
(c) Franking Credits
The franking account balance at year end was $nil (2021: $nil).
2022 Annual Report | Page 82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 7 - 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
Loss attributable to ordinary equity holders of the Company used in
calculating:
- basic loss per share
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share
Year ended
30 June 2022
Year ended
30 June 2021
Cents
(5.35)
Cents
(8.28)
$
$
(13,971,797)
(21,174,282)
Number
of shares
Number
of shares
260,961,452
255,612,101
For the year ended 30 June 2022, 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.
2022 Annual Report | Page 83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 8 - 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.
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
Adjustments to reconcile profit before tax to net operating cash flows:
Depreciation
Depreciation – Right of Use Assets
Gain on disposal of property, plant and equipment
Gain on disposal of subsidiaries
Net fair value loss on financial assets
Loss on disposal of investments
Share based payments expensed - options
Change in assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash flows used in operating activities
Year ended
30 June 2022
$
Year ended
30 June 2021
$
922,218
13,819,962
(13,971,797)
(21,174,282)
75,886
70,620
(38,173)
-
1,117,161
40,819
802,995
190,739
70,984
(136)
(1,275,482)
125,488
-
1,238,784
313,560
(485,081)
119,280
(11,954,730)
(160,290)
(569,916)
63,789
(21,490,322)
(ii) Non-Cash Financing and Investing Activities
During the year there were no non-cash financing and investing activities undertaken.
During the previous year, 2021, the following non-cash financing and investing activities were undertaken:
-
-
850,000 shares ($340,000) were issued as part-consideration for the purchase of the Stavely Royalty
from New Challenge Resources Pty Ltd.
4,195,708 shares in a Canadian listed company were received as part consideration for the sale of a
subsidiary (valued at $1,611,341). Refer to note 5.
NOTE 9 – 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.
▪
2022 Annual Report | Page 84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 9 – 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
Bond – other short term
Prepayments
Other
Total current receivables
Non-Current
Cash on deposit - security bonds
Deposits paid for Property Purchase - refer to note 17(d)
Total non-current receivables
30 June 2022
$
30 June 2021
$
111,548
40,000
100,000
157,051
2,645
411,244
95,013
1,000,000
1,095,013
504,495
40,000
-
75,916
4,393
624,804
75,013
-
75,013
Fair Value and Risk Exposures – all above excluding the Deposit for Beaconsfield Assets:
(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 21.
(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 2022 (2021: none).
NOTE 10 – RIGHT OF USE ASSETS AND LIABILITIES
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, adjusted for any remeasurement of lease liabilities. The cost of right-to-use assets includes
the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less and lease incentives received. Unless the Group is reasonably certain to obtain
ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated
on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are
subject to impairment.
2022 Annual Report | Page 85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 10 – RIGHT OF USE ASSETS AND LIABILITIES - continued
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease
term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on
an index or a rate are recognised as expense in the period on which the event or condition that triggers the
payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing
rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in
the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (ie: those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lease
payments on short-term leases and leases of low-value assets are recognised as an expense on a straight-line
basis over the lease term.
Non-Current Assets
Right of use assets - properties
Lease Liabilities
Current
Non-Current
30 June 2022
$
30 June 2021
$
70,252
139,644
94,291
-
94,291
86,333
93,696
180,029
NOTE 11 - 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 7 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.
2022 Annual Report | Page 86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 11 - PROPERTY, PLANT AND EQUIPMENT - continued
Motor vehicles- at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
30 June 2022
$
193,245
(113,120)
80,125
30 June 2021
$
178,812
(126,254)
52,558
642,171
(565,226)
76,945
619,498
(514,492)
105,006
Total property, plant and equipment
157,070
157,564
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
Disposals
Depreciation
Carrying amount at end of year
52,558
52,719
(25,152)
80,125
105,006
22,673
-
(50,734)
76,945
12,443
52,924
(12,809)
52,558
171,783
123,017
(11,864)
(177,930)
105,006
The Company sold a second-hand motor vehicle to E79 Gold Mines Limited during the year. The agreed price
was $38,173 (excl GST) which was determined after researching prices of similar vehicles with similar mileage.
At the time of the sale the asset was fully depreciated.
NOTE 12 - DEFERRED EXPLORATION EXPENDITURE ACQUSITION COSTS
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.
Deferred exploration acquisition costs brought forward
Capitalised acquisition expenditure additions
Disposals upon sale of subsidiaries
Deferred exploration acquisition costs carried forward
30 June 2022
$
3,672,126
-
-
3,672,126
30 June 2021
$
4,099,719
9,520
(437,113)
3,672,126
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas.
2022 Annual Report | Page 87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 13 - 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 and other payables
30 June 2022
$
485,589
364,024
849,613
30 June 2021
$
1,117,694
234,500
1,352,194
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 14 – 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.
(i)
Wages, salaries and, annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave and expected to be settled
wholly within 12 months of the reporting date are recognised in other payables in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
(ii)
Other long-term employee benefit obligations
The liability for long service leave and annual leave not expected to be settled wholly within 12 months of the
reporting date are recognised in the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures, and period of service. Expected future payments are discounted using
market yields at the reporting date on corporate bonds with terms to maturity and currencies that match, as
closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities if the
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
Non-Current
Employee entitlements
30 June 2022
$
30 June 2021
$
289,842
161,947
45,180
62,267
2022 Annual Report | Page 88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 15 – 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.
30 June 2022
$
30 June 2021
$
76,523,067
76,523,797
50,033,910
340,000
16,800,000
2,787,000
8,200,000
(1,637,113)
76,523,797
76,523,797
(730)
76,523,067
(a)
Issued Capital
260,961,452 (2021: 260,961,452) ordinary shares fully paid
(b) Movements in Ordinary Share Capital
213,799,785 Opening balance at 1 July 2020
850,000
28,000,000
4,645,000
13,666,667
Issue of shares – New Challenge Royalty 9 July 2020
Issue of shares – Placement 30 July 2020
Issue of shares – Share Purchase Plan 14 August 2020
Issue of shares – Placement 7 September 2020
Costs of equity issues
260,961,452 Closing Balance at 30 June 2021
260,961,452 Opening balance at 1 July 2021
Costs of equity issues
260,961,452 Closing Balance at 30 June 2022
(c) Options on issue at 30 June 2022
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Number
2,700,000
200,000
250,000
4,102,500
4,737,500
11,990,000
Exercise Price
$1.47
$0.56
$0.66
$1.20
$0.71
Expiry Date
30/11/2022
30/11/2022
30/11/2022
31/10/2023
30/11/2024
During the year:
(i)
(ii)
(iii) No unlisted options were exercised (2021: nil).
5,187,500 unlisted options were granted as share-based payments (2021: 4,102,500);
No unlisted options expired (2021: nil); and
(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.
2022 Annual Report | Page 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 16 - 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 – refer note 3
Balance at the end of the year
Other reserve:
Balance at the beginning of the year
Shares to be issued / (Shares issued) – refer note 15(b)
Balance at the end of the year
Total Reserves
30 June 2022
$
30 June 2021
$
7,045,973
802,995
7,848,968
5,807,189
1,238,784
7,045,973
-
-
-
340,000
(340,000)
-
7,848,968
7,045,973
Nature and purpose of the reserves:
The Equity-based payments reserve is used to recognise the fair value of options granted.
NOTE 17 – 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.
(a)
Operating leases (non-cancellable):
Within one year
More than one year but not later than five years
30 June 2022
$
30 June 2021
$
2,544
8,256
10,800
37,048
-
37,048
These non-cancellable operating leases are primarily for residential premises at site and a ground lease.
(b)
Exploration Commitments
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.
30 June 2022
$
30 June 2021
$
Tenement Expenditure Commitments:
The Group is required to maintain current rights of tenure to
tenements, which require outlays of expenditure in 2022/2023. 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.
1,680,305
843,000
2022 Annual Report | Page 90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 17 – COMMITMENTS AND CONTINGENCIES – continued
(c)
Black Range Joint Venture
The Company has earned a 80% Participating Interest in exploration licence 5425 pursuant to the Stavely Farm-
in and Joint Venture Agreement with Black Range Metals Pty Ltd. Black Range Metals Pty Ltd elected not to
contribute and hence will be diluted as per the Joint Venture Agreement.
(d)
Purchase of Land
In March 2022, Stavely entered into a property purchase agreement for a 524-acre farm, residence and an
additional block adjacent to the Thursday’s Gossan Project.
The terms of the agreement included the payment of a $1 million deposit, which was paid during the year (refer
to note 9). The balance of $2.4 million was paid on settlement on 15 August 2022.
The purchase cost was within the valuation range obtained from an independent licensed property valuer.
(e)
Contingencies
The Group had no contingent liabilities at year end (30 June 2021: nil).
NOTE 18 – RELATED PARTIES
(a) Compensation of Key Management Personnel
Short-term employment benefits
Long-term employment benefits
Post-employment benefits
Equity-based payments
30 June 2022
$
30 June 2021
$
957,448
148
76,956
538,535
680,488
8,231
57,342
866,250
1,573,087
1,612,311
(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 $142,213 (net of GST) was paid/payable for office rental and variable
outgoings (2021: $136,588, net of GST).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of E79 Gold Mines Limited (“E79
Gold”). Mr Chris Cairns, Director, is a shareholder and non-executive chair of E79 Gold. E79 Gold sub-leases
office space in the premises the Company occupies. During the year an amount of $27,656 (net of GST) was
paid/payable by E79 Gold to the Company for reimbursement of office rental and associated expenses (2021:
$20,136, net of GST). Stavely Minerals Limited also sold a second-hand motor vehicle to E79 Gold during the
year. The agreed price was $38,173 (excl GST) which was determined after researching prices of similar vehicles
with similar mileage.
(c) Transactions with Other Related Parties
There were no transactions with other related parties (2021: none).
2022 Annual Report | Page 91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 19 – AUDITOR’S REMUNERATION
Amount received or due and receivable by the auditor for:
Auditing the financial statements, including audit review - current year audits
Other services – taxation and corporate advisory
Total remuneration of auditors
NOTE 20 – SEGMENT INFORMATION
30 June 2022
$
30 June 2021
$
44,728
18,410
63,138
39,940
19,330
59,270
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 mineral exploration 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.
NOTE 21 – 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.
2022 Annual Report | Page 92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 21 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued
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:
Financial Assets:
Cash and cash equivalents - interest bearing
Other receivables – bonds and deposits
Net exposure
There are no financial liabilities exposed to interest rates.
30 June 2022
$
30 June 2021
$
842,997
85,013
928,010
13,702,392
85,013
13,787,405
Sensitivity
At 30 June 2022, if interest rates had increased by 0.5% from the year end variable rates with all other variables
held constant, post tax loss would have been $4,615 lower and equity for the Group would have been $4,615
higher (2021: changes of 0.5% $37,348 lower loss and higher equity). The 0.5% (2021: 0.5%) sensitivity is based
on reasonably possible changes, over a financial year, using an observed range of historical RBA movements
over the last three years.
Liquidity risk
As at 30 June 2022, the Group has no significant exposure to liquidity risk as there was 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.
2022 Annual Report | Page 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 22 – PARENT ENTITY INFORMATION
Statement of Financial Position Information
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net Assets
Issued capital
Reserves
Accumulated losses
Profit or loss information
Loss for the year
Comprehensive loss for the year
Company
30 June 2022
$
30 June 2021
$
1,332,466
3,994,462
(1,233,746)
(45,180)
15,930,546
4,044,348
(3,304,391)
(155,963)
4,048,002
16,514,540
76,523,067
7,848,968
(80,324,033)
4,048,002
76,523,797
7,045,973
(67,055,230)
16,514,540
(13,268,803)
(13,268,803)
(22,532,596)
(22,532,596)
Commitments and contingencies
There are no commitments or contingencies, including any guarantees entered into by Stavely Minerals
Limited on behalf of its subsidiaries.
Subsidiaries
Name of Controlled Entity
Stavely Pastoral Pty Ltd*
Energy Metals Australia Pty Ltd**
*formerly Van Diemens Gold Pty Ltd
**formerly Stavely Tasmania Operations Pty Ltd
Class of
Share
Ordinary
Ordinary
Place of Incorporation
% Held by Parent Entity
30 June 2022
30 June 2021
Australia
Australia
100%
100%
100%
100%
NOTE 23 – EVENTS OCCURRING AFTER THE REPORTING PERIOD
Placement
26,666,667 shares were issued on 12 July 2022, pursuant to a placement to sophisticated and institutional
investors. Gross proceeds were $4,000,000.
Share Purchase Plan
35,326,537 shares were issued on 5 August 2022, pursuant to a Share Purchase Plan (SPP). Gross proceeds
raised under the SPP were $5,298,980.
Property Purchase and Loan Funds
On 15 August 2022, the Company settled on the property purchase of for a 524-acre farm, residence and an
additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned Stavely Copper-
Gold Project in western Victoria.
$1.6 million of loan funding was used towards the acquisition of the land. The funding was provided by two
parties to Stavely’s wholly owned subsidiary, Stavely Pastoral Pty Ltd, as follows:
Under a loan agreement with Legal Mortgage Holdings Pty Ltd (LMH), LMH advanced $1 million on the following
terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum term of 12 months
Secured via a 1st mortgage on the land with a guarantee provided by Stavely Minerals Limited
2022 Annual Report | Page 94
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 23 – EVENTS OCCURRING AFTER THE REPORTING PERIOD - continued
Under a loan agreement with Anthony Cairns, Anthony Cairns advanced $0.6 million on the following terms:
-
Interest payable at 10% pa, payable quarterly in advance
-
Term of 24 months with a minimum interest term of 12 months
- Unsecured, with a guarantee provided by Stavely Minerals Limited
There are no other matters or circumstances that have arisen since 30 June 2022 that have or may significantly
affect the operations, results, or state of affairs of the Group in future financial years.
2022 Annual Report | Page 95
INDEPENDENT AUDITOR’S REPORT
2022 Annual Report | Page 96
INDEPENDENT AUDITOR’S REPORT
2022 Annual Report | Page 97
INDEPENDENT AUDITOR’S REPORT
2022 Annual Report | Page 98
INDEPENDENT AUDITOR’S REPORT
2022 Annual Report | Page 99
ADDITIONAL SHAREHOLDER INFORMATION
Information as at 5 September 2022
a) Substantial Shareholders
Name
Peter Reynold Ironside
Jupiter Investment Management Ltd
b) Shareholder Distribution Schedule
Size of Holding
1 -
1,001 -
5,001 -
10,001 -
1,000
5,000
10,000
100,000
100,001 and over
Total
Number of shareholders holding less
than a marketable parcel
c) Voting Rights
Number of Ordinary Shares
per Notice given to
Stavely Minerals Limited
32,087,982
17,700,001
Number of
Shareholders
348
999
649
1,586
430
4,012
987
% held
0.05
0.89
1.62
16.96
80.48
100.00
(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.
2022 Annual Report | Page 100
ADDITIONAL SHAREHOLDER INFORMATION
d)
Twenty Largest Shareholders:
Name
Citicorp Nominees Pty Limited
Chaka Investments Pty Ltd
HSBC Custody Nominees (Australia) Limited
BNP Paribas Nominees Pty Ltd
BNP Paribas Noms Pty Ltd
Ironside Pty Ltd
Greenstone Property Pty Ltd
Ironside Pty Ltd
1
2
3
4
5
6
7
8
9 Ms Jennifer Elaine Murphy
10 Ms Roslyn Theresa Cairns
11 Mr Christopher John Cairns
12
J P Morgan Nominees Australia Pty Limited
13 Goldwork Asset Pty Ltd
14 Ms Savannah Sydney Jackson
15 McNeil Nominees Pty Limited
16 Ms Julie Ann Cairns
17 Mr Harle John Mossman
18 Michelle Maria Skinner
19 Goldwork Asset Pty Ltd
20 Brazil Farming Pty Ltd
Shares on issue at 5 September 2022
e) Unlisted Options
Issued under Stavely’s Employee Incentive Plan:
Number of
Ordinary
Shares
29,276,836
19,580,000
17,170,624
8,386,533
7,473,514
6,592,621
6,122,678
5,915,361
5,162,345
4,400,000
3,136,350
3,050,472
2,938,387
2,697,667
2,614,735
2,540,012
2,495,849
2,174,204
2,147,531
2,000,000
135,875,719
322,954,656
% of Issued
Capital
9.07
6.06
5.32
2.60
2.31
2.04
1.90
1.83
1.60
1.36
0.97
0.94
0.91
0.84
0.81
0.79
0.77
0.67
0.66
0.62
42.07
# of Options
Exercise Price
Expiry Date
# of Holders
2,700,000
200,000
4,102,500
1,437,500
$1.47
$0.56
$1.20
$0.71
30/11/2022
30/11/2022
31/10/2023
30/11/2024
12
1
19
16
Other Unlisted Options:
Name
Goldwork Asset Pty Ltd
Edenglen Pty Ltd
Ironside Pty Ltd
Mrs Amanda Grace Sparks
Mr Robert Andrew Dennis
Total
Options
exercisable at
$0.71 each on or
before 30/11/2024
Options
exercisable at
$0.66 each on or
before 30/11/2022
1,000,000
850,000
575,000
575,000
300,000
3,300,000
-
-
-
-
250,000
250,000
2022 Annual Report | Page 101
TENEMENT SCHEDULE
AS AT 30 JUNE 2022
Tenement Portfolio - Victoria
The tenements held by Stavely Minerals as at 30 June 2022 are as follows:
Area Name
Tenement
Black Range JV*
Yarram Park
Ararat
Stavely
Stavely
Stavely
Stavely
Yarram Park
EL 5425
EL 5478
RL 2020
RL 2017
EL 6870
EL 7346
EL 7347
EL 7628
Grant Date/
(Application Date)
18 December 2012
26 July 2013
8 May 2020
8 May 2020
30 August 2021
(10 June 2020)
17 June 2022
10 December 2021
Size (Km2)
100
26
28
81
865
41
17
28
* 80% held by Stavely Minerals Limited, 20% by Black Range Metals Pty Ltd, a fully owned subsidiary of Navarre Minerals Limited. Black
Range Metals Pty Ltd is being diluted.
2022 Annual Report | Page 102