MMS.L Regulatory News (MMS)

22 Mar 2005 07:00

Maghreb Minerals PLC22 March 2005 MAGHREB MINERALS PLC INTERIM RESULTS FOR THE INTERIM PERIOD ENDED 31 DECEMBER 2004 CHAIRMAN'S STATEMENT I am pleased to provide a review of Maghreb Minerals Plc's (the "Company")activities and financial results for the period from its formation to 31December 2004. The Company was formed on 7 June 2004 and in August of that year acquired a 100%equity interest in High Marsh Holdings Limited (a company incorporated in theBritish Virgin Isles). High Marsh Holdings Limited holds nine lead and zincexploration permits and conditional options over two mine concessions inTunisia. The exploration project in Tunisia is being conducted through HighMarsh Holdings Tunisia, the branch registered and operating in that country. The Company was admitted to AIM on 23 December 2004. Drilling Progress Following its successful admission to AIM, the Company has continued itsdrilling programme with a view to establishing the feasibility of mining leadand zinc commercially in the areas covered by the Mine Concessions. The Company has made significant progress notwithstanding that it has beenhindered by unusually adverse winter weather conditions. The poor weather hasdelayed the programme by approximately two weeks, but I am pleased to be able toreport that the Company has completed two drill holes and is nearing completionon the third. Drilling conditions were difficult on the first hole with much fragmented groundbut the second hole revealed grades of between 0.69% and 23.94% combined leadand zinc over three separate intervals, totalling 23 metres. This includes 8metres grading 9.9%, 3 metres of 13.8% and 2 metres of 9.7% combined lead andzinc. Significantly these results confirm earlier drilling results of the OfficeNational Des Mines of Tunisia that indicated a measured resource of 400,000tonnes grading 13.3% combined lead and zinc at the D'Nal Sud deposit at FejLahdoum. The Dal N'Hal Sud deposit is a fault offset extension, situated some100 metres south-east, of the main D'Hal Nord orebody where work in 1991estimated a reserve of 1.4 million tonnes grading 5.6% Pb and 6.0% Zn. Further drilling is underway to test the vertical and lateral extent of themineralisation at Dar N'Hal Sud. The rate of drilling should improve furtherwith the improvement in the weather conditions and better rock formations. In excess of 600 metres has been drilled to mid-February 2005. Support for the Exploration Strategy The Company's exploration strategy in the Majerda Zone of northern Tunisia isbased on the recognition of mineralisation from the deposition from metal richbrines along the thrusted basin margins associated with the Atlas Mountainsfolding event. The recent drilling results have provided the Company with a betterunderstanding of the structure of, and supports our model for, themineralisation in the Dar N'Hal Sud deposit, as they display evidence ofoverthrusting associated with the mineralisation. Permits and Options Discussions have commenced with the Office National Des Mines and the Tunisianauthorities on extending the options on the Mine Concessions. The Company isconfident that these will be extended for a sufficient period to enable theCompany to assess the feasibility of commercial exploitation of the areascovered by the Mine Concessions. In addition, the Company is undertaking further geological work on the KoudiatEl Loutia, Koudiat Sidii and Djebba exploration permits which are due forrenewal in July 2005. The Company is confident that an extension of thesepermits will be obtained. Personnel I am delighted to announce the appointment of Carlos Nascimento (45) as ourCountry and Project Manager in Tunisia. Carlos, a qualified geologist, has hadmany years experience as an exploration project manager and has worked with meon a number of projects of a similar nature. Carlos joined with effect from 14March 2005. Outlook The Company is working closely with personnel of Office National Des Mines andwith the Tunisian authorities. They continue to provide the Company withexemplary support, in particular with skilled and experienced geologicalexpertise, logistical support and generally in all areas, for which I am mostgrateful. The Company has made significant progress in establishing the project, itsmanagement and drilling teams and has overcome the expected teethingdifficulties in establishing a new project. I fully expect that our rate ofprogress in evaluating this exciting prospect will match our expectations. Gordon P RiddlerChairman21 March 2005 UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE 29 WEEKS ENDED 31 DECEMBER 2004 Notes 29 weeks ended 31 December 2004 £'000 Exploration Expenses (120)Listing Expenses (495)Administration and company formation expenses (202) Gross Loss (817)Interest received 2Operating Loss for the period (815) Balance brought forward 8Balance carried forward (807) Loss per ordinary share 1Basic (pence per share) (2.1)Diluted (pence per share) (1.7) UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2004 31 December 2004 £'000 Fixed Assets Intangible fixed assets-exploration permits 2 82Tangible Assets 178 260 Current AssetsDebtors 14Cash at bank 2,383 2,397 Creditors; amounts falling due within one year (160) Net current assets 2,237 Net assets 2,497 Capital and reservesCalled up share capital 3 237Share premium 3 3,067Profit and loss account (807) Shareholders' funds 2,497 UNAUDITED CONSOLIDATED CASHFLOW FOR THE 29 WEEKS ENDED 31 DECEMBER 2004 29 weeks ended 31 December 2004 £'000 Net cash outflow from operations (661) Returns on investment and servicingInterest received 2 Net returns on investments and servicing of finance (659) Capital expenditurePayments to acquire fixed assets (181) Net cash outflow before financing (840) FinancingShare capital issues 3,223 Increase in cash 2,383 NOTES 1 Loss per share Basic loss per share is calculated by dividing the losses attributable toordinary shareholders by the number of ordinary shares in issue after theplacing on AIM. Diluted loss per share is calculated using the number of ordinary shares inissue as adjusted to assume conversion of the warrants in issue. Number of ordinary shares in issue 39,559,002 Number of warrants in issue 8,529,501 Total potential diluted share capital 48,088,503 2 Intangible fixed assets The net assets of High Marsh Holdings Limited at acquisition included the costof acquiring exploration permits and mine concessions at a value of £1.3million. In the view of the directors, the fair value of these assets is£81,600, being the nominal value of the 13.6 million shares issued by theCompany in exchange for the whole of the issued share capital in High MarshHoldings Limited. 3 Share Capital 31 December 2004 £'000Authorised Share Capital:100,000,000 Ordinary Shares of £0.006 each 600 Issued and fully paid:39,559,002 Ordinary Shares of £0.006 each 237 Share Premium Account:Proceeds from issue of ordinary shares 3,304Nominal value of ordinary shares 237Share premium 3,067 This information is provided by RNS The company news service from the London Stock Exchange