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NZX Announcment: Allotment of Shares

Aorere Resources Limited: Allotment of Shares

Aorere Resources Limited (NZX: AOR) advises that it has today issued 68,777,778 ordinary shares (Shares) to qualified investors at an issue price of $0.0009 per Share, raising $61,900.00 in new capital.

As previously announced to the market, the capital raised will be used to facilitate the proposed acquisition of an interest in American Innovation Minerals LLC. 

Full details of the allotments are set out below.

On behalf of the Board,

Chris Castle
Managing Director
chris@aorereresources.co.nz

Allotment of Shares

Class of security: Ordinary shares
ISIN: NZNZIE0007S5
Number issued: 68,777,778
Issue price: $0.0009 per Share
Payment in cash: Yes
Fully paid: Yes
Percentage of class: 6.024%
Purpose of the issue: For working capital
Authority for issue: Board resolution and Listing Rule 7.3.5
Date of issue: 25 January 2017
Total number of securities on issue following allotment: 1,210,527,280 Shares

NZX Announcement: Intention to make Private Placements

Aorere Resources Limited (NZX: AOR) is intending to raise further capital from qualified investors by way of placing approximately $150,000 of new shares (New Shares) at $0.0009 (0.09 cents) per share. 

AOR intends to use the proceeds to finance ongoing costs in relation to the proposed partial acquisition of American Innovative Minerals LLC (AIM) through its wholly owned subsidiary Nevada Gold Limited (NGL).  

Extended Exclusivity Period

As first announced to market on 16 May 2016, AOR signed a conditional term sheet securing the exclusive right to purchase AIM for the agreed purchase price of $2 million. The parties subsequently agreed to extend the exclusivity arrangements first to 31 October 2016, then to 30 November 2016, and most recently to 30 January 2017. During the extension periods Aorere has carried out due diligence, completed metallurgy studies, updated the independent resource report and identified a third party to fund the acquisition.  
The third party is well advanced in its own due diligence process and assuming that this results in a transaction Aorere’s investment to date in this project will translate into a significant (to Aorere) indirect interest in AIM. It is expected that Aorere will have a management role and will also have board representation.   

Three-fold increase in gold resource estimate  

This week Aorere Resources announced that the proposed Nevada gold investment is showing three times the gold resources previously estimated, following updated resource modelling. 
In this week’s filing to NZX Aorere announced that:

  • Updated resource modelling, incorporating diamond drilling at depth, has increased the JORC 2012 compliant Mineral Resources to 1,069,000 ounces of gold historical resources from 320,000 ounces in the previous, NI 43-101 compliant technical report.
  • Mineralization is contained in steeply dipping quartz-sulphide shears from surface.
  • Multiple targets have been identified along extensions and potential new shears show scope for increasing the resources significantly.
  • Aorere has extended its right to purchase the Fondaway Canyon Gold Project and ten other exploration assets in the AIM package until 30 January 2017. 

How to invest

Eligible investors wishing to invest will be sent an application form on request. 

Regards, 
Chris Castle
Managing Director
021 558 185  
 

Study produces three-fold increase in gold resource estimate for Nevada project

View PDF press release

20 Dec 2016

Aorere Resources’ proposed Nevada gold investment is showing three times the gold resources previously estimated, following updated resource modelling.

The company announced today a significant increase in the Mineral Resource estimate to 1,069,000 ounces at a gold grade of 6.3 grams per tonne on a combined indicated and inferred basis.

The company has also secured an extension for the exclusive purchase agreement until the end of January 2017.

“Aorere’s investment in a detailed technical assessment and new resource modelling has demonstrated that this project has the potential to become a significant mine in resource-rich, mine-friendly Nevada, USA", Chief Executive Chris Castle said.

In a filing to NZX Aorere has announced that:

  • Updated resource modelling, incorporating diamond drilling at depth, has increased the JORC 2012 compliant Mineral Resources to 1,069,000 ounces of gold historical resources from 320,000 ounces in the previous, NI 43-101 compliant technical report.
  • Mineralization is contained in steeply dipping quartz-sulphide shears from surface.
  • Multiple targets have been identified along extensions and potential new shears show scope for increasing the resources significantly.
  • Aorere has extended its right to purchase the Fondaway Canyon Gold Project and ten other exploration assets in the AIM package until 30 January 2017.

Aorere, (NZX AOR), a New Zealand-based mineral/oil and gas explorer, has carried out a Mineral Resource estimation for its Fondaway Project, and reports 2.05M tonnes at an average grade of 6.18 g/t gold (0.18 oz/t), containing 409,000 ounces gold in the Indicated category, and 3.2M tonnes at an average grade of 6.4 g/t gold (0.19 oz/t) containing 660,000 ounces of gold in the Inferred category.

These Mineral Resource estimates are classified and reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code — JORC 2012 Edition). A summary is contained in Table A, with details in Table B and Appendix 1, sections 1, 2, and 3.

The Fondaway Canyon mineralization is contained in a series of 12 steeply dipping en-echelon quartz-sulphide shears outcropping at surface and extending laterally over 1200m (4000ft), with drill-proven depth extensions to > 400m (1300ft). The bulk of the resources are hosted by the Paperweight, Half-moon and Colorado zones, with the remainder in parallel veins or splays of the major vein/shears identified.

The current Mineral Resource estimate relates only to the eastern half of the 4000m (13,000ft) east-west striking mineralized system, with significant exploration potential remaining both in the eastern section, and relatively untested western zone.

The Mineral Resource estimates were undertaken by Reno-based independent consultants Techbase International, Ltd (Michael Norred) with geological input from NZ based Wairaka Rock Services Limited (Simon Henderson).

In May 2016, NGL, a wholly owned subsidiary of Aorere, entered into a conditional term sheet, securing the exclusive right to acquire American Innovative Minerals (AIM) in Nevada, USA, for the agreed purchase price of US$2 million. AIM holds the rights to the Fondaway Canyon Gold Project, as well as a number of other advanced and early-stage mining and exploration projects.

Under the updated term sheet, NGL has secured exclusivity to acquire AIM until 30 January 2017. Further details regarding AIM and the Fondaway Project were released to market on 16 and 26 May 2016 and are available on Aorere’s website: www.aorereresources.co.nz.

Chris Castle
Chief Executive Officer
Tel. 64 (021) 558 185
chris@widespread.co.nz

Additional information as required by ASX Listing Rules para 5.8 when reporting Mineral Resources (Also refer to Appendix 1, Sections 1, 2 and 3):

Table A: Fondaway Canyon December 2016 Mineral Resources Estimate

Resource Category Tonnes(1)
(t)
Grade,
(g/t) Au
Ounces(2),
(oz) Au
Type
Indicated 2,050,000 6.18 409,000 UG/Sulphide
Inferred 3,200,000 6.4 660,000 UG/Sulphide
1 Resource based on cut-off of 1.8m horizontal width >= 3.43 g/t
2 Rounding differences may occur

Notes:

  1. Mineral Resources reported on a dry, in-situ basis.
  2. The Statement of Estimates of Mineral Resources has been compiled by Mr. Michael Norred, who is a full-time employee of Techbase International, and a Registered Member of the SME.  Mr. Norred has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration, and to the activity that he has undertaken, to qualify as a Competent Person as defined in the JORC Code (2012).
  3. All Mineral Resources figures reported in the table above represent estimates at 12th December, 2016.  Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence, and on the available sampling results.  The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate.  Rounding may cause computational discrepancies.
  4. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
  5. Reporting cut-off grade of 3.43 g/t (0.100 oz/t) selected based on capital and operating costs estimated for the April, 2016 “Fondaway Canyon Project Scoping Report”.  A break-even cut-off grade was estimated to be approximately 3.43 g/t (0.100 oz/t), based on projects of similar size, a trailing average price of $1,227, a metallurgical recovery of 90%, and an underground mining method suitable for steeply-dipping veins.

Geology and Geological Interpretation

Gold Mineralization is localised along a 3,200m (2mile) east-northeast trending and steeply south- dipping structures developed within fine grained Triassic carbonaceous siliciclastic sedimentary rocks and Jurassic limestone, cut by Tertiary (Eocene) dykes.

The vertical extent of the gold mineralization is greater than 450m (1,500 feet) based on diamond drilling (2002) and the most persistent vein strike length is 1,100m (3,700 feet) on the Paperweight – Hamburger Hill Zone. Vein width is commonly 1.5m -6m (5 - 20 feet) wide.

Gold is spatially associated with quartz veining and breccia cement structures or shears, and occurs abundantly as inclusions and intergrowths with and within Fe-sulphide, and quartz stockwork fracture filling within the wall-rock shale and siltstone.

Sampling and Sub-sampling Techniques

For each of the drill programs, the RC samples were collected at the drill rigs, using industry-standard practices, under the supervision of the mining company geologists.  Reverse circulation samples were split with a Jones splitter when dry and a rotary splitter when wet.  Duplicate RC samples were taken from the rotary splitter at the drill rig.

The core samples were split at important geological contacts, and into equal, typically 1.5m (5 ft) lengths within the geology, under the supervision of the mining company geologists.  Competent core was sawn in half for analysis, and core that was broken into rubble had approximately half selected by the geologist.  In either case, the remainder of the core was left in labeled core boxes.

The samples were prepared and assayed by reputable, certified laboratories.  The labs included American Assay (Reno, NV), Chemex Labs (Sparks, NV), Cone Geochemical (Lakewood, CO), GD Resources (Sparks, NV), Geochemical Services (Reno, NV), and Shasta Analytical (Redding, CA). 

Samples were dried, then crushed (typically >85% 6-mesh), then Jones riffle-split to obtain ½ to 1 pound splits, with the remainder of the crushed material saved as a coarse reject. The splits were then ring and puck pulverized to 120 to 150 mesh, and stored in a labeled packet.

Assays were all of 30 gram (one assay ton) splits, fire-assayed for total gold, with an A.A. or gravimetric finish.  The remainder of the pulverized pulp was saved for check assays.

Drilling Techniques

All of the drilling considered for this report was historic.  Drilling records from previous operators indicate some 728 holes have been drilled at Fondaway Canyon, including Core, Reverse circulation (RC), and air track holes, totaling over 67,600m (222,000 ft) according to some previous reports.

The air track holes were deemed to be unreliable for estimation, and some holes were drilled away from Fondaway Canyon, or were drilled for other purposes.  In addition, some records have not yet been found in the historic files (to date, all of the “missing” holes have been determined to have been located well away from the area modeled for this Resource estimate.  In all, 591 holes were validated for Resource estimation, with coordinate information and downhole assays.  These included 8411m (27,595 ft) of core drilling in 49 holes and 40,675m (133,448 ft) of RC drilling in 551 holes.   

The drilling contractors used by previous operators include Boyles Brothers, Coates, Drift, Eklund, Ponderosa, and Rough Country.   The authors’ observation of the diamond core as viewed and as documented show good recovery in the mineralised zone. The reverse circulation drilling completed shows no record of drilling problems in the mineralised zones.

Mineral Resource Classification Criteria

The Mineral Resources were classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was estimated within a 30.5m (100 ft) radius of influence from the vein intercepts, on a plane parallel to the strike of the vein.  The Inferred Mineral Resource was estimated for a region greater than the 30.5m (100 ft) radius, and within a 91.4m (300 ft) radius of influence from the vein intercepts, for veins that showed good continuity.  No Inferred Mineral Resources were estimated for some of the minor veins that had fewer, more isolated intercepts.

Sample Analysis Method

The samples were prepared and assayed by reputable, certified laboratories.  The labs included American Assay (Reno, NV), Chemex Labs (Sparks, NV), Cone Geochemical (Lakewood, CO), GD Resources (Sparks, NV), Geochemical Services (Reno, NV), and Shasta Analytical (Redding, CA).  Assays were all of 30 gram (one assay ton) samples, fire-assayed for total gold, with an A.A. or gravimetric finish.  

Check assays and duplicate/resplit assays were run systematically, with check assays on approximately 5% of the total assays, including approximately 23% of the assays over 3.43 g/t (0.100 oz/t).  Duplicate assays were run on slightly less than 1% of the total assays, including approximately 14% of the assays over 3.43 g/t (0.100 oz/t).  Consistency was good for the check assays and duplicates, with correlations greater than 98% in each case.

Estimation Methodology

The Mineral Resource was estimated for each vein using polygonal estimation on drill intercepts projected onto a vertical long-section parallel to the average strike direction of that vein.   Techbase Version 2015 software was used to perform the estimation.  A 30.5m (100 ft) radius was chosen for the Indicated Resources, with the radius expanded to 91.4m (300 ft) for the Inferred Resources.  The polygons were truncated at faults known to limit the extent of the mineralization. 

The area of each polygon was multiplied by the horizontal thickness of the drill intercept, and then by density to get tonnes.  The gold grade for each polygon was the length-weighted average of the drill hole assays in the intercept.

The polygonal estimation technique is the same method used in the previous, NI 43-101 compliant technical report (Strachan, 2003).  The significant differences arise from the number of drill holes used, including deeper core drilling from 2002, and the hand-drawn polygons used previously vs the computer-generated polygons used for this estimate.

Cut-off Grades

The Mineral Resources are reported at a cut-off of 3.43 g/t (0.100 oz/t), over a minimum horizontal width of 1.8m (6 ft), based on capital and operating costs estimated for the April, 2016 “Fondaway Canyon Project Scoping Report”. A break-even cut-off grade was estimated to be approximately 3.43 g/t (0.100 oz/t), based on projects of similar size, a trailing average price of $1,227, a metallurgical recovery of 90%, and an underground mining method suitable for steeply-dipping veins.

Mining and Metallurgical Methods and Parameters

At this stage, a specific mining method has not been selected, but a minimum horizontal with of 1.8m (6 ft) was considered reasonable for an underground mining operation designed to produce approximately 1000 tonnes per day. Narrower vein widths were increased to 1.8m, using adjacent assays for the diluting grade. For the in-situ Resource estimation, no assumptions were made regarding mining losses or dilution.

No specific processing method or process flowsheet has been selected for the Fondaway Canyon project. An overall recovery factor of 90% was assumed to be reasonable for estimated a break-even cut-off grade, considering historic metallurgical testing with recoveries up to 86 to 95% in one series of tests, and combined total recoveries over 94% in another series.

Environmental Studies, Permitting and Social or Community Impact

Drilling and bulk sampling programs that create surface disturbance of less than five acres are “Notice level” activities with Bureau of Land and Mining. The two BLM Notices in the files show these permits can be obtained at Fondaway in a reasonable timeframe.

Nevada has an orderly and well-defined permitting process in cooperation with the Federal Government. These range from a Special Use Permit at the County level to an Environmental Assessment (EA) or Environmental Impact Statement (EIS) at the Federal level. There are no known barriers to these permits at Fondaway Canyon.

Fondaway Canyon Project holds permits to appropriate water from the Nevada Division of Water Resources, Permit No. 52442 & Permit No. 52786.

The Stillwater Range Wilderness Study Area (WSA) surrounds the Fondaway Canyon project on three sides. The EIS prepared by the BLM in 1987 recommended the entire WSA as “nonsuitable for wilderness designation”. The key reasons for this being significant mineral and energy potential over the majority of the WSA, and that the WSA does not contain features, such as vegetation, scenery, wildlife, geology and historic features significant enough to balance such a loss of opportunities and warrant its designation as wilderness.

Nevada is a major mining district in USA, and the fifth largest gold producer in the world based on annual production (Ressell 2015). The Project benefits from excellent regional infrastructure including good quality bituminised and non-bituminised roads, easy access to water, a nearby regional town (Fallon), and access to mining equipment, assay and metallurgical laboratories, and experienced mining personnel.

References

All references to Mineral Resources Estimates pertaining to this current media release dated 20 December 2016 are defined based on recently completed studies.

Fondaway Canyon is an early‐stage exploration project and, except for historical estimates noted in the Report (as defined below), the Mineral Resource estimates are as defined by JORC 2012 Code.

NI 43‐101 technical report prepared for a previous operator entitled, "Proposals to Upgrade South Pit, Deep Dive, Half Moon, Paperweight, and Hamburger Hill to a Measured Gold Resource, Fondaway Canyon, Churchill County, Nevada (Amended)”; prepared by Strachan, D. CPG; September 2003; was prepared forRoyal Standard Minerals Inc. As at the date of the Report, Mr. Strachan was a “Qualified Person” as defined by NI 43‐101.

Economic estimates reported previously are based on “Fondaway Canyon Project Scoping Report, Churchill County, Nevada, USA”; prepared for Aorere Resources, Limited, Wellington, New Zealand April 19, 2016 by: Michael Norred, President of Techbase International, Ltd. P.O. Pox 18820; Reno, NV 89511. As at the date of the Report, Mr. Norred was a “Qualified Person” as defined by NI 43‐101.

About Aorere

Aorere Resources Limited (NZX AOR) invests in selected early stage minerals, and oil and gas projects, building shareholder value as projects advance. Aorere has a track record of seeding and developing mineral projects such as Ban Phuc Nickel Mine (AMR), and Chatham Rock Phosphate (CRP). Chatham Rock Phosphate with mining partner Boskalis has a granted mining permit off the Chatham Rise east of central New Zealand, and is in the process of re-applying for resource consents to operate in this marine environment.

Table B: Fondaway Canyon December 2016 Mineral Resources Estimate by Zone

Indicated Resources Inferred Resources
Zone Tonnes1
(t)
Grade
(g/t) Au
Ounces2
(oz) Au
Tonnes1
(t)
Grade
(g/t) Au
Ounces2
(oz) Au
Half Moon 423,000 6.37 86,800 580,000 6.4 119,000
Hanging Wall 43,000 5.35 7,300
Sub-total 466,000 6.28 94,100 580,000 6.4 119,000
Paperweight 598,000 6.14 118,100 990,000 6.1 196,000
Paperweight FW 138,000 6.58 29,200
White Coat 96,000 5.51 17,000 300,000 5.5 53,000
Bellview 107,000 5.42 18,700 150,000 5.4 26,000
W Paperweight 118,000 6.97 26,600 230,000 7 51,000
Sub-total 1,057,000 6.16 209,600 1,670,000 6.1 326,000
Colorado 207,000 7.63 50,800 450,000 7.6 109,000
Colorado FW 49,000 4.57 7,200
Colorado West 101,000 4.41 14,400
Sub-total 357,000 6.3 72,400 450,000 7.6 109,000
Silicon Ridge 51,000 3.83 6,300 90,000 3.8 11,000
Hamburger Hill 123,000 6.6 26,100 440,000 6.6 93,000
Sub-total 174,000 5.79 32,400 530,000 6.1 104,000
Total Resource 2,050,000 6.18 409,000 3,200,000 6.4 660,000
1 Resource based on cut-off of 1.8m horizontal width >= 3.43 g/t
2 Rounding differences may occur

 Notes:

  1. Mineral Resources reported on a dry, in-situ basis.
  2. The Statement of Estimates of Mineral Resources has been compiled by Mr. Michael Norred, who is a full-time employee of Techbase International, and a Registered Member of the SME. Mr. Norred has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration, and to the activity that he has undertaken, to qualify as a Competent Person as defined in the JORC Code (2012).
  3. All Mineral Resources figures reported in the table above represent estimates at 12th December, 2016. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape, and continuity of the occurrence, and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause computational discrepancies.
  4. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition).
  5. Reporting cut-off grade of 3.43 g/t (0.100 oz/t) selected based on capital and operating costs estimated for the April, 2016 “Fondaway Canyon Project Scoping Report”. A break-even cut-off grade was estimated to be approximately 3.43 g/t (0.100 oz/t), based on projects of similar size, a trailing average price of $1,227, a metallurgical recovery of 90%, and an underground mining method suitable for steeply-dipping veins.

Competent Persons' Statements

The scientific and technical information in this report that relates to the geology of the deposits and exploration results is based on information compiled by Mr. Simon Henderson, MSc Geology (CODES), an AusIMM Chartered Professional under the Discipline of Geology, and a Competent Person as defined by the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Henderson has reviewed and approved the contents of this media release.

The scientific and technical information in this report that relates to the in-situ Mineral Resource estimates is based on information compiled by Mr. Michael Norred, who is President of Techbase International, Ltd. Mr. Norred, a Registered Member of the SME, is a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Norred has reviewed and approved the disclosure of all scientific or technical information contained in this announcement that relates to the Mineral Resources estimate.

Forward-Looking Statements

This release contains forward looking statements. Forward-looking statements and information are not historical facts, are made as of the date of this release, and include, but are not limited to, statements regarding discussions of future plans, guidance, projections, objectives, estimates and forecasts and statements as to AOR's expectations with respect to, among other things, mineral properties and the matters described in this release.

These forward looking statements involve numerous risks and uncertainties and actual results may vary. Important factors that may cause actual results to vary include without limitation, the timing and receipt of certain approvals, changes in commodity prices, changes in interest and currency exchange rates, risks inherent in exploration results, timing and success, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), changes in development or mining plans due to changes in logistical, technical or other factors, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third party contractors, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets.

Figure 1: Fondaway Canyon Project

Appendix 1 - JORC Code 2012 Tables

The following tables are provided to ensure compliance with the JORC 2012 requirements for the reporting of exploration results, Mineral Resources, and Ore Reserves.

Please see full PDF press release for JORC Code tables.

 

Results for announcement to the market for 6 months to September 30, 2016

Financial results
 
Your directors submit the unaudited financial statements of Aorere Resources Limited for the six months to 30 September 2016. The trading result for the period was a loss of $521,000 (2015 - $149,000 loss). The increased loss arises after writing off the costs relating to the scoping, financing and acquisition of the Nevada gold project. Depending upon the outcome of that initiative some of these costs may be reversed and capitalised.  

Operations Report

As at 28 November 2016, the market value of our portfolio comprised the following investments. 
  
Not included in the schedule above is a significant investment (in terms of both time and money) that has been committed by Aorere in putting together a deal whereby, Aorere could end up acquiring an investment in the various Nevada based gold assets presently held by American Innovative Minerals (“AIM”). 
 
The outcome of this project is expected to be known within a matter of weeks. There are two possible outcomes – one being that we were not able to secure the finance to exercise the option to buy AIM for USD2 million. The other outcome, which is still achievable, is that we have secured enough financial backing, not only to acquire the AIM assets but to also fund the work programme required to increase the size of the gold resources to a substantially larger number than historically measured. This outcome will likely be very positive for Aorere and its shareholders. Negotiations with funding providers are ongoing.   
 
The discussion below deals with our existing portfolio.

 
Chatham Rock Phosphate

Chatham Rock Phosphate (“CRP”) remains the investment that we are most involved with operationally and it presently represents 46.7% of our assets. We are also the third largest shareholder in CRP with 5% and in conjunction with AOR and CRP directors the second largest holder with 8.5%.

CRP was granted a mining permit in 2013 to develop New Zealand’s only significant source of environmentally friendly pastoral phosphate fertiliser and is now preparing for a revised environmental consent application.
 
CRP’s role is focused on delivering a secure and sustainable local supply of low-cadmium phosphate that will reduce fertiliser run-off into waterways, produce healthier soils and shrink fertiliser needs over time. 
 
The resource has an estimated gross value of $5 to $7 billion, representing one of New Zealand’s most valuable mineral assets and is of huge strategic significance because phosphate is essential to maintain New Zealand’s high agricultural productivity. Local and international investors have contributed more than $40 million to develop the project’s financial viability, environmental benefits and impacts, technical and logistical requirements, local and international product uses.

CRP proposes to extract up to 1.5 million tonnes of phosphate nodules from the top half metre of sand on identified parts of an 820km2 area on the Chatham Rise, 450km off the west coast of New Zealand, in waters of 400m. The earlier environmental consenting process has established extraction would have no material impact on fishing yields or profitability, marine mammals or seabirds.

In progressing plans to submit a new application, CRP is working with government officials to seek improvement in the permitting process and iwi, academic, industry and central government input to ensure New Zealand can benefit from an environmentally superior phosphate source. 

Progress is continuing to achieve a Toronto Stock Exchange listing, to provide a more useful share-trading platform for overseas shareholders and facilitate the capital raising needed for the consenting process and beyond.

CRP is also seeking to own other sustainable rock phosphate sources, to move from being a single project company.


Asian Mineral Resources

Our investment in Asian Mineral Resources (AMR) dates back to 2000. 

AMR is TSX.V listed, was profitable in cash flow terms, employed until recently over 500 people and was said to be the largest tax payer in Hanoi. It came a long way from being effectively a privately owned exploration company with little cash and few prospects of finding any. Aorere was the catalyst that made the difference, funding the company for several years, introducing substantial investors, and arranging the TSX.V listing.     

AMR mined the Ban Phuc nickel deposit for the last three years at an accelerated production rate and has now exhausted the high grade massive sulphide deposit. The surrounding disseminated sulphide deposit is not economic to mine so, a decision was made to transition the operation into care and maintenance. Management are now continuing to secure the operational assets and establish on-site detailed care and maintenance compliance and reporting protocols and processes.

AMR has commenced review and interpretation of its low level exploration activities which includes field mapping, trenching and soil sampling. Following the assimilation and interpretation of this new information AMR will be in a position to revise the project ranking and priorities of its 26 initial exploration prospects. 
 
Further design planning and analysis of the Ban Phuc disseminated resource will continue with AMR looking to conclude a preliminary economic assessment level report by end of QTR 2 2017. 
 
On 11 August 2016, AMR also entered into a Scheme Implementation Agreement with Kasbah Resources (ASX : KAS) pursuant to which AMR will, if implemented, acquire all of the ordinary outstanding shares of Kasbah (the “Kasbah Shares”) by way of a scheme of arrangement under the Australian Corporations Act (the “Transaction”).
 
Once completed, the Transaction will provide a clear path to the commencement of construction of Kasbah’s Achmmach tin project located in Morocco (subject to the decision of the AMR board on an appropriate project financing package).
 
The Transaction provides upside opportunities for both AMR and Kasbah shareholders, with exposure to upswings in both tin and nickel, a diversified asset base and potential for future growth.
 
The Transaction will be subject to, among other things, Kasbah shareholder approval, TSX-V and Australian a Scheme Implementation Agreement (the “SIA”) Stock Exchange approvals, receipt of all necessary regulatory and Australian court approvals, as well as the satisfaction of certain other conditions customary for a transaction of this nature.
 
Kasbah has now received approval for its SIA with Kasbah Resources by ASIC (Australian Securities and Investments Commission) and the Australian courts. 

 
Akura

Akura holds certain oil and gas leases in Fiji that are presently in the process of being renegotiated. Aorere holds 7.5% of Akura and has board representation.  


The Future

We hold stakes in two companies that still have significant forward momentum. Depending on the outcome of the present Nevada gold negotiations we may have a new project, or we may not, in which case we will focus on supporting both Chatham and the new Asian Minerals.

24 November 2016

Chris Castle
Managing Director

Peter Liddle
Chairmain

NZX Market Announcement: Aorere Resources Limited extends option to acquire Nevada gold assets

7 November 2016


NZX Market Announcement 

Aorere Resources Limited extends option to acquire Nevada gold assets 

In May 2016, Nevada Gold Limited (a wholly owned subsidiary of AOR) (NGL) entered into a conditional term sheet securing the exclusive right to acquire American Innovative Minerals LLC (AIM) of Nevada, USA for US$2 million.  

AIM holds the rights to the Fondaway Canyon Gold Project (the Fondaway Project), as well as a number of other advanced and early stage mining and exploration projects. The purchase of AIM was conditional upon the following:

(a)     Due diligence: NGL carrying out a due diligence assessment of AIM to the satisfaction of its board; and

(b)     Finance: NGL securing financing of US$3 million to satisfy both the US$2 million purchase price and AIM’s immediate working capital requirements. 

NGL secured exclusivity until 31 October 2016 to acquire AIM (subject to the conditions noted above). Further details regarding AIM and the Fondaway Project were released to market on 16 and 26 May 2016 and are available on Aorere’s website: www.aorereresources.co.nz.”

AOR is pleased to advise that the exclusivity period has now been extended to 30 November 2016 with a view to the acquisition being completed on or before that date. While the above conditions remain outstanding, the due diligence assessment is virtually complete and steady progress is being made toward securing the funding required to satisfy the finance condition.

AOR will update the market on the transaction further in due course. 

Regards, 

Chris Castle
Managing Director

chris@aorereresources.co.nz

NZX Market Announcement: Allotment of Shares

29 August 2016

NZX Announcement

Aorere Resources Limited: Allotment of Shares

Aorere Resources Limited (NZX: AOR) advises that it has issued 80,833,333 ordinary shares (Shares) to qualified investors at an issue price of $0.0009 per Share, raising $72,750 in new capital.

One of the qualified investors has also committed to investing a further $62,250 into AOR under the Rights Issue Offer, which is scheduled to open on Wednesday this week.

 Full details of the allotments are set out below.

On behalf of the Board,

 

Chris Castle
Managing Director
chris@aorereresources.co.nz

NZX Market Announcement: Rights Issue

9 August 2016

NZX Market Announcement

Aorere Resources Limited: Rights Issue

Aorere Resources Limited (NZX: AOR) advises that it intends to make a rights issue offer (Offer) to all AOR shareholders. The Offer price will be $0.0009 (0.09 cents) per share, to raise up to $685,000 (approx.) in aggregate. 

The pricing of the Offer is at a significant discount to recent AOR share trades which have ranged between 0.2 and 0.4 cents since the AOR private placement fundraising programme of .09 cents commenced.  The volume weighted average trading price during this fundraising period has been .224 cents, despite the fundraising at .09 cents, likely indicating strong investor support for the Company’s Nevada Gold strategy. The Offer gives all shareholders the same opportunity (at a 59.8 discount to recent trading prices) to support Aorere’s Nevada Gold project.

Shareholders recorded on the register as at the record date will receive renounceable rights to one new share for every existing share held. The rights will not be quoted on market.

Existing shareholder and retail investors may also apply for new shares subject to shortfall availability.

AOR intends to use the proceeds from the Offer, along with the capital raised from the recent placements, to finance costs in relation to the proposed acquisition of American Innovative Minerals LLC (AIM) through its wholly owned subsidiary Nevada Gold Limited (NGL) (including the compliance costs associated with the listing of NGL on the Toronto Stock exchange through a listed shell company).

The timetable for the Offer will be confirmed and advised to the market next week. It is intended that the Offer will be completed by the end of September.

On behalf of the Board,

 

Chris Castle
Managing Director
chris@aorereresources.co.nz