Persian Gold Announcements

RNS Number : 4810E Persian Gold PLC 29 September 2008  
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29 September 2008

Persian Gold PLC

Interim Results for the Six Months Ended 30th June 2008

Persian Gold, the Irish explorer, continues as one of the only, if not the only, Western mining exploration companies active in Iran. The potential in Iran is vast. The country is big, over 2,000km long and underexplored, with little done in the past 30 years. 

The principal geological attraction in Iran is the Tethyan Belt stretching in an arc from Turkey through Iran into Pakistan. Modern geological modelling indicates that this belt has potential for gold, base metals and copper/gold porphyry orebodies. A number of large gold mines have been recently brought on stream in neighbouring Turkey while the largest copper/gold porphyry deposit in the world, Reko Diq, on the Iran/Pakistan border is being developed by Antofagasta and Barrick Gold. Yet, little is happening in Iran.

Persian Gold entered Iran in 2004 following a specific gold in silica-alunite exploration model. Iran has the second largest deposits of alunite in the world. Elsewhere in recent years, a number of world class gold mines processing silica-alunite have opened in the Andes. We are looking to replicate this success. We continue to hold licences in the Takestan area of Iran, where the focus is gold in silica-alunite. But once we were established in the country, other projects were offered. We are currently focused on two gold projects, Chah-e-Zard and Dalli, but we have a number of others under evaluation.

Dalli
The current focus of activity is at Dalli, located some 200km southwest of Tehran, where a second stage drilling programme has been finalised. In total 8 holes have been drilled to a total depth of 2,494m, as well as 16 trenches covering 1,513m from which 2,030 samples were collected and sent for analysis.

We now believe there to be two orebodies at Dalli, the North and South Hills, separated by 1.7km. The indications are that the North Hill is predominantly a gold deposit while the South is a copper/gold porphyry. The first phase drilling on the North Hill produced marginally economic grades so it was decided to focus on the South Hill where the second stage drilling took place. Results are not yet available but visual inspection of the drill core combined with the assay results of the earlier drilling suggests that the grades of copper and gold could be quite variable within the mineralised orebody. The style and grade of mineralisation at South Hill is significant and warrants a regional search of the surrounding area to identify similar systems. This study will use Aster interpretation, rock sampling, soil geochemistry and surface IP geophysical survey.

Chah-e-Zard
The Chah-e-Zard prospect is located 550km southeast of Tehran. Results from phase 1 trenching and drilling led to a second phase of shallow drilling focused on the Southern lobe of the sampled area. To date, 38 holes, totalling 4,150m have been drilled and 38 trenches totalling 3,545m dug. Almost 3,000 drill core samples and 1,409 trench samples were analysed. All of the surface and drill hole data was put into a three dimensional model covering the Southern lobe to determine the near surface resources of gold and silver. The model indicates 160,000 ounces of gold and 1 million ounces of silver. It must be emphasised that this estimate is only near surface Southern lobe. An early stage scoping study suggests that an open cast heap leach operation may be economic. With our local 30 per cent partner, we have applied for, and await, a Discovery Certificate before initiating a pre-feasibility study.

It is important to note that the project outlined above relates to a small portion of the 750m by 1.25km mineralised zone previously identified by extensive soil sampling. The potential at depth over the entire area remains open.

Other Projects
Several new projects, almost all gold/copper were presented to Persian Gold. We are limited by finance and people on the number of projects we can handle at any one time. Large potential projects such as Shadan in eastern Iran were deemed too big for Persian Gold. Currently, projects in Zonouz, Ghahan, Angoran-Chay and Khoineroud are under review.

Approaches have been made to Persian Gold to examine exploration projects in areas adjacent to Iran, such as Azerbaijan and Kazakhstan.

Future
The continuous diatribe against Iran from the West has an adverse effect. Threats of war frighten investors. They sell into a market with no buyers. In one small deal in recent months, the market capitalisation of Persian Gold was halved. The recent collapse in world stock markets bodes badly for AIM. Cash will be hard to raise, even for the best projects. However, it is uncertain times that produce great opportunities. We are alone in Iran with a choice of high class projects. We expect to move forward with at least one of our current projects as well as acquiring new ventures. We are looking at options on how to finance these activities.

John Teeling
Chairman

29 September 2008

Enquiries:

Persian Gold PLC

John Teeling, Executive Chairman

+353 (0) 1 8332833
College Hill

Paddy Blewer
Nick Elwes

+44 (0) 20 7457 2020
Blue Oar Securities Plc

Simon Moynagh
John Wakefield
+44 (0) 1179 330 020

  

Financial Information (Unaudited)

Six Months Ended

Yr Ended

30 June 08

30 June 07

31 Dec 07

unaudited

unaudited

audited
Condensed Consolidated Income Statement

£'000

£'000

£'000
Revenue
0

0

0
Operating Costs
(192)

(162)

(396)
Operating Loss
(192)

(162)

(396)
Interest Receivable
4 

6 

17 
Loss on ordinary activities before taxation

(188)

(156)

(379)
Taxation
0 

0 

0 
Loss for the period
(188)

(156)

(379)
Loss per share
(.30p)

(.28p)

(.66p)
Condensed Consolidated Balance Sheet

30 June 08

30 June 07

31 Dec 07

unaudited

unaudited

audited

£'000

£'000

£'000
Assets

Intangible Assets
1,474

921

1,283
Current Assets

Other receivables and prepayments
12

5

20
Cash and cash equivalents
278

115

693
Total Current Assets
290

120

713
Total Assets
1,764

1,041

1,996
Liabilities

Current Liabilities

Trade and other payables
(228)

(265)

(272)
Non-current Liabilities

Provisions
(10)

0

(10)
Total Liabilities
(238)

(265)

(282)
 

Net Assets
1,526

776

1,714
Equity

Share Capital and Reserves
1,526

776

1,714
Total Equity
1,526

776

1,714
Condensed Consolidated Statement of Changes in Shareholders Equity

Six Months Ended 30 June 08

Share

Share

Other

Retained

Total

Capital

Premium

Reserves

Losses

Equity

£'000

£'000

£'000

£'000

£'000
As at 1 January 2007
140

1,246

55

(509)

932
Share option costs recognised in reserves

0
Shares issued
0
Share issue expenses
0
Loss for the period
(156)

(156)
As at 30 June 2007
140

1,246

55

(665)

776
Share option costs recognised in reserves

75

75
Shares issued
18

1,122

1140
Share issue expenses
(54)

(54)
Loss for the period
(223)

(223)
As at 31 December 2007
158

2,314

130

(888)

1,714
Share option costs recognised in reserves

0
Shares issued
0
Share premium on shares issued
0
Loss for the period
(188)

(188)
As at 30 June 2008
158

2,314

130

(1,076)

1,526

Six Months Ended

Yr Ended

30 June 08

30 June 07

31 Dec 07

unaudited

unaudited

audited
Condensed Consolidated Cash Flow

£'000

£'000

£'000
Cash flows from operating activities
Operating Loss
 (192)

 (162)

 (396)
Movements in Working Capital
 (36)

63 

115 
Net Cash Outflow from Operating Activities

 (228)

 (99)

 (281)
Cash Flow from Investing Activities
Returns on Investments and Servicing of Finance

4 

6 

17 
Capital Expenditure
 (191)

 (101)

 (439)
Net Cash used in Investing Activities

 (187)

 (95)

 (422)
Financing Activities

Proceeds from issue of equity shares
0 

0 

1,087 
Net Decrease in Cash and Cash Equivalents

 (415)

 (194)

384 
Cash and Cash Equivalents at beginning of the period

693 

309 

309 
Cash and Cash Equivalents at end of the period
278 

115 

693 
  Notes: 

1. Information

The financial information for the six months ended June 30th, 2008 and June 30th, 2007 is unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 240 of the Companies Act 1985.

The interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting and the accounting policies and methods of computation used in the interim financial statements are consistent with those used in the Group 2007 Annual Report, which is available at www.persiangoldplc.com

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

No dividend is proposed in respect of the period.

2. Loss per Share
30 June 08
30 June 07
31 Dec 07

£
£
£
Loss per share - Basic and Diluted
(0.30p)
(0.28p)
(0.66p)

               
               
               

Basic loss per share
The earnings and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
Loss for the year attributable to equity holders of the Parent

(188,291)

(156,272)

(379,383)

               
               
               

Weighted average number of ordinary shares for the purpose of basic earnings per share

63,412,198

55,802,800

57,720,785

               
               
               

3. Intangible Assets
30 June 08
30 June 07
31 Dec 07
Exploration and evaluation assets:
£'000
£'000
£'000
Cost at 1 January
1,283
819
819
Additions
191
102
464

_________
_________
_________
Cost and net book value
1,474
921
1,283

              
              
              

Exploration and evaluation assets relates to expenditure incurred during prospecting, exploring for gold and related expenditure in Iran.

All intangible assets held by the group to date are at an early stage of exploration, but all present indications, including those from feasibility reports produced during 2007 are that it will have a value in excess of the accumulated costs to date. No impairment provision has been made in respect of these intangible assets.

The group's activities are subject to a number of significant potential risks including:

- Price fluctuations
- Uncertainties over development and operational costs
- Operational and environmental risks
- Political and legal risks, including arrangements with governments for licences, 
profit sharing and taxation
- Availability of funding developments

The realisation of this intangible asset is dependent on the successful discovery and development of economic mineral reserves which is affected by these and other risks. Should this prove unsuccessful the value included in the balance sheet would be written off to the income statement.

The directors are aware that by its nature there is an inherent uncertainty in such development expenditure as to the value of the asset. Having reviewed the deferred exploration and evaluation development expenditure at 30 June 2008, the directors are satisfied that the value of the intangible asset is not less than carrying net book value.

4. The Interim Report for the six months to June 30th, 2008 was approved by the Directors on 29 September 2008.

5. Copies of this announcement will be sent to shareholders and will be available for inspection at the Companies Registered Office at 20-22 Bedford Row, London WC1R 4JS. The Interim Report may also be viewed at Persian Gold plc's website at www.persiangoldplc.com.

This information is provided by RNSThe company news service from the London Stock Exchange  END  IR UNOVRWKRKUAR