The Board of Agricola Resources PLC ("Agricola") is pleased to report the interim results to 30 June 2007, which show a loss for the period of GBP89,825 (2006:GBP70,607). Agricola is continuing its exploration effort in Finland, and has commenced implementation of a major exploration effort in Sweden.
The price of uranium has risen from US$7.10/lb in 2002 to US$136/lb as at 25 June 2007. Presently only 70% of the uranium consumed in the world's nuclear reactors is mined, with the balance being derived from existing stockpiles and re-cycled nuclear warheads. However, diminishing supplies from stockpiles and warheads mean that the existing nuclear plants cannot continue to operate indefinitely without increasing use of mined uranium. Moreover, Agricola's Directors believe that the demand for mined uranium will continue to increase as 30 new reactors are currently being commissioned and a further 74 are ordered or planned around the world.
On 3 May 2007 Agricola placed 46,780,000 ordinary shares of 1p each in the capital of the Company to Energy Ventures Limited ("EVE"). This equalled 29.9% of the Company's enlarged share capital. On 26 July 2007 Agricola shareholders approved the grant of options to EVE to subscribe for an additional 46,780,000 unlisted options exercisable at 1p per share within 18 months of the agreement. On 2 August 2007 Dr. Frazer Tabeart joined Agricola's Board as a Non-Executive Director representing EVE's interest.
On 1 June 2007 Agricola signed a joint venture with Beowulf Mining PLC ("Beowulf") under which Agricola may earn a 51% interest in the Ballek copper-gold-uranium exploration permits that cover 110 square kilometres in the Arjeplog municipality, northern Sweden. To earn this interest Agricola must complete ground geophysics and 3,000 m of diamond drilling on the Ballek tenements prior to 31 December 2008. Agricola can increase its equity to 70% through sole funding a further exploration program totalling US$500,000.
The Ballek Project comprises four exploration permits. It occurs at the intersection of two major fault systems, a WNW trending continental-scale lineament and a NNE trending major fault. A large gravity anomaly occurs in the Ballek Project area. There is a known uranium occurrence, Rebraur Vastra, in the NW tenement. Previous work by the Geological Survey of Sweden ("SGU") identified copper-gold mineralisation in the western part of the project. On the basis of the presence of a large gravity anomaly, copper, gold and uranium mineralisation, it is considered that this project has potential for iron-oxide, copper-gold (IOCG ) mineralisation.
Agricola has two project areas in northern Sweden, Geddaur and Mannakjaure, which are 100% owned. The Geddaur Uranium Project consists of two granted and one application for exploration permits, which cover 117 square kilometres. The Mannakjaure Uranium Project is one granted exploration permit covering 5.5 square kilometres.
The Geddaur Uranium Project adjoins the western side of Ballek joint venture area. The prospect was identified by the SGU in the 1970s through follow-up of radioactive boulder trails identified by airborne radiometric surveying. A single trench dug at Gervaive North through the glacial overburden exposed foliated, hematite altered granite basement rocks which were sampled and found to contain between 0.05% and 0.1% uranium over a trench length of 55m. Further airborne uranium anomalies are associated with this uranium occurrence and a very prominent anomaly is located 10 km to the NNE.
The Mannakjaure Uranium Project, Jokkmokk municipality, northern Sweden, is approximately 120km north of the Geddaur Project. The project was found by the SGU after several anomalous radiometric boulders forming large fields and trails were located in the area. High grade boulders were identified with grades reaching 0.1% of uranium. In the mid 1970s a drill program confirmed low to moderate uranium mineralistion in a biotite rich pegmatite. Maximum grade of 0.35% uranium occurred over a single 0.5m section of one drill hole.
The proceeds of the Energy Venture placement will be used to fast-track exploration at the Ballek joint venture and the Gedduar and Mannakjaure Uranium Projects. 3D magnetic and gravity inversion modelling of the regional data around Geddaur and Ballek is currently underway, as is a ground-based radiometric survey on the Geddaur Project.
In Finland three Prospecting Licence applications forming the 3 sq km Kuusjarvi Uranium Project in central Finland are subject to an earn-in joint venture by Cooper Minerals.
Agricola's Directors will work hard during the remainder of 2007 to increase the value of its exploration and development assets and will report regularly on the very active exploration programme currently underway in Sweden.
R. D. Young
Chairman
13 August 2007
INTERIM REPORT TO 30 JUNE 2007 - PROFIT AND LOSS ACCOUNT
|
|
6 Months ended 30 Jun 2007
GBP
|
6 Months ended 30 Jun 2006
GBP
|
| Turnover |
-
|
-
|
| Cost of Sales |
|
32,389
|
| . |
|
|
| Gross Loss |
-
|
(32,389)
|
| . |
|
|
Administrative & marketing
expenses |
91,275
|
39,747
|
|
|
|
| Operating Loss |
(91,275)
|
(72,136)
|
| . |
|
|
| Investment Income |
1,451
|
1,529
|
|
|
|
| Loss on ordinary activities before taxation |
(89,825)
|
(70,607)
|
| Tax |
-
|
-
|
|
|
|
| Loss for the financial year |
(89,825)
|
(70,607)
|
|
|
|
| Basic loss per share |
0.07p
|
0.07p
|
| Diluted loss per share |
0.07p
|
0.07p
|
The company had no recognised gains or losses other than the loss for the periods.
No dividends were proposed.
NOTES
- The financial information for the period ended 30 June 2007 has not been audited and does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. No review has been undertaken by the company's auditors.
- Basic loss per share have been calculated using the weighted average number of shares of 124,924,218 (2006 - 108,900,627). Diluted loss per share have been calculated using the weighted average number of shares of 124,924,218 (2006 - 108,900,627). There is no dilutive effect in the period or in the previous period in accordance with FRS14 paragraph 56.
The Directors of Agricola accept responsibility for this announcement.
Contact :
Dr. Robert Young
Chairman
Agricola Resources plc
01353 648 931
Barry Hocken / Duncan Vasey
St Helen's Capital PLC
0207 628 5582
|
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