The Board of Agricola Resources PLC ("Agricola") are pleased to report the interim results to 30 June 2006. Agricola is now concentrating the majority of its efforts on uranium exploration in Finland.
The price of uranium oxide, from which fuel for nuclear power plants is made, has risen from $7.25 a pound in 2001 to $47.25 in mid 2006. Nowadays, barely half of the uranium needed to run the world's nuclear power plants comes from operating mines. Existing stocks, deactivated nuclear weapons and reprocessed fuel provide the remainder. These secondary supplies are now running low, and demand is rising. 27 nuclear plants are under construction to add to the 442 already working, according to the International Atomic Energy Report. Many countries are planning or contemplating building additional new plants.
The Finnish Government is expanding its nuclear energy production by building a new further nuclear power plant. This will be one of the largest reactors ever built in Europe. The four existing nuclear power plants currently in operation were brought into operation between 1977 and 1980: two 488 MWe WWER's at Loviisa, east of Helsinki, and two 840 MWe BWR's at Olkiluoto, producing 27% of Finland's electricity supply. The country presently imports all of its uranium requirements. In 2003, 549 tons of uranium were required for its four nuclear power reactors. Finland has to compete with other countries for its uranium supplies, so has been keen to grant uranium prospecting licences to several companies.
Cooper Minerals Inc. ("Cooper"), a Toronto quoted mining company, entered into a formal option agreement on February 16th 2006 with Agricola , to explore for uranium on Agricola's Paukkajanvaara uranium concession in Finland. The Paukkajanvaara uranium project is located in the Joensuu magistrate in eastern Finland. Joensuu is a major town with a population of approximately 65,000 inhabitants, located 400 kilometres northeast of Helsinki and 50 km east of the mining town of Outokumpu..
All of the area previously held by Agricola under a claim reservation has in 2006 been applied for as a full exploration licence. In addition to this, further extensions to the area have also been taken out under a number of claim reservations. Another exploration company has recently become active in the area and has applied for ground in the vicinity of Agricola's current holdings.
The claims at Paukkajanvaara cover the only previously operated uranium mine in Finland. Test mining in 1960 and 1961 by the Finnish company Atomienergia Oy at Paukkajanvaara produced about 30 tonnes of yellowcake (U3O8) from 30,700 tonnes of ore assaying 0.12 per cent U3O8.
The Paukkajanvaara uranium deposit is located at the north-end of Lake Paukkajarvi. The project area is well served with high-quality tarred roads; it is sparsely populated and is in general characterised by flat-lying forested areas. A railway line is located about five kilometres from the property.
Cooper has already purchased 2000 radon detectors from Alphatrack, a supply company based in Vancouver. The deployment of these detectors at Paukkajanvaara has commenced..
Agricola had seven claims in 2005 called Hautajaervi No.'s 1 -7, located in the municipality of Salla in the Lappland county in northern Finland. In April 2006 a request was made to transfer these to full Exploration Claims No. 1-27 covering 2700 hectares.
Drilling by Agricola in late 2005 revealed uranium mineralization in two holes at Energy Ridge. In drill hole HA 005 seven metres of mineralised albite-carbonate zones were located with the best value of 0.33% U308 (uranium oxide) from 33.00 to 33.90 metres. 5.8 metres of mineralised albite-carbonate zones were located in HA 006 with the best value of 0.19% U308 between 13.10-14.10 metres.
A radon survey of Agricola Energy Ridge licences will commence when the radon survey on the Paukkajanvaara licences has been completed. The objective is to define further drilling targets in the area.
Agricola's directors will work hard during the remainder of 2006 to increase the value of its exploration and development assets, and they are considering other opportunities in Finland and elsewhere.
R. D. Young
Chairman
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2006
|
|
6 Months ended 30 Jun 2006
Unaudited
GBP
|
6 Months ended 30 Jun 2005
Unaudited
GBP
|
| Turnover |
-
|
-
|
| Cost of Sales |
32,389
|
16,761
|
| . |
|
|
| Gross Loss |
(32,389)
|
(16,761)
|
| . |
|
|
Administrative & marketing
expenses |
39,747
|
46,436
|
|
|
|
| Operating Loss |
(72,136)
|
(63,197)
|
| . |
|
|
| Investment Income |
1,529
|
1,056
|
|
|
|
| Loss on ordinary activities before taxation |
(70,607)
|
(62,141)
|
| Tax |
-
|
-
|
|
|
|
| Loss for the period |
(70,607)
|
(62,141)
|
|
|
|
| Basic loss per share |
0.07p
|
0.08p
|
| 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 2006 has not been audited and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985.
- Basic loss per share have been calculated using the weighted average number of shares of 108,900,627 (2005 - 82,803,444). Diluted loss per share have been calculated using the weighted average number of shares of 108,900,627 (2005 - 94,577,214).
INDEPENDENT REVIEW REPORT TO AGRICOLA RESOURCES PLC
INTRODUCTION
We have been instructed by the Company to review the financial information for the six months ended 30 June 2006 which comprises summarised profit and loss account and the associated notes. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.
DIRECTORS' RESPONSIBILITIES
The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the PLUS-quoted rules and the OFEX code which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.
REVIEW WORK PERFORMED
We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquires of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information.
REVIEW CONCLUSION
On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2006.
Wilson Wright & Co
Chartered Accountants
71 Kingsway
London, WC2B 6ST
11-Sep-06
Contact :
Dr. Robert Young, Chairman
+44 1353 648 931
Agricola Resources plc
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