REPORT ON ACTIVITY FOR THE QUARTER ENDED 30 JUNE 2000

 

OVERVIEW

PROJECT FUNDING
  • Multiplex and Monto Minerals are making progress towards a decision concerning the development of the Goondicum Crater Ilmenite and Titano-magnetite Project.

 

GOONDICUM CRATER ILMENITE AND TITANO-MAGNETITE PROJECT
  • Measured and Indicated Resources now total 82 million tonnes containing 3.7 million tonnes of ilmenite and 2.1 million tonnes of titano-magnetite.
  • Metallurgical testwork is underway to establish a flowsheet for ilmenite, titano-magnetite and additional products - apatite, plagioclase feldspar and olivine.
  • A water bore has been drilled and developed to produce an allocated 47.5 litres per second (1,500ML per annum) to supply water for the Goondicum Crater Project.

 

MARKETING
  • Ilmenite demand and price continues to rise.
  • Potential markets for additional products being identified.

 

RESOURCE ESTIMATES

As reported in the Update of 27 June, 2000 the Measured and Indicated resource estimates within the Crater area now stand at 3.7 million tonnes of ilmenite and 2.1 million tonnes of titano-magnetite contained in 82 million tonnes of mineralised eluvium. In addition, 11 million tonnes of mineralised eluvium has been identified to be drilled which will then add to the resource estimates.

METALLURGICAL PROGRAM

A metallurgical program, utilising bulk samples taken from the test pitting program, has commenced at Mineral Technologies testing facilities at Cararra on the Gold Coast. The aim of this program is to provide detailed data on ore preparation procedures, fines handling, flocculation and rheology. Flowsheets for all products including apatite, plagioclase feldspar and olivine in addition to ilmenite and titano-magnetite are being developed. This program is expected to be completed in late August.

WATER SUPPLY ASSESSMENT

A successful water bore has been drilled and developed in the Mulgildie Basin. This bore will be one of three in a borefield to produce water for the Goondicum Crater Project.

Results to date indicate that the bore is capable of yielding the allocated 47.5 litres per second (1,500ML per annum) however it is expected to have the capacity to yield 60 litres per second. Testing is continuing.

ADDITIONAL PRODUCTS

The recovery of apatite, plagioclase feldspar and olivine is part of the metallurgical test program presently underway. The operational flowsheet generated will indicate the tonnages of the various additional products that can be expected to be produced. Samples for marketing purposes will be available from this program.

Apatite, regarded as a "non-chemical" fertilizer, has been further analysed. Recent analysis (tabled below) confirms the high grade and quality of this naturally occurring product.
Element
P2O5
Fe2O3
CaO
TiO2
S
F
Unit
%
%
%
%
%
%
 
40.6
0.35
54.0
0.09
0.05
1.99

Element
Cd
Hg
Se
Sn
As
Mo
Cu
Pb
Zn
Ag
Au
B
Mo
Unit
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
 
0.1
0.08
2.8
<0.2
21
<5
<5
<5
<5
1
<0.01
<10
<5

Plagioclase feldspar, used in the glass and ceramics industry, has been further tested and after leaching with a warm acid wash produced iron oxide analyses of 0.28% (Fe2O3). This is an encouraging result and the current metallurgical program will address, in detail, the chemical and physical specifications for this potentially saleable product.
Olivine will also be produced from the metallurgical test program. Olivine is used in foundries and as a refractory material. This is readily separated using magnetic separators.

All three of the above additional products occur in very significant quantities within the Crater rocks and also in the clay sand and decomposed gabbro which makes up the Measured and Indicated resource.

MARKETS

The extensive resources in the Goondicum Crater and other deposits are estimated to have the capacity to accommodate production for both the Synthetic Rutile Plant and other Ilmenite markets worldwide.

Ilmenite Market

• Goondicum Ilmenite is sulphate grade feedstock.

• World sulphate grade feedstock supply declining (18% in 1999).

• Sulphate ilmenite prices rose by 15% in 1999 in A$ terms. Average price was $135.

• Goondicum ilmenite budgeted at $100 to $110 per tonne.

Sulphate ilmenite prices are forecast to continue their upward trend, influenced by limited supply and sustained demand.

POTENTIAL ADDITIONAL PRODUCTS

Apatite - estimated production in excess of 200,000 tonnes per year. Price range about $80 to $100 per tonne.

Plagioclase feldspar - large tonnage (approximately 0.5 million tonnes per year) expected to be produced. Market price $60 to $110 per tonne, dependent on chemical analysis and physical specification.

Olivine - large tonnages likely, price ranges up to $200 per tonne.




L G JOHNSON (F. Aus.I.M.M.)

Managing Director

28 July 2000

The information in this report insofar as it relates to ore or mineralisation is based on information compiled by Mr L G Johnson, a full-time employee of the Company, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy and who has a minimum of five years experience in the field of activity being reported on.

Appendix 5B

Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.
Name of entity
MONTO MINERALS N.L.
ACN or ARBN
Quarter ended ("current quarter")
063 144 865
30 JUNE 2000

Consolidated statement of cash flows
 

Cash flows related to operating activities
Current quarter

$A’000
Year to date
(12 months)

$A’000
1.1
Receipts from product sales and related debtors

 

    
1.2
Payments for (a) exploration and evaluation

Payments for (b) development

Payments for (c) production

Payments for (d) administration

(201)

 

(214)
(1,213)

 

(702)
1.3
Dividends received
    
1.4
Interest and other items of a similar nature received
22
99
1.5
Interest and other costs of finance paid
    
1.6
Income taxes paid
    
1.7
Other — Prior year Directors remuneration accrued in 1999 Financial Report
 
 

(466)
 
Net Operating Cash Flows
(393)
(2,282)
  a
Cash flows related to investing activities
  a   a
1.8
Payment for purchases of: (a) prospects

Payment for purchases of: (b)equity investments

Payment for purchases of: (c) other fixed assets
 

 
 

 

(13)
1.9
Proceeds from sale of: (a) prospects

Proceeds from sale of: (b) equity investments

Proceeds from sale of: (c) other fixed assets

    
1.10
Loans to other entities
    
1.11
Loans repaid by other entities
    
1.12
Other (provide details if material)
25
 
Net investing cash flows
0
(12)
1.13
Total operating and investing cash flows (carried forward)
(393)
(2,270)
1.13
Total operating and investing cash flows (brought forward)
(393)
(2,270)
 
 Cash flows related to financing activities
    
1.14
Proceeds from issues of shares, options, etc.
  
3,758
1.15
Proceeds from sale of forfeited shares
    
1.16
Proceeds from borrowings
    
1.17
Repayment of borrowings
    
1.18
Dividends paid
    
1.19
Other (provide details if material)

- Capital Raising Costs
 
 

(240)
 
Net financing cash flows
0
3,518
 
Net increase (decrease) in cash held
(393)
1,248
1.20
Cash at beginning of quarter/year to date
1,808
167
1.21
Exchange rate adjustments to item 1.20
    
1.22
Cash at end of quarter
1,415
1,415
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter

$A’000
1.23 Aggregate amount of payments to the parties included in item 1.2
113
1.24 Aggregate amount of loans to the parties included in item 1.10
Nil
1.25 Explanation necessary for an understanding of the transactions
fdsghsdrttdryjndtynj
Non-cash financing and investing activities
2.1
 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
fdsghsdrttdryjndtynj
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
fdsghsdrttdryjndtynj
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available

$A’000
Amount used

$A’000
3.1 Loan facilities
Nil
Nil
3.2 Credit standby arrangements
Nil
Nil
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
450,000
4.2 Development
–
 a Total
450,000
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as
shown in the consolidated statement of cash flows) to
the related items in the accounts is as follows.
Current quarter

$A’000
Previous quarter

$A’000
5.1 Cash on hand and at bank
128
70
5.2 Deposits at call
1,287
1,738
5.3 Bank overdraft – –
5.4 Other (provide details) – –
 a Total: cash at end of quarter (item 1.22) 1,415 1,808
Changes in interests in mining tenements
Tenement reference Nature of interest
(note (2))		 Interest at beginning of quarter Interest at end of quarter
6.1 Interests in mining tenements relinquished, reduced or lapsed
Nil
  a  a  a
6.2 Interests in mining tenements
acquired or increased
Nil
  a  a  a
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per security (see note 3) (cents) Amount paid up per security (see note 3) (cents)
7.1 Preference +securities
(description)
Nil
Nil
 Nil Nil
7.2 Changes during quarter

(a) Increases through issues

(b) Decreases through returns of capital, buy-backs, redemptions
Nil
Nil
 Nil Nil
7.3 +Ordinary securities 107,379,028 107,379,028  a  a
7.4 Changes during quarter

(a) Increases through issues

(b) Decreases through returns of capital, buy-backs

 Nil Nil  a  a
7.5 +Convertible debt securities (description) Nil Nil Nil Nil
7.6 Changes during quarter

(a) Increases through issues

(b) Decreases through securities matured, converted

 Nil


Nil

 Nil


Nil

 Nil


Nil

 Nil


Nil
7.7 Options
(description and conversion factor) 		150,000 Nil Exercise price
20 cents		 Expiry date
18/12/2000
7.8 Issued during quarter Nil Nil Nil Nil
7.9 Exercised during quarter Nil Nil Nil Nil
7.10 Expired during quarter Nil Nil Nil Nil
7.11 Debentures
(totals only) 		Nil Nil
7.12 Unsecured notes
(totals only) 		Nil Nil  a  a
Compliance statement
1
This statement has been prepared under accounting policies which comply with accounting standards as defined in the
2
This statement does /does not* (delete one) give a true and fair view of the matters disclosed.
Sign here: .............................................................................. Date: ............................
(Director/Company secretary)

 

Print name: .............................................................................
Notes
1
The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2
The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

Appendix 5B - Notes

Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.
Name of entity
MONTO MINERALS N.L.
ACN or ARBN
Quarter ended ("current quarter")
063 144 865
30 JUNE 2000

ITEM 1.25 PAYMENTS MADE TO DIRECTORS AND RELATED ENTITIES
Current quarter
$$$$$$		 Year to Date
$$$$$
(a) Reimbursement of out of pocket expenses
1,060
17,966
(b) Directors fees
22,500
217,607
(c) Office administration costs 2,778 26,470
(d) Consulting fees 40,327 336,256
(e) Salary and Wages 32,500 281,666
(f) Superannuation Contributions 7,808 52,152
(g) Rent 6,000 24,000
(h) Equipment Purchases – 9,409
(i) Underwriting Fees – 45,104
TOTAL 112,973 1,010,630
N.B. Some of the above amount have been capitalised as part of the exploration and evaluation expenditure.