1. Art and Diseño

30 Jan
nuary 20155
LAMBOO
O RESOURCE
ES Limited
QU
UARTER
RLY AC
CTIVITIE
ES REPO
ORT
ABN 27 0999 098 192
PE
ERIOD E
ENDING
G 31 DEC
CEMBE
ER 2014
4
ASX: LM
MB
HIG
GHLIGHTS
S:
CORPORATE OFFIC
CE
McIntosh (W
Western Au
ustralia)
Level 6, 344
3 Queen Sttreet,
Brisbane QLD 4000
OPERAT
TIONS OFFICE
Unit 2, 7 Packard Streeet
Joondaluup WA 6027
Telephonne: +61 8 93001 1047
CONTAC
CT
Richard Trevillion
T
Chief Exeecutive Officerr
richard@
@lambooresourrces.com.au
0412 3077 087
Tony Corrmack
Executivee Director /
Head of Operations
O
tony@lam
mbooresourcees.com
0427 349 451
Ken Bankks
Investor Relations
R
kbanks@
@bigpond.net.aau
0402 079 999
¾ 3-dime
ensional interpretattion of thee VTEM su
upermax survey
s
complleted at Target's
T
1, 3, 5 and
d 6 has confirmed
c
large
scale, highly conductiv
ve, electtromagnettic condu
uctors
associiated with
h graphitic
c schist.
¾ VTEM interpre
etation co
ontinuing to dem
monstrate that
McInto
osh has th
he strong potentiall to becom
me a very
y large
flake g
graphite re
esource.
¾ 30 - 50
0 kilometres of grap
phitic schiist strike length
l
pottential
within the McInttosh tenem
ment packkage.
¾ Highly
y conductive bodies at Taarget 4 believed
b
t be
to
attribu
utable to copper
c
/ niickel mineeralisation
n.
Geu
umam (So
outh Korea
a)
¾ Phase
e 2 drilling complete
e at Area C and Are
ea E in Geu
umam
with re
esults currrently being compilled.
¾ Metall urgical testwork
t
on Geu
umam co
ontinuing with
comm
minution an
nd roughe
er flotation
n studies now
n
finalised.
er flotatio
on studies
s are targ
geting a >85%
>
Cg basic
¾ Cleane
conce ntrate and a >80%
% recovery
ry rate, le
eaching sttudies
h-purity >93% Cg g raphite co
oncentrate
e.
will tarrget a high
¾ Runge
e have bee
en engage
ed to com
mplete a sc
coping stu
udy at
Geuma
am Flake Graphite project
p
in South Ko
orea
Corrporate
¾ Appoin
ntment of
o Mr. Neville
N
M
Miles as non-exec
cutive
Directo
or, Mr. Miles will ac
ct as interiim chairman.
¾ Appoin
ntment off Mr. Tony Cormackk as execu
utive Direc
ctor.
-2- MC
CINTOSH F
FLAKE GR
RAPHITE PROJECT
P
VTE
EM 3-DIM
MENSIONA
AL INTERP
PRETATIO
ON
Earrlier in 201
14 Lamboo
o Resourc
ces contraccted Geotech Ltd. to complette a VTEM
M superma
ax
surv
vey over th
he McIntossh Flake Graphite
G
Prroject (see Figure 1). A total of 642 line kilometres of
o
geo
ophysical d
data were acquired during the
e survey which
w
identified a tootal of 12 high-prioritty
ano
omalies. 3--dimension
nal interpre
etation of the VTEM
M data for Target 1, 3, 5 and 6 has bee
en
com
mpleted byy geophysical consulltant Russe
ell Mortimer working
g through S
Southern Geoscienc
G
ce
Con
nsultants (S
SGC).
Figure 1: F
Final processe
ed VTEM sup
permax image
ery (channel 49BZL) of the
e McIntosh F lake Graphite
e Project
East Kimberrley, Western Australia.
The
e interpreta
ation com
mpleted at Target's 1
1, 3, 5 an
nd 6 has
s confirmeed large sc
cale, highly
con
nductive, electromagn
netic conductors asssociated wiith graphitic schist. T
Target area
as 1, 2, 3, 5
and
d 6 have had explora
ation drillin
ng completted confirm
ming the prresence off flake grap
phite schisst.
The
e VTEM ssupermax interpretattion is co
ontinuing to demons
strate that the McIn
ntosh Flakke
Gra
aphite Proje
ect has the
e strong po
otential to b
become a very large flake grapphite resou
urce.
-3-
The
e 3-dimenssional VTE
EM interpre
etation at T
Target 1 is a very rob
bust mode l, with clea
ar indicatio
on
of areas
a
of thiickness in the graphiite unit app
parent with
h the obserrved signaature speciffically in th
he
maiin Target 1 resource area and a local zon
ne approximately 1 kilometre
k
ssouth-west of the maiin
reso
ource area
a. Stronge
er conducta
ance value
es >300S are
a defined
d by the puurple model plates an
nd
<30
00S as defined by the
e red mode
el plates (ssee Figure 2 and 3).
Figure 2: Plan view of the Target 1 anomaly (channel 49BZL) with model plates.
Figure 3: South-westt looking oblique view of tthe Target 1 anomaly
a
(cha
annel 49BZL) with model plates.
p
-4-
The
e main norrth-east zo
one of the Target 5 p
prospect area
a
define
es a tight aantiformal fold
f
closurre
acc
cording to tthe forward
d modelling
g of the VT
TEM, high conductan
nce of >3000S as den
noted by th
he
purple modell plates. South-wes
st of this main con
nductive zone disjoiinted, morre localise
ed
con
nductive pla
ates of som
mewhat low
wer condu ctance <30
00S denoted by the red model plates (se
ee
Figu
ures 4 and
d 5).
Figure 4: Plan view of the Target 5 anomaly (channel 49BZL) with model plates.
Figurre 5: North-we
est looking o
oblique view of
o the Target 5 model plate
tes.
-5-
A re
easonably complex series
s
of do
ominantly tthick plate / block mo
odel conduuctors were
e generate
ed
for the core section of Target
T
6. VTEM
V
data
a supports the presence of a foolded antifo
ormal hing
ge
zon
ne being prresent with
h multiple limbs / bod
dies being present.
p
Additional
A
ggraphite un
nits / bodie
es
may
y be belo
ow these modelled
d units. Th
he majority of the core seqquence ha
as stronge
er
con
nductance levels at >300S
>
as denoted
d
byy purple mo
odel plates
s with <3000S model plates
p
at th
he
peripheral secctions in th
he southern
n end (see
e Figure 6 and
a 7).
Figure 6: North-north-we
est looking oblique
o
view o
of the Target 6 anomaly (c
channel 49BZ
ZL) with mode
el plates.
-6-
Figure 7: Plan view of the Target 6 anomaly (channel 49BZL) with model plates.
-7-
Figure 8: Plan view of the Target 3 anomaly (channel 49BZL) with model plates.
VTE
EM modellling of the Target 3 prospecct highligh
hts the pre
esence off a broad conductivve
seq
quence bo
ounded byy sub-vertical condu
uctors at closer
c
spa
acing in thhe north-e
east secto
or.
Pre
esence of additional conducto
ors within the two bounding modelledd conductive units is
app
parent. The
e area of strong
s
cond
ductance a
area (purple model plates)
p
alonne represe
ents a strikke
leng
gth potential in excesss of a kilometre havving strong potential to
t host flakke graphite
e schist.
Planned drillin
ng at the end
e of the wet seaso
on will focu
us in the area with thhe strongest modelle
ed
con
nductance centred along
a
the VTEM fliight line L1365
L
(se
ee Figuress 8 and 9)
9 and th
he
surrrounding ssouth west section where
w
thicck plate models
m
are present. High cond
ductance of
o
>30
00S is denoted by the purple model
m
plate
es and <30
00S denote
ed by the rred model plates. Th
he
tota
al strike len
ngth potenttial at Targ
get 3 is in e
excess of three kilometres.
-8-
Figure 9: South-westt looking oblique view of tthe Target 3 anomaly
a
(cha
annel 49BZL) with model plates.
p
The
e synforma
al fold hing
ge at Targe
et 3 has a south wes
sterly plung
ge, meaninng the fold
d hinge getts
dee
eper toward
ds the sou
uth west of the Targe
et 3 area. The
T depth of the fold hinge is estimated
e
t
to
be approxima
ately 150m
m below the surface in the norrth east, plunging
p
doown to ap
pproximately
400
0m below the surface
e in the sou
uth west off the prosp
pect.
This
s large reg
gional scale folding at
a Target 3 has also undergone significaant faulting, potentially
bein
ng associa
ated with a large sca
ale thrustin g event. These
T
struc
ctures are seen as an
a importan
nt
driv
ver of higher grade / larger flake graphite
e mineralis
sation, it is
s these strructural en
nvironmentts
thatt will be the
e focus of all future exploration
e
activities.
-9-
Figu
ure 10: Targett 4 anomaly ((channel 49BZL) with VTE
EM flight liness .
VTE
EM superm
max image
ery of the Target 4 - Melon Patch
P
prospect has iidentified large
l
highly
con
nductive bo
odies believed to be associated
d with the presence of copper and nickell (see figurre
10). The Geo
ological Survey of We
estern Ausstralia's 1:100,000 mapping
m
off the Targe
et 4 - Melo
on
Pattch prospe
ect has reccorded a biotite
b
bea
aring olivine gabbron
norite assoociated witth the Sally
Dow
wns superrsuite of th
he layered
d gabbroicc McIntosh
h Sill intru
usion. A ggeochemica
al samplin
ng
program com
mpleted by Thundelarra as rep
ported in a 2005 ope
en file repport identified a broa
ad
zon
ne of anom
malous co
opper and nickel, th
his zone correlates
c
extremely well with
h the highly
con
nductive bo
odies identtified by th
he VTEM i magery. Copper
C
valu
ues of >5000ppm were recorde
ed
in soil
s and 250
0 to 500pp
pm in rock chip. Nicke
el values ranged
r
between 80 too 250ppm recorded in
i
soil samples.
-10-
EXP
PLORATIO
ON POTEN
NTIAL
Lam
mboo Resources ha
as an exte
ensive ten
nement pa
ackage su
urrounding the McIn
ntosh Flakke
Gra
aphite Project area having stron
ng potentia
al to conta
ain econom
mic flake grraphite min
neralisation
n.
To date Lamboo has not
n comple
eted any e
exploration drilling bu
ut field obsservations
s along witth
geo
ological ma
apping havve confirm
med the EM
M anomalies are most likely contributable to flakke
graphite schisst.
Fig
gure 11: McIn
ntosh Projectt Area, VTEM 2014. McInto
osh exploratio
on potential, Hoist EM 20005 and Airborrne EM 2005.
Dettailed geolo
ogical map
pping and rock chip ssampling are
a planned
d for the 2 015 field season.
s
Th
he
strik
ke length p
potential off the comb
bined McIn
ntosh tenem
ment packa
age to hosst flake gra
aphite schisst
has
s been estimated to be
b in the ra
ange of 30 - 50 kilometres.
-11-
CO
ONCEPT / SCOPING
G STUDY
Lam
mboo have
e commissiioned CSA
A Global (C
CSA) to pre
epare grad
de and ton nage estim
mates of th
he
exp
ploration ta
argets and complete a full review
w the mine
eral resourrce at McInntosh. The exploratio
on
targ
get estimattes are exp
pected in the
t next qu
uarter and combined
d with the T
Target 1 re
esource will
w
und
derpin a co
oncept / sco
oping study for the M
McIntosh prroject also due in thee next quarrter.
OTH
HER AUST
TRALIAN PROJECT
TS
Lim
mited work programs were und
dertaken in
n the quarrter on the
e Mabel, H
Halls Creek
k and Vallla
Pro
ojects.
Com
mpetent Pers
sons Statem
ment: Inforrmation in th
his report rellating to exp
ploration resu
ults and geo
ological data
a at the McInntosh Projec
ct is based on
o
inforrmation prevviously comp
piled and / orr reviewed b
by Mr. Tony Cormack, Member
M
of thhe Australasiian Institute of
Miniing and Metallurgy and
d a full-time employee of Lamboo Resources Limited. Mrr. Cormack has sufficient
expe
erience whicch is relevantt to the activiity previouslyy undertaken
n to qualify as a "Compettent Person",
", as defined in
the 2012 edition
n of the Austrralasian Cod
de of Reportiing of Explorration Resultts and conseents to the in
nclusion in th
his
ort of the mattters reviewe
ed by him in the
t form and
d context in which
w
they ap
ppear. repo
-12-
LAM
MBOO TENEMENTS
S - AUSTR
RALIA
Project McIntosh, WA Mabel, WA Halls Creek, WA Valla, NSW Te
enement Melon Paatch McIntosh
h Hills Melon North Melon So
outh Black Graanite White Ro
ock South Panton W
West Black Rock Creek Togo Edle Creeek Alice Dow
wns White Ro
ock Carolyn H
Hills South Panton N
North Mabel Hill Wills Creeek Mabel Downs Spring Crreek Six Mile Bore Golden C
Crown South Highwayy Granite Granite Granite Granite Granite Granite Granite Granite Granite Valla Type E E E E E EL EL EL EL EL EL EL P E ELA ELA E E E E E E P P P P P P P P EL Number E80/3864 E80/3928 E80/3906 E80/3907 E80/4396 E80/4688 E80/4734 E80/4739 E80/4732 E80/4825 E80/4842 E80/4841 P80/1821 E80/4733 E80/4879 E80/4931 E80/4385 E80/4797 E80/4814 E80/4794 E80/4793 E80/4795 P80/1816 P80/1817 P80/1815 P80/1818 P80/1414 P80/1799 P80/1801 P80/1800 EL6702 Status 100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
100% Lamboo 1
Accquired/Disp
posed 6 block surrrender 24/12/20
014 5 block appplication 16/12/2
2014 -13-
GEUMAM FL
LAKE GRA
APHITE PR
ROJECT
RES
SOURCE DRILLING
G
The
e focus of the Phase
e 2 resourrce drilling program shifted to Area E annd testing of possiblle
exte
ensions in flake grap
phite mineralisation tto the nortth of Area B. Early ddrilling results confirm
m
the presence of multiple
e thick inte
ersections of high-grrade flake graphite aat Area E. The resultts
also
o indicate Area B continues
c
to
t extend further to the north (ASX Re lease 15 Septembe
er,
2014). The drrill sites we
ere surveye
ed accurate
ely using a DGPS by
y local regi stered surrveyor.
DEP
POSIT GE
EOLOGY
Gra
aphite min
neralization
n is conc
cordant w
with a 15
50m thick meta-seddimentary sequence
e,
com
mprising an
n upper meta-arenit
m
te unit, wh
hite meta-limestone, and a low
wer meta-arenite an
nd
metta-siltstone
e unit. The
e meta-lim
mestone iss referred to as the
e “Geumam
m Limesto
one” and is
regarded as a useful “b
bio-stratigrraphic marrker horizo
on”, and in
ndicative oof a reef or carbonatte
ram
mp environm
ment.
Bas
sement ro
ocks consiist of meta-granodi orite, metta-monzodiorite andd meta-dio
orite of th
he
Soe
ebaegsan Gneiss, in
n faulted co
ontact with
h the meta
a-sedimenttary sequeence drape
ed around a
bas
sement dom
me (Figure
e 13). Graphite mine
eralization is locally enriched
e
aaround the margins of
o
and
desite sills.. The ande
esite sills are conco rdant with foliation in the metaasedimentts and havve
bee
en emplace
ed along a major NE
E trending ffault. The andesite is
s believed to be asso
ociated witth
emp
placementt of Late Crretaceous quartz porrphyry plug
gs.
GR
RAPHITE M
MINERALIS
SATION
e flake grraphite mineralization at Geu
umam is characteris
c
sed by caataclasite brecciation
n,
The
mas
ssive form
m and in
nternal de
eformation styles. The
T
graphite mineeralization is usually
acc
companied by veinlett stockworrks, comprrising grey
y, fine-grain
ned, cryptoocrystalline
e quartz (5
510%
% volume) in the upp
per section, with a low
wer section
n characte
erised by frracture infilling quartzzcalc
cite veinletts (<5% vo
olume). Fin
ne-grained
d disseminated pyrite
e was the only sulph
hide minera
al
obs
served and
d is mainly confined to
o the uppe
er section (<1%
(
volum
me).
-14-
Figure 12. Geumam Fla
ake Graphite Project Tenu
ure Map. The granted Mining Rights witth respect to
o the mapped
graphitte schist beds
s and prospe
ect Areas A, B,
B C, D, E, F, G and H are iindicated.
-15-
Figure 13
3. Drill Hole Location and G
Geological Map, Areas B and E, Geum
mam Project.
-16Tab
ble 1. Summa
ary of Comple
eted Drill Hole Collar Surv
veys, Phase 2 Drilling Prog
gram.
SUMMAR
RY DRILL HO
OLE COLLA
AR SURVEY DATA
Hole ID
AREA
Easting
Northing
RL
(MASL)
Azimu
uth
(True o)
Dip (o)
Depth
h EOH (m)
GM-13
B
2
290637.72
4089360.20
71.10
141
-522
110.0
GM-14
B
2
290869.23
4089340.83
22.40
105
-500
40.5
GM-15
B
2
290872.51
4049308.02
22.40
277
-499
61.5
GM-16
B
2
290750.40
4089431.50
29.23
0
-899
121.0
GM-17
B
2
290748.32
4089431.97
30.09
285
-500
72.4
GM-18
B
2
290750.00
4089431.35
30.57
099
-511
140.7
GM-19
B
2
290749.48
4089431.55
30.50
103
-699
108.7
GM-20
B
2
290877.46
4089598.27
45.12
236
-500
207.4
GM-21
B
2
290880.02
4089596.82
45.11
324
-500
231.4
GM-22
B
2
290880.45
4089596.10
45.41
324
-700
198.7
GM-23
B
2
290878.05
4089598.66
45.34
324
-711
185.2
GM-24
E
2
290984.07
4089558.50
44.36
260
-500
148.0
GM-25
E
2
290984.90
4089558.79
44.24
260
-700
120.7
GM-26
E
2
290990.13
4089432.19
55.53
260
-500
120.7
GM-27
E
2
290990.91
4089432.29
55.56
260
-700
156.7
GM-28
E
2
2908980.27
4089557.53
44.15
080
-655
132.7
GM-29
B
290876
4089598
45
010
-500
12.3
GM-30
B
2
290874.47
4089595.92
44.98
080
-855
195.6
GM-31
B
2
290880.19
4089599.82
44.99
135
-700
177.5
GM-32
C
2
290814.06
4089856.36
63.52
280
-500
163.4
TOTAL
T
Metre
eage
2,698.6
METALLURG
GICAL TES
STWORK
A structured
s
m
metallurgiccal testworrk program
m on Geum
mam graph
hite ore is underway at ActLab
bs
mettallurgical laboratory in Thunde
er Bay, Ca
anada. The
e metallurg
gical studyy is based on the fou
ur
ore types ide
entified at Geumam and is de
esigned to
o support a Scopingg Study. ActLabs
A
ha
as
con
nsiderable experiencce in the testing an
nd flowshe
eet develo
opment off graphitic
c ores. Th
he
mettallurgical testwork program
p
is
s being in dependently supervised by R
RungePinco
ockMinarco
o.
Tab
ble 2 prese
ents the chemical cha
aracteristiccs of the orre types at Geumam being tested.
-17Tablle 2. Summarry of the chem
mical charactteristics of th e Geumam metallurgical
m
testwork
t
sam
mples.
Sample Head
d Assay (%)
Sample
Source
Deposit
D
'B'
Primary
P
Deposit
D
'B'
Weathered
W
Deposit
D
'C'
Primary
P
Deposit
D
'C'
Weathered
W
Al
Ca
TDICP
TDICP
3.57
Carbon (IR)
Fe
K
Mg
Na
P
S
S
Amorphou
us
(calc)
TDICP
TDT
IC
CP
TDICP
T
TD-ICP
TDICP
TDICP
IR
< 0.5
<3.32
2.40
1..79
2.27
0.17
0.11
0.86
0.78
7.3
30
0.7
0.27
2.55
1..64
0.75
0.17
0.16
0.36
0.34
6.82
3.6
64
< 0.5
<2.68
2.84
1..64
1.48
0.56
0.06
0.65
0.61
4.89
4.6
67
< 0.5
<0.22
4.26
2..23
0.41
0.13
0.06
0.11
0.15
Total
Due
e to
Grap
phite
Organicc
(calc)
9.68
8.72
4.9
90
3.86
1.02
8.27
4.83
9.17
6.51
0.20
The
e mineralo
ogical and comminuttion require
ements of the variou
us ore typpes at Geu
umam havve
bee
en establisshed. Com
mminution studies th
hat the ore types ranged froom soft to
o moderatte
hardness and
d would pre
esent no difficulties
d
i n milling. The
T Bond Ball Mill W
Work Indice
es (BBMW
WI)
ranged betwe
een 11.3 and
a 14.2 kW
Wh/t. Mine
eralogical analyses
a
found that quartz wa
as the majo
or
ngue mine
eral presen
nt, along with
w
calcitte and minor quantities of annkerite, do
olomite an
nd
gan
mus
scovite. Lo
ow levels of
o pyrite sulphide (<1%
%) was als
so present.
Cleaning testtwork is currently
c
underway
u
with the target of producingg a flotatio
on graphitte
con
ncentrate w
with grades of 85% Cg and o verall reco
overies in excess off 80%. Once the fina
al
flota
ation cleaning testw
work has been
b
com
mpleted, grraphite concentrate leaching studies will
w
com
mmence. Based on
n anticipatted dome
estic mark
ket deman
nd, very high purity graphitte
con
ncentrates would be prepared by leachin
ng of the final
f
flotatio
on concenntrates to remove
r
an
ny
relic
ct quartz, calcite, an
nkerite, dolomite and
d muscovitte gangue
e minerals.. This testwork woulld
targ
get a high
h-purity grrade of >9
93% Cg, previously
y achieved
d in historrical leach
hing studie
es
con
nducted in 1983 by th
he Korean Mining Pro
omotion Co
orporation (1983b).
In addition,
a
th
he recoverry of pyrite
e from the
e flotation tailings is also to bee studied. Pyrite is a
pote
entially sa
aleable by-product and
a
its rem
s that the flotation tailings arre
moval also ensures
marrketable ass a fine concrete san
nd product.. This has the added potential benefits to
o the projecct
of eliminating
e
ngs storag
ge facility at
a Geumam
m and signnificantly re
educing th
he
the need for a tailin
env
vironmenta
al impacts. The metallurgical ttestwork is
s now exp
pected to be completed durin
ng
Feb
bruary 2015.
-18-
SCO
OPING ST
TUDY
A Scoping
S
Stu
udy on the
e Geumam
m Flake Gra
aphite Pro
oject is in progress.
p
R
RungePinc
cockMinarcco
has
s been con
ntracted to
o provide an indepe
endent Scoping Study on Ge umam. Du
ue to som
me
dela
ays experienced with
h the meta
allurgical te
estwork an
nd drill program, the scoping study is now
w
exp
pected to b
be complete
ed during March 201
15. Various
s operating
g cost dataa have bee
en collected
d.
In addition,
a
sseveral opttions for mining
m
me
ethods are being evaluated, inncluding undergroun
nd
min
ning to minimize dilution and surface distu
urbance im
mpacts.
QUARRY AG
GGREGATE STUDY
The
e non-grap
phite mine
eralized ov
verburden overlying the Geum
mam grap hite depos
sit is bein
ng
inve
estigated by the geotechnica
g
al materia
als testing
g laboratory of Haanyoung Constructio
C
on
Tec
chnology C
Co. Ltd. in Korea
K
for comprehen
c
nsive aggre
egate testing.
Dan
ngjin City and the surroundin
s
g Chungn
nam Provin
nce is the highest ggrowth are
ea in Soutth
Korrea. As a consequen
nce, industrial devel opment, la
and reclam
mation andd port expa
ansions arre
takiing place n
nearby at a rapid rate
e. This in tturn results
s in a signiificant requuirement fo
or quarryin
ng
of a range off aggregatte materia
als for use
e in severa
al sectors. The com
mpany belie
eves durin
ng
graphite minin
ng, there iss good pottential to exxtract the overburden
o
n, crush annd screen it and sell it
into
o the local cconstructio
on, road ba
ase / aspha
alt and con
ncrete aggregate maarkets.
Com
mpetent Pers
sons Statem
ment:
Inforrmation in th
his report re
elating to exp
ploration ressults and geological data
a at the Geuumam Project has been
n
com
mpiled by Co
onsulting Ge
eologist Mr Christopherr Sennitt, who
w
is a Fe
ellow of thee Australian Institute off
Geo
oscientists. M
Mr. Sennit ha
as sufficient experience
e
th
that is relevant to the type
es of depositts being expllored for and
d
quallifies as a C
Competent Person
P
as defined
d
in the
“
n Code for Reporting
R
off
e 2012 Edittion of the “Australasian
Explloration Ressults, Minera
al Resources
s and Ore R
Reserves” (J
JORC Code 2012 Editioon) and cons
sents to the
e
inclu
usion of this iinformation in
i the form and context in
n which it app
pears in this report.
-19-
LAM
MBOO TENEMENTS
S - SOUTH
H KOREA
Geu
umam Flak
ke Graphite
e Project
Tenemen
nt
Number
Registration
Num
mber
Arrea
(h
ha)
Regiistered Holder
Dangjin 54
4-4
200
0432
44
4
Won K
Kwang Mines In
nc
30 July 2014
2
31 July 202
21
Dangjin 56
6-3
200
0433
68
6
Won K
Kwang Mines In
nc
30 July 2014
2
31 July 202
21
Dangjin 66
6-1
200
0434
68
6
Won K
Kwang Mines In
nc
30 July 2014
2
31 July 202
21
Dangjin 55
5-3
800
077
68
6
Won K
Kwang Mines In
nc
7 Februa
ary 2012
6 February 2032
Dangjin 65
5-1
800
014
68
6
Won K
Kwang Mines In
nc
8 Decem
mber 2011
7 Decembe
er 2031
Dangjin 65
5-2
783
355
68
6
Won K
Kwang Mines In
nc
17 Decem
mber 2009
16 Decemb
ber 2029
Dangjin-54
4-2
200
0258
13
35
Won K
Kwang Mines In
nc
23 May 2013
2
22 May 202
20
Dangjin-55
5-4
200
0259
64
6
Won K
Kwang Mines In
nc
23 May 2013
2
22 May 202
20
Grrant Date
Expiry Date
Tae
ehwa Flake Graphite Project
P
Tenemen
nt
Number
Regis
stration
Nu
umber
Area
A
(ha)
Re
egistered Holde
er
Hongcheon
n 91-2
07
79948
68
Won
n Kwang Mines Inc
Grant Date
15 Nov
vember 2011
Expira
ation Date
14 Novem
mber 2031
Sam
mcheok Fla
ake Graphitte Project Tenemen
nt
Number
Regis
stration
Nu
umber
Arrea
(h
ha)
Reg
gistered Holder
Samcheok--09-2
20
00216
68
6
Won Kwang Mines In
nc
Grant Date
10 January 2013
Expira
ation Date
9 January
y 2020
-20-
CORPORATE
E
BOARD CHA
ANGES
On the 9th December 20
014 Lambo
oo appointe
ed Mr. Nev
ville Miles as
a a non-eexecutive Director.
D
M
Mr.
Mile
es will act as interim
m Chairman whilst th
he compan
ny conducts an interrnational search
s
for a
high
h profile Chairman. Mr.
M Miles is
s Singaporre based, where
w
he is currentlyy COO of Invicara, an
a
IT company providing solutions to the b
building industry. Mr. Miles hhas extensive senio
or
man
nagement experiencce, having run
r a varie
ety of busin
nesses for Siemens i nternationally for ove
er
15 years. Ne
eville bring
gs to the board
b
a w
wealth of knowledge
k
gy, strateg
gy
in busineess strateg
exe
ecution and
d marketin
ng as welll as a histtory of bu
uilding successful buusinesses in the Asiia
Pac
cific region.
On the 17th December 2014
2
Lamb
boo appoin
nted Mr. To
ony Corma
ack as an eexecutive Director
D
an
nd
now
w assumess Operation
nal Management of a
all of Lamb
boo's proje
ects. Mr. Coormack is a Geologisst
with
h 20 yearrs experien
nce in the
e exploratiion and mining
m
indu
ustry in W
Western Australia. Mr
M
Corrmack has a proven track reco
ord of takin
ng explorattion throug
gh to produuction and will bring a
wea
alth of operational exxperience as
a the com
mpany trans
sitions from
m explorer to miner.
Durring the quarter Lamb
boo annou
unced the rretirement of Chairma
an, Mr. Bruuce Presto
on, for
hea
alth reason
ns and the resignation
n of non-exxecutive Director
D
We
enzhao (Jeerry) Xie.
HEN
NGDA
Durring the q
quarter the
e company announ ced that the Hengda mergeer was un
nable to be
b
com
mpleted ass the Heng
gda equity ownership
p was mate
erially diffe
erent and uundisclose
ed details of
o
further loan te
erms were
e discovere
ed, significa
antly alteriing the benefits of thhe merger.. Lamboo is
in advanced
a
d
discussions to secure repayme
ent of the deposit
d
and possiblyy its costs. The supply
agreement with Lamboo
o remains intact.
i
FUN
NDING AG
GREEMEN
NT
Sub
bsequent to the end of the qua
arter Lamb
boo has en
ntered into a funding agreemen
nt ("Fundin
ng
Agrreement") of AU$1m
million with the Austra
alian Spec
cial Opporttunity Fundd, LP, an institutiona
al
inve
estor mana
aged by New
N
York based
b
The Lind Partners LLC (Lind). Thee Funding Agreemen
nt
com
mprises an Unsecure
ed Convertiible Note fo
or a term of
o 12 months.
The
e proceedss will prima
arily be use
ed to fund ongoing working
w
cap
pital as La mboo acce
elerates th
he
dev
velopment of its high
h purity flak
ke graphite
e projects. The note
e is repayaable by equal monthly
pay
yments ove
er a 12 mo
onth period from the e
end of Feb
bruary 2015. Each m onthly repayment ca
an
be made,
m
at L
Lamboo's option,
o
eith
her through
h cash or shares
s
or a combinatiion of both
h.
-21-
If th
he Compa
any electss to repay
y the who le or partt of the monthly
m
paayments in
n cash, th
he
repayment am
mount will carry a premium
p
o
of 2.5% of the relev
vant repayyment amount. If th
he
Com
mpany eleccts to repa
ay by share
es, the Rep
payment shares will be
b priced aat 90% of the
t averag
ge
of 3 daily volume weigh
hted avera
age prices (VWAP) chosen
c
by
y Lind duri ng a spec
cified perio
od
prio
or to each iissue of sh
hares.
Lam
mboo can repay the full outsta
anding facce value of the Conv
vertible Noote based on a 2.5%
%
premium and Lind would have th
he right up
pon such repayment to converrt an amou
unt equal to
t
% of the face value of
o the Conv
vertible Notte at that time
t
into eq
quity at thee premium conversio
on
25%
pric
ce which iss equal to 130%
1
of the Average
e of the VW
WAP during
g the 20 traading days
s prior to th
he
Fun
nding Agre
eement being signed ("Premium
m Conversion Price").
The
e funding arrangeme
ent allows
s Lamboo Resources to continue to deevelop its projects by
b
prov
viding cap
pital throug
gh a highly
y flexible cconvertible
e instrument that is repaid ove
er a stage
ed
period. The sstructure allso allows the compa
any at its election to
o issue shaares or cash to repa
ay
the note to Lin
nd on a monthly bas
sis. If the re
epayment is paid by shares thee conversio
on price will
w
be linked to current share pric
ces at the
e time off issue, minimising
m
dilution for
f
existin
ng
sha
areholders..
The
e face value of the no
ote is a 15%
% premium
m over the funded am
mount and the Company will pa
ay
a $100,000 fe
ee in cash
h or shares
s on recei pt of the funds.
f
Afte
er a periodd of 60 days from th
he
initial drawdown, Lind has
h the op
ption to co
onvert any amounts outstandinng under the
t
Fundin
ng
Agrreement intto ordinaryy shares att the Prem ium Conve
ersion Price ("Converrsion Sharres").
As part of the
e funding agreement,
a
also be gra
anted optio
ons. The ooptions will comprise 3
Lind will a
million options with an exercise price
p
equa
al to the Prremium Co
onversion Price or 130% of th
he
ave
erage of th
he daily VWAPs
V
pe
er share d
during the
e twenty (20) conseecutive Tra
ading Dayys
th
imm
mediately p
prior to the 28 Febru
uary 2015 and exerciisable 36 months
m
from
m the date
e of issue.
The
e funding agreement also con
ntains othe
er standarrd conditions and evvents of default for a
Con
nvertible N
Note of thiss nature. While
W
the sharehold
der approv
val is not rrequired fo
or the initia
al
fund
ding to proceed, the
e Agreeme
ent contain
ns provisio
ons requiring approvval of shareholders if
required unde
er Listing Rule
R
7.1 th
he subseq
quent issue
es of share
es upon coonversion of the notte
and
d Lamboo intends to
t call an extraordin
nary gene
eral meetin
ng to seekk such ap
pprovals. In
I
add
dition, Lam
mboo is alsso require
ed to issue
e a prospe
ectus to "c
cleanse" sshares tha
at are to be
b
issu
ued pursua
ant to the Funding Agreement
A
. Lamboo will advise
e shareholdders for th
he timetablle
of the prospectus in due course, but is con tractually required
r
to
o issue succh prospec
ctus by 28
8th
Feb
bruary 2015. As part of the Fun
nding Agree
ement, Lin
nd has agre
eed not to trade Lam
mboo share
es
untiil the prosp
pectus is filed.
f
The Company
C
w
will also is
ssue 2 million sharess to Lind which
w
will be
b
cred
dited again
nst shares to be issu
ued on con
nversion off the note or
o otherwisse acquired
d by Lind at
a
a price equal to the rep
payment price, to the
e extent no
ot previous
sly crediteed against Conversio
on
Sha
ares.
-22-
Tony C
Cormack
Executtive Directo
or / Head of Operatio
ons