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February 2, 2015
December 2014 Quarterly Activity Report
ASX Release Stock Code: CDB
Condor Blanco Mines Limited – Quarterly Activities Report
In the quarter Condor Blanco Mines Limited (ASX: CDB; “Condor”, “the Company”) maintained its
tenement position, while seeking to improve its financial position in the face of a difficult operating
environment and falling commodity prices. This has involved delaying payments on the Marianas Iron
Ore Project and a reconsideration of the exploration expenditures.
In the period, Condor also announced the completion of four trial pits at the “Uludere Project” in
Southeast Turkey. All four pits reached the bottom of the iron-rich zone and intersected blocks of leadsilver containing material. 53 tonnes of material that is saleable under the Meskan Olmez Madencilik
Ltd Şti offtake agreement was shipped to the location of the flotation plant. Assessment of the
profitability of future mining is underway, with a local consultancy completing a desktop evaluation of
the mining potential. This included a draft mine costings and will be used to complete a cash flow
analysis for future potential mining.
Chilean Project Update
Condor is seeking to rationalise its expenditure in Chile. This has meant suspending payments on the
Marianas Project. This is in response to a falling Iron Ore price which is more than 65% down from its
peak of over US$190/t in early 2011 to around US$65 today. The previous assessment work
undertaken by Condor was at a significantly higher iron ore price, and Condor does not intend to
make further investments in the project until conditions improve in the Iron Ore sector. Despite the
ability to produce a 65% Fe product, the pricing of these fines does not warrant development at this
time.
Given the rapid deterioration in the Iron Ore price, Condor has not made further payments on the
Marianas Iron Ore tailings project. Condor holds 50% of the shares in the holding company. It is
withholding further payments on the project pending a positive change in the iron price. In the future
should it seek to recommence operations a new replacement agreement should be formed. Should
Condor’s joint venture partner formally demand already due payments by lodging a legal petition to
that effect, Condor could then at that time elect to meet these and form new agreements at that
time or to relinquish its stake. No formal demand has been made at this time.
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Condor is also seeking to reduce the option fees payable on its exploration tenements Carachapampa
and Gold Iron. Condor is in discussions about reductions as well as extensions and hopes to have a
positive outcome soon. Should a formal demand be made for these option fees Condor would need
to meet those or begin procedures to relinquish the titles. Option fees are currently due. Condor
believes that it will be able to structure an arrangement for increased exploration to occur in the
future. Condor’s other directly owned portfolio, including the a 100% interest in the Yaretas and
Fraga Copper-Gold Projects and 70% in the historically mined Cautiva-Victoria Copper Project, all
remain in good standing and require only minimal expenditures to be retained in perpetuity.
Uludere Zinc-Lead Project
On 26 November 2014, Condor announced that all four planned trial mining pits had been completed
at the Uludere Project (on Mining Licence 200806380). Under its 11 September 2014 agreement,
Condor has a 6-month exclusive right to undertake trial mining and can elect to continue to larger
scale mining prior to the expiry of the take period. Through completion of the four pits, Condor has
fulfilled its stage 1 obligations, and now can assess stage 2.
In the period, 53 tonnes of Pb-Ag bearing material that is saleable under the Meskan Olmez
Madencilik Ltd Şti offtake agreement has been shipped to the location of the flotation plant in
Olgunlar, Turkey where it was weighed and sampled. Several hundred tonnes of Zn and Pb bearing
iron-rich material was also stockpiled at site. This material requires further beneficiation for sale,
which has been investigated with the engineers at the flotation plant. Although not economic for the
current trial scale, a limited investment in a wet high intensity magnetic separation unit (which has
been costed at $90,000) will enable larger volume to be processed for sale.
Assessment of the profitability of future mining was also undertaken with a local consultancy in the
period. A draft report on mine costing has been completed and a cash flow assessment is being
undertaken.
Sabaleta Gold Project in Ecuador
During the period Condor undertook negotiations and due diligence over the Sabaleta Gold Project in
the Republic of Ecuador with Australian unlisted public company, Rio Perdido Gold Limited (“RPG”). A
Heads of Agreement (“HOA”) was signed on 25 September 2014 just prior to the start of the period.
Despite two extensions to the term of the HOA, Condor was not able to reach a suitable agreement
with RPG. The HOA then lapsed as announced on 14 November 2014.
Albany Fraser Range Western Australia
As part of Condor’s strategy, the company has also entered into discussions regarding a significant land
holding in Western Australia’s Albany Fraser Range. The Albany Fraser Range is host to a number of
newly discovered prospective Nickel targets. Condor will update the market as soon as any binding
agreements are reached.
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Corporate Events
The Annual General Meeting of the company was held on 26 November 2014. All resolutions were
passed, which included the re-election of Mr Stavros Vlahos and Mr Michael Stafford as directors, the
approval of a 10% placement facility, a planned future placement of ordinary shares as well as the
adoption of the remuneration report.
Enquiries:
Mr Glen Darby
Managing Director
Condor Blanco Mines Limited
Office: +61 (2) 8064 3624
Email: [email protected]
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Appendix 5B
Mining exploration entity quarterly report
Rule 5.3
For personal use only
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Condor Blanco Mines Limited
ABN
Quarter ended (“current quarter”)
16 141 347 640
31 December 2014
Consolidated statement of cash flows
Cash flows related to operating activities
1.1
Receipts from product sales and related
debtors
1.2
Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
Dividends received
Interest and other items of a similar nature
received
Interest and other costs of finance paid
Income taxes paid
Other (provide details if material)
1.3
1.4
1.5
1.6
1.7
Net Operating Cash Flows
1.8
1.9
1.10
1.11
1.12
1.13
Current quarter
$A’000
Year to date
$A’000
(118)
(920)
(217)
(740)
2
(335)
(1,658)
-
-
(335)
(1,658)
Cash flows related to investing activities
Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
Loans to other entities
Loans repaid by other entities
Other (provide details if material)
Net investing cash flows
Total operating and investing cash flows
(carried forward)
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Appendix 5B
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1.13
1.14
1.15
1.16
1.17
1.18
1.19
Total operating and investing cash flows
(brought forward)
(335)
(1,658)
Cash flows related to financing activities
Proceeds from issues of shares, options, etc.
Proceeds from sale of forfeited shares
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Other (provide details if material)
973
-
973
(335)
(685)
348
698
13
13
Net financing cash flows
Net increase (decrease) in cash held
1.20
1.21
Cash at beginning of quarter/year to date
Exchange rate adjustments to item 1.20
1.22
Cash at end of quarter
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
1.24
Aggregate amount of loans to the parties included in item 1.10
1.25
Explanation necessary for an understanding of the transactions
(149)
-
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
Nil
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
Nil
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Appendix 5B
Mining exploration entity quarterly report
Financing facilities available
For personal use only
Add notes as necessary for an understanding of the position.
Amount available
$A’000
3.1
Loan facilities
3.2
Credit standby arrangements
Amount used
$A’000
Estimated cash outflows for next quarter
$A’000
4.1
Exploration and evaluation
4.2
Development
4.3
Production
4.4
Administration
(500)
(200)
(150)
(170)
(1,020)
Total
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.
5.1
Cash on hand and at bank
5.2
Current quarter
$A’000
Previous quarter
$A’000
13
348
Deposits at call
-
-
5.3
Bank overdraft
-
-
5.4
Other (provide details)
-
-
13
348
Total: cash at end of quarter (item 1.22)
Changes in interests in mining tenements
Tenement
reference
6.1
Interests in mining
tenements relinquished,
reduced or lapsed
Nature of interest
(note (2))
Interest at
beginning
of quarter
Interest at
end of
quarter
Nil
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Appendix 5B
Mining exploration entity quarterly report
Interests in mining
tenements acquired or
increased
Nil
For personal use only
6.2
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Appendix 5B
Mining exploration entity quarterly report
Issued and quoted securities at end of current quarter
For personal use only
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
7.1
7.2
7.3
7.4
7.5
7.6
Preference
+securities
(description)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks,
redemptions
+Ordinary
securities
Total number
Number quoted
938,004,494
938,004,494
Issue price per
security (see
note 3) (cents)
Amount paid up
per security (see
note 3) (cents)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buybacks
+Convertible
debt
securities
(description)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
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Appendix 5B
Mining exploration entity quarterly report
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7.7
7.8
7.9
7.10
7.11
7.12
Options
(description and
conversion
factor)
Total
Number Quoted
Exercise Price
Expiry Date
122,290,236
$0.0120
16-Sept-2019
37,876,666
20,000,000
15,000,000
283,444
406,556
227,966
547,259
562,500
595,000
595,000
476,000
$0.20
$0.06
$0.0333
$0.0470
$0.0920
$0.0460
$0.0370
$0.0330
$0.0210
$0.0210
$0.0270
23-Feb-2016
01-Aug-2015
01-Aug-2017
13-Sep-2015
24-Sep-2015
07-Jan-2016
11-Feb-2016
18-Feb-2016
25-Mar-2016
03-Apr-2016
10-Apr-2016
Issued during
quarter
Exercised
during quarter
Expired during
quarter
Debentures
(totals only)
Unsecured
notes (totals
only)
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Appendix 5B
Mining exploration entity quarterly report
For personal use only
Compliance statement
1
This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 5).
2
This statement does give a true and fair view of the matters disclosed.
Sign here:
2/02/2015
............................................................ Date: ............................
Secretary
Peter Dunoon
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 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5
Accounting Standards ASX will accept, for example, the use of International
Financial Reporting 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.
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