Indiana Resources - Quarterly Activities Report - 30 June 2024
INDIANA RESOURCES LIMITED (IDA) Share Update July 2024 Friday 26th
Indiana Resources Reports Strong Progress in South Australian Exploration and Corporate Developments
Indiana Resources Limited (ASX: IDA) has released its quarterly activities report for the period ending 30 June 2024, highlighting substantial advancements in its South Australian exploration projects and notable corporate developments.
Instant Summary:
- Completed RC and AC drill programs at Minos and Hopeful Hill targets.
- 732m RC drilling at Minos for high-grade gold mineralization.
- 576m AC drilling at Minos for high-grade REE mineralization.
- 330m RC drilling at Hopeful Hill for Zn-Cu anomalies.
- Assay results expected in August.
- Final ICSID annulment hearing scheduled for 26 July 2024.
- 1-for-30 rights issue raised ~$1.1M before costs.
Exploration Progress
Indiana Resources Limited has made significant strides in its exploration efforts within the Central Gawler Craton Project in South Australia. During the quarter, the company completed reverse circulation (RC) and aircore (AC) drilling programs at the Minos and Hopeful Hill prospects.
At the Minos gold prospect, 732 meters of RC drilling were conducted to test the extension of high-grade gold mineralization. Additionally, 576 meters of AC drilling were completed at the Minos REE prospect to confirm the extension of high-grade REE mineralization and gather samples for metallurgical test work.
At the Hopeful Hill prospect, 330 meters of RC drilling were carried out to investigate Zn-Cu anomalies identified by a previous aerial survey. The company expects to receive assay results in August, which will provide further insights into the mineral potential of these targets.
Corporate Developments
Indiana Resources has also made notable corporate advancements. The company announced a 1-for-30 non-renounceable entitlement offer, raising approximately $1.1 million before costs. Directors of the company subscribed for their full entitlements, contributing around $100,000.
The company continued its preparations for the annulment proceedings in the International Centre for Settlement of Investment Disputes (ICSID) against the Government of Tanzania. The final hearing for Tanzania's annulment request is scheduled for 26 July 2024. As of 30 June 2024, the amount payable by the Government of Tanzania stands at approximately USD$125 million, including the award amount, interest, and legal costs.
Financial Overview
Indiana Resources reported a cash balance of approximately $1.90 million at the end of the quarter. Significant outflows included $915,000 on administrative, corporate, and staff costs, and $218,000 on exploration and evaluation activities. Payments to related parties and their associates totaled approximately $95,000, covering directors' fees, salaries, superannuation, and consulting fees.
The ongoing exploration activities and upcoming assay results could significantly impact Indiana Resources' stock, especially if the results confirm high-grade mineralization. The successful rights issue and the potential resolution of the ICSID arbitration could further bolster investor confidence and positively influence the stock price.
Investor Reaction:
Investors and analysts are closely monitoring the assay results expected in August, as well as the outcome of the ICSID annulment hearing. The company's strategic positioning in the Gawler Craton and its focus on both gold and REE exploration are seen as positive indicators for future growth.
Conclusion:
Investors should keep an eye on the upcoming assay results and the final ICSID hearing. Indiana Resources' continued exploration success and strategic corporate actions could present significant opportunities for growth and value creation.