Operations Report

The Company is exploring two projects in northern Chile for large-scale copper-gold deposits, namely: the San Lorenzo Project and the Especularita Project.

Both projects are strategically located within the coastal metallogenic belt which affords the Company significant infrastructure advantages over explorers who operate in the high-altitude Andean belt, including access to roads, power, towns and ports. Both projects are along trend from major deposits and exhibit significant evidence of historical artisanal mining. However, the areas are relatively under-explored by comparison with the Andean regions.

The Company has the option to earn 100% of both projects with no attaching royalty conditions or overhanging payment requirements.

To assist with the exploration activity across both projects the Company has expanded its all-Chilean exploration team with the addition of a highly experienced Chief Geologist as well as two graduate geologists.

Exploration activities at the projects for the period to 31 March 2023 are set out below.

San Lorenzo Project

Previous exploration work at the Chinchillon prospect area of San Lorenzo has determined that large-scale copper-gold mineralisation occurs within a granodiorite, which in turn is intruded by dykes, sills and stocks of monzonite and overprinted by an extensive calc-potassic alteration event. The overprinting calc-potassic alteration is typically defined by swarms of sheeted fractures of quartz-actinolite-magnetite-K feldspar-Fe-oxide with rare evidence of copper oxides¹. Contact margins of the monzonite intrusive bodies also exhibit strong evidence of copper-gold mineralisation typically associated with unidirectional solidification textures (or UST).

Work at San Lorenzo this year included interpretation of a ground magnetic survey (completed the previous year²)³ as well as scout drilling at four prospect sites within the calc-potassic alteration zone⁴. Managing and maintaining the project's concession portfolio is on-going and includes the addition of new concessions to the project⁵.

During the reporting period, a scout diamond drilling programme comprising 13 holes for a total of 2,958m was completed across 4 prospect areas within the Chinchillon prospect at San Lorenzo. The programme was designed with the aim to⁶;

-     Target the oxide sheeted fracture-vein systems at depth to determine if the fracture-vein sets host copper sulphides at depth below the base of oxidation,

-     Target monzonite and UST to evaluate the fertility of the monzonites to potentially produce a Cu-Au deposit,

-     Determine the controls on mineralisation, and

-     Identify what exploration tools and methods might be best employed to vector towards economic deposits.

The results of the drilling have successfully confirmed that the sheeted fracture system hosts copper sulphide mineralisation and that copper (and gold+molybdenum) grades are dependent upon both fracture density and sulphide speciation within the individual fractures. Assay results indicate that the background copper content for unaltered-unmineralised granodiorite is very low (<10-100ppm Cu). However, where the granodiorite is overprinted by sheeted fracture alteration, the copper content increases significantly to >300-1000ppm Cu. Drill holes SLD005-009 targeting the fracture-hosted altered granodiorite all intersected anomalous Cu+Au-Mo on fractures with hole SLD005 recording a best intercept of 94m of 480ppm Cu from 274m (SLD005)⁶.

Maximum assays for individual samples (2m sample intervals) for hole SLD005 were 0.21% Cu and 0.11g/t Au. Additional highest assay results for the other holes over 0.5-2m sample intervals include; 0.68% Cu (SLD006), 869ppm Cu and 1.13g/t Au (SLD007), 0.19% Cu and 0.5g/t Au (SLD008) and 0.37% Cu and 1.78g/t Au (SLD009)⁶. Whilst these results are not economic, they are significant in demonstrating that the Chinchillon system is fertile and that a significant volume of copper (and gold) has been added to the granodiorite presumably from a large deeper source body, such as the monzonite. The company will now use this information to target its next phase of exploration drilling.

Monzonitic dykes, sills and stocks are prevalent invading throughout the calc-potassic altered granodiorite at Chinchillon. The monzonites are characterised by UST magmatic textures (unidirectional solidification textures) which are strongly indicative of a fertile mineralisation system formed at a low erosional cupola level. Two monzonite intrusives were targeted with scout drilling at the Las Hermanas and Cerro Blanco prospects. Assay results indicate that the monzonite intrusives are highly elevated (up to 2 orders of magnitude) in copper (>300-1000ppm Cu), relative to the enclosing granodiorite (<50-100ppm Cu), and as such they represent a potential progenitor for the Cu+Au mineralising system at Chinchillon⁶. Best Cu-Au drill intercepts for holes targeting the monzonite-UST mineralisation include⁶;

·    SLD010:        5.5m of 0.27% Cu, 0.54g/t Au from 70.7m, including

0.5m of 1.65% Cu, 3.63g/t Au from 70.5m

·    SLD013:        4.0m of 0.2% Cu, 0.1g/t Au from 5m, and

1.0m of 0.37g/t Au from 9m

Analysis of trace element ratios (Al3O₂/TiO₂, Sr/Y and V/Sc ratios) from drill core assay data for the monzonite dykes also suggests that the monzonite geochemistry falls within the ranges for fertile Cu and Cu-Au producing intrusives⁷.

The results of the scout drilling programme confirm that GSC has discovered a large intrusive-related copper-gold system at Chinchillon. The drilling results are still being fully evaluated.

The San Lorenzo project is strategically located within the Coastal metallogenic belt that is host to both porphyry and IOCG type copper-gold deposits. The location benefits from excellent infrastructure due to its low altitude and recent discovery successes in the belt by Hot Chili (ASX:HCH) and Tribeca Resources (TSX:TRBC) emphasise the exploration potential of the district. With this in mind GSC has acted to increase its concession-holding over the year and now holds approximately 28,645 ha (286 km²) of mining and exploration concessions both granted and in the process of being granted⁵.

Especularita Project

The Especularita project comprises an extensive district-scale porphyry-epithermal-skarn mineralisation system located within the Coastal metallogenic belt and is host to significant small-scale mines and artisanal workings for copper and gold. The centre of the mineralised system is identified as a topographically distinct zone of advanced argillic altered volcanics referred to locally as the La Colorada lithocap. Initial work by GSC and its predecessor at Especularita was focussed on reconnaissance exploration as well as maximising the Company's land position in the district¹.

Reconnaissance-scale mapping and sampling across the project during the previous reporting period and into this reporting period, has led to the discovery of outcropping high-grade copper-gold mineralisation (up to 7.22% Cu and 13.1g/t Au)⁸ in 3 prospect locations, namely; the Teresita, Victoria and Aurelia prospects. In addition, porphyry style stockwork vein alteration has been identified in several locations within and marginal to the La Colorada advanced argillic altered lithocap⁷. Further exploration is planned to elevated these porphyry areas to prospect-scale targets.

The Teresita and Victoria prospects represent epithermal style quartz-carbonate vein-breccia deposits with mineralisation hosted within quartz-dominant zones of the breccias. Copper assay grades in surface samples collected from detailed prospect mapping at Victoria during the reporting period range up 6.9% Cu and 1.85g/t Au⁹ gold up to 13.7g/t Au and up to 13.7g/t Au at Teresita⁷. Assay results from preliminary prospect-scale mapping and sampling at the Aurelia prospect are indicative of skarn type mineralisation with samples from historical small-scale mines ranging up to 7.6% Cu and 2.9g/t Au⁷. Scout RC drilling programmes are being planned for both the Teresita and Victoria prospects.

A programme of first-pass stream sediment sampling has also been implemented across the Especularita project area to provide geochemical exploration vectors to new target areas particularly within the lithocap alteration zone⁵. Approximately 500 drainage samples have been collected during the later half of the reporting period and assay results for the survey are pending.

The Especularita project is located within a large mineral district and includes significant historical evidence of artisanal mining and processing as well as active small-scale Cu-Au mines. The project is strategically located within a trend that includes both large porphyry and skarn type copper deposits including Andacollo (Teck) and El Espino (Pucobre). During the reporting period, the Company has worked to increase its concession position within this under-explored district and now holds 18,209 ha (182 km2) of mining and exploration concessions both granted and in the process of being granted⁵.

Sam Garrett
Chief Executive Officer

28 July 2023

References:

1.     Prospectus for Great Southern Copper PLC (06 Dec 2021),

2.     RNS 8499X (22 Jan 2022): Ground-based magnetic survey completed at San Lorenzo project,

3.     RNS 4007M (23 May 2022): Ground magnetics survey identifies multiple targets at San Lorenzo,

4.     RNS 9264R (11 Jul 2022): Diamond drilling commences at San Lorenzo Cu-Au project, Chile,

5.     RNS 3666Q (20 Feb 2023): Exploration update at Especularita and San Lorenzo,

6.     RNS 4946T (20 Mar 2023): Results for scout drilling programme,

7.     RNS 1155A (22 May 2023): Corporate presentation

8.     RNS 2146H (22 Nov 2022): Early exploration at Especularita identifies Cu-Au targets and completion of drilling at San Lorenzo

9.     RNS 0445V (03 April 2023): Rock chip assay grades up to 6.9% Cu and 1.85g/t Au in outcrop from Victoria prospect

Extract from Strategic Report

The Directors present their Strategic Report on the Group and Company for the year ended 31 March 2023.

Strategy and Business Review

The Company's strategy is to create value for shareholders by using the expertise of its management team to successfully explore for copper-gold (Cu-Au) deposits in Chile and, potentially, to identify and acquire other mineral exploration projects.

The Company's exploration projects in Chile comprise the San Lorenzo Cu-Au project north east of the coastal town of La Serena in northern Chile and the Especularita Cu-Au project located approximately 170km to the south of the San Lorenzo project. Both projects are situated in the Coastal Cordillera of Chile with good access to infrastructure.

The prospectivity of both projects is confirmed by both significant historical small scale artisanal workings for copper and gold and the exploration work completed to date.  In the past year, the Company has undertaken geological mapping, trenching and scout drilling at San Lorenzo.  At Especularita, the Company has carried out geological mapping, stream sediment sampling, rock chip and float sampling.  Exploration is still at an early stage at both projects and has not yet matured to the stage where a mineral resource estimate has been defined. Nevertheless, drilling at San Lorenzo has confirmed the discovery of a large intrusive-related Cu-Au mineralised system and, at Especularita, results have identified mineralised vein breccia targets for follow-up work.

In December 2021, £3.5 million was raised to fund the Company's two-year exploration programme at San Lorenzo and Especularita. In the past financial year, £2,136,136 was spent according to the budget leaving a cash balance of £653,940 as at 31 March 2023.

The outlook for copper is positive, given the lack of investment in new copper discoveries over the last decade, which has lowered copper production at a time when it needs to ramp up significantly to enable the transition to clean energy.  For copper exploration, Chile is a prime destination.  It is the largest copper producer in the world and one of South America's most promising investment destinations. It is a stable and prosperous country with such impressive mineral endowment, that all the world's major mining companies operate there. 

Details of the Company's results and prospects are set out in the Chairman's Statement and in the Operations Report.

Subsequent Events

On 15 May 2023, the Company entered into an agreement with Foreign Dimensions Pty Limited ("FD") whereby FD agreed to provide the Company with an unsecured interest free convertible loan facility in the aggregate sum of £501,000. The loan is to be made in two tranches:

·    £250,000 on 31 August 2023; and

·    £251,000 on 11 September 2023.

Automatic conversion of the loan into Ordinary Shares ("Conversion Shares") in the Company at a price of 1.2p per share, and the grant of an equivalent number of warrants exercisable at 2.4p, is subject to certain conditions, in particular publication of a prospectus approved by the FCA in relation to, and authority being granted by the Company's shareholders for, the allotment and issue of the Conversion Shares and the grant of the warrants.

In the event that such authority is not granted, any advance already made is repayable by the Company one year after the date of such advance.

On 19 May 2023, by way of a private placing, the Company issued a further 41,749,998 Ordinary Shares at a price 1.2p per share, raising £501,000 before costs, each with the right to a warrant attached, also to be granted conditional on satisfaction of the conditions above, and exercisable at 2.4p.

On the same date, the Company made loans of £10,000 each to two of the Directors, Stuart Greene and Nick Briers to enable them each to subscribe for shares in the abovementioned placing. These loans, which are interest free, are being repaid from their after tax salaries. It is envisaged that both loans will be repaid before 30 November 2023.

The Company has announced the appointment of Martin Page as Finance Director. Mr Page will take up his appointment on 1 August 2023.

Principal Risks

The Directors have identified the following principal risks in regards to the Company's future. The relative importance of these risks is likely to evolve over time as the Company executes its strategy in Chile and as the external economic and market environment changes.

Strategic Risk

The Company's strategy may not deliver the results anticipated by the shareholders. The Directors regularly monitor the Company's progress and will modify the strategy as required, based on internal and external developments and exploration results. The strategy is monitored at the Company's regular Board meetings.

Concentration Risk

The Company's activities are currently geographically concentrated in Chile.  As a result of this concentration, the Company may be disproportionately exposed to the impact of local delays or interruptions to development of, and future production from, these locations caused by significant changes to governmental regulation, interruption to transportation together with capacity constraints, curtailment of future production, natural disasters, adverse weather conditions, civil unrest, labour disputes or other events which impact this area.

Exploration Risk

The Company's projects are regarded as 'early-stage exploration', are highly speculative in nature, and may not result in success. There is no guarantee that further mineralisation or recoverable economic resources will be found.

Whilst the Directors endeavour to apply their skills to assess the projects, exploration is costly, highly speculative and often unsuccessful. For instance, factors such as adverse weather conditions, natural disasters, equipment or services shortages, procurement delays or difficulties arising from the environmental and other conditions in the areas where the potential resources are located, may increase costs and make it uneconomical to advance or develop the Company's projects.  Failure to discover new mineral resources or maintain existing mineral rights could materially and adversely affect the Company's results of operations, cash flows, financial conditions and prospects.

Government Regulation

The concessions and operations of the Company are located in jurisdictions outside of the UK and there are, therefore, a number of risks that the Company is unable to control.

Whilst the Company makes every effort to ensure that it has robust commercial agreements in place, there is a risk that the Company may be adversely affected by political factors such as taxes and charges, suspension of licences and changes to the laws governing mineral exploration and extraction activities.

The current Chilean government's legislative programme includes a proposal to change the taxation of mining activities in Chile.  A draft bill that would modify the mining royalty regime is under discussion in Congress. The proposed royalty has a hybrid nature and combines an ad valorem component that would be applied to annual sales of copper and a variable element linked to the mining operating margin. The royalty tax would apply to mining companies producing over 12,000 tonnes of fine copper per year. 

Despite the fact that the Company's operations are currently limited to exploration activities, the enactment of the aforementioned bill could considerably increase mining taxes, potentially affecting the viability of future exploitation projects in Chile, as well as   those of the Company, which could become uneconomic. The Company will continue to monitor the proposed changes and the potential adoption of a Mining Royalty Tax, which may adversely affect potential future operations of the Company.

Modifications to the Chilean mining code expected to be introduced in 2023 but now postponed to January 2024, include extending the duration of an exploration concession from two to four years but eliminating the possibility of requesting an extension to an exploration concession given the increased duration. The Company will continue to monitor the various modifications to the mining code that are being discussed by Congress and their potential impact on the Company, including the impact on the concessions to which the Company has rights at the time the new laws come into force.

Permitting

The Company's rights to the San Lorenzo and Especularita projects are defined by option agreements that its subsidiary, PTRC, has over the exploration and exploitation concessions at these projects.  The option agreements and all of the concessions are in good standing.

Exploration concessions in Chile last for 2 years, counted since their constitution by judicial ruling, and are subject to the payment of annual fees to the Chilean Treasury. If these fees are not paid in a timely manner, the claim can only be restored to good standing by paying double the annual fee the following year. At the end of the two-year period, the exploration concession may i) be renewed for an additional two years, in which case at least 50% of the surface area of the exploration concession must be relinquished, or ii) be converted, totally or partially, into an exploitation concession.

Exploitation concessions are valid in perpetuity so long as annual fees are paid to the Chilean government. The process to incorporate a mining concession is based on the principle that grants preference to the first petitioner before the local court. The holder of an exploration concession in good standing has the preferential right to incorporate an exploitation concession within the boundaries of its exploration concession. Notwithstanding, anyone can request the incorporation of a mining concession within the limits of the exploration concession of a different owner, in which case the holder has to file a claim opposing the aforementioned constitution, within 30 days, counted from the date of publication of the application made by the interested third party. Exploration and exploitation concessions do not necessarily imply a right to mine, except on a small scale. However, they give the owner the right to mine subject to the granting of permits.

There is no guarantee that any of the granted exploration concessions, or any exploration concessions granted in the future, will be renewed. Additionally, there is no guarantee that the exploitation concessions granted or to be granted can be effectively maintained by payment of the appropriate annual licence fees or by means of compliance with any new regulation that may control the granting and maintenance of exploitation concessions in the future. If these exploration and exploitation concessions are not renewed or maintained, or if new exploration and exploitation concessions are applied for and not granted, this could have a material adverse effect on the Company's business, prospects, financial conditions and results of operations.

Whilst the Company is satisfied that it has taken reasonable measures to ensure an unencumbered right to explore its projects in Chile, the relevant concessions may be subject to undetected defects. If a defect does exist, it is possible that PTRC may lose all or part of its interest in one or more of the concessions to which the defect relates and its exploration and exploitation rights over the areas related to such concessions and prospects of commercial production may accordingly be adversely affected.

Exploration concessions, which PTRC has the right to acquire through option agreements, need to be duly registered in the Chilean Mining Registrar in order for them to be enforceable. If PTRC fails to register any option agreement in the Chilean Mining Registrar, then it may be unable to enforce the benefit of them and PTRC's title to the exploration concession could be subject to potential litigation by third parties claiming an interest in them. PTRC has submitted all option agreements not currently registered in the Chilean Mining Registrar for registration and has no reason to believe that any of the option agreements will not be registered.

Environmental and Other Regulatory Requirements

Currently the Group's environment impact is limited to the activities associated with exploration and is therefore minimal. The development of any project into a mining operation will have a considerable impact on the local landscape and communities. There may at some point be opposition to mining by some parties and this may impact the ability of the Company to progress these projects towards production.

Although the Company believes that its projects are currently in compliance with all relevant environmental and health and safety laws and regulations, there can be no guarantee that new laws or regulations, or amendments to current laws or regulations will not be introduced and they may have a material impact on the Company and its projects. The Company will continue to maintain the highest standards and aim to comply with all appropriate laws and regulations. The Company will also continue to engage with local communities and non-governmental and governmental bodies to ensure any impacts of current and future activities are minimised and managed appropriately.

Financing

The Company is in the exploration stage of its development and will only become revenue producing once successful exploration has been achieved and an operating mine developed.  Consequently, the Company will be dependent on either equity funding or bringing in partners to finance its operations.  The Company may not be successful in the procurement of the required funds and may therefore have to adjust its exploration strategy accordingly.

Commodity Prices

The market prices of copper and gold, like many commodities, are volatile and are affected by numerous factors which are beyond the Company's control.  Sustained downward movements in copper and gold prices could render less economic, or uneconomic, the mineral projects that the Company is exploring and could negatively impact the availability of equity finance to the Company for it to continue to fund its exploration activities.

Foreign Currency and Exchange Rates

The Company may be exposed to ongoing currency risk, however no forex sensitivities have been included as they are deemed to be immaterial. Proceeds of fundraises are expected to be mostly in Sterling; the Company's financial statements are stated in Sterling and certain ongoing management costs will be denominated in Sterling. Its operational costs are largely in Chilean Peso (CLP). As a result, fluctuations in the exchange rates of these currencies may adversely affect the Company's exploration budgets, operating results, cash flows or financial condition to a material extent.

Market Conditions

The Company cannot predict the extent of periods of slow or negative economic growth and any resultant weakening of consumer and business confidence. This might result in difficulties in raising capital and lower the level of demand for many products across a wide variety of industries, including those industries for which commodities in the natural resources sector are an important raw material. Accordingly, the Company's estimate of the results of operations, financial conditions and prospects of the Company, and of any future acquisition targets, will be uncertain and may be adversely impacted by unfavourable general global, regional and national macroeconomic conditions.

Dependence on Key Personnel

The Company's success depends to a significant extent on the quality of its management. The Company's business may be disrupted, additional cost may be incurred or its future may be jeopardised by a loss of, or failure to retain, sufficient numbers and quality of management staff or senior personnel.

To mitigate this risk, measures are in place and are under review to reward and retain key individuals and to protect the Company from the impact of staff turnover.

Social, Community and Human Rights

It is the Company's intention to operate for the benefit of all stakeholders.  In this regard, it will ensure that PTRC:

·    Adopts fair, non-discriminatory employment practices;

·    Ensures safe working practices for all employees;

·    Positively engages with local communities and is sensitive to any concerns that they may have regarding land usage, water resources, biodiversity, cultural sites and artefacts; and

·    Will treat local suppliers fairly.

Whilst the projects are still at an early stage of exploration, the Company recognises that for any mine to be developed at the project sites, it must be able to demonstrate to all stakeholders, a clear positive benefit that respects social, community and human rights.  

Key Performance Indicators (KPIs)

Given that the Company is at an early stage in its development, has no turnover and is dependent on raising funds in the equity market to finance its activities, many of the quantifiable KPIs that companies in other industries may present are not applicable here.  Nevertheless, management is monitoring key performance indicators or the process associated with:

·    Company expenses and the cash balance to ensure that the Company can meet its expected obligations as they fall due and to inform the required timing of the next fund raising;

·    The progress of the exploration programme and the status and commitments with regards to the exploration concessions; and

·    Ensuring that PTRC meets its environmental and social obligations in Chile.

The Directors are of the opinion that, for an early-stage mineral exploration company, the audited accounts, the Chairman's Statement and the Operations Report are the best means of assessing the performance of the Company during the year.

Section 172(1) Statement

The Directors believe they have acted in the way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (as required by s172 of the Companies Act 2006), and in doing so have had regard (amongst other matters) to the following factors:

·    The likely consequences of any decision in the long term;

·    The interests of the Company's employees;

·    The need to foster the Company's business relationships with suppliers, customers and others;

·    The impact of the Company's operations on the community and the environment;

·    The desirability of the Company maintaining a reputation for high standards of business conduct; and

·    The need to act fairly as between members of the Company.

The application of the s172 requirements can be demonstrated by the actions and key decisions of the Company during the year including:

·    In pursuit of the Company's strategy of creating value for shareholders via the exploration for copper mineral deposits in Chile, the Company has, in the past year:

·    carried out exploration and identified copper mineralisation at its two projects in Chile;

·    confirmed the discovery of a large intrusive-related copper-gold mineralised system at San Lorenzo;

·    identified mineralised vein breccia targets for follow up work; and

·    reviewed a number of new projects that could be brought into the Company as a 'third' project.

·    In order to pursue the strategy outlined, the Directors are aware of the importance of developing the skills of its employees and establishing a good team work ethic where team members work well together and communicate openly with each other.  In pursuit of this objective, the CEO visited the projects in Chile on four occasions during the year, working with team members and, together with the Company's experienced exploration manager, imparting the benefit of their expertise to more junior team members.

·    In the past year, the Company has acted fairly, in good faith and without problems with all of the service providers.

·    At this stage of the Company's development, it has no customers.

·    The Directors are very aware of the need to carefully manage environmental and social matters in Chile in order to ensure that it has a social licence to explore and, if successful, to ultimately mine at the project sites.  The Company has prepared a 'Sustainability' statement which appears on the Company's website and has commenced work on an Environmental, Social and Corporate Governance ("ESG") policy to govern how members of the team manage these matters and to ensure that the Company operates to the highest standards.

·    The Company's values of business conduct are described in the Corporate Governance Statement.  Additionally, the culture of the Company is illustrated by the following statements that appear on the Company's website:

·    We will be guided by our company values to act with integrity at all times both within the workplace and within the community more broadly; and

·    We will communicate transparently and honestly with all stakeholders

·    Retaining investor support is important to the Company and, therefore, the Directors intend to keep shareholders fully and equally informed.  In the past year, the Company has kept shareholders informed of progress via news releases, web podcasts, the Company's website, attending a mining conference and through direct contact.  Moving forward, management will continue to attend mining conferences where they will be available to meet shareholders in person.

Extract from the Directors' report

The Directors have pleasure in submitting their report together with the audited financial statements for Great Southern Copper plc (the 'Company' and together with its subsidiary, the 'Group') for the year ended 31 March 2023.

Principal Activities

The Group is currently focussed upon the exploration for copper and gold in Chile. Further detail is covered in the Chairman's Statement and also in the Operations Report.

Dividends

No dividends are planned (2022: £nil).

Subsequent Events

Further details on subsequent events can be found in note 23 and in the strategic report on page 21 of the Annual Report. 

Going Concern

In common with many other mineral exploration companies, the Group has raised equity and debt finance for its exploration activities. The Board recognises that further finance will need to be raised as and when required to progress its exploration projects and add shareholder value. The Board also acknowledges that previous success in raising funds does not necessarily provide any guarantee that the Group will be able to do so in the future.

As at 31 March 2023, the Group's cash at bank amounted to £653,940; at the date of signing this report, the balance amounted to £534,460.

The Board has reviewed the Group's cash flow forecast up to 31 July 2024 and are aware that additional funds will likely need to be sourced in order to continue to advance its exploration activities and continue as a going concern for a period of at least 12 months from the approval of these financial statements.  The auditors have acknowledged this going concern uncertainty in their unqualified audit report.

The Directors are confident that they will be able to secure the necessary funding in order to enable the Group to continue to advance its projects.  The Group recently signed a £501,000 unsecured, convertible interest free loan agreement with the Company's major shareholder, Foreign Dimensions Pty Limited (refer to the 'Subsequent Events' note in the Strategic Report for details). The Board continues to closely monitor its cash position, allocate funds in line with its detailed budget and maintain a strict control over non-project spend.  The Directors remain confident in the Company's ability to raise additional funds as required, from existing and/or new investors and therefore consider it appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements.

Extracted from Directors' responsibility statement pursuant to Disclosure and Transparency Rules

Each of the Directors, confirms that to the best of his knowledge and belief:

·    The financial statements prepared in accordance with UK-adopted International Accounting Standards and in conformity with the Companies Act 2006, give a true and fair view of the assets, liabilities, financial position and loss of the Group and parent company; and

·    The Annual Report and financial statements, including the Operations Report, includes a fair review of the development and performance of the business and the position of the Group and parent company, together with a description of the principal risks and uncertainties that they face.

Approved by the Board of Directors and signed on behalf of the Board by:

Charles Bond

Chairman

28 July 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March 2023