Alexander Nubia International Inc. Reports Annual Financial Results for 2012 and Provides Update on Key Projects in Egypt
Alexander Nubia International Inc. Reports Annual Financial Results for 2012 and Provides Update on Key Projects in Egypt
Makes significant discovery at the Hamama VMS project and issues maiden NI 43-101-compliant inferred resource estimate at the Abu Marawat gold-copper project
Toronto, Ontario CANADA, April 30, 2013 /FSC/ - Alexander Nubia International Inc. (AAN - TSX Venture), ("AAN" or the "Company"), today reported its financial results for the year 2012. All amounts are in Canadian currency unless otherwise noted.
Key Operational and Financial Highlights for the year
Exploration
Hamama volcanogenic massive sulphide ("VMS") deposit in the Abu Marawat Concession:
* Discovery, Western VMS Zone - drilling and deep trenching confirm that in the Western VMS Zone, a high-grade gold-silver oxidized cap extends over 650 metres along strike and is underlain by strongly altered felsic volcanic rocks that contain semi-massive and disseminated sulphides with significant precious metal contents. The iron-rich oxidized gold-silver cap is characteristic of other major VMS systems in the Arabian-Nubia shield that also are characterized by base-metal -rich massive and semi-massive sulphides below the oxidized cap.
* Discovery, the Valley VMS Zone, stratigraphically below the Main VMS Horizon. Deep Trench- 72 returned 24 metres grading 0.46% copper and 0.17% zinc.
Initiated a 1,450-metre diamond drill program to test for the:
* Depth-extent of the at-surface gold-silver cap in the Western VMS zone
* Continuity of grade and width of zinc-gold rich mineralization at depth in the Central VMS zone
The results of this program are:
* Mapping and drilling confirm that the Main VMS horizon, previously interpreted as three separate lenses, is one mineralized unit extending 3,000 metres along strike; it consists of zones of semi-massive to massive sulphides and zones of ankerite-rich exhalite; it is structurally moderately overturned, remains open to the east and down-dip, and on surface is up to 114 metres wide.
* Based only on results from deep trenches, the oxidized gold-silver-rich cap in the Western VMS Zone averages 43.8 metres wide with a grade of 2.05 g/t gold and 44.7 g/t silver.
* Drilling confirms a broad zone of semi-massive sulphide mineralization in a strongly altered felsic dome below the gold-silver cap; the zone is up to 75.6 metres in thickness and this intersection averages 0.92 g/t gold and 50.7 g/t silver; it contains a core of 8 metres that averages 5.52 g/t gold, 325 g/t silver, 0.3% copper, and 1.9% zinc.
* The Central VMS zone is 640 metres long; drilling and surface trenching intersected a continuous semi-massive to massive sulphide zone, which on one vertical cross-section is 11-14 m thick; the deepest hole (AHA-20) on that section intersected 11.3 metres grading 5.7% Zn, 0.19% Cu, 1.18 g/t Au and 69.8 g/t Ag; this hole is 19 metres down-dip from the previous deepest intersection (AHA-5).
* Stringer-style alteration zones in the stratigraphic footwall of the VMS horizon commonly have highly anomalous values of zinc and moderately anomalous values of gold, silver, and copper; grades in the footwall stringer zone commonly are highest near the contact with the VMS horizon.
* Preliminary petrographic analysis suggests reasonable metallurgy and normal metal recoveries.
Compared to other major VMS deposits in the Arabian-Nubian Shield (Bisha, Hassai and Jabal Sayid), the Main VMS Horizon, extending 3,000 meters along strike, is one of the largest.
Abu Marawat gold-copper deposit at the Abu Marawat Concession:
* The Abu Marawat Technical Report shows a mineral resource estimate, which management has determined to be equivalent to an inferred mineral resource of 397,000 ounces of gold plus gold-equivalent(1);
* Resource is based on 50% of the available strike length at an average depth of 200 meters;
* Deposit is characterized as a steeply dipping mesothermal vein system; such deposits commonly have a vertical dimension of the order of 1,500 meters; and
* The remaining strike length, depth extension and new zones lateral to the main vein system have yet to be tested sufficiently by drilling.
(1) Gold-Equivalent Calculation
* Management has used the following to determine the inferred mineral resource of 397,000 ounces of gold plus gold-equivalent:
* As disclosed in the Abu Marawat Technical Report, the Abu Marawat deposit inferred mineral resource is: 2.9 million tonnes at an average grade of 1.75 g/t Au, 29.3 g/t Ag, 0.77 % Cu and 1.15 % Zn, containing 162 thousand ounces of gold, 2.7 million ounces of silver, 49 million pounds of copper, and 73 million pounds of zinc. The value of gold and the gold-equivalencies of silver, copper, and zinc are based on the metal prices used in the NSR model as follows: Au US$1400/ounce, Ag US$26/ounce, Cu US$3.50/pound and Zn $1.15/pound.
Other
* Reconnaissance exploration program yielded very positive surface sampling results from four gold prospects located within 20 kilometres of the Abu Marawat deposit.
Financial
* The Company completed a private placement of units to raise gross proceeds of $215,000. Each unit consists of one $1,000 principal amount 12.0% unsecured convertible debenture of the Company which matures May 29, 2014 and 10,000 common share purchase warrants. Each warrant being exercisable for a period which commences on November 29, 2012 and ends on May 29, 2014 at an exercise price of $0.10 per share.
* The Company incurred a net loss of $2,465,880 and negative cash flows from operating of $1,570,465 during the year ended December 31, 2012 compared to a net loss of $5,948,760 and negative cash flows from operating of $5,480,700 during the year ended December 31, 2011.
* Due to the continued negative outlook of the general market and regional conditions, continued cost reduction and cash conservation program commenced in Q2 2012 in order to minimize the Company's burn rate.
* On October 17, 2012, participation by management, directors and corner stone investor Galena Special Situations in a non-brokered private placement of common shares for gross proceeds of $447,917 (net proceeds of $422,917). For the financing, 8,958,339 Common Shares were issued at a price of $0.05 per share. All shares are subject to a four month hold period dated from their respective date of issuance.
Key Operational and Financial Highlights Subsequent to year ended December 31, 2012:
Exploration
Hamama volcanogenic massive sulphide ("VMS") deposit in the Abu Marawat Concession:
* Deepest drill hole (AHA-26), extends mineralization to 150 metres vertical depth.
Financial
* The Company completed a non-brokered private placement of 5,200,000 units for gross proceeds of $260,000. Each unit being comprised of one common share in the capital of the Company and one common share purchase warrant. Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.10 until April 22, 2015. All common shares issued in connection with the private placement transaction are subject to a four month statutory hold period, in accordance with applicable securities legislation.
* The Company reached terms with certain creditors of the Company to exchange shares for debt. Specifically, the Company has agreed, subject to approval of the TSX Venture Exchange, to issue 6,852,371 common shares (valued at $0.05 per share) to settle approximately $342,618 of debt owing to arm's length and non-arm's length parties. All common shares issued in connection with the shares for debt transaction are subject to a four month statutory hold period, in accordance with applicable securities legislation.
* The Company secures an extension to the term of its exploration licenses from the Government of Egypt
Outlook
Chief Executive Officer, Mr. Alexander Massoud stated, "2012 was an exceptional year for the Company: we reported a sizeable maiden resource at the Abu Marawat gold-copper deposit and made a discovery at the precious-metal-rich Hamama VMS deposit. The fourth quarter capped a year of excellent results. On a limited exploration budget, the company made a discovery: the Western VMS Zone, confirming a gold-silver cap and intersected disseminated gold-silver mineralization below the cap; as well, drilling continues to intersect high-grade zinc-gold mineralization in the Central VMS Zone. Put in the context of the negative market conditions compounded by an on-going political transition, this is a tremendous credit to the technical and operational team." Mr. Massoud further commented, "The results at the Hamama VMS deposit exceeded our expectations, and confirm the potential for a significant VMS deposit within the Arabian-Nubian Shield. Overall, this supports our strong belief that the Abu Marawat Concession has the potential to host a major deposit."
The business objectives of the Company for the next 12 months are as follows:
Hamama VMS Deposit
* Mapping, and where appropriate deep trenching, to identify and explore the property extensions;
* A geophysical program to identify potential massive sulphide bodies at depth
* Metallurgical test work;
Abu Marawat Gold-Copper Deposit
* Metallurgical test work;
* Exploration drilling to test two new vein zones identified by deep trenching laterally from the main zone; and
General Business Objectives
* To continue exploration for precious and base metals within the other targets; and
* To raise funds required to advance exploration programs.
Selected Financial Metrics
-***-
-------------------------------------------------------------------------
Year ended Year ended
December 31, December 31,
2012 2011
-------------------------------------------------------------------------
Evaluation and exploration expenditures(1) $ 1,748,665 $ 5,025,325
Loss from operations 2,465,880 5,888,979
Impairment of mineral exploration concession - 120,581
Total comprehensive loss for year 2,465,880 5,948,760
Basic and diluted loss per share $ 0.023 $ 0.062
-------------------------------------------------------------------------
As at As at
December 31, December 31,
2012 2011
-------------------------------------------------------------------------
Total cash on hand (cash and cash $ 237,674 $ 1,232,268
equivalents including restricted cash)
Current liabilities 1,164,739 481,291
Working capital (896,093) 821,107
Total assets 719,579 18,478,166
-------------------------------------------------------------------------
-****-
(1) During the year ended December 31, 2012, the Company retroactively changed its accounting policy for evaluation and exploration expenditures. The Company considers that expensing these expenditures until such time as an economic feasibility study has established proven and probable reserves constitutes a reliable and more relevant presentation of the Company's exploration activities. Prior to the year ended December 31, 2011, the Company capitalized all such costs to mineral exploration concessions and only wrote down capitalized costs when either the property was abandoned or if the capitalized costs were not considered to be economically recoverable. Evaluation and exploration expenditures are now charged to earnings as they are incurred.
Review of financial performance for the year
The Company incurred a net loss of $2,465,880 for the year ended December 31, 2012, representing a decrease of $3,482,880 when compared with $5,948,760 for the year ended December 31, 2011. The decrease in net loss during the year ended December 31, 2012 was primarily the result of the decrease in:
. Evaluation and exploration expenditures of $3,276,660;
. Foreign exchange gain of $135,163;
. Provision of impairment of $120,581; and
. Professional and consulting fees of $77,419.
This decrease was partially offset by the increase in:
. Finance expense of $32,421; and
. Share-based payments of $29,603.
During the year ended December 31, 2012, the Company incurred $1,748,665 on exploration expenditures compared to $5,025,325 during the year ended December 31, 2011. The decrease in exploration expenditures during the years ended December 31, 2012 was primarily the results of the decrease in drilling activities on Abu Marawat concession. In addition, with the limited capital, the Company has curtailed its exploration activities considerably, resulting in the decrease exploration expenditures. During the three months ended December 31, 2012, the Company incurred $837,211 on exploration expenditures compared to $1,715,063 during the three months ended December 31, 2011.
During the year ended December 31, 2011, the Company recognized $120,581 as a provision of impairment for Fatiri concession. No such impairment was recognized during the year ended December 31, 2012.
The overall decrease in comprehensive loss for the year ended December 31, 2012 compared to the year ended December 31, 2011 is primarily the result of the decrease in level of exploration and business activities during the year ended December 31, 2012.
At December 31, 2012, the Company had working deficiency of $896,093, including cash of $159,657 and restricted cash of $78,017 compared to working capital of $821,107 including cash of $1,157,562 and restricted cash of $74,706. The restricted cash is pledged in support of a guarantee provided to the Egyptian Mineral Resource Authority ("EMRA") and is released as exploration expenditures are incurred at the Abu Marawat Concession. Subsequent to year end, the restricted cash of US$78,283 was released.
Based on the cash position on hand as at December 31, 2012 and expected cash flow requirements of the Company for the next twelve months, management believes that the Company will require additional funds to meet its present operational commitments and working capital needs.
Subsequent to year ended December 31, 2012, the Company completed a non-brokered private placement of 5,200,000 units for gross proceeds of $260,000. In addition, the Company reached terms with certain creditors of the Company to exchange shares for debt. The Company has agreed to issue 6,852,371 common shares to settle approximately $342,618 of debt owing to arm's length and non-arm's length parties.
Qualified Person
The technical information contained in this news release was prepared or reviewed under the direct supervision of Dr. John Payne (P.Geo.), the Company's V.P of Exploration. Dr. Payne is a qualified person within the definition of NI 43-101.
About Alexander Nubia International Inc.
Alexander Nubia International Inc. is an established Canadian mineral exploration company that has been operating in Egypt since 2007. It is committed to identifying, focusing on and advancing gold and base-metal projects in the Eastern Desert of Egypt. The Company holds two exploration concessions in Egypt: Abu Marawat and Fatiri, which cover areas of 1,027 km2 and 1,745 km2, respectively. The Company is focused on exploration within the Abu Marawat Concession, which contains its two main properties, the Hamama volcanogenic massive sulphide ("VMS") deposit and the Abu Marawat mesothermal vein deposit, with an NI 43-101-compliant inferred gold-copper-rich resource.
The Hamama VMS deposit is located in the Arabian-Nubian Shield, which is known for the quality of its VMS deposits. Positive first-stage drill results at Hamama intersected high-grade semi-massive and massive sulphide mineralization, a broad zone of VMS gossan at-surface containing high-grade gold and silver (a "gold cap"), and an extensive mineralized footwall stringer and breccia zone.
The Company's highly prospective land package has an established history of mining dating back to the Pharaonic era, and contains three historical gold mines and four major prospects. The land package is enhanced by excellent and nearby infrastructure, which includes access to highway and railway, a high-capacity electricity grid, and nearby major cities: Qena, on the Nile River, and Port of Safaga, on the Red Sea.
For more information on Alexander Nubia please contact:
A. Alexander Massoud
President and Chief Executive Officer
Egypt: +2 (0) 22 287 6914
Email: amassoud@alexandernubia.com
General Information
Canada: +1 (604) 727-1813
Email: info@alexandernubia.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The securities of Alexander Nubia International Inc. described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions; by their very nature they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view this press release as a PDF, please click on the following link;
http://www.usetdas.com/pr/alexandernubia04302013.pdf
Source: Alexander Nubia International Inc. (TSX.V - AAN) http://www.alexandernubia.com
Maximum News Dissemination by FSCwire. http://www.fscwire.com