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NQ Minerals confident after promising gold samples

Published: 09:34 02 Jun 2016 BST

A happy miner in a shaft
“I am optimistic about the group's growth potential"

NQ Minerals PLC (LON:NQMI) was upbeat about its potential almost a year on from listing, outlining an exploration strategy and promising gold discoveries at its existing sites.

In its maiden results, NQ ended the period with a cash balance of £617,000. Operating losses were inflated by the cost of listing, to £523,000, compared to £136,000 reported last year.

“I am optimistic about the group's growth potential and we look to the future with significant confidence,” said chairman Brian Stockbridge.

NQ outlined a short-term strategy aimed at increasing value by targeted exploration. The easiest way to add value is by drilling, it said.

The group is also considering a number of other “interesting gold assets” to add to its existing Ukalunda and Square Post projects.

“The directors consider that NQ Minerals has a distinct advantage arising from the previous exploration work that has been carried out on the tenements,” said Stockbridge.

“The drilling results announced after the period end resulted in additional targets being identified, an increase in the size of the Ukalunda permit area and in surprise discoveries of gold in the stockpile samples taken.”  

During 2016, the group expects the approval of the mining lease to be obtained, which will enable NQ to process the stockpiles and generate cash flow.

The group now boasts a valuable database that it said will allow the team to target spending and achieve the most efficient exploration, improving the chances of success.

NQ Minerals successfully floated on ISDX in July last year, raising £1mln. It then conducted additional placings of £1mln and £0.1mln.

The direct costs of the fundraising amounted to £769,000, which reflected the difficult market conditions for small cap fundraising and the mining sector, but NQ said it would benefit from what it sees as a renewed interest in the sector.

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