Preliminary Results

Ortac Resources Limited

26 July 2011

 



Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration

26 July 2011

Ortac Resources Ltd ('Ortac' or 'the Company')

Preliminary Results

Ortac Resources Ltd, the AIM listed exploration and development company focussed on natural resource projects in Europe, announces its results for the year ended 31 March 2011.

Highlights

·        Placing in February 2011 raised £8,421,053 before expenses - strong current cash position of 
£9.6 million

·        Focussed towards natural resource development in Europe

·        Initial operations in Slovakia on mining licence and nine exploration licence areas, totalling 
approximately 200 sq km in the highly prospective Carpathian Mountain Belt

·        Major focus on revitalising the historic Sturec gold and silver open pit, part of the historic 
Kremnica Deposit, located in the Central Slovakian Volcanic Field

o Total gold equivalent JORC resource equivalent increased by more than 40% to 1.1 million ounce gold at a 0.75 g/t cut-off

o JORC Resource currently only calculated along 1.1km of the 6.5km known strike length, which understood to be open in both directions and at depth 

o 5,000m diamond drill programme underway with encouraging first results

o Scoping Study examining the existing Sturec resource on track to be completed in H2 2011

·        Evaluating potential of other licences in Eastern Slovakia at various stages of development

·        Defined strategy to expand via targeted acquisitions and strategic partnerships across Europe

Post year end

·    Board restructured to drive the Kremnica Gold Project through the Scoping and Feasibility Study stages towards production - appointment of CFO and Group Mining Engineer

·    Other interests include the Rio Paranaiba iron ore project in Brazil which, as announced on 7 April 2011, is undergoing a restructuring.  The Company also retains a holding of 500,000 shares in Vatukoula Gold Mines Plc with a current market value of approximately £450,000

Ortac CEO Vassilios Carellas said, "This has been a transformational year for Ortac having completed the reverse takeover of Ortac Resources plc in September 2010 and the oversubscribed placing in February 2011.  The Company is now in a stronger position to enhance shareholder and stakeholder value."

Chairman's Statement

The period under review has been pivotal for your Company.  Following the reverse takeover of Ortac Resources plc, the Company, which was previously called Templar Minerals Ltd, emerged with a new name, Ortac Resources Ltd.  In tandem with this, the Company realigned its strategy to focus on precious metal exploration and development in Europe.  Ortac's current precious metal exploration asset portfolio includes nine licences, totalling approximately 200 sq km in the prospective Central Slovakian Volcanic Field in addition to the Kremnica Gold Project, on which the Company has defined a resource on the Sturec licence, which is being advanced towards production.

It gives me great pleasure to report on the progress we have made as we move towards achieving these objectives.

European Interests

Following the completion of the reverse takeover of Ortac Resources plc, we immediately commenced work aimed at increasing the value of the Sturec resource through the implementation of a number of significant development initiatives. 

In October 2010, we appointed Snowden Mining Industry Consultants to update the mineral resource estimate, which was concluded on schedule in January 2011, and reported a total gold ('Au') equivalent resource of 1.1 million ounces ('Moz') Au at a 0.75 g/t cut-off, an increase of 323,000 ounces ('oz') from 760,000 oz of Au.  Whilst this represents a more than 40 per cent. increase in resource, it is important to note that the resource at Sturec is currently only calculated along 1.1km of the 6.5km known strike length, which is understood to be open in both directions and at depth.  This leaves significant scope for further upgrading the resource, which is in line with our stated strategy to expand and upgrade our current JORC Resource to approximately 2 Moz, through exploratory drilling on the project and on additional targets within our existing portfolio.

To upgrade the existing JORC compliant Sturec resource and to better understand the local ore body, we have initiated a 5,000m diamond drill programme, which commenced in April of this year.  The objective of this programme is to increase the current resource and providing higher confidence in the Indicated and Measured categories.  The programme will target areas where there is currently insufficient information to adequately assess those area's potential resources. 

Encouraging initial gold assays results were received in June from the first two drill holes completed, with reported grade intervals generally higher than those modelled grades for the same area and clearly highlighting the continuity of the mineralisation.  Best results included 24m @ 3.65 g/t Au from 161m from borehole STOR-3.5 (including 1m @ 21.9 g/t Au from 161m and 1m @ 11.75 g/t Au from 164m) and 11m @ 1.85 g/t Au from 40.6m from borehole STOR-3.1 (includes 1.6m @ 4.06 g/t Au from 40.60m). 

Additionally, we have received encouraging silver assay results with highlights including 11m @ 112.66 g/t Ag from 40.6m from borehole STOR-3.1 (including 4m @ 202.45 g/t Ag from 47m) and 24m @ 36.05 g/t Ag from 161m from borehole STOR-3.5 (includes 1m @ 70 g/t Ag from 164m). 

Concurrent with the drilling programme we continue to advance the Scoping Study on the Sturec resource, an important step in establishing a sustainable mining operation on the Kremnica Project area.  Contracting the services of a number of independent consultants, elements of the Scoping Study recently completed include additional metallurgical test work, blasting and vibration studies as well as the re-assessment of the waste rock and tailings storage facilities design.  These studies will enable us to produce a more robust preliminary economic assessment and establish the required environmental and social mitigation measures, subsequent to the completion of the Scoping Study.  To further enhance our own internal management capabilities and facilitate development of the Scoping Study, we recently appointed Owen Mihalop, a mining engineer with extensive experience of overseeing natural resource developments in Europe. 

We have embarked on exploration and evaluation programmes at four of our exploration licences in Slovakia.  In June 2011 we started a ground based geophysical survey over the northern section of our 63 km sq Lutila Exploration Licence Area, which is contiguous to our Kremnica mining licence.   This geophysical survey has generated a number of new gold and silver exploration targets which we plan to follow up with drilling and previous work there has indicated that the mineralisation may be of a similar style to the Sturec deposit.  We have also initiated work programmes on the Zlata Bana, Smolnik, and Cejkov concessions in eastern Slovakia, which have the potential to add further value to the Company.

Social Responsibility

A developing part of Ortac's culture is the ability to build constructive relationships with the communities in which we have exploration and development rights.  We strive to work with all stakeholders, improve our consultation and information flow to ensure that our projects advance for the benefit of all. 

We are conscious of our social and environmental obligations and we are re-examining mitigation measures for all our operations and aligning our efforts to support local sustainable development.  We are currently actively examining partnerships that enhance all of the natural resources linked to our projects.  To support the strategic implementation of this work, the board is currently finalising its Corporate Social Responsibility strategy, manual and management system.  

Additional Interests

As well as our European assets, Ortac has a controlling interest (77 per cent.) in the Rio Paranaíba iron ore project in Brazil.  Following the announcement of positive results from ground magnetic surveys, which identified subsurface targets for drilling, we announced a planned restructuring of our interests, whereby the exploration licences will be transferred to a BVI registered privately funded vehicle, Paranaíba Minerals Limited.  This restructuring is ongoing and we are reviewing a number of options for external funding to develop and de-risk the asset.

The Company also retains a holding of 500,000 shares in Vatukoula Gold Mines Plc, which owns the Vatukoula Gold Mine in Fiji, a producing gold mine that currently contains 680,000oz Au reserves and 4.3 Moz of gold resources.  This holding has a current market valuation of approximately £450,000.

Board & Management

Following the reverse takeover of Ortac Resources plc, there have been a number of Board changes, with the introduction of key people associated with bringing the Kremnica licences to the Company and who have the experience and skills to develop a sustainable business.

As part of these moves, I joined as Chairman, Vassilios Carellas became CEO and Charles Wood was appointed as Executive Finance Director.  At the same time, Dorian Nicol and David Paxton became Non-Executive Directors.  This team now assembled is highly respected with many years of international experience in the natural resources and financial sectors. 

Post year end we have made several further appointments to the management team including the new role of Chief Financial Officer, which has been assumed by Hugo Green, who has extensive experience across Central and Eastern Europe.  We already mentioned, we have also recently appointed Owen Mihalop, as Group Mining Engineer.

Finance Review

In February 2011, we raised £8,421,053 before expenses via a placing, which was oversubscribed, of 561,403,533 new ordinary shares at a price of 1.5 pence per ordinary share.  The funds raised have provided us with a strong treasury and enables us to advance our development strategy, both at Kremnica and elsewhere in Slovakia, as well as provide for the potential acquisition of additional projects that we believe will add value to the Company.

I should say as Chairman, that it is a measure of my own personal commitment to the Company, that I also invested through the subscription for 3,333,333 additional shares in the Company, which raised my holding to 157,373,463 shares, representing 6.9% of the Company. 

Results for the period

The Group recorded a loss on ordinary activities of £1,466,000 for the year under review. The majority of this loss related to the share based payment for options of £1,161,000.

There was no turnover for the period under review.

Cash flow

Net cash inflow for the year was £10,605,000 before placing £6,000,000 on deposits with maturity greater than three months.  After issue costs the Company raised £10,853,000 from equity placings and the exercise of options, together with net proceeds of £961,000 on the disposal of part of its holding in Vatakoula Gold Mines plc.

Financial position

Net cash at 31 March 2011 was £10,586,000 comprising cash on call and on deposit with maturity less than three months of £4,586,000, and with maturities greater than three months and less than one year of £6,000,000.  Net assets of the Group at 31 March 2011 were £21,023,000.

Key performance indicators

The current business of the Company is fundamentally in an exploration and development stage with the focus on the successful delivery of investment to enable the Company to progress to initial production and a larger operational business. At this early stage, it is not prudent to consider any detailed key performance indicators. The Company will develop these indicators as it progresses with its own development and plans. The Board and management are incentivised to deliver shareholder value in line with these plans.

Outlook

We have a strong operational foothold in Slovakia and a defined strategy to expand via acquisitions and partnerships across Europe.  Our existing resource on the Sturec target, located on the Kremnica mining licence, represents an exciting starting point for the Company, with significant upside potential.  Our current cash balance provides a robust foundation to develop the Sturec resource and to this end, we have started a 5,000m drill campaign to better understand the target's mineralisation and upgrade and improve overall confidence in the resource.  Work is also underway at our other licences in Slovakia, which are at various stages of development, as well as at our non-European projects including the Rio Paranaiba iron ore project in Brazil, where positive results are being generated. 

I would like to thank the team for their support through this transformational period and look forward to regularly updating shareholders on our progress as we develop a position as a "one-to-watch" European natural resources company.

Anthony Balme

Chairman

26 July 2011

**ENDS**

For further information please visit www.ortacresources.com or contact:
Vassilios Carellas	Ortac Resources Ltd	Tel: [phone]
Charles Wood	Ortac Resources Ltd	Tel: [phone]
Jeremy Stephenson	Seymour Pierce Limited	Tel: [phone]
Stewart Dickson	Seymour Pierce Limited	Tel: [phone]
Catherine Leftley	Seymour Pierce Limited	Tel: [phone]
Jeremy King	Optiva Securities Ltd	Tel: [phone]
Jason Robertson	Optiva Securities Ltd	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Lottie Brocklehurst	St Brides Media & Finance Ltd	Tel: [phone]

Financial Statements
GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDING 31 MARCH 2011
		Year to	9 months to
		31 March 2011	31 March 2010
	Notes	£ 000's	£ 000's
Administrative expenses		(886)	(280)
Share based payments		(1,161)	(264)
Group operating loss	3	(2,047)	(544)
Gain on sale of investments		566	44
Interest received	9	15	-
Loss on ordinary activities before taxation	2	(1,466)	(500)
Taxation on loss on ordinary activities	5	-	-
Loss for the financial period from continuing operations		(1,466)	(500)
Other comprehensive income
Currency translation differences		455		-
(Loss)/gain on revaluation of available for sale investments		(82)		652
Other comprehensive income for the period net of taxation		373		652
Total comprehensive income for the period		(1,093)		152
Attributable to:
Equity holders of the parent Company		(1,093)		152
Loss per share expressed in pence per share
- Basic & diluted	8	(0.10)	(0.09)

COMPANY STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDING 31 MARCH 2011
		Year to	9 months to
		31 March 2011	31 March 2010
	Notes	£ 000's	£ 000's
Revenue		-	-
Administrative expenses		(618)	(280)
Share options expensed	7, 18	(1,161)	(264)
Operating loss	3	(1,779)	(544)
Gain/(Loss) on sale of investments		565	44
Interest receivable	9	15	-
Loss before taxation		(1,199)	(500)
Income tax expense	5	-	-
Loss for the financial period		(1,199)	(500)
Other comprehensive income
Currency translation differences		-	-
(Loss)/gain on revaluation of available for sale investments		(82)	652
Other comprehensive income for the period net of taxation		(82)	652
Total comprehensive income for the period		(1,281)	152

GROUP BALANCE SHEETS
AS AT 31 MARCH 2011
		31 March 2011	31 March 2010 (re-stated)
	Note	£ 000's	£ 000's
ASSETS
Non-current assets
Intangible assets	10	9,700	643
Plant and equipment	11	258	-
Total non-current assets		9,958	643
Current assets
Inventories	14	8	-
Trade and other receivables	15	61	75
Available for sale investments	13	676	1,153
Cash & cash equivalents	20	10,586	13
Total current assets		11,331	1,241
TOTAL ASSETS		21,289	1,884
LIABILITIES
Current liabilities
Trade and Other payables	16	(266)	(126)
TOTAL LIABILITIES		(266)	(126)
NET ASSETS		21,023	1,758
SHAREHOLDERS' EQUITY
Share Capital	17	-	-
Share premium		29,994	10,901
Share based payments reserve	18	1,888	846
Available for sale investment reserve		284	366
Foreign exchange reserve		463	-
Retained earnings		(11,606)	(10,355)
TOTAL EQUITY		21,023	1,758

COMPANY BALANCE SHEETS
AS AT 31 MARCH 2011
		31 March 2011	31 March 2010 (re-stated)
	Notes	£ 000's	£ 000's
ASSETS
Non-current assets
Investment in subsidiaries	12	7,486	2
Trade and other receivables	15	2,153	643
Total non-current assets		9,639	645
Current assets
Trade and other receivables	15	20	75
Available for sale investments	13	676	1,153
Cash and cash equivalents		10,574	13
Total Current Assets		11,270	1,241
TOTAL ASSETS		20,909	1,886
LIABILITIES
Current Liabilities
Trade and other payables	16	(72)	(126)
TOTAL LIABILITIES		(72)	(126)
NET ASSETS		20,837	1,760
EQUITY
Ordinary shares	17	-	-
Share premium		29,994	10,901
Share based payments reserve	18	1,888	846
Available for sale investment reserve		284	366
Retained earnings		(11,329)	(10,353)
TOTAL EQUITY		20,837	1,760

GROUP CASH FLOW STATEMENTS
FOR THE PERIOD ENDING 31 MARCH 2011		Year to	9 months to
		31 March 2011	31 March 2010
	Notes	£ 000's	£ 000's
Cash flows from operating activities
Operating Loss		(2,047)	(544)
(Increase) in inventories		(8)	-
Decrease/(increase) in trade and other receivables		14	(8)
Increase in trade and other payables		140	92
Share options expensed		1,161	264
Depreciation and amortisation		164	-
Net cash outflow from operating activities		(576)	(196)
Cash flows from investing activities
Interest Received		15	-
Payments to acquire intangible assets		(317)	(220)
Payments to acquire tangible assets		(4)	-
Proceeds from sale of investments		961	144
Net cash in/(out)flow from investing activities		655	(76)
Acquisitions and disposals
Cash on business combinations		52	-
Payment to third party on acquisition of subsidiaries		(361)	-
Net cash outflow from acquisitions and disposals		(309)	-
Cash flows from financing activities
Issue of ordinary share capital		11,771	-
Share issue costs		(936)	(10)
Net cash in/(out)flow from financing activities		10,835	(10)
Net increase/(decrease) in cash and cash equivalents		10,605	(282)
Foreign exchange differences on translation		(32)	-
Cash and cash equivalents at beginning of period		13	295
Cash and cash equivalents at end of period	19	10,586	13

COMPANY CASH FLOW STATEMENTS
FOR THE PERIOD ENDING 31 MARCH 2011		Year to	9 months to
		31 March 2011	31 March 2010
	Notes	£ 000's	£ 000's
Cash flows from operating activities
Operating loss		(1,779)	(544)
Decrease/(increase) in trade and other receivables		55	(8)
(Decrease)/increase in trade and other payables		(54)	92
Share options expensed		1,161	264
Net cash outflow from operating activities		(617)	(196)
Cash flows from investing activities
Interest received		15	-
Loans to subsidiaries		(633)	(220)
Proceeds from sale of investments		961	144
Net cash in/(out)flow from investing activities		343	(76)
Cash flows from financing activities
Issue of ordinary share capital		11,771	-
Share issue costs		(936)	(10)
Net cash in/(out)flow from financing activities		10,835	(10)
Net increase/(decrease) in cash and cash equivalents		10,561	(282)
Cash and cash equivalents at beginning of period		13	295
Cash and cash equivalents at end of period	19	10,574	13

GROUP STATEMENT OF CHANGES IN EQUITY
	Called up share capital	Share premium reserve	Available for sale investment reserve	Foreign exchange reserve	Share based payment reserve	Retained earnings	Total equity
Group	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's
As at 30 June 2009 - previously stated	-	10,911	(343)	-	230	(9,446)	1,352
Charge in respect of share options issued 2008/09	-	-	-	-	352	(352)	-
As at 30 June 2009 - restated	-	10,911	(343)	-	582	(9,798)	1,352
Loss for the period	-	-	-	-	-	(500)	(500)
Gain on market value of available for sale investments	-	-	652	-	-	-	652
Total comprehensive income	-	-	652	-	-	(500)	152
Share capital issued	-	-	-	-	-	-	-
Cost of share issue	-	(10)	-	-	-	-	(10)
Share based payments	-	-	-	-	264	-	264
As at 31 March 2010 - previously stated	-	10,901	309	-	494	(9,946)	1,758
Correction of valuation 2009/10	-	-	57	-	-	(57)	-
As at 31 March 2010 - restated	-	10,901	366	-	846	(10,355)	1,758
Loss for the year	-	-	-	-	-	(1,466)	(1,466)
Loss on market value of available for sale investments	-	-	(82)	-	-	-	(82)
Currency translation differences	-	-	-	463	-	(8)	455
Total comprehensive income	-	-	(82)	463	-	(1,474)	(1,093)
Share capital issued	-	20,133	-	-	-	-	20,133
Cost of share issue	-	(936)	-	-	-	-	(936)
Cost of share issue - issue of warrants	-	(104)	-	-	104	-	-
Reserves transfer on exercise of options	-	-	-	-	(223)	223	-
Share based payments	-	-	-	-	1,161	-	1,161
As at 31 March 2011	-	29,994	284	463	1,888	(11,606)	21,023

COMPANY STATEMENT OF CHANGES IN EQUITY
	Called up share capital	Share premium reserve	Available for sale investment reserve	Share based payment reserve	Retained earnings	Total equity
Company	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's	£ 000's
As at 30 June 2009 - previously stated	-	10,911	(343)	230	(9,444)	1,354
Charge in respect of share options issued 2008/09	-	-	-	352	(352)	-
As at 30 June 2009 - restated	-	10,911	(343)	582	(9,796)	1,354
Loss for the period	-	-	-	-	(500)	(500)
Gain on market value of available for sale investments	-	-	652	-	-	652
Total comprehensive income	-	-	652	-	(500)	152
Share capital issued	-	-	-	-	-	-
Cost of share issue	-	(10)	-	-	-	(10)
Share based payments	-	-	-	264	-	264
As at 31 March 2010 - previously stated	-	10,901	309	494	(9,944)	1,760
Correction of valuation 2009/10	-	-	57	-	(57)	-
As at 31 March 2010 - restated	-	10,901	366	846	(10,353)	1,760
Loss for the period	-	-	-	-	(1,199)	(1,199)
Loss on market value of available for sale investments	-	-	(82)	-	-	(82)
Total comprehensive income	-	-	(82)	-	(1,199)	(1,281)
Share capital issued	-	20,133	-	-	-	20,133
Cost of share issue	-	(936)	-	-	-	(936)
Cost of share issue - issue of warrants	-	(104)	-	104	-	-
Reserves transfer on exercise of options	-	-	-	(223)	223	-
Share based payments	-	-	-	1,161	-	1,161
As at 31 March 2011	-	29,994	284	1,888	(11,329)	20,837

NOTES TO THE FINANCIAL INFORMATION
1	Summary of Significant Accounting Policies
(a)	Statement of compliance with IFRS
	The Company is registered in British Virgin Islands under the BVI Business Companies Act 2004 with registered number 1396532.  The Company's ordinary shares are traded on the AIM Market operated by the London Stock Exchange. The Group financial statements of Ortac Resources Ltd for the period ended 31 March 2011 were authorised for issue by the Board on 26 July 2011 and the balance sheets signed on the Board's behalf by Mr. Anthony Balme and Mr. Charles Wood.
(b)	Statement of compliance with IFRS
	The Group's financial statements and information have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The principal accounting policies adopted by the Group and Company are set out below.
	As at the date of authorisation of these financial statements, there were Standards and Interpretations that were in issue but are not yet effective and have not been applied in these financial statements. The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the financial statements of the group or company, except for additional disclosures when the relevant Standards come into effect
(c)	Basis of preparation
	The consolidated financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below, and on a going concern basis.
	The financial information is presented in pounds sterling and all values are rounded to the nearest thousand pounds (£ '000) unless otherwise stated.  (In prior years the financial information was previously presented in US$'s, this previous basis was purely a presentation conversion exercise and the return to presenting in the Group's functional currency of Pound Sterling (£) has not altered any of the underlying financial information)
(d)	Basis of consolidation
	The consolidated financial information incorporates the results of the Company and its subsidiaries (the "Group") using the purchase method.  In the consolidated balance sheet, the acquiree's identifiable assets, liabilities are initially recognised at their fair values at the acquisition date. The results of acquired or disposed operations are included in the consolidated income statement from the date on which control is obtained, or up to the date of disposal. Inter-company transactions and balances between Group companies are eliminated in full.
	Minority interests represent the portion of profit or loss and net assets in subsidiaries that are not held by the Group and are presented separately in the income statement and within equity in the consolidated balance sheet.
(e)	Business combinations
	The acquisition of subsidiaries in a business combination is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. The acquiree's identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 'Non Current Assets Held for Sale and Discontinued Operations', which are recognised and measured at fair value less costs to sell.
	Where there is a difference between the Group's interest in the net fair value of the acquiree's identifiable assets, liabilities and contingent liabilities and the cost of the business combination, any excess cost is recognised in the balance sheet as goodwill and any excess net fair value is recognised immediately in the income statement as negative goodwill on acquisition of subsidiary.
	The interest of minority shareholders in the acquiree is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognised.
(f)	Revenue
	The Group had no revenue during the periods.
(g)	Foreign currencies
	The Group's functional currency is Sterling (£). Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation currency of Ortac Resources Limited, which is pounds sterling (£), at the rate of exchange ruling at the balance sheet date and their income statements are translated at the average exchange rate for the year. The exchange differences arising on the translation are taken directly to a separate component of equity.
	All other differences are taken to the income statement with the exception of differences on foreign currency borrowings, which, to the extent that they are used to finance or provide a hedge against foreign equity investments, are taken directly to reserves to the extent of the exchange difference arising on the net investment in these enterprises. Tax charges or credits that are directly and solely attributable to such exchange differences are also taken to reserves.
(h)	Goodwill and intangible assets
	Intangible assets are recorded at cost less eventual amortisation and provision for impairment in value. Goodwill on consolidation is capitalised and shown within fixed assets. Positive goodwill is subject to an annual impairment review, and negative goodwill is immediately written-off to the income statement when it arises.
(i)	Exploration and development costs
	Exploration and development costs are carried forward in respect of areas of interest where the consolidated entity's rights to tenure are current and where these costs are expected to be recouped through successful development and exploration, or by sale. Alternatively, these costs are carried forward while active and significant operations are continuing in relation to the areas of interest and it is too early to make reasonable assessment of the existence or otherwise of economically recoverable reserves. When the area of interest is abandoned, exploration and evaluation costs previously capitalised are written off to the Income Statement.
	In accordance with the full cost method, all costs associated with mining development and investment are capitalised on a project-by-project basis pending determination of the feasibility of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads. If a mining development project is successful, the related expenditures will be written-off over the estimated life of the commercial ore reserves on a unit of production basis. Impairment reviews will be carried out regularly by the Directors of the Company. Where a project is abandoned, or is considered to be of no further commercial value to the Company, the related costs will be written off.
	The recoverability of deferred mining costs and mining interests is dependent upon the discovery of economically recoverable reserves, the ability of the Group to obtain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition of recoverable reserves.
(j)	Significant accounting judgments, estimates and assumptions
	(i) Significant accounting estimates and assumptions
	The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:
	(ii) Impairment of goodwill and intangibles with indefinite useful lives
	The Group determines whether goodwill and intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units to which the goodwill and intangibles with indefinite useful lives are allocated.
	(iii) Share-based payment transactions
	The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.
(k)	Finance costs/revenue
	Borrowing costs are recognised as an expense when incurred.
	Finance revenue is recognised as interest accrues using the effective interest method.  This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
(l)	Cash and cash equivalents
	Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.
	For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
(m)	Inventories
	Inventories comprise stocks of materials and other consumable items and are stated at cost less any provision for impairment.
(n)	Trade and other receivables
	Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.
	An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.
(o)	Investments
	Investments in subsidiary undertakings are stated at cost less any provision for impairment in value, prior to their elimination on consolidation.
(p)	Financial instruments
	The Group's financial instruments, other than its investments, comprise cash and items arising directly from its operation such as trade debtors and trade creditors. The Group has overseas subsidiaries in BVI, and the Slovak Republic whose expenses are denominated in US Dollars, and Euros respectively. Market price risk is inherent in the Group's activities and is accepted as such.
	There is no material difference between the book value and fair value of the Group's cash.
(q)	Deferred taxation
	Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the tax computations, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.
	Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case it is also dealt with in equity.
(r)	Available for sale investment reserve
	This reserve is used to record the post-tax fair value movements in available for sale investments.
(s)	Share Based payments Reserve
	This reserve is used to record the value of equity benefits provided to employees and directors as part of their remuneration and provided to consultants and advisors hired by the Group from time to time as part of the consideration paid.
(t)	Foreign Currency Translation Reserve
	The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.
(u)	Property, plant and equipment
	Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Land is measured at fair value less any impairment losses recognised after the date of revaluation.
	Depreciation is provided on all  tangible assets to write off the cost less estimated residual value of each asset over its expected useful economic life on a straight-line basis at the following annual rates:
	Plant and Equipment - between 5% and 25%
	All assets are subject to annual impairment reviews.
(v)	Impairment of assets
	The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Groups of assets and the asset's value in use cannot be estimated to be close to its fair value.  In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs.  When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
	In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.  Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).
	An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Income Statement unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
(w)	Trade and other payables
	Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.
(x)	Provisions
	Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
	When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.
(y)	Share-based payment transactions
	(i) Equity settled transactions:
	The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).
	The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using a Black-Scholes model.
	In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Ortac Resources Limited (market conditions) if applicable.
	The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period).
	The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group's best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The Income Statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
	No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition.
	If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.
	If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.
	The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share (see Note 9).
(z)	Earnings per share
	Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.
	Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
	• costs of servicing equity (other than dividends) and preference share dividends;
	• the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
	• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

2	Revenue and segmental analysis
	Segment information is presented in respect of the Group's management and internal reporting structure. As currently the Group is not in producing or exploring directly, there is no revenue being generated, and the main business segment is that of a corporate administrative entity. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
	By geographical area
	31 March 2011			UK/BVI	Slovakia	Brazil	Total
				£ 000's	£ 000's	£ 000's	£ 000's
	Result
	Operating loss			(1,819)	(78)	(150)	(2,047)
	Gain on sale of investments			566	-	-	566
	Investment revenue			15	-	-	15
	Loss before & after taxation			(1,238)	(78)	(150)	(1,466)
						-
	Other information
	Depreciation and impairment			-	(14)	(150)	(164)
	Capital additions			-	249	72	321
	Assets
	Segment assets			-	9,393	565	9,958
	Financial assets			732	13	-	745
	Cash and short term investments			10,580	6	-	10,586
	Consolidated total assets						21,289
	Liabilities
	Segment liabilities			-		-	-
	Financial liabilities			(223)	(43)	-	(266)
	Consolidated total liabilities						(266)
	By geographical area
	31 March 2010				UK/BVI	Brazil	Total
					£ 000's	£ 000's	£ 000's
	Result
	Operating loss				(544)	-	(544)
	Gain on sale of investments				44	-	44
	Investment revenue				-	-	-
	Loss before & after taxation				(500)	-	(500)
	Other information
	Depreciation and impairment				-	-	-
	Capital additions				-	220	220
	Assets
	Segment assets				-	643	643
	Financial assets				1,228	-	1,228
	Cash				13	-	13
	Consolidated total assets						1,884
	Liabilities
	Segment liabilities				-	-	-
	Financial liabilities				(126)	-	(126)
	Consolidated total liabilities						(126)

3	Operating loss
					2011	2010
	Operating loss is arrived at after charging/(crediting):				£ 000's	£ 000's
	Auditors' remuneration - audit				23	16
	Auditors' remuneration - non audit services (accounting advice)				-	-
	Directors' emoluments - fees and salaries				181	117
	Directors' emoluments - share based payments				798	122
	Foreign exchange gain				(15)	(1)
	Depreciation and amortisation				164	-
	Auditors remuneration for audit services above includes £7,500 (2010: £nil) charges by Edwards Veeder(Oldham) LLP(UK) relating to the audit of the subsidiary companies.
4	Employee information
					2011	2010
	Staff Costs comprised:				£ 000's	£ 000's
	Wages and salaries				200	-
	Less: capitalised exploration expenditure				(50)	-
	Charge to the income statement				150	-
					-	-
	The average number of persons employed in the Group, including executive directors, was:
					Number	Number
	Operations				6	-
	Administration				1	-
					7	-
5	Taxation
					2011	2010
	Analysis of charge in period				£ 000's	£ 000's
	Tax on ordinary activities				-	-
	No taxation has been provided due to losses in the year.
	The British Virgin Islands under the IBC imposes no corporate taxes or capital gains.  However the Company as a group may be liable for taxes in the jurisdictions where it is developing mining properties.
	No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered.
6	Dividends
	No dividends were paid or proposed by the Directors.

7	Directors' emoluments
						2011	2010
						£ 000's	£ 000's
	Directors' remuneration					979	239
	2011		Directors Fees	Consultancy Fees		Shares/	Total
						Options
			£ 000's	£ 000's		£ 000's	£ 000's
	Executive Directors
	David Lenigas		3	11		-	14
	Charles Wood		6	48		226	280
	Anthony Balme		23	-		149	172
	Vassilios Carellas		53	-		223	276
	Non-Executive Directors
	Alastair Clayton		11	12		40	63
	Dorian Nicol		8	-		80	88
	David Paxton		6	-		80	86
			110	71		798	979
	2010		Directors Fees	Consultancy Fees		Shares/	Total
						Options
			£ 000's	£ 000's		£ 000's	£ 000's
	Executive Directors
	David Lenigas		10	29		-	39
	Charles Wood		10	29		61	100
	Non-Executive Directors
	Alastair Clayton		10	29		61	100
			30	87		122	239
	No pension benefits are provided for any Director.
8	Loss per share
	The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period
					2011		2010
	Net loss after taxation (£'000)				(1,466)		(500)
	Weighted average number of ordinary shares used in calculating basic earnings per share (millions)				1,413.5		583.1
	Basic loss per share (expressed in pence)				(0.10)		(0.09)
	As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive, as such, a diluted earnings per share is not included.

9	Finance revenue
									2011	2010
									£ 000's	£ 000's
	Bank interest receivable								15	-
10	Intangible assets
										Exploration Expenditure
	Group									£ 000's
	Opening cost as 1 July 2009									423
	Development expenditure									220
	Disposals									-
	Amortisation/Impairment									-
	Impairment eliminated on disposal									-
	Net book value as at 31 March 2010									643
	At 1 April 2010									643
	Additions from business combinations									8,467
	Development expenditure									317
	Currency translation adjustments									424
	Amortisation/Impairment									(151)
	Net book value as at 31 March 2011									9,700
									2011	2010
	The net book value is analysed as follows;
									£ 000's	£ 000's
	Deferred exploration expenditure - Brazil								565	643
	Deferred exploration expenditure - Slovakia								9,135	-
									9,700	643
	Impairment Review
	At 31 March 2011, the Directors have carried out an impairment review and concluded no further impairment provision is currently required. (31 March 2010 : £nil)

	11				Tangible assets
					Group
					Property, Plant and Equipment																												£ 000s
					Cost
					Opening cost at 1 July 2009																												-
					Additions																												-
					Currency translation adjustment																												-
					Closing cost at 31 March 2010																												-
					At 1 April 2010																												-
					Additions from business combinations																												262
					Additions																												4
					Currency translation adjustment																												5
					Closing cost at 31 March 2011																												271
					Depreciation
					Opening balance at 1 July 2009																												-
					Charge for the period																												-
					Eliminated on disposal																												-
					Closing balance at 31 March 2010																												-
					At 1 April 2010																												-
					Charge for the period																												(13)
					Currency translation adjustment																												-
					Closing balance at 31 March 2011																												(13)
					Net book value
					At 31 March 2010																												-
					At 31 March 2011																												258
	12			Investment in subsidiaries
				Shares in Group undertaking																						£ 000's
				Company
				Cost
				As at 1 April 2010																						2
				Impairment																						(1)
				Additions (See note 22)																						7,485
				As at 31 March 2011																						7,486
				At 31 March 2011 the parent company of the Group holds more than 20% of the share capital of the following subsidiary companies:
				Company									Country of Registration				Proportion held								Nature of business
				Ortac Resources plc									England and Wales				100%								Holding Company
				Anglo-Slovak Minerals Limited*									England and Wales				100%								Mineral Exploration
				Bellmin s.r.o.*									Slovak Republic				100%								Mineral Exploration
				G.B.E. s.r.o.*									Slovak Republic				100%								Mineral Exploration
				St. Stephans Gold s.r.o.*									Slovak Republic				100%								Mineral Exploration
				Kremnica Gold s.r.o.*									Slovak Republic				100%								Mineral Exploration
				Kremnica Gold Mining s.r.o.*									Slovak Republic				100%								Mineral Exploration
				Templar Georgia Ltd**									BVI				100%								Holding Company
				Paranaiba Minerals Ltd									BVI				100%								Holding Company
				*Wholly owned subsidiary of Ortac Resources plc
				** In the process of being dissolved at 31 March 2011 and full provision made against the cost of the investment.
	13			Available for sale investments
																				2011								2010
				Group and Company																£ 000's								£ 000's
				At beginning of the period																1,153								601
				Sold during the period																(395)								(100)
				(Loss)/gain in market value of investments																(82)								652
				As at end of the period																676								1,153
				Available for sale investments only represents United Kingdom Listed Equity Securities in Vatakoula Gold Mines plc.
	14			Inventories
												Group				Company				Group								Company
												2011				2011				2010								2010
												£ 000's				£ 000's				£ 000's								£ 000's
				Stocks and consumables								8				-				-								-
				Total								8				-				-								-
	15			Trade and other receivables
												Group				Company				Group								Company
												2011				2011				2010								2010
												£ 000's				£ 000's				£ 000's								£ 000's
				Current trade and other receivables
				Other debtors								18				-				70								70
				Prepayments								43				20				5								5
				Total								61				20				75								75
				Company												2011												2010
				Non current trade and other receivables												£ 000's												£ 000's
				Loans due from subsidiaries												2,153												643
				Loans due from subsidiaries are interest free and have no fixed repayment date.
	16		Trade and other payables
												Group				Company						Group									Company
												2011				2011						2010									2010
												£ 000's				£ 000's						£ 000's									£ 000's
			Current trade and other payables:
			Trade payables									183				42						-									-
			Other payables									33				-						-									-
			Accruals									50				30						126									126
			Total									266				72						126									126
	17		Share capital
			Authorised																									£ 000's
			Unlimited Ordinary shares of no par value																									-
			Called up, allotted, issued and fully paid															Number of shares										Nominal value
																												£ 000's
			As at1 July 2009															583,050,000
			23 April 2010 for cash at 1p per share															300,037,976										-
			26 April 2010 for cash at 1p per share															15,000,000										-
			15 September 2010 for non-cash consideration at 1p per share															836,187,511										-
			9 February 2011 for cash at 1.5p per share															561,403,533										-
			10 February 2011 at 1p per share on exercise of options															10,000,000										-
			18 February 2011 at 1p per share on exercise of options															10,000,000										-
			As at 31 March 2011															2,315,679,020										-
			Total share options in issue
			During the year ended 31 March 2011, the Company granted 130,000,000 options over ordinary shares (2010: Nil).
			As at 31 March 2011, the unexercised options in issue were:
			Exercise Price				Vesting Date				Expiry Date			Options in Issue				Options in Issue
														31 March 2011				31 March 2010
			5p				-				04-May-12			10,000,000				10,000,000
			1p (2010: 1.7p)				-				22-Apr-19			6,800,000				16,800,000
			1p (2010: 1.7p)				22-Apr-10				22-Apr-19			16,800,000				16,800,000
			1p (2010: 2.35p)				-				04-Jun-19			5,600,000				5,600,000
			1p (2010: 2.35p)				04-Apr-10				04-Jun-19			5,600,000				5,600,000
			1p				15-Sep-10				31-Dec-20			95,000,000				-
			1p				08-Oct-10				31-Dec-20			5,000,000				-
			1p				19-Oct-10				31-Dec-20			10,000,000				-
			1p				13-Dec-10				31-Dec-20			10,000,000				-
														164,800,000				54,800,000
			20,000,000 options were exercised during the year including 10,000,000 issued during the year (2010: Nil).  No options lapsed or were cancelled during the year (2010: Nil). On 28 July 2010, 33,600,000 share options issued on 22 April 2009 with an exercise price of 1.7p and 11,200,000 share options issued on 8 June 2009 with an exercise price of 2.35p were repriced with an exercise price of 1p.
			Total share warrants in issue
			During the year ended 31 March 2011, the Company granted 16,500,000 share warrants over ordinary shares (2010: Nil).
			As at 31 March 2011, the unexercised warrants in issue were:
			Exercise Price				Vesting Date				Expiry Date			Warrants in Issue				Warrants in Issue
														31 March 2011				31 March 2010
			1p				15-Sep-10				31-Dec-15			16,500,000				-
	18		Share Based Payments
			Under IFRS 2 'Share Based Payments', the Company determines the fair value of options issued to Directors and Employees as remuneration and recognises the amount as an expense in the income statement with a corresponding increase in equity.
			Name			Date Granted			Date Vested		Expiry Date			Exercise Price (pence)			Number 01-Apr-10		Granted in year						Exercised in year							Number 31-Mar-11
			David Lenigas			04-May-07			04-May-07		04-May-12			5			2,000,000															2,000,000
			Former directors			04-May-07			04-May-07		04-May-12			5			8,000,000															8,000,000
			Alastair Clayton			22-Apr-09			22-Apr-09		22-Apr-19			1*			5,600,000															5,600,000
			Alastair Clayton			22-Apr-09			22-Apr-10		22-Apr-19			1*			5,600,000															5,600,000
			Charles Wood			22-Apr-09			22-Apr-09		22-Apr-19			1*			5,600,000															5,600,000
			Charles Wood			22-Apr-09			22-Apr-10		22-Apr-19			1*			5,600,000															5,600,000
			Consultants			22-Apr-09			22-Apr-09		22-Apr-19			1*			5,600,000								(5,600,000)							-
			Consultants			22-Apr-09			22-Apr-10		22-Apr-19			1*			5,600,000								(4,400,000)							1,200,000
			Consultants			08-Jun-09			08-Jun-09		08-Jun-19			1*			5,600,000															5,600,000
			Consultants			08-Jun-09			08-Jun-10		08-Jun-19			1*			5,600,000															5,600,000
			Charles Wood			15-Sep-10			15-Sep-10		31-Dec-20			1					30,000,000													30,000,000
			Vassilios Carellas			15-Sep-10			15-Sep-10		31-Dec-20			1					30,000,000													30,000,000
			Anthony Balme			15-Sep-10			15-Sep-10		31-Dec-20			1					20,000,000													20,000,000
			David Lenigas			15-Sep-10			15-Sep-10		31-Dec-20			1					10,000,000						(10,000,000)							-
			Alastair Clayton			15-Sep-10			15-Sep-10		31-Dec-20			1					5,000,000													5,000,000
			Consultants			15-Sep-10			15-Sep-10		31-Dec-20			1					10,000,000													10,000,000
			Consultants			08-Oct-10			08-Oct-10		31-Dec-20			1					5,000,000													5,000,000
			Employees			19-Oct-10			19-Oct-10		31-Dec-20			1					10,000,000													10,000,000
			Dorian Nicol			13-Dec-10			13-Dec-10		31-Dec-20			1					5,000,000													5,000,000
			David Paxton			13-Dec-10			13-Dec-10		31-Dec-20			1					5,000,000													5,000,000
			Totals														54,800,000		130,000,000						(20,000,000)							164,800,000
			*On 28 July 2010, 33,600,000 share options issued on 22 April 2009 with an exercise price of 1.7p and 11,200,000 share options issued on 8 June 2009 with an exercise price of 2.35p were repriced with an exercise price of 1p.  An additional charge to the income statement on the change in the terms of the options of £11,794 is included within the share based payments charge of £1.161m for the year ended 31 March 2011.
				The fair value of the options at grant date has been calculated as follows;
				·         Options granted 15 September 2010 , 0.74 pence per share
				·         Options granted 8 October 2010, 1.48 pence per share
				·         Options granted 19 October 2010, 0.96 pence per share
				·         Options granted 13 December 2010, 1.61 pence per share
				The fair value of the options granted during the year ended 31 March 2011 amounted to £1,149,460 (2010: £263,812).  An additional £11,794 charge arose on the repricing of options and the total charge to the income statement for the year was £1,161,254 (2010: £263,812).  A transfer of £222,920 (2010: Nil) was made between the share based payments reserve and retained earnings arising on the exercise of options during the year.  The assessed fair value at grant date is determined using the Black-Scholes Model that takes into account the exercise price, the term of the option, the share price at grant date, the price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
				The following table lists the inputs to the models used for the year for the valuation of the share options:
										15 September 2010					08 October 2010				19 October 2010								13 December 2010
										issue					issue				issue								issue
				Dividend Yield (%)						-					-				-								-
				Volatility (%)						111					135				124								145
				Risk-free interest rate (%)						3.30					3.10				3.20								3.80
				Share price at grant date (pence)						0.80					1.51				1.00								1.63
				16,500,000 share warrants exercisable at 1p share were granted on the 15 September 2010 upon the acquisition of Ortac Resources plc.  The share warrants vested on issue and expire on 31 December 2015.  The fair value of the warrants at the grant date was calculated as 0.63p per share.  The fair value charge arising of £103,818 has been charged to the share premium account as a share issue expense.
				The following table lists the inputs to the model used for the year for the valuation of the share warrants:
																											15 September 2010
																											issue
				Dividend Yield (%)																							-
				Volatility (%)																							111
				Risk-free interest rate (%)																							2.00
				Share price at grant date (pence)																							0.80
19				Analysis of changes in net funds
				Group
																			2011								2010
																			£ 000's								£ 000's
				Balance at beginning of period															13								295
				Change during the period															10,573								(282)
				Balance at the end of the period															10,586								13
20				Financial instruments
				The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations. The Group holds cash as a liquid resource to fund the obligations of the Group. The Group's cash balances are held in Sterling and Euros. The Group's strategy for managing cash is to maximise interest income whilst ensuring its availability to match the profile of the Group's expenditure. This is achieved by regular monitoring of interest rates and monthly review of expenditure forecasts.
				The Group has a policy of not hedging and therefore takes market rates in respect of foreign exchange risk, however it does review its currency exposures on an ad hoc basis. Currency exposures relating to monetary assets held by foreign operations are included within the foreign exchange reserve in the Group Balance Sheet.
				The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.
				To date the Group has relied upon equity funding to finance operations.  The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation but controls over expenditure are carefully managed.
				The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements.  The currency and interest rate profile of the financial assets is as follows:
				Cash and short term deposits															2011								2010
																			£ 000's								£ 000's
				Sterling															10,580								13
				Euros															6								-
				At end of period															10,586								13
				The financial assets comprise cash balances in interest earning bank accounts at call and on deposit with a maturity of up to one year.
21				Commitments
				As at 31 March 2011, the Group had entered into the following material commitments:
				Exploration commitments
				Ongoing exploration expenditure is required to maintain title to the Group's mineral exploration permits.  No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the Group.
22				Business combinations
				Acquisition of Ortac Resources plc
				On 15 September 2010 the Company completed its acquisition of the Ortac Resources plc group.  The companies acquired as part of the Ortac Resources plc group were as follows:
				Company								Country of Registration					Proportion held							Nature of business
				Ortac Resources plc								England and Wales					100%							Holding Company
				Anglo-Slovak Minerals Limited								England and Wales					100%							Mineral Exploration
				Bellmin s.r.o.								Slovak Republic					100%							Mineral Exploration
				G.B.E. s.r.o.								Slovak Republic					100%							Mineral Exploration
				St. Stephans Gold s.r.o.								Slovak Republic					100%							Mineral Exploration
				Kremnica Gold s.r.o.								Slovak Republic					100%							Mineral Exploration
				Kremnica Gold Mining s.r.o.								Slovak Republic					100%							Mineral Exploration
																				Fair Value								Fair Value on
																Book Value				Adjustment								Acquisition
																£ 000's				£ 000's								£ 000's
				Non-current assets
				Property, plant and equipment												255												255
				Goodwill												522				(522)								-
				Exploration and evaluation												8,197				270								8,467
				Current assets
				Inventories												6												6
				Trade and other receivables												267												267
				Cash and cash equivalents												52												52
				Current liabilities
				Trade and other payables												(1,562)												(1,562)
																7,737				(252)								7,485
				Consideration																								7,485
				Consideration for the acquisition of the Ortac Resources plc group was satisfied by the issue of 748,498,981 shares valued at 1 pence per share.  In addition, on 15 September 2010, to settle Ortac Resources Plc's deferred purchase consideration for its purchase of Kremnica Gold s.r.o. and Kremnica Gold Mining s.r.o. as completed by Ortac Resources plc on 31 March 2010, Ortac Resources Ltd issued a further 87,688,530 shares valued at 1 pence, and made a cash payment of US$550,000 to settle the newly acquired subsidiaries consideration committments.
				Included in the loss for the year is £267,000 attributable to the Ortac Resources plc group.  Had the acquisition of the Ortac Resources plc group been effected at 1 April 2010, the loss for the period would have been £1,812,000.
				Contingent liability As part of the purchase agreement for Kremnica Gold s.r.o. and Kremnica Gold Mining s.r.o., Ortac Resources plc agreed to pay vendor royalties of up to US$3,750,000 in either shares or cash, being $15 per ounce on the first 250,000 ounces of gold equivalent (gold plus silver) resource defined as proven and probable reserve in the bankable feasible study.  This will become payable within 60 days of all required permits being obtained to permit commercial production at the Kremnica property.  No provision has been made currently for this potential liability.
23				Related party transactions
				Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between other related parties are discussed below.
				During the period there were no related party transactions to disclose. (2010: £nil).
				Remuneration of Key Management Personnel
				The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related party Disclosures.
																				2011								2010
																				£ 000's								£ 000's
				Short-term employee benefits																181								117
				Share-based payments																798								122
																				979								239
24				Post balance sheet events
				There are no post balance sheet events to disclose.

 

END

 

 

FR PGUUAMUPGURQ