January 2012 For personal use only - ASX · Baden Powell has the potential to form the third of its MTT projects, along with the Anthill and Goongarrie projects. ... Reported in full

Barrington House 283 Rokeby Road Subiaco WA 6008Phone : 08 6382 5300 Fax : 08 9481 1947

PO Box 982 Subiaco WA 6904Email : [email protected]

A.B.N : 111 209 745 67

30th January 2012Quarterly Operations Report

OCTOBER TO DECEMBER 2011

Perth-based gold explorer Metaliko Resources Limited (Metaliko or the Company)is pleased to provide the following update regarding its projects in the EasternGoldfields region of Western Australia:

Highlights

Baden Powell drilling intersects mineralisation beneath the 1980’strial mining pit including

o 14m at 1.25g/t Au from 23mo 12m at 1.05g/t Au from 19m down hole

Seven Seas initial drilling intersects significant mineralisation,including

o 3m @ 3.31g/t Au from 58mo 3m @ 3.13g/t Au from 69mo 1m @ 10.3g/t Au from 90m

Anthill Project mining and treatment JV signed with KalgoorlieMining Company

Flora and fauna surveys completed for Anthill

Hydrologic studies commenced for Anthill and Goongarrie

Metallurgical test work for Goongarrie commenced

OVERVIEW

During the Quarter ending December 31st 2011 Metalliko completed its first reversecirculation (RC)drilling programs at the Baden Powell and Seven Seas Projects(Figure 1). Metaliko also continued to progress its Anthill and Goongarrie MineTruck and Treat (MTT) projects towards regulatory approval and production. Amining and treatment joint venture for the Anthill Project was signed with theKalgoorlie Mining Company (KMC) which would see ore from Anthill treated at theKMC Bullant Project located 6km south of Anthill.

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Figure 1 Location of Metaliko Resources ProjectsFor

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ADVANCED STAGE EXPLORATION PROJECTS

Baden Powell

Baden Powell is one of three advanced gold prospects and eight aeromagnetictargets within the Windanya Project located 50km north of Kalgoorlie, WA (Figure1). Metaliko has used aeromagnetic data from a survey it flew earlier in 2011 to re-interpret the geology and mineralisation controls in the 30km strike length of theBardoc Tectonic Zone within its Windanya tenement holdings. Metaliko considersBaden Powell has the potential to form the third of its MTT projects, along with theAnthill and Goongarrie projects.

Baden Powell has historical gold workings and prospecting pits spread over astrike length of 2km. Historical production from the Baden Powell shaft was 582tonnes of ore with a recovered grade of 35.6g/t Au. In the 1980s, a 5 to 8m deeptrial open pit (Figure 2) was dug by Mistral Mines and 913 tonnes of ore weretreated for a recovered grade of 3.4g/t Au. This was below the expected grade andno further production was undertaken.

Between about 1980 and the early 1990s, a series of rotary air blast (RAB) and RCdrill holes and several RC with diamond core tails were drilled around the BadenPowell workings. Gold mineralisation at Baden Powell is hosted by a felsicporphyry intrusion (Figure 3) that is sheared by some of the north-north-westtrending structures of the Bardoc Tectonic Zone. Historical drilling indicates severalsteeply west-dipping mineralised lodes extend over a strike length of up to 300mand down to at least 90m vertical.

During the December Quarter, an RC drilling program comprised of 12 RC drillholes for a total of 850m was completed (Figure 4). The broadest intercepts arefrom a zone of mineralisation up to 14m true width that extends from the base ofthe test pit to at least 90m (Figure 5) where it remains open at depth. Significantresults are contained in Table 1.

Figure 2 – Baden Powell trial pit from the 1980s

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Figure 3 – Gold mineralisation contained in sheared oxidized felsic porphyryin the Baden Powell pit wall.

Figure 4 Metaliko RC drilling around the Baden Powell 1980s trial pit

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Figure 5 Cross section of the Baden Powell trial pit showing Metaliko andhistrorical drilling intercepts (see location of section in Figure 4)

HoleID East North EOH_Depth Azimuth Dip mFrom mTo Width Au_ppm

BPRC0005 329045 6653349 50 235 -60 47.00 48.00 1.00 0.73

BPRC0009 328980 6653445 70 235 -45 19.00 31.00 12.00 1.05

BPRC0009 328980 6653445 70 235 -45 33.00 34.00 1.00 0.60

BPRC0009 328980 6653445 70 235 -45 39.00 42.00 3.00 1.16

BPRC0010 328982 6653444 50 235 -60 23.00 37.00 14.00 1.25

BPRC0010 328982 6653444 50 235 -60 39.00 43.00 4.00 1.43

BPRC0013 328955 6653522 50 235 -60 39.00 40.00 1.00 0.98

BPRC0014 328968 6653531 50 235 -60 10.00 11.00 1.00 1.29

BPRC0014 328968 6653531 50 235 -60 39.00 40.00 1.00 1.00

Table 1 Significant intercepts (based on a lower cut off of 0.5g/tAu and up to 1m ofinternal dilution of subgrade material)

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The continuity of the mineralisation down to a depth of 90m, below which it remainsopen, is encouraging. Further drilling is required to fully test the strike extent of themineralisation and to eventually define a resource. .

Seven Seas

Metaliko’s Seven Seas Project is located on the Zulekia Shear Zone, 70km north west ofKalgoorlie, Western Australia (Figure 1). The Seven Seas Project area was subject tohistorical exploration with much of the activity occurring between 1980 and 2000. Metalikois now evaluating a consolidated tenement holding previously explored in a fragmentedfashion. A common feature of this historical exploration was the problem with clay-pronesoils and the shallow part of the regolith profile, both of which have been poor geochemicalmedia for gold exploration.

Metaliko collated data from more than 800 RAB and RC drill holes over the consolidatedtenement area and has determined a consistent gold trend in the deeper regolith andbedrock. Peak values in the drill holes show near continuous trends of significant goldanomalism from 100ppb Au to 16700 ppb Au over a strike length in excess of 7km (Figure2).

Metaliko completed its first drilling program at Seven Seas in November 2011. Theprogram, consisting of 13 RC drill holes for a total of 850m of drilling, was designed to testthe continuity of mineralisation encountered in the wider spaced historical drilling. Theresults are shown in Figure 2 and listed in Table 1. The best intercepts were:

3m at 3.31g/t Au from 58m 3m at 3.13g/t Au from 69m 1m at 10.30g/t Au from 90m

The drill results demonstrate significant continuity of gold mineralisation in the oxidised andpartially oxidised bedrock. It is significant to note that the highest assay was the deepest at90m down hole (78m vertical) and about 20m below the base of complete oxidation.

Hole ID Eastingm

Northingm

Fromm

Widthm

Gradeg/tAu

ETRC0001 290902 6639671 21 5 1.156

32 1 0.694

ETRC0002 289980 6639742 23 1 1.147

ETRC0004 290550 6639370 52 1 1.435

90 1 10.298

ETRC0005 295540 6637380 52 1 1.035

ETRC0006 295590 6637465 50 1 0.673

57 1 0.528

ETRC0008 295330 6637495 39 1 0.742

42 2 0.908

58 3 3.309

63 4 0.959

69 3 3.133

Table 1 Seven Seas >0.5g/t Au intercepts calculated with up to 1m of internal dilution. Allholes drilled at 60o declination to 225o.

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Figure 6 Seven Seas deep regolith and bedrock gold anomalism over 7kmlong, and Metaliko RC drilling program.F

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Figure 7 Metaliko RC drill holes and historical drill hole peak gold values,western area, see Figure 6.

Figure 8 Metaliko RC drill holes and historical drill hole peak gold values,eastern area see Figure 6.

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MTT PROJECTS QUARTERLY UPDATE

The treatment plant and transport infrastructure of the Eastern Goldfields providesan excellent opportunity to develop early cash flow with minimal capital outlay fromthe type of projects that Metaliko has termed Mine Truck and Treat or “MTT”projects. In this context even modest parcels of oxide ore can deliver short termvalue. Metaliko has two MTT projects at the resource stage, at Goongarrie andAnthill (Figure 6) with a total of 174,000 ounces of gold (refer to the full resourcestatement released to the ASX 26 May 2011 and summarised here in Table 1). TheCompany is building additional MTT resources in parallel with its advanced stageexploration activities focused on substantive potentially stand-alone golddiscoveries.

Figure 9 Metaliko’s leading MTT projects, gold treatment plants androads in the Eastern Goldfields.

Project CategoryDensity(g/cm3) Tonnes

Grade(Au g/t)

Metal Au(Oz)

Anthill

Indicated 2.30 917,800 0.98 28,900

Inferred 2.56 4,268,000 0.96 131,700

Total 2.51 5,185,800 0.96 160,600

Goongarrie Lady

Indicated 2.30 100,000 2.29 7,300

Inferred 2.31 128,500 1.47 6,100

Total 2.29 228,500 1.83 13,400

Table 1 Resources inventory by SRK Consulting on a 0.5g/ lower cut-off (noterounding errors may occur). Reported in full to the ASX 26 May 2011.

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Anthill Project

Metaliko is pleased to announce it has entered into a mining and treatment Joint Ventureagreement with the Kalgoorlie Mining Company Ltd (‘KMC’) for its Anthill Gold Project(Figure 1).

The principle terms of the JV agreement are as follows:

Metaliko will complete the mining approval process and prepare the project formining.

KMC will undertake the development, mining, transport and treatment of Anthill onbehalf of the JV parties.

The JV parties will share the proceeds of gold sales equally after deductions ofcosts on an open book basis and agreed ore blending and recovery parameters.

Annual mining and treatment rates for Anthill ore will be approximately 300,000tonnes.

Ore treatment from Anthill will commence as soon as practicable aftercommissioning of the Bullant Plant.

KMC operates the Bullant underground mine located 6 kilometres south of Anthill (Figure8). Ore from Bullant is currently being treated at the Kanowna Belle Plant owned by BarrickGold Corporation Ltd. KMC intends to have its own treatment plant operational at Bullantduring the fourth quarter of 2012. The crushing circuit of the plant is expected to beoperational by March 2012.

Metaliko believes the proximity between Bullant and Anthill as well as other synergies willafford both parties significant benefits and will ensure the maximum economic resourcerecovery from Anthill.

During the December Quarter Metaliko continued to prepare the Anthill Project forregulatory approval by completing flora and fauna surveys. No major issues have beenencountered. Hydrologic investigations have commenced subsequent to the end of theQuarter.

Goongarrie Lady Project

Metaliko also continues to prepare the Goongarrie Project for regulatory approval. Floraand fauna and hydrological studies have recently been commissioned.

Metallurgical test work is also underway on sample suites of the Goongarrie mineralisation.Ore mined from the Goongarrie Lady open pit in the 1980s was processed through aconventional CIP/CIL plant. Metaliko’s test program is designed to confirm recovery ratesand leach kinematics based on metallurgical parameters common to nearby processplants that may receive the Goongarrie ore.

For more information contact

James Searle Caitlin HarrisManaging Director Investor Relations

Phone: (08) 6382 5300 Phone: (03) 9622 2202

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Unless otherwise specified information in this report relating to exploration and related technical orcommercial comments have been compiled by Dr James Searle, a Member of the Australian Institute ofMining and Metallurgy, Managing Director of the company and with over 30 years experience in goldexploration, development and mining and as such qualifies as a Competent Person as defined in the 2004Edition of the Australasian Code of Reporting for Exploration Mineral Resources and Ore Reserves. Dr Searleconsents to the inclusion of this information in form and context in which it appears.

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Appendix 5BMining exploration entity quarterly report

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Metaliko Resources Ltd

ABN Quarter ended (“current quarter”)

11 120 974 567 31 December 2011

Consolidated statement of cash flows

Cash flows related to operating activitiesCurrent quarter

$A’000Year to date(6 months)

$A’0001.1 Receipts from product sales and related

debtors

1.2 Payments for (a) exploration & evaluation(b) development(c) production(d) administration

(431)

(187)

(805)

(392)1.3 Dividends received1.4 Interest and other items of a similar nature

received 45 1281.5 Interest and other costs of finance paid1.6 Income taxes paid1.7 Other – Net GST (paid)/refunded 23 29

Net Operating Cash Flows (550) (1,040)

Cash flows related to investing activities1.8 Payment for purchases of: (a) prospects

(b) equity investments(c) other fixed assets

-

(2)

(124)

(7)1.9 Proceeds from sale of: (a) prospects

(b) equity investments(c) other fixed assets

1.10 Loans to other entities1.11 Loans repaid by other entities1.12 Other

- Security deposit- Bonds paid

Net investing cash flows (2) (131)1.13 Total operating and investing cash flows

(carried forward) (552) (1,171)For

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Appendix 5B Page 2 17/12/2010

1.13 Total operating and investing cash flows(brought forward) (552) (1,171)

Cash flows related to financing activities1.14 Proceeds from issues of shares, options,

etc- -

1.15 Proceeds from sale of forfeited shares1.16 Proceeds from borrowings1.17 Repayment of borrowings1.18 Dividends paid1.19 Other – Capital raising costs

Other – Security deposits(132)

-(132)(10)

Net financing cash flows (132) (142)

Net increase (decrease) in cash held (684) (1,313)

1.20 Cash at beginning of quarter/year to date 2,364 2,9931.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter 1,680 1,680

Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the related entities

Current quarter$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 166

1.24 Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Director’s fees and salaries in normal course of trading and consulting fees paid toDirector’s and related parties.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect onconsolidated assets and liabilities but did not involve cash flows

NIL

2.2 Details of outlays made by other entities to establish or increase their share in projects inwhich the reporting entity has an interest

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Financing facilities availableAdd notes as necessary for an understanding of the position.

Amount available$A’000

Amount used$A’000

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter$A’000

4.1 Exploration and evaluation 300

4.2 Development

4.3 Production

4.4 Administration 200

Total 500

Reconciliation of cash

Reconciliation of cash at the end of the quarter(as shown in the consolidated statement of cashflows) to the related items in the accounts is asfollows.

Current quarter$A’000

Previous quarter$A’000

5.1 Cash on hand and at bank 170 364

5.2 Deposits at call 1,510 2,000

5.3 Bank overdraft

5.4 Other (provide details)

Total: cash at end of quarter (item 1.22) 1,680 2,364

Changes in interests in mining tenements

Tenementreference

Nature of interest(note (2))

Interest atbeginningof quarter

Interest atend ofquarter

6.1 Interests in miningtenementsrelinquished, reducedor lapsed

E36/529M24/750

Beneficial HolderBeneficial Holder

100%100%

0%0%

6.2 Interests in miningtenements acquired orincreased

P15/5680 Application - RegisteredHolder

0% 100%

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Appendix 5B Page 4 17/12/2010

Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together withprices and dates.

Total number Number quoted Issue price persecurity (seenote 3) (cents)

Amount paid upper security (seenote 3) (cents)

7.1 Preference+securities(description)

7.2 Changesduring quarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs,redemptions

7.3 +Ordinarysecurities 60,335,832 47,048,833

7.4 Changesduring quarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs

7.5 +Convertibledebtsecurities(description)

7.6 Changesduring quarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted

7.7 Options(descriptionand conversionfactor)

20,089,999450,000

--

Exercise price

$0.20$0.30

Expiry date

30/06/201406/12/2015

7.8 Issued duringquarter

7.9 Exercisedduring quarter

7.10 Expired duringquarter

7.11 Debentures(totals only)

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7.12 Unsecurednotes (totalsonly)

Compliance statement

1 This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Act or other standardsacceptable to ASX (see note 5).

2 This statement does /does not* (delete one) give a true and fair view of the mattersdisclosed.

Sign here: Date: 31 January 2012(Company secretary)

Print name: STEPHEN HEWITT-DUTTON

Notes

1 The quarterly report provides a basis for informing the market how the entity’sactivities have been financed for the past quarter and the effect on its cash position.An entity wanting to disclose additional information is encouraged to do so, in a noteor notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests inmining tenements acquired, exercised or lapsed during the reporting period. If theentity is involved in a joint venture agreement and there are conditions precedentwhich will change its percentage interest in a mining tenement, it should disclose thechange of percentage interest and conditions precedent in the list required for items6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required initems 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation ofMineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of InternationalFinancial Reporting Standards for foreign entities. If the standards used do notaddress a topic, the Australian standard on that topic (if any) must be complied with.

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Documents

January 2012 For personal use only - ASX · Baden Powell has the potential to form the third of its MTT projects, along with the Anthill and Goongarrie projects. ... Reported in full