MSR December 2009 Quarterly Report - asx.com.au · DECEMBER 2009 QUARTERLY OPERATIONS REPORT Fast Facts Corporate December 2009 Listed ASX 22 July 2008 Shares on Issue 119.3M Options

Manas Resources LimitedACN 128 042 606

30 Ledgar RoadBalcatta

AUSTRALIA 6021

P +618 9240 7717F +618 9240 2406

W www.manasresources.comE [email protected]

Manas Resources Limited – December 2009 Quarterly Report Page 1 of 11

29 January 2010

2 9 J a n u a r y 2 0 1 0

D E C E M B E R 2 0 0 9 Q U A R T E R L Y O P E R A T I O N S R E P O R T

Fast Facts Corporate

December 2009

Listed ASX 22 July 2008

Shares on Issue 119.3M

Options on Issue 80.2M

Market Capitalisation

at 13c $15.5M

Cash at Bank $3.9M

ASX Code ‐ MSR

Directors

Stephen Ross

Francis Harper

Mark Calderwood

Colin Carson

Major Shareholders

Perseus Mining

MSR Directors

Macquarie Bank Limited

Highlights

◆ Gold explorer in the Kyrgyz Republic

◆ Exploring for Carlin‐style gold deposits

◆ Total JORC Resource base 875,000 ounces

◆ Obdilla Resource 485,000 ounces,

Shambesai Resource

390,000 ounces

◆ 15,000m drilling program

completed at Shambesai

HIGHLIGHTS

◆ FURTHER OUTSTANDING HIGH‐GRADE RESULTS RETURNED

FROM INFILL AND EXTENSIONAL DRILLING AT SHAMBESAI

◆ NORTHERN AND WESTERN ZONES INTERSECTED

INDICATING SIGNIFICANT EXTENSIONS TO SHAMBESAI

◆ PROGRAM COMPLETED FOR MORE THAN 15,000M OF

DRILLING

◆ METALLURGICAL TESTWORK COMMENCED AT SHAMBESAI

Exploration

◆ Outstanding drill results continue to be returned from infill and

extensional drilling at Shambesai including ‐

21m at 12.6 g/t gold from 27m and 8.5m at 15.4 g/t gold from

6m (Infill drilling)

21.8m at 4.92g/t gold from 103.3m (Northern Zone)

23m at 4.09g/t gold from 67m (Infill drilling)

◆ New zone discovered north of main Shambesai mineralised area

◆ Western extensions intersected 1.1km from Shambesai Mineral

Resource area

◆ Channel sampling returns 26m at 6.79g/t gold

◆ 15,000m drilling campaign completed in December 2009

◆ Results are expected to add significant ounces to current Mineral

Resource at Shambesai

◆ Metallurgical testwork has commenced at Shambesai

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Manas Resources Limited

ACN 128 042 606


29 January 2010

Manas Resources Limited (ASX‐MSR) is pleased to report its activities for the December 2009 Quarter on the

Company’s gold projects in Central Asia’s Kyrgyz Republic.

Shambesai Prospect

During May 2009 Manas reported an inaugural Inferred Mineral Resource of 390,000 ounces of gold for the

Shambesai Prospect, located 7km south of Manas’s 485,000 Mineral Resource at Obdilla, for a total gold

inventory of 875,000 ounces. See Table 2.

During July 2009 Manas commenced an aggressive infill and extensional drilling campaign of 123 diamond drill

holes for approximately 15,267m of drilling (including redrills). The drilling program was completed in

December 2009 and Manas will continue to release results throughout the March 2010 Quarter, with a

resource update for Shambesai planned for the first half of 2010.

The drilling program consisted of two stages ‐ the Shambesai Mineral Resource infill and extension program,

and the western extensions program. The company completed 98 diamond drill holes for 10,446m as part of

the infill program and 25 diamond drill holes for 4,822m for the western extension program.

Highlights thus far of the Shambesai drill program include –

1. The intersections from infill drilling have returned significantly better‐than‐expected widths and

grades;

2. The discovery of a northern zone outside of the current Mineral Resource zone; and

3. The intersection of gold mineralisation 1.1km west of the current Shambesai Mineral Resource.

The northern discovery zone is proving to be a significant discovery as it exhibits wide, high‐grade intercepts

and is a new zone that shows very little surface expression. This highlights the potential for further significant

‘blind’ discoveries as the geological factors controlling these brecciated mineralised zones are better

understood. See Figure 1.

The western extension drill results are also important as they have intersected gold mineralisation between

100m and 1.1km further west from the Shambesai gold Mineral Resource. While subject to final

interpretation, this has the potential to significantly increase the Shambesai Mineral Resource with further

drilling by extending the gold mineralised zone a significant distance to the west from the existing resource

which sits within the current 1.2 kilometres of strike length. See Figures 2 and 3.

Significant results from drilling completed during the December 2009 Quarter include –

◆ 21.8m at 4.92g/t gold from 103m including 7.7m at 7.74g/t gold from 103m, (within a 52m gold

anomalous intersection) in hole SHDDH103A (Section 250900mE);

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◆ 23m at 4.09g/t gold from 67m in hole SHDDH114 (Section 250985mE);

◆ 21m at 12.6g/t gold from 27m in hole SHDDH136;

◆ 8.5m at 15.4g/t gold from 6m in hole SHDDH126 including 4.5m at 25.9g/t gold from 10m;

◆ 7m at 7.91g/t gold from 55m in hole SHDDH128 including 3.1m at 15.3g/t gold from 57m within an

anomalous zone of 14.8m at 3.89g/t gold from 52.2m;

◆ 9m at 4.06g/t gold from surface in hole SHDDH129 and 1m at 1.26g/t gold from 17m within an

anomalous zone of 30.8m at 1.32g/t gold from surface;

◆ 21m at 1.68g/t gold from 213m in hole SWDDH017 (100m west of Shambesai Mineral Resource); and

◆ 7.5m at 2.27g/t gold from 61m in hole SWDDH009 (1.1km west of Shambesai Mineral Resource).

See Table 1 for details of results for the December 2009 Quarter. Yellow highlights show results from December 2009

Quarter.

Figure 1 – Drill hole cross section 250900mE showing northern zone

The aim of the current program is to upgrade the resource status from Inferred to Measured and Indicated,

and to significantly increase the Mineral Resource at Shambesai by testing the flanks of the mineralised zone

and wide‐spaced drilled areas within it.

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29 January 2010

The Company considers the results announced for the completed drill program to be significantly better than

expected, with the widths and grades in many of the infill holes in excess of the average of the nearest

previous drill holes. For example, we expect the results, and subject to final interpretations, for the northern

extension zone (hole SHDDH103A and the infill hole SHDDH114) when compared to the original resource

model to increase the current Mineral Resource at Shambesai by extending the current zone of gold

mineralisation and extending the total width of the mineralised zones to in excess of 300m.

Current interpretations show the higher grades are associated with brecciated zones and kaolinisation within

the core of the Shambesai mineralised zone, with these types of structures and alteration providing target

zones throughout the entire South Kyrgyz Gold Project.

Figure 2 – East – West long section showing drill hole location

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Figure 3 – Plan View of Shambesai Ore Body See Table 1 for details of results for the December 2009 Quarter. Yellow highlights show results from December 2009

Quarter.

South Kyrgyz Regional Exploration Program

Regional Soil Sampling

The South Kyrgyz Gold Project covers more than 4,200km2 of semi‐contiguous exploration licences considered

prospective for Carlin‐style gold mineralisation in the south‐west of the Kyrgyz Republic. The project extends

west from the major regional centre of Osh for approximately 300km in a historical Soviet mining region with

excellent roads and grid power.

Exploration in the form of soil sampling and trenching was completed at Aksu, Karavshin, Akbura and Karabulak.

See Figure 4 for details.

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29 January 2010

Figure 4 – South Western Kyrgyz Regional Gold Project showing Nurlau Prospect in SE corner of Karabulak

Savoyardy Joint Venture

During the December 2009 Quarter joint venture partner Kentor Gold Limited (ASX‐KGL) continued with

exploration at the Savoyardy project. An intensive exploration drilling program was completed at the Rudny

Prospect, and resulted in a 15 per cent increase in the JORC Compliant Inferred Resource estimate to 41,000

ounces of gold (210,000 tonnes at 6.1 g/t gold).

Kentor Gold will now plan for further exploration at Savoyardy aimed at increasing the gold Resources at Rudny

and Kurgan, rather than pursue plans for early small scale mining at the Rudny Prospect as previously advised.

Kentor Gold has been granted an option to purchase Manas’s interest in the Savoyardy Project for a total of

US$1.25M plus a royalty. The option to acquire 100 per cent of the project is exercisable by 31 March 2010

upon initial payment of US$500,000 at that date and US$750,000 12 months later. For

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29 January 2010

Corporate

During the September 2009 Quarter Manas completed a capital raising of just under AUD$6M at $0.10 per

share through the issue of approximately 60 million fully paid shares. A bonus one for two option issue was

also completed during the September 2009 Quarter.

The proceeds of the July capital raising are to be utilised primarily for increasing and upgrading the current

875,000 ounce resource base via ‐

◆ Infill and extensional drilling at the 390,000 ounce Shambesai resource area and the Shambesai West

extensions;

◆ Infill drilling at the 485,000 ounce Obdilla resource area;

◆ Drilling along the 3km long Shambesai western corridor;

◆ Exploration drilling of the 10km long Tolubay corridor;

◆ Commencing metallurgical studies for the combined resource areas; and

◆ Increased exploration throughout the entire 4,400km2 portfolio. See Figure 5 for details.

At 31 December 2009 the Company had cash reserves of approximately AUD$3.9M

Figure 5 – Prospects within 8km of Shambesai and 2009‐2010 Planned Exploration Programmes

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TABLE 1 – SIGNIFICANT INTERCEPTS FROM SHAMBESAI FOR DECEMBER 2009 QUARTER HOLE EASTING

m

NORTHING

m

LENGTH

m

AZIMUTH

˚ INCL

˚ FROM

m

TO

m

INTERVAL

m

GOLD

g/t

SHDDH103A 250900 4440500 150 0 ‐65 83 92.4 9.4 1.07

and 103.3 125.1 21.8 4.92

including 103.3 111 7.7 7.74

SHDDH106 250985 4440520 137 0 ‐60 96 109.3 13.3 2.17

including 97 103 6 4.29

SHDDH108 250985 4440400 88.2 0 ‐65 37 38 1 1.16

SHDDH111 250810 4440460 185.4 0 ‐65 NSI

SHDDH112 250810 4440530 167.8 0 ‐50 NSI

SHDDH114 250985 4440460 133.7 0 ‐75 67 90 23 4.09

SHDDH115A 250810 4440460 110.8 180 ‐85 113 123 10 3.56

SHDDH116 250900 4440580 120.7 0 ‐65 34 50 16 0.68

SHDDH117 250810 4440380 180 0 ‐70 81 83 2 0.56

and 123 138 15 0.55

SHDDH118 250810 4440300 128 0 ‐65 72 86 14 2.69

and 110.4 113 2.6 8.10

SHDDH119 250900 4440580 109.8 0 ‐90 37 54 17 2.85

SHDDH120 251070 4440240 179.5 0 ‐60 57.9 58.9 1 1.96

SHDDH121A 250810 4440380 122 180 ‐80 98 121.6 23.6 2.77

SHDDH122 251170 4440215 90 0 ‐60 NSI

SHDDH123 251170 4440270 79 0 ‐60 NSI

SHDDH124 250810 4440535 130.4 0 ‐80 NSI

SHDDH125 251067 4440323 77.9 0 ‐50 0 3 3 1.47

SHDDH126 251076 4440423 90 0 ‐60 6 14.5 8.5 15.4

including 10 14.5 4.5 25.9

SHDDH127 251067 4440320 70.6 180 ‐80 0 2 2 1.13

SHDDH128 251070 4440500 120.3 0 ‐65 55 62 7 7.91

including 57 60.1 3.1 15.3

SHDDH129 251740 4440710 70 0 ‐70 0 9 9 4.06

and 17 18 1 1.26

SHDDH130 251070 4440420 80 180 ‐60 6.7 21.3 14.6 4.49

SHDDH136 251072 4440497 130 180 ‐75 27 48 21 12.6

SHDDH138 251070 4440190 105 0 ‐60 80 83.2 3.2 0.75

SHDDH139 251740 4440775 100.3 0 ‐80 NSI

SHDDH140 251170 4440510 98.8 180 ‐60 9 22 13 2.17

SWDDH003 249550 4440610 145.9 0 ‐65 NSI

SWDDH004 249550 4440610 120.0 0 ‐40 NSI

SWDDH005 249450 4440760 138.1 0 ‐40 NSI

SWDDH009 249450 4440760 179.4 0 ‐80 61 68.5 7.5 2.27

and 133 134 1 0.85

and 137 138 1 0.99

and 141.5 142.5 1 1.10

SWDDH017 250550 4440400 306.5 0 ‐70 213 234 21 1.68

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NOTES TO TABLE 1 – SHAMBESAI DIAMOND DRILLING

1. All holes are drilled by diamond drilling.

2. All drill results are for an average 1m interval crushed half core samples.

3. All sample results are reported from Alex Stewart Laboratory in Bishkek, Kyrgyz Republic using industry‐standard 30g fire assay.

4. All results of duplicate samples are routinely monitored to be within acceptable limits for the type of assay method used.

5. All assays are quoted to two decimal places.

6. All intercepts are greater than 1 gram metres and are quoted using a 0.5 g/t lower cut‐off, no high cut‐off grade and up to 4m of

internal dilution (< 0.5 g/t gold).

Details of the Manas Resources 100% owned Kyrgyz Gold Projects can be found at the Company’s

comprehensive website www.manasresources.com

For further information ‐

Stephen Ross

Managing Director


Telephone +618 9240 7717

www.manasresources.com

COMPETENT PERSONS STATEMENT

The information in this report that relates to exploration results and mineral resources is based on information compiled by Mr

Stephen Ross. Mr Ross is the Managing Director of Manas Resources Limited. Mr Ross is a Member of The Australasian Institute of

Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under

consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the

‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ross consents to the inclusion in the

report of the matters based on information in the form and context in which it appears.

Information in relation to activities carried and Mineral Resources out at the Savoyardy Project has been provided by the farm‐in/joint

venture partner, Kentor Gold Limited, who has consented to the inclusion of that information in this report in the form and context in

which it appears.

Statements regarding Manas Resources’ plans with respect to its mineral properties are forward‐looking statements. There can be no

assurance that Manas Resources’ plans for development of its mineral properties will proceed as currently expected. There can also be

no assurance that Manas Resources’ will be able to confirm the presence of additional mineral deposits, that any mineralisation will

prove to be economic or that a mine will successfully be developed on any of Manas Resources’ mineral properties.

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29 January 2010

Manas Resources Limited ‐ South Kyrgyz Gold Project

Company Overview

Manas Resources Limited is an Australian based company focused on exploring and developing its 100%

owned gold projects in the Kyrgyz Republic. The Company has a Mineral Resource base of 875,000 ounces of

gold at the Obdilla and Shambesai prospects, which are only 7 kilometres apart.

The main focus for Manas is exploring for Carlin‐style gold deposits on seven projects collectively called the

South Kyrgyz Gold Project covering over 4,200km2, with a number of these projects already at an advanced

stage of exploration. Manas technical staff located in the Kyrgyz Republic are working on defining resources

and developing these gold projects. Manas has a joint venture on the high‐grade Savoyardy project with ASX‐

listed Kentor Gold Limited.

The Kyrgyz Republic straddles the Tien Shan gold belt which stretches from eastern China through into

Uzbekistan and Tajikistan. This mineral province is considered to be highly prospective for ‘World‐Class’ gold

deposits and it hosts the +100 million ounce Muruntau gold mine in Uzbekistan.

See Figures 6 and 7.

Table 1 – Summary of Mineral Resource Estimates

Shambesai and Obdilla

Tonnes

(Millions)

Gold Grade

(g/t)

Contained

Ounces Gold

Category Prospect

4.50 2.7 390,000 Inferred Shambesai

6.30 1.8 353,000 Indicated Obdilla

2.90 1.4 132,000 Inferred Obdilla

Shambesai is reported at a gold cut‐off grade of 0.5g/t gold.

Obdilla is reported at a gold cut‐off grade of 1.0g/t gold. Notes pertaining to Obdilla resource estimate which was estimated in December 2007 can be found at

www.manasresources.com and in the Manas Resources Limited prospectus dated May 2008.

Notes pertaining to Shambesai resource estimate which was estimated in May 2009 can be found at

www.manasresources.com and in the Manas Resources Limited Announcement dated May 2009.

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29 January 2010

Figure 6 – Location of the Kyrgyz Republic in Central Asia

Figure 7 – Manas Resources Project Locations

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Appendix 5B Mining exploration entity quarterly report

1

Appendix 5B

Mining exploration entity quarterly report Name of entity

MANAS RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

23 128 042 606 31 December 2009

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date (6 months)

$A’000 1.1 Receipts from product sales and related debtors

- -

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

(1,763) - -

(183)

(3,201) - -

(382) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature

received

50

77 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other – includes a fee for grant of an option - 24

Net Operating Cash Flows

(1,896)

(3,482)

Cash flows related to investing activities

1.8 Payment for purchase or renewal of: (a) prospects (b) equity investments (c) other fixed assets

- -

(4)

- -

(39) 1.9 Proceeds from sale of: (a) prospects

(b) equity investments (c) other fixed assets

- - -

- - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other - -

Net investing cash flows

(4)

(39) 1.13 Total operating and investing cash flows (carried

forward)

(1,900)

(3,521)

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2

1.13 Total operating and investing cash flows (brought

forward)

(1,900)

(3,521)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. - 5,988 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other –share issue expenses 2 (327) Net financing cash flows 2 5,661

Net increase (decrease) in cash held (1,898) 2,140

1.20 Cash at beginning of quarter/year to date 5,834 1,848 1.21 Exchange rate adjustments to item 1.20 (49) (101)

1.22 Cash at end of quarter 3,887 3,887

Payments to directors of the entity and associates of the directors Payments 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

88

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

A$’000 Directors fees, consultancy charges and remuneration 88

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Non-cash financing and investing activities

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

Not applicable

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

Savoyardy Gold Project – $96,700 of expenditure by Kentor Gold Limited towards earning a 70% interest.

Financing facilities available Add 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

600

4.2 Development

-

Total

600

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Reconciliation of cash

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

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 1,387 1,834

5.2 Deposits at call 2,500 4,000

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 3,887 5,834

Changes in interests in mining tenements

Tenement reference Nature of interest Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

N/A.

6.2 Interests in mining tenements acquired or increased

N/A.

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Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per security (cents)

Amount paid up per security (cents)

7.1 Preference +securities (description)

- - - -

7.2 Changes during quarter

- - - -

7.3 +Ordinary securities

119,383,335 92,195,834

- -

7.4

Changes during quarter

7.5 +Convertible debt securities (description)

- - - -

7.6 Changes during quarter

- - - -

7.7 Options (description and conversion factor)

60,691,711 2,700,000

14,000,000 900,000 900,000

1,000,000

60,691,711 - - - - -

Exercise price

20 cents 20 cents 25 cents 20 cents 25 cents 25 cents

Expiry date

30/09/201131/12/201131/12/201011/09/201211/09/201231/12/2012

7.8 Issued during quarter

1,000,000

-

25 cents 31/12/2012 7.9 Exercised during

quarter

-

-

- - 7.10 Cancelled/Expired

during quarter

-

-

- - 7.11 Debentures

(totals only) - -

7.12 Unsecured notes (totals only)

- -

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Compliance statement 1 This statement has been prepared under accounting policies, which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: 29 January 2010 Print name: Stephen Ross Managing Director

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Documents

MSR December 2009 Quarterly Report - asx.com.au · DECEMBER 2009 QUARTERLY OPERATIONS REPORT Fast Facts Corporate December 2009 Listed ASX 22 July 2008 Shares on Issue 119.3M Options