Anchor Resources : 10/03/2017 - Half Yearly Report and Accounts - PDF

Anchor Resources Limited ACN 122 751 419 Interim Financial Report 31 December 2016

Anchor Resources Limited

Contents Page

Directors' Report 3

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 7

Condensed Consolidated Statement of Financial Position 8

Condensed Consolidated Statement of Changes in Equity 9

Condensed Consolidated Statement of Cash Flows 10

Notes to the Condensed Consolidated Financial Statements 11

Directors' Declaration 15

Independent Auditor's Review Report 16

2

DIRECTORS' REPORT

Your directors submit the Interim Financial Report of the Group for the half-year ended 31 December 2016. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of directors who held office during or since the end of the interim period and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated.

Jianguang Wang Non-Executive Chairman

Ian Leslie Price Executive Director

Vaughan Webber Non-Executive Director Ronald Norman (Sam) Lees Non-Executive Director

Company Secretary/Chief Financial Officer

Guy Robertson

Review and Results of Operations

The results of the operations of the Company and the consolidate entity during the financial half year were as follows:

Consolidated

2016

$

2015

$

Loss after income tax Other comprehensive income/(expense)	(466,016) -	(539,270) -
Comprehensive loss after income tax	(466,016)	(539,270)

Exploration

Anchor continued to explore at its exploration projects in eastern Australia that are prospective for gold, copper, lead, zinc, antimony, tungsten and molybdenum.

The major activities that have been undertaken during the first half of the year have been:

At the Aspiring/Walsh River project in Queensland (EPM 19447 & EPM 25958) two programs of geological mapping and rock chip sampling were carried out in the half year.

This exploration has identified two prospective mineral systems warranting detailed follow up work:

• Epithermal style gold-silver mineralization with a 2 km long geological and geochemical footprint has been discovered at the Fluorspar Group of workings.

  Quartz textures and multi-element geochemistry suggest the current level of exposure is near, or above, the boiling zone in a low sulphidation epithermal system and higher gold and silver values may be present at depth.

• Encouraging gold-base metal granite-related mineralisation has been identified in greisen and a nearby fault at the Doolan Creek prospect.

The Fluorspar Group workings and Doolan Creek greisen alteration zone are within EPM 25958 (Walsh River) and located 33 km apart (Figure 1). The prospects are genetically and geochemically different. The Fluorspar Group of workings are considered to be a low sulphidation epithermal gold-silver target while Doolan Creek greisen zone and nearby fault is considered to be a granite-related gold-silver-copper-lead target.

3

Anchor Resources Limited

Figure 1: Location of Fluorspar Group of workings and Doolan Creek polymetallic prospect

Follow up detailed mapping, and soil and rock chip sampling to define targets for reverse circulation (RC) drilling will commence in 2017 when both sites become accessible immediately after the current wet season.

At the Gemini project (EL 8398) NSW, based on Anchor's compilation of previous explorers' data, the Blue Mountain zinc-lead-copper prospect has been identified as a strong multi-element geochemical signature extending over a strike length of 2,200m defined by previous RAB drilling. The anomalous multi-element Zn-Pb-Cu geochemistry and anomaly footprint, sphalerite-galena-chalcopyrite association seen in drill core, lensoidal geometry of the mineralisation intersected in drilling, and interpreted structural architecture of the Blue Mountain zinc-lead-copper prospect has many similarities to other Cobar-type deposits, including the major producing CSA mine at Cobar.

During the December Quarter a field program of prospect identification and validation of historic data was planned for the Gemini project area however ground access was restricted due to continued high seasonal rainfall. Anchor is currently planning to complete the program in 2017 as soon as more favourable conditions prevail.

The Bielsdown project (EL 6388) Land Access Arbitration was completed with the final determination handed down on 29 March 2016. The new Land Access Arrangement will enable Anchor to remediate former drill sites and access for further exploration however, the landowner has not yet provided access to commence the remediation program.

The Blicks project (EL 6455 & EL 8100) is located in the Southern New England Orogen in northeast New South Wales, 90km northeast of the major regional centre of Armidale. The project's main prospects are the Tyringham prospect (Intrusion-related gold systems), Tuting prospect (Granite-related molybdenum-tungsten), Liberty prospect (Granite-related copper-molybdenum) and Mulligan-Forster prospect (Orogenic quartz-gold veins). Compilation of all data was undertaken following completion of the most recent field work with a technical review planned in early 2017 of results to date to guide future exploration.

Further details of the Company's exploration results have been published in its Quarterly Reports and which are available at its website www.anchorresources.com.au.

Corporate

In December 2016 Mr Ian Price was appointed Executive Director and Mr Jianguang Wang became Non-executive Chairman.

Subsequent Events.

The directors are not aware of any significant changes in the state of affairs of the Company occurring since the end of the half-year.

4