JSE Securities Exchange-listed Thabex Exploration yesterday reported a headline loss of 5,1 cents per share for the year ended February 29.

Revenue declined to R210 000, from R590 000 in 2003.

Net asset value decreased from 14,29 to 7,87 cents per share on a year-on-year basis.

This is attributable to capital costs relating to exploration activities impaired in the current year, and an increase in administration and selling costs, in particular, expenses relating to the planned disposal of Platinexco.

In 2003, Thabex’s board considered it prudent to impair all its options, mineral and participation rights until the impact of new mining legislation became clear; and until the company's ability to source and fund exploration improved.

Thabex CEO Marius Welthagen said the consensus at the time was that “mineral rights can only be deemed an quantifiable asset when the discounted value of future cash flows is assured or when a market value can be ascertained.”

Taking prevailing conditions into account, Thabex has revalued its options, mineral and participation rights in accordance with the SAMREC code.

A total value of R82,26-million has been ascribed to these rights, with the Geelvloer and Platinexco projects carrying the most value.

The Makopane Platreef project was valued at R20,48-million.

Thabex has agreed to sell the rights held by its subsidiary, Platinexco, to Australian mining explorer AIM Resources, for R20-million.

Valued at R61,78-million, the prospective mineralised area of the adjoining Geelvloer 197 project, located in the Kenhardt district, has an estimated indicated resource of eight-million tons of potentially mineable ore, grading at 0,8% copper; 2,3% Zinc; 0,6% lead; 24 g/t silver, as well as 0,8 g/t gold.

The Geelvloer rights, however, remain impaired in view of the significant changes in mining legislation, market conditions for raising sufficient capital to turn to account these rights, as well as in terms of AC128.

“Having disposed of our platinum interests, Thabex will from now on concentrate on its Geelvloer project; on the alluvial diamond projects of its black economic empowerment associates; as well as exploration opportunities elsewhere in Africa. To augment our cash resources, the company’s business strategy remains focused on trading and marketing quality polished diamonds through our wholly-owned subsidiary, Pure Diamonds.

“Pure Diamonds and Taung Diamonds Mines, one of our BEE associates, are engaged in exploration for alluvial diamonds and providing technical consulting services to previously-disadvantaged communities in the Taung, Christiana and Lichtenburg districts in the North West Province,” explained Welthagen.

Earlier this year, Thabex entered in to an agreement to acquire 100% of the equity of Cresta Mining Company for R425 000. Cresta owns the rights to ten exclusive prospecting licenses in Uganda.