GROUP 6 METALS LIMITED 
By ASX: KIS
Market Capitalisation $ 6.8m
Shares on Issue 96.5m
52 Week High $ 0.160
52 Week Low $ 0.052
Share Price (31/03/13) $ 0.070
King Island Scheelite Limited (KIS)
The Dolphin Project on King Island, Tasmania could meet a significant proportion of the world's tungsten requirements over a 10 year mine life. Producing 3,500 tonnes of
tungsten trioxide (WO3) per annum in an industry standard 65% tungsten concentrate, which typically trades at a 20% discount to ammonium paratungstate (APT).
Tungsten price
Metal Pages APT USD35,250 / tonne
(31/03/2013)
Contact
Simon Bird
Chief Executive Officer
King Island Scheelite Limited
ABN 40 004 681 734
Level 26, 259 George Street
Sydney NSW 2000
GPO Box 5154
Sydney NSW 2001
P. +61 2 8622 1400
F. +61 2 8622 1401
www.kingislandscheelite.com.au
Dolphin Project (100% KIS) King Island, Tasmania• High-grade tungsten deposit
• Freehold title and requisite minerals titles
• Environmental approvals in place
• Development and mining approvals in place
• Review of definitive feasibility study (DFS) capital and operating costs due for completion in May 2013
Dolphin Project
The Dolphin Project is focused on reopening the tungsten mine on King island, Tasmania.
A project DFS to retreat former tailings and re-open the former underground mine was completed in
2012. This study involved mining 350,000 tonnes of tungsten ore per annum at an average grade of
1.04% WO3. Recoveries of 91% WO3 into an industry standard 65% tungsten concentrate, will provide up to 25% of the worlds current non-Chinese supply. Based on a 10 year mine life this project has scope for down-plunge exploration to significantly extend this mine life.
A review is underway to assess the potential to significantly reduce capital and operating costs and improve the economic returns of the project to shareholders. The preliminary study is expected to be completed in May followed by a full update of the DFS during Quarter 4 2013.
Discussions continue with key international tungsten consumers and financiers to secure funding.
Balfour Joint Venture (70% KIS)
This joint venture project was established to explore a mineralised area of NW Tasmania. With KIS now focused on the Dolphin Project, the Company has elected not to invest further funds in the Balfour Joint Venture and is currently in discussions with Pleiades Resources Pty Ltd, our joint venture partner, to exit the project. With the exit from this project, the Company has no outstanding financial commitments.
Markets
Tungsten prices improved 12% during the quarter. Concentrate continues to trade at approximately
20% discount to the more widely traded APT. Currently APT is trading at between USD35,000 and
USD35,500 per tonne. APT prices averaged USD31,500 during the December quarter.
Outlook
The Company remains focused on the redevelopment of the high-grade tungsten deposit on King
Island and to that end is looking to complete a review on the potential to enhance project returns ahead of updating the DFS. This review will be completed early in the next quarter.
For further information go to the Company's website www.kingislandscheelite.com.au
Simon Bird
Chief Executive Officer
King Island Scheelite Limited
Level 26, 259 George Street
Sydney NSW 2000
Phone (02) 8622 1400
Fax (02) 8622 1401
Email simon.bird@kisltd.com.au
2 | P a g e
Appendix 5B Mining exploration entity quarterly report
Rule 5.3
Appendix 5B Mining exploration entity quarterly reportIntroduced 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
KING ISLAND SCHEELITE LIMITED
ABN | Quarter ended ("current quarter") | ||
40 004 681 734 | 31stMarch 2013 |
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from product sales and related
debtors
1.2 Payments for (a) exploration & evaluation
(b) development
(c) production
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature
received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)
Net Operating Cash Flows
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward) | (147) | (1,003) |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 (provide details if material) - cost of share issue Net financing cash flows | 993 (79) | |
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 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 (provide details if material) - cost of share issue Net financing cash flows | 914 | |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | (147) 1,079 | (89) 1,021 |
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter | 932 | 932 |
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 7
1.24 Aggregate amount of loans to the parties included in item 1.10 Nil
1.25 Explanation necessary for an understanding of the transactions
Payments made to Directors and their associated entities (Directors' fees $7,000). Directors fees of $34,000 have also been accrued but not yet paid.
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
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
+ See chapter 19 for defined terms.
Appendix 5B Page 2 17/12/2010
Appendix 5B Mining exploration entity quarterly report
Financing facilities available
Add notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cashReconciliation 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.
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Changes in interests in mining tenements
6.1 Interests in mining tenements relinquished, reduced or lapsed
6.2 Interests in mining tenements acquired or increased
+ See chapter 19 for defined terms.
Appendix 5B Page 4 17/12/2010
Appendix 5B Mining exploration entity quarterly report
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.
7.11 Debentures
(totals only)
+ See chapter 19 for defined terms.
17/12/2010 Appendix 5B Page 5
Appendix 5B
Mining exploration entity quarterly report
7.12 Unsecured notes
(totals only)
Compliance statement1 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 5).
2 This statement does /does not*(delete one) give a true and fair view of the matters disclosed.
Notes1 The quarterly report provides a basis for informing the market how the entity's activities 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 note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of
Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
+ See chapter 19 for defined terms.
== == == == ==
Appendix 5B Page 6 17/12/2010
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