Spitfire Oil secures tenure over Salmon Gums resource area

8th Mar 2013 07:06

AIM-listed mining company Spitfire Oil has secured the long-term tenure over the Salmon Gums lignite resource area in Western Australia.In the company's interim statement for the six months ended December 31st, the company reported that it together with its subsidiaries recorded a loss before tax of A$182,907. With cash balances of A$7.2m, the group said that it benefited from interest receipts of A$122,584 in the period. Operating costs were reduced to A$305,491 with action taken during the period to further reduce costs, including a reduction in directors' fees.On September 4th 2012 Spitfire Oil Pty was granted a five year renewable retention licence covering the Salmon Gums lignite resource area with no annual exploration expenditure commitments attaching to this licence other than the prescribed licence fees.The group further reported that developing processing technologies, and in particular developments in pyrolysis technology, were being kept "under review" for possible application to process the Salmon Gums lignite. In the meantime the directors continue to evaluate numerous alternative natural resources projects, the group said.Mladen Ninkov, Chairman of Spitfire Oil, said: "Having ensured long term tenure over the Salmon Gums lignite deposits with minimal financial commitment, costs have been further reduced to ensure the financial stability of the company for the foreseeable future. The directors will continue to review all possible acquisition opportunities for the company."MF