23 August 2007
AGM 2007 - Chairman and Managing Director's address
Chairman's Address - J Quinn
Ladies and Gentlemen,
2007 is a pivotal year for KSO. After nearly seven years of effort by it’s founders,
KSO emerged from relative obscurity when it successfully completed its IPO and
listed on the Australian Stock Exchange in April.
In that gestation period, KSO’s founders had recognised that the scattered
artisnal workings and limited outcrops in the Gobi Desert on the Chinese side of
the Mongolian border may well indicate potential for more widespread and
significant mineralisation. They were aware that modern mineral exploration
techniques were largely unknown in this part of China. They formed the view
that the area was a major tectonic setting capable of hosting world class
orebodies. Being a private company with limited resources, they decided to
initially focus their attention on the Sunite Zuo-Qi Banner or County where they
identified and acquired several areas prospective for copper and gold in
particular. The exploration that followed in the years to the end of the 2006 field
season provided the basis for the capital raising this year.
The $10 Million raised will enable the company to both drill test the headline
projects described in the prospectus and to use its first mover advantage, in
those areas of Inner Mongolia where it is well established, to identify and acquire
further opportunities. This money is expected to fund the next two field seasons
in Inner Mongolia. Accordingly the Company has no time to waste in getting on
with the job.
And quickly get on with the job KSO has done. You will have seen in the June
Quarter Report that IP surveys have been completed at Marmot Ridge, drilling
commenced at Wuritu, geological reconnaissance undertaken on other prospects
and new properties acquired.
The evidence that the Company is situated in a potentially major mineral
province has been reinforced by the data gathered since field work
recommenced. KSO still has a long way to go before it has a discovery, but in
the high risk/high reward business of mineral exploration you have to be in the
right environment and be achieving technical successes in order to maximise
your opportunity for a commercial discovery. I am increasingly confident that
KSO is in the correct environment. Now KSO’s technical team have to identify
the hot spots. History teaches that nature is a good disguiser of its treasures, so
that skill, commitment and patience are called for, and a little good fortune does
not go astray either.
A very important ingredient in any successful exploration program are the people
on the ground and particularly so when operations are located in lands culturally,
socially and politically different from our homelands. I mentioned earlier that
KSO’s founders have had many years of experience in Inner Mongolia. They
were fortunate to form an early association with Mr Fu La whose Mongolian
heritage combined with western commercial acumen has greatly assisted KSO to
establish its credentials with both the authorities and the community in the areas
in which it works.
KSO has some exiting times ahead. I now call upon the Managing Director,
Stephen McPhail and Exploration Director, Bruce Bell to provide the meeting with
an update on KSO’s exploration activities since the commencement of the
current field season and in insight into the plans for the balance of the field
Managing Director's Address - S McPhail
Ladies and Gentlemen,
The past 12 months has seen KSO emerge as a significant listed explorer in
China. The company has built up a strong portfolio of projects – principally
copper and gold focussed. Most of its projects lie in the Sonid Zouqi region of
Inner Mongolia, China.
Over the past year, the company has completed just over 3,000 metres of
diamond drilling at its Marmot and Wuritu projects, resulting in an upgrade of
both of these. The team has more than doubled in size to support an expanded
King Solomon is well placed to pursue an aggressive exploration program, the
goal of which is the discovery of world class mineral deposits.