Arkle Resources plc swung to loss from its activities during 2022 but experienced a “good exploration year”.
FINANCES
The group holds gold, zinc and lithium interests in Ireland and has expanded its interests to a small licence area for lithium in Zimbabwe.
Full year results ended December 2022 show a loss of €299,214 (2021: profit €426,260) and net current liabilities of €274,571 (€281,231).
Current liabilities include €217,500 (€172,500) owed to management which will not seek settlement in cash for at least one year or until the group generates sufficient funds after paying its third-party creditors.
Arkle’s cash balance increased to €199,990 (€79,678) which includes raising £397,000 from warrant exercises and a placing.
OPERATIONS
Chairman John Teeling said that the company’s six-licence zinc joint venture with Group Eleven Resources Corp (76.56%) at Stone Park remained a “central asset”.
Arkle also aims to find a partner for detailed exploration at its five gold licences, covering 2,135 km2, at Wexford-Wicklow.
He added that drilling in Wicklow was proving complicated because the gold was contained in veins and is nuggety, meaning drilling can miss the veins and / or hit the veins and miss the nuggets.
The company lost two drilling seasons for its Donegal gold licences, which also contain nuggety gold, because of delays in renewing licence applications.
Early stage lithium exploration followed the discovery of pegmatites southwest of the Wexford-Wicklow licence block but failed to show high grades.
The company is reviewing the data and has also applied for additional ground.
Lack of investor interest in Irish exploration prompted Arkle to look at projects overseas, where its directors have experience, and obtain ground in Zimbabwe.
The company has however faced delays in expanding the holding.
Arkle has also reviewed a number of investment opportunities in the past year and is particularly interested in pursuing “grassroot opportunities” in lithium.