2000 Annual Report - Heron Resources Limited

5.0 Continued
Financial Statements
NOTE 18. AUDITORS’ REMUNERATION
Economic Entity
Parent Entity
2000 1999 2000 1999
$ $ $ $
Amounts received or due and receivable by the auditors for:
- audit services 11,345 12,500 11,345 12,500
- other services - 7,785 - 7,785
NOTE 19. COMMITMENTS FOR EXPENDITURE
Exploration Commitments
In order to maintain current rights of tenure to exploration and mining tenements, the economic entity has the following
discretionary exploration expenditure requirements up until expiry of leases. These obligations, which are subject to
renegotiation upon expiry of the leases, are not provided for in the financial statements and are payable:
Economic Entity
Parent Entity
2000 1999 2000 1999
$ $ $ $
Not later than 1 year 2,000,000 2,000,000 1,800,000 2,000,000
Later than 1 year but not later than 2 years 2,000,000 2,000,000 1,800,000 2,000,000
Later than 2 years but not later than 5 years 6,000,000 6,000,000 5,000,000 6,000,000
If the economic entity decides to relinquish certain leases and/or does not meet these obligations, assets recognised in the
balance sheet may require review to determine the appropriateness of carrying values. The sale or farm-out of exploration
rights to third parties will reduce or extinguish these obligations. Those amounts detailed above do not include expenditure
commitments which are the responsibility of joint venture partners (Note 21).
NOTE 20. SEGMENT INFORMATION
The economic entity operates in the mineral exploration industry in Australia.
NOTE 21. JOINT VENTURE AGREEMENTS
The economic entity has entered into or is negotiating the following joint venture agreements:
Project Operator Right to Farm-in
Earn Expenditure
Menzies East Golden State Resources Limited 60% $250,000
Laverton Metex Resources NL 70% $500,000
Mt Morgans Metex Resources NL 70% $200,000
Snake Hill Connemara Gold Mines Pty Ltd 70% $300,000
Mungari Northwest Kundana Gold Pty Ltd 50% $3,000,000
Southern Laverton Tectonic Zone Gutnick Resources NL 80% $1,200,000
Edjudina and Laverton Croesus Mining NL 80% $1,000,000
Bungalbin and Mount Jackson Portman Limited 100%* $250,000
Karonie South WMC Resources Limited 80% $300,000
Scotia Kanowna Delta Gold Ltd 70% $1,000,000
Transline New Hampton Goldfields Limited 80% $800,000
Binduli East AngloGold Australasia Limited 75% $500,000
Widgiemooltha + WMC Resources Limited 80% $300,000
Kookynie + Barminco Pty Ltd & Kookynie Resources NL 70% $750,000
Kurnalpi In negotiation 80% $200,000
Victory In negotiation 80% $100,000
Frances Lesley In negotiation 100%** -
Mineral Hill In negotiation 0%*** -
TOTAL $10,650,000
* The Company has a royalty based on tonnes of iron ore sold by Portman Limited.
** The Company retains all nickel rights. Another entity acquires all gold rights and maintains tenements in good standing.
*** The Company acquires all nickel rights and maintains the tenements in good standing. Another entity retains all gold rights.
+ Subject to final documentation.
page 58 Heron Resources NL Annual Report 2000