Exploration and evaluation assets

	Glen Hume		Connemara North		GG		Eagle Vulture, Mascot & Penzance			Sabiwa		Total

Balance at January 1, 2019		–		–		3,347		3,344			276		6,967
- Consumables and drilling		–		–		6		(3	)		–		3
- Contractor		–		–		36		57			–		93
- Labour		–		–		32		8			–		40
- Power		–		–		20		10			6		36
Balance at December 31, 2019		–		–		3,441		3,416			282		7,139

Balance at January 1, 2020		–		–		3,441		3,416			282		7,139
- Option payments		2,500		300		–		–			–		2,800
- Consumables and drilling		161		–		28		–			–		189
- Labour		–		–		35		11			–		46
- Power		–		–		19		3			2		24
Reallocate to assets held for sale (note 21.1) ~		–		–		–		(500	)		–		(500	)
Impairment ~		–		–		–		(2,930	)		–		(2,930	)
Balance at December 31, 2020		2,661		300		3,523		–			284		6,768

The Group voluntarily changed its disclosure policy for exploration and evaluation assets to be disclosed separately as Exploration and evaluation assets rather than as part of Property, plant and equipment (refer to note

(b)(i)). The new disclosure policy was adopted from

December 10, 2020

and has been applied retrospectively.

Management determined the fair value of Eagle Vulture, Mascot and Penzance as the future sale price as agreed by independent parties in the sale contract that amounted to

$500.

The carrying amount of Eagle Vulture, Mascot and Penzance before the impairment was

$3,430

and the write down resulted in an impairment expense of

$2,930.

The

$500

carrying value was reallocated to Assets held for sale in

December, 2020.

(a)

Glen Hume

November 19, 2020

the Company concluded an option agreement (“Glen Hume option”) with the representatives of Glen Hume, whereby they granted the Company an option for the right to carry out legal due diligence and conduct drilling and/or other exploratory work over a period of

months from the conclusion date to understand the resource body of the Glen Hume property, situated in Gweru, Zimbabwe.

November 24, 2020

a price of

$2.5

million was paid for the Glen Hume option. The Company aims to spend approximately

million over the option period to understand the gold deposit.

Should the Company exercise the option, an exercise price of

$2.5

million will be payable to obtain the mining claims and the Glen Hume representatives will also obtain a

net smelter royalty (“NSR”) on the future production of the Glen Hume project. The NSR can subsequently be bought out at the Company's discretion for a lump sum payment of

$15

million within the

first

five

years following the acquisition by the Company of the claims, or

$10

million until the

tenth

anniversary of operation or

million thereafter.

(b)

Connemara North

December 16, 2020

the Company concluded an option agreement (“Connemara North option”) with the representatives of Connemara North to purchase the claims over the Connemara North mining properties situated in Gweru, Zimbabwe. The exercise of the option will be exercisable at the discretion of the Company.

An amount of

$300

is payable for the Connemara North option and remained outstanding at the date of approval of the consolidated financial statements. The outstanding amount was accounted for as Trade and other payables (Refer note

The Connemara North option gives the Company the right to carry out legal due diligence and conduct drilling and/or other exploratory work over a period of

months from the conclusion date to understand the resource body.

If the Company elects to exercise the option,

$600

becomes payable to the Connemara representatives within

days of the submission of the transfer documents to the Ministry of Mines and a further

$4.4

million within

days from confirmation of transfer of ownership by the Ministry of Mines. The

first

payment of

$600

will remain refundable subject to the Ministry of Mines approval. After the purchase, the Connemara representatives will retain a

NSR payable quarterly in arrears on the net sale proceeds from the Connemara gold deposits.