RNS Number:4194U
GMA Resources PLC
20 January 2004


For Immediate Release                                        20th January 2004


                                GMA Resources Plc
                                     
                                Quarterly Report

                           Year End 31 December 2003



GMA Resources Plc, the gold mining company, has produced a quarterly report
outlining all developments up to the year end 31 December 2003.


Highlights


* Gold shipments exceed budget

* Mill throughput at design rates

* Plant availability above budget

* Gold recovery above budget

* RC Drilling programme commenced with 13,000 metres drilled in the quarter

* The Company's shares were admitted for trading on Frankfurt's Deutsche Boerse

* The Company's Loan Stock was converted to equity, significantly improving
  the Company's balance sheet


The Company plans to produce a quarterly activity report for release to the
market the month after the quarter end. The report will provide shareholders and
stakeholders with a summary of production, development and corporate activities
of the Company. The Company will continue to disclose information in relation to
the performance and activities of the Company in accordance with it's
obligations under the Alternative Investment Market rules.


1.0              Summary


GMA Resources Plc, the gold mining company, owns a 52% controlling interest in
the promising Tirek Gold mine and exploration project in Algeria. The company's
shares and warrants are listed on the London Stock Exchange Alternative
Investment Market (AIM) code GMA and on the Frankfurt Deutsche Boerse in
Germany.

The Company raised #4 million upon listing in May 2003 and raised a further
#3.25 million in October 2003.

The Board's strategy is to complete a development plan for the substantial Tirek
and Amesmessa gold deposits with a view to significantly expand the existing
gold mining operation. To that end a major exploration drilling programme
commenced during the quarter and work was carried out on preliminary geological
resource models, mine plans and schedules. A processing plant option study was
also commissioned, in order to finalise the development plan and more detailed
mining and engineering studies are expected to commence early next quarter.

During the quarter the company continued to operate and optimise the existing
pilot plant operation at the Tirek minesite. Gold shipments exceeded budget for
the quarter, totaling 5,949 oz This was achieved despite slightly lower than
budgeted mill throughput rates and ore grades. Plant availability was higher
than budget. Plant recovery remained high throughout the quarter and averaged
96.4%.

The company has prepared a drilling program, consisting of approximately 18,000
metres of reverse circulation (RC) drilling and 2200 metres of diamond drilling,
aimed at:

* improving existing resource estimates, enabling mine design and
  reserve estimates for the major gold bearing quartz veins; and

* increasing the resource base by exploring other gold bearing quartz
  veins at Tirek, Amesmessa and the 60 km long zone between them known as "ZITA".

The RC drilling component of the program commenced with the mobilisation of two
RC drilling rigs from Mauritania, which arrived on site at Tirek on 16 October.
Drilling commenced on 24 October and is expected to be completed by February
2004. Of the 246 holes planned, approximately 114 are pre-collar holes which
will be extended by diamond drilling to obtain core samples of the mineralised
zone.

The diamond drilling is being performed by the Algerian government agency Office
National de la Recherche Geologique et Miniere (ORGM), who commenced drilling
the diamond hole tails in November. ORGM have currently two diamond rigs
operating at site and will provide a third rig in January 2004.

The company has embarked on an aggressive improvement and optimisation plan,
which has resulted in the recruitment of highly experienced expatriate mining
personnel in the key roles of:- Operations Manager, Exploration Manager,
Exploration Geologist, Maintenance Manager, Maintenance Supervisor, Processing
Manager, Supply Manager and Safety & Environmental (NOSA) Manager.

The establishment of a Government certified explosives magazine at Tirek
(October), and the resolution of security and permitting issues relating to the
use of explosives at site (December), has removed one of the major production
bottlenecks which has affected production in previous months. Regular explosives
deliveries and improved waste blasting and mining techniques are expected to
rapidly increase mine productivity.

A major procurement campaign, which has identified critical plant and mining
equipment spares, consumables and parts required for improving operational
performance has been largely implemented.



2.0              Operations

2.1              Mining


Mining continued at Amesmessa earlier in the quarter, from shallow open cut
trenches on veins 12, 15 and 18. All mining was free dig, with no explosives
being available. Restrictions on the supply and use of explosives has resulted
in lower than budgeted mine production, particularly from Tirek where the
majority of the free dig ore has been previously exploited.


The mining fleet was moved back to Tirek on the 25 October 2003 and mining
recommenced on veins XI, XIV and XV.


Approval was received for the commissioning of the explosives magazine at Tirek
and the first shipment arrived 22 October 2003. Despite this the use of
explosives remained restricted whilst final negotiations were held with the
military personnel responsible for the security at the mine site. This was
resolved in early December 2003 and consequently waste removal was substantially
increased towards the end of the quarter, peaking in December with 107,586
tonnes being mined, out of a total of 272,056 tonnes for the quarter.


Total ore mined for the quarter was 9,596 tonnes. The actual mined grade
exceeded budget, being 12.77 gAu/tonne.

Ore on stockpile at the end of the quarter totaled 15,915 tonnes at a grade of
8.17 gAu/tonne.


2.2              Processing


The processing plant performed steadily throughout the quarter, with high
availabilities (greater than 90%). Mill throughput, however, was restricted to
7tph (design 8tph) due to maintenance problems with the ball mill drive
assembly.


Excessive wear on the drive friction rings had previously led to the mechanical
failure of the ball mill drive gearbox in late August 2003. A replacement
gearbox was purchased and installed on 25 September 2003, along with a partially
refurbished drive assembly. A new drive assembly was procured and delivered to
site in early December 2003. Subsequently, the mill throughput has increased to
8tph from 18 December 2003.


Total ore processed for the quarter was 15,354 tonnes versus a budget of 15,898
tonnes. The actual processed grade was just under budget, being 11.59 gAu/tonne.

Gold shipments exceeded budget for the quarter, totaling 5,949 oz.

Plant recovery remained high throughout the quarter and averaged 96.4%.


2.3              Administration


Recruitment of critical staff continued through the period, following on from
the appointment of Philip Davies (Operations Manager, and ex Ashanti), Jan van
Graan (Exploration Manager) and Michel Labourie (Exploration Geologist).


A significant procurement program was instigated during the quarter, under the
supervision of a specialized procurement manager appointed on a six month
contract. Critical plant and mining equipment spares, consumables and parts have
been identified and ordered


3.0              Development

3.1              Exploration


The company has prepared a drilling program, consisting of approximately 18,000
metres of reverse circulation (RC) drilling and 2200 metres of diamond drilling,
aimed at:

* improving existing resource estimates, enabling mine design and
  reserve estimates for the major gold bearing quartz veins; and

* increasing the resource base by exploring other gold bearing quartz
  veins at Tirek, Amesmessa and the 60 km long zone between them known as "ZITA".

The RC drilling component of the program commenced with the mobilisation of two
RC drilling rigs from Mauritania, which arrived on site at Tirek on 16 October.
Drilling commenced on 24 October and is expected to be completed by February
2004. Of the 246 holes planned, approximately 114 are pre-collar holes which
will be extended by diamond drilling to obtain core samples of the mineralised
zone.

The diamond drilling is being performed by the Algerian government agency Office
National de la Recherche Geologique et Miniere (ORGM), who commenced drilling
the diamond hole tails in November. ORGM have currently two diamond rigs
operating at site and will provide a third rig in January 2004.


Prior to the RC drilling team demobilising for a mid-programme Christmas break,
over 13,000 metres of reverse circulation drilling had been completed The
diamond rigs have continued through this period and have completed 354 metres by
December 31 2003.


A contract was awarded for an aeromagnetic survey to be conducted over the
entire ENOR concession. A number of formalities remain to be completed before
the survey can be flown, in particular the permitting of the airstrip at the
Tirek mine site. It is expected that the survey will be conducted towards the
end of the first quarter of 2004.


3.2              Projects


The historical exploration data for Tirek and Amesmessa, previously established
by the Algerian government agency Office National de la Recherche Geologique et
Miniere (ORGM), has been transferred into geological databases and subsequently
independently validated. Work on the Intermediate Zone ('ZITA') database is in
progress, and will be completed once UTM survey grids are established, expected
to be early in the new year.


Initial geological resource modelling has been conducted using the validated
databases and the models generated have assisted in planning the current
exploration drilling programme. Mine design and scheduling work was also carried
out during the quarter, using the preliminary geological models. As the results
of the drilling programme become available during the first quarter of 2004
these models will be updated, and the mine designs and schedules will be
finalised.


A conceptual study of development options for Tirek and Amesmessa commenced
during the quarter, based on the preliminary mine schedules. The options study
is expected to be finalised in January 2004 and after consideration by
management, a preferred development option will be taken to a more detailed
engineering and costing study level during the first quarter of 2004.


Geological modelling and mine planning software for the mine site has been
selected but not yet procured pending recruitment of professional mining and
geology personnel, procurement of suitable computer hardware and other related
issues.



4.0              Corporate

4.1              Loan Stock Early Conversion


The Company benefited from the early conversion of the #4.0 million Convertible
Loans Stock through interest cost savings and an improved balance sheet.


4.2              Share Placement


The Company placed of 13 million new ordinary shares of in the Company at a
price of 25p per share in October 2003. The #3.25million proceeds are being used
for working capital and will increase the proportion of the Company's shares in
public hands.


4.3              Frankfurt Listing


The admission of the Company's shares for trading on the Frankfurt's Deutsche
Boerse occurred on 10 November 2003. The listing of the Company's shares in
Germany should provide a wider shareholder base and the opportunity for European
institutional and retail investors to invest in the Company's shares.



5.0              Key Statistics

         Key Performance Indicator        Units               Quarter Ending
                                                              December 2003

Mine Performance
                         Ore Mined        Tonnes              9,596
                             Grade        Au g/t              12.77
                       Waste Mined        Tonnes              272,056
                       Strip Ratio        Waste:Ore           28
Plant Performance
                        Ore Milled        Tonnes              15,354
                             Grade        Au g/t              11.59
                       Gold Poured        Oz                  5,949
                     Gold Recovery        %                   96.4
Exploration
                       RC Drilling        metres              13,699
                  Diamond Drilling        metres              354
                         

ENDS


For further information, please contact:

GMA Resources Plc
Colin Ikin, Chief Executive                    Tel: +33 (0)678 389 762


Binns & Co PR Ltd
Peter Binns                                    Tel: +44 (0)20 7786 9600






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