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Ferrum Crescent Ltd (FCR)

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Monday 30 April, 2012

Ferrum Crescent Ltd

Quarterly activities and cashflow report

RNS Number : 2247C
Ferrum Crescent Ltd
30 April 2012
 



30 April 2012

 

Ferrum Crescent Limited

("Ferrum Crescent", the "Company" or the "Group") (ASX: FCR, AIM: FCR, JSE: FCR)

Quarterly Activities and Cashflow Report

For the period ended 31 March 2012

 

Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in Northern South Africa, today announces its quarterly results for the three month period ending 31 March 2012.

 

HIGHLIGHTS:

 

Moonlight Iron Ore Project:

 

·      Phase 3 of exploration programme completed

Consisting of 11 holes totalling 990m of diamond core drilling and 13 holes totalling 1,600m of reverse circulation (RC) drilling

·     Resource estimate update for the Moonlight iron ore deposit near completion

·     Mining right application process outcome expected within the coming weeks

·     Drilling programme in Julietta and Gouda Fontein farms planned and ready for implementation upon grant of mining right

Aimed to increase in magnetite resource significantly

Report, including the Julietta and Gouda Fontein exploration results and resource estimate, will be completed by end of 2012

·     Agreement reached with local communities to "farm into" preferential prospecting right

 

Corporate:

 

·     Cash as at 31 March 2012 is approximately A$4.2m

 

 

Moonlight Iron Ore Project

 

The Company's flagship project, the Moonlight Iron Ore Project (Ferrum Crescent 81.4% and operator), is located on three farms (Moonlight, Julietta and Gouda Fontein) in Limpopo Province, South Africa. It currently has a JORC compliant resource of 74Mt in the Indicated Resource category and 225Mt in the Inferred Resource category at a grade of 30% iron, which is situated entirely within the Moonlight farm. During the December quarter, The Mineral Corporation Consultancy (Pty) Ltd ("The Mineral Corporation") was commissioned to carry out an updated JORC compliant resource estimate taking into account the results of the phase 3 drilling and assays on the Moonlight deposit ("the Report"). Phase 3 consisted of 11 holes totalling 990m of diamond core drilling and 13 holes totalling 1,600m of RC drilling. It is anticipated that the Report, including the Julietta and Gouda Fontein exploration results and resource estimate, will be completed by the end of 2012. The updated Moonlight Resource is expected to be completed by The Mineral Corporation and to be released to the market in the near future.

 

Further drilling, to be carried out at the Julietta and Gouda Fontein farms adjacent to the Moonlight deposit, will seek to confirm the extension of the magnetite mineralisation from the current resource area on the Moonlight farm, as previously drilled by South African Iron and Steel Industrial Corporation ("Iscor"). Iscor was the South African government-owned integrated iron and steel company which is now owned by ArcelorMittal. It is anticipated that upwards of 10,000m of drilling will be carried out, consisting of both RC and core drilling. The purpose of the drilling is to establish a total resource estimate for the deposit on all three farms. Planning for this drilling programme is well advanced. It is anticipated that a further report, including the Julietta and Gouda Fontein exploration results and resource estimate, will be completed by the end of the calendar year 2012.

 

In parallel with the exploration work aimed at expanding the JORC compliant resource base, the Company continues to undertake ongoing investigations into development and logistic alternatives for the Moonlight deposit. Whilst such investigations are still at an early stage, the indicatively low strip ratio, high recoveries at a coarse grind size and excellent concentrate grade based on current test work are highly encouraging for potential development economics.

 

Mining Right Application

 

As announced in the Company's Half Year Report, Ferrum Crescent's wholly owned subsidiary Turquoise Moon Trading 157 (Pty) Ltd ("Turquoise Moon") has been the holder of the Company's interests in both the Moonlight Deposit and the De Loskop prospect. Turquoise Moon's prospecting right under which it held the Moonlight Deposit and the De Loskop prospect expired on 8th March 2012. The Moonlight Deposit is the subject of the mining right application, covering the farms Moonlight, Julietta and Gouda Fontein.  It is believed that the mining right application process is near completion, and the Company will inform the market as soon as it receives further information thereon.

 

De Loskop

 

The De Loskop Prospect is located approximately 150km east of Moonlight and 50km north of Polokwane, the capital of the Limpopo province, South Africa and has the potential for an additional 200 - 1000Mt of iron ore mineralisation with metallurgical characteristics similar to Moonlight. This exploration target is conceptual in nature and there can be no guarantee that further exploration will result in the definition of JORC Code compliant Mineral Resources for the prospect.

 

 In respect of De Loskop, the Group has entered into an agreement with local communities who hold approximately 60% of the area previously the subject of Turquoise Moon's prospecting right, whereby the Group will assist those communities to obtain a preferential prospecting right under the Mineral and Petroleum Resources Development Act and the Group will have a right to "farm into" that area (up to an agreed majority percentage) by the carrying out of prospecting activities.

 

For further information, please visit www.ferrumcrescent.com or contact:

 

 

Australia and Company enquiries:

UK enquiries:

Ferrum Crescent Limited

 

Ed Nealon  T: +61 8 9380 9653

Executive Chairman

 

Bob Hair  T: +61 414 926 302

Managing Director

Ocean Equities Limited (Broker)

Guy Wilkes  T: +44 (0) 20 7786 4370

 

Ambrian Partners Limited (Nominated Adviser)

Richard Morrison  T: +44 (0) 20 7634 4700

Jen Boorer  T: +44 (0) 20 7634 4700

 

Newgate Threadneedle (Financial PR)

Graham Herring/Beth Harris  T: +44 (0) 20 7653 9850

 

South Africa enquiries:

Sasfin Capital

Leonard Eiser  T: +27 11 809 7500

 

Competent Persons' Statement:

 

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Lindsay Cahill, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Cahill is employed by Torbinup Resources Pty Ltd who provide consulting services to the Company and the mining industry. Mr Cahill has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Cahill consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

 


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