| Fri 12 Jun 2009, 9:49 | | FSE - FSE - 24% Increase in Vetleegte Coal Resource to 629 million tonnes |
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FSE
FSE
FSE - FSE - 24% Increase in Vetleegte Coal Resource to 629 million tonnes
Olieboomsfontein Drilling confirms coal potential and lifting trading halt
FIRESTONE ENERGY LIMITED
(formerly Centralian Minerals Limited)
(Registration number: ABN 058 436 794)
(SA company registration number: 200/023973/10
Share code on the JSE: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
("FSE" or "the Company")
24% INCREASE IN VETLEEGTE COAL RESOURCE TO 629 MILLION TONNES OLIEBOOMSFONTEIN
DRILLING CONFIRMS COAL POTENTIAL AND LIFTING TRADING HALT
Main points:
* Vetleegte coal resource increased by 24% to 629.3 million gross tonnes
in-situ (GTIS)
* Olieboomsfontein widely spaced drilling intersected considerable
thicknesses of coal including the preferred coal zones 5-11 close to
surface
* Encouraging results confirm considerable exploration potential to add
to the Company`s total coal inventory
* Confirms view that the Waterberg project is capable of sustaining
substantial, long term coal production
* Further drilling planned to establish a coal resource to a measured
category
* Intention is to identify sufficient coal capable of supporting a 15Mt
per annum power station
Firestone Energy Limited (ASX:FSE / JSE:FSE) ("Firestone" or "the Company") is
pleased to announce that the recently completed diamond drilling of the
Vetleegte property and percussion drilling of the Olieboomsfontein property has
resulted in:-
* Vetleegte coal resource increase by 24% to 629.3 million gross tonnes
in-situ (GTIS); and
* Olieboomsfontein widely spaced drilling intersected considerable
thicknesses of coal including the preferred coal zones 5-11 close to
surface.
Firestone CEO, Mr. Garth Higgo, said "The resource upgrade for the Vetleegte
property represents a significant increase over the 508Mt resource announced on
18 June 2008 and provides greater confidence in the coal deposit and confirms
our view that the Waterberg project is capable of sustaining substantial, long
term coal production.
Our drilling results at Olieboomsfontein are very encouraging and suggest there
is considerable exploration potential to add to the Company`s total coal
inventory. On-going feasibility studies will include this resource upgrade and
evaluate the likely improvements in project economics.
The Waterberg Project is intended as a very low strip ratio open pit producing
both thermal coal for the local power industry and export quality semi-soft
coking coal. Our intention is to identify sufficient coal capable of supporting
a 15Mt per annum power station".
Coal Resource Estimate Gross Tonnes In Situ
Inferred Mt Indicated Mt Total Mt
Vetleegte 304LQ 170.4 458.9 629.3
The resource has been estimated in accordance with the JORC code and is based
on a 29 diamond drill hole programme of some 3,340m of advance; all holes
intersected coal and have been utilised in the resource estimation. A breakdown
of the resource by zone and category, and averaged coal qualities is provided
below.
Further drilling has been planned with the objective to establish a coal
resource to a measured category in those areas of the farm Vetleegte where the
preferred coal zones 5-11 inclusive occur lying close to ground surface
Vetleegte Resources by Coal Zone
Inferred Resources Indicated Resources
Zone GTIS1 Coal GTIS(2) GTIS(1) Coal GTIS2
11 - - - -
10 - - 6,500,000 4,100,000
9 - - 7,200,000 5,300,000
8 2,100,000 1,200,000 35,900,000 21,500,000
7 21,400,000 9,400,000 56,800,000 25,100,000
6 13,000,000 4,000,000 58,800,000 17,900,000
5 45,500,000 10,800,000 107,800,000 25,500,000
4 51,100,000 11,900,000 73,600,000 17,100,000
4A 18,300,000 8,400,000 38,900,000 18,000,000
3 0 0 22,500,000 21,500,000
2 16,600,000 14,200,000 48,600,000 41,500,000
1 2,400,000 2,200,000 2,300,000 2,100,000
Total 170,400,000 62,100,000 458,900,000 199,600,000
(1) Waterberg coal typically occurs interlaminated with shale which for the
most part cannot be mined separately from the coal and thus the GTIS is the
estimation of the gross in-situ tonnage of coal and shale.
(2) Coal GTIS is an estimate of the gross in-situ tonnage of coal rather than
the tonnage of coal and shale. In order to estimate the tonnage of coal in each
zone, rather than the zone tonnage including the rock, each zone tonnage was
discounted by the percent yield at a relative density of 1.9gm/cc (in effect
removing the influence of the shale) to derive an estimate of the coal tonnage.
Average in-situ "de-shaled" RAW coal qualities (below) appear suitable for
local power generation, whilst further beneficiation to produce a washed
product is expected to yield a combination of semi- soft coking coal and export
thermal coal.
Fixed
Moisture Ash Volatiles Carbon Sulphur
Seam % % % % %
9 4.30 22.22 30.87 42.61 1.80
8 3.51 26.05 29.19 41.25 1.20
7 2.86 26.02 30.37 40.75 1.25
6 2.69 26.27 30.37 40.68 1.44
5 2.62 37.60 25.39 34.38 0.64
4 2.47 37.22 23.49 36.82 0.57
4a 1.92 46.22 22.06 29.80 0.72
3 3.17 24.72 20.13 51.98 0.66
2 3.31 18.92 23.47 54.31 0.74
1 3.75 14.03 25.09 57.14 0.57
Yield Raw
CV % RD
23.93 73.29 1.82
22.41 59.91 1.90
22.92 44.21 2.06
22.88 30.42 2.17
18.27 23.64 2.21
18.33 23.19 2.16
14.81 46.19 2.31
22.98 95.55 1.80
25.30 85.44 1.59
27.05 89.90 1.51
Resource Estimation:
Information in this report that relates to exploration results, coal resources
or reserves is based on information compiled by Mr Dawie van Wyk who is
employed by GeoCoal (Pty) Ltd and is a member of a Recognised Overseas
Professional Organisation. Mr van Wyk 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 the Reporting of
Exploration Results, Mineral Resources and Ore Reserves". Mr van Wyk consents
to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
About Firestone Energy
Firestone Energy Limited is a Perth based exploration company listed on the
Australian Stock Exchange (ASX: FSE) and the Johannesburg Stock Exchange
(JSE:FSE).
Firestone is an exploration company that sources and develops viable mineral
projects with a particular focus at this time on coal prospects in the
Waterberg Coal Field, South Africa.
The Company has joint ventures with Sekoko Coal over two farms located in the
Waterberg coalfield in the Limpopo Province of South Africa. This coalfield is
becoming increasingly important as coal reserves in the Witbank, Highveld and
Ermelo coalfields of the Mpumalanga Province, which currently supply the
majority of Eskom`s coal power stations, become depleted over the next 20-30
years.
The Company recently signed a further agreement with Sekoko Coal over four
farms which will add up to 1 billion tonnes of coal to its existing holdings in
the Waterberg coal field. This Joint Venture is still subject to regulatory and
shareholder approvals.
For more information please contact:
Garth Higgo
Chief Executive Officer
+61 (08) 9381-2755
www.firestoneenergy.com.au
Registered Office
63 Hay Street
Subiaco 6008
Western Australia
Facsimile: +61 (08) 9381 4799
Email: enquiries@firestoneenergy.com.au
Firestone Energy Limited (ABN 71 058 436 794)
Level 1 63 Hay Street Subiaco WA 6008 Australia
PO Box 8284 Subiaco East WA 6008 Australia
T: +61 8 9381 2755 F: +61 8 9381 4799
Date: 12/06/2009 09:49:01 Produced by the JSE SENS Department.
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