| Thu 26 Nov 2009, 8:38 | | FSE - Firestone Energy - FSE Increases Waterberg Coal Tonnage to 3.802 Billion |
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FSE
FSE
FSE - Firestone Energy - FSE Increases Waterberg Coal Tonnage to 3.802 Billion
Tonnes
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")
ASX /Media Release - 26 November 2009
Firestone Energy increases Waterberg Coal Tonnage to 3.802 Billion Tonnes.
3.802 Billion Tonnes of Coal Zones in Resource identified in accordance with
JORC Code.
FIRESTONE ENERGY LIMITED (ASX: FSE) is very pleased to announce an increase to
the earlier resource statement in accordance with the JORC Code of 3.802 Billion
Tonnes of embedded coal for 1.33 Billion Tonnes of de-shaled coal in product
under 5 farms in the Waterberg Coal Region under Joint Venture with Sekoko Coal
Resources. This is summarised in the first table of the attachment.
This JORC summary report, by Venmyn OCT 2009, is based on 178 drill holes of
which 122 were drilled by Sekoko Resources.
Approximately 46% of this coal resource is in the measured and indicated
category.
The second table of the attachment shows the Reconnaissance target (having one
borehole with 1600 Ha or a distance of 4km between holes). This is based on wide
spaced drilling is the future exploration targets under 5 farms. It is expected
with further infill exploration drilling that these targets will develop into a
JORC compliant resource over time.
Managing Director, John Wallington said "Firestone has 8 farms covering some 80
square kms of area in one of the most undeveloped and exciting coal regions in
the world. Along with the possible exploration targets above in table 2, there
is the potential to grow our coal resource base over time, with further
drilling"
Please note 99% of the drill holes to date have intersected coal sequences under
all the farms.
The Board of directors of FSE are very pleased and impressed with the progress
made on these farms over the last 4 months, with particular emphasis in
prioritising the shallow open pit potential.
For information please contact:
John Wallington
Managing Director
Telephone: +61 8 9381 2755
Registered Office
63 Hay Street
Subiaco 6008
Western Australia
Telephone: +61 8 9381 2755
Facsimile: +61 8 6380 1278
www.firestoneenergy.com.au
Updated Coal Resource Statement
The resource has been estimated in accordance with the SAMREC and JORC codes and
the SANS 10320:2004 (South African National Standard) method of classification
of thick interbedded coal deposits using some 178 boreholes of which 83
boreholes with quality. Sekoko has drilled 122 boreholes.
All recent boreholes intersected coal and were logged and sampled by suitably
qualified independent geologists. The recent borehole data, together with the
historic data, have been used to create 3D geological models and allow
estimation of the coal resources. Since the previous announcement considerably
more analytical information has become available, and the resource has been
upgraded in status, especially on Smitspan.
The total coal resource estimate based on the data available at October 2009
(Venmyn) is tabled below:
FARM Zone Measured Indicated Inferred Total GTIS
"1" GTIS Coal GTIS Coal GTIS "2"
Tonnage Tonnage Mt Tonnage Coal Coal
Mt Tonnage Tonnage
Smitspan 1,901.058 97.152 416.109 106.836 620.097
Hooikraal 358.444 0 7.282 155.491 162.773
Minnasvlakte 755.805 0 26.507 230.687 257.194
Massenberg 337.034 0 20.797 109.539 130.336
Vetleegte 449.673 0 28.873 131.303 160.176
Total 3,802.014 97.152 499.568 733.856 1,330.576
1 Waterberg coal typically occurs interlaminated with shale which for the most
part cannot be mined separately from the coal and thus the zone gross in-situ
tonnage is the tonnage of coal and shale.
2 In the interest of balanced reporting it is the Company`s intention to also
report the gross in-situ tonnage of coal rather than the tonnage of coal and
shale. In order to estimate the gross in-situ 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 1.9 (in effect removing
the influence of the shale) to derive an estimate of the cola tonnage.
Information in this report that relates to exploration results and coal
resources on the properties Smitspan 306LQ, Hooikraal 315LQ, Minnasvlakte 258LQ
and Massenberg 305LQ and Vetleegte 304LQ is based on information compiled by Ms
Catherine Teller who is employed by Venmyn Rand (Pty)Ltd and is a member of The
Australian Institute of Mining and Metallurgy and the South African Institute of
Mining and Metallurgy. Ms Telfer has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which she is undertaking to qualify as a Competent Person as defined in
the SAMREC and JORC Codes. Ms Telfer consents to the inclusion in the report of
the matters based on her information in the form and context in which it
appears.
Exploration target
In addition, the following targets are quoted as "Reconnaissance" tonnages as
there is insufficient data or it is too widespread to be classified as inferred.
(Borehole spacing up to 4km).
Farm Zone tonnage GTIS Coal
Mt tonnage Mt
Minnasvlakte 200-240 75-85
Massenberg 25-35 10-20
Hooikraal 85-95 40-50
Olieboomfontein 920-950 500-520
TOTAL 1,230-1,320 625-675
Basis for target statement
Coal tonnages were categorised using the SAMREC code and the SANS method of
classification for thick waterbedded coal deposits. The reconnaissance tonnages
apply to all boreholes which have quality data at a maximum distance between
boreholes of 4,000M and which also exceeds the limit for classification as an
inferred resource.
The above statement is based on the experience obtained in adjacent areas, in
particular, and in the Waterberg in general. Further exploration will be
required for the said tonnage to be classified as inferred.
Pretoria
26 November 2009
Sponsor
River Group
Date: 26/11/2009 08:38:03 Produced by the JSE SENS Department.
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