| Tue 16 Mar 2010, 14:21 | | FSE - Firestone Energy Limited - Feasibility Study On Firestone`s Waterberg Coal |
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FSE
FSE
FSE - Firestone Energy Limited - Feasibility Study On Firestone`s Waterberg Coal
Project On Track
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")
16 March 2010
FEASIBILITY STUDY ON FIRESTONE`S WATERBERG COAL PROJECT ON TRACK
Firestone Energy Limited (ASX/JSE: FSE) today released results for the half-year
ended 31 December 2009. In line with expectations for a development company, the
company reported a net loss for the six months to 31 December 2009 of
A$1,532,146. This is a basic loss per share of A$0.08.
The Board is pleased to report that the Pre-feasibility Study on Firestone`s
flagship Waterberg Project was completed and approved in January 2010 and the
Bankable Feasibility Study is expected to be completed in the third quarter of
2010. During the half year, the group raised $25 million to complete the
Bankable Feasibility Study.
Other highlights of the period were:
- surface rights acquired at Smitspan.
- shareholder approval of the acquisition of interests in four additional
properties
- third agreement signed to acquire a further two properties from Sekoko in
the Waterberg area, bringing the total number of farms in the JV to eight
- Tim Tebeila, Executive Chairman of Sekoko Resources, appointed as Deputy
Chairman of Firestone Energy.
- continued participation in the Eskom Request for Proposal (RFP) process.
- the company remains cash positive with 50% of the convertible note still
intact.
"Work is now proceeding at an accelerated pace to complete a more detailed
Bankable Feasibility Study," says John Wallington, Firestone managing director.
"Environmental baseline studies have been completed and social and labour plans
are underway.
"A particularly encouraging feature of the Pre-feasibility Study has been the
increase in the SAMREC and JORC-compliant measured resource at Smitspan, rising
to 97 million tonnes, thus improving our confidence in the project.
The current focus of exploration is on the Smitspan farm, which supports a mine
layout covering 507ha, extending for 3.5km (east to west) and 1.8km (north to
south). This area contains sufficient coal to produce 85 million tonnes of
domestic coal for local power stations and 20 million tonnes of high grade coal.
The latter is suitable for both the metallurgical and the thermal export market.
Note to editors:
Firestone Energy Limited is a Perth based exploration and development company
listed on the Australian Stock Exchange (ASX: FSE) and the JSE Limited (JSE:
FSE).
Firestone`s strategy is to maximise shareholder value by sourcing and developing
viable mineral projects, with a particular focus on coal prospects in the highly
prospective Waterberg coalfield in South Africa.
Firestone has joint ventures with broad-based Black Economic Empowerment (BEE)
mining and energy company Sekoko Coal, a subsidiary of Sekoko Resources, over
eight farms located in the Waterberg coalfield. 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 to 30 years.
Firestone is on track to commence mining operations by the end of 2010, with
ramp-up to be determined by off-take agreements. Results from the exploration
work completed to date and the Pre-feasibility Study of the Phase 1 area
indicate the potential for Firestone Energy to produce 5.5 million tonnes per
annum from 2011.
Background on the Waterberg coalfield:
- Contains approximately 50% of South Africa`s remaining coal resources
- Thick, near surface coal seams
- Located in the growth area to supply SA`s electricity utility Eskom -
4,800MW Medupi power station is currently under construction and a further
4,000MW power station is on the horizon.
For further information go to the Firestone Energy (www.firestone.com.au) and
Sekoko Resources (www.sekoko.co.za) websites.
Queries:
Charmane Russell
Russell and Associates
+ 27 11 880 3924
+ 27 82 372 5816
Charmane@rair.co.za
Sponsor and Corporate Advisor
River Group
Date: 16/03/2010 14:21:01 Produced by the JSE SENS Department.
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