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FSE
FSE
FSE - Firestone Energy Limited - Quarterly Activities Report For The Period to
31 March 2010
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")
Quarterly Activities Report For The Period to 31 March 2010
The Board of Firestone Energy Limited (ASX:FSE) is pleased to provide
Shareholders with its Quarterly Activities Report for the 3 month period ended
31 March 2010.
HIGHLIGHTS
OPERATIONAL
The Pre-Feasibility Study Report was received in late December 2009. The
review of this report was finalised in early February 2010, with the aim
of prioritising activities required for the Bankable Feasibility Study
(BFS). The study has identified the first phase mining project area,
which is being estimated to produce just over 100mt over 20 years at low
stripping ratios.
The Company continued to participate fully in the Eskom RFP process (Pre-
qualification process for potential future coal supply agreements). As a
consequence of these interactions the next phase of drilling has been
tailored to satisfy specific qualitative and technical queries including
a 3t sample for boiler combustion tests.
EXPLORATION
Updated resource statement includes 97mt of measured, 500mt of indicated
and 734mt of inferred resources on the Smitspan property which
encompasses the entire Phase 1 project area referred to above.
The next phase of drilling includes large diameter (123mm and 165mm)
holes for geotechnical, hydro-geological and coal processing testwork.
Upon completion the additional information will allow for the objectives
of the BFS to be met with regard to increased confidence levels and
reduced tolerances on capex/opex estimations, as well as provide the
specific technical and qualitative analysis referred to above.
CORPORATE
During the period it was decided that the best mechanism for increasing
shareholder value would be via a competitive process to attract and
secure an appropriate partner to develop its substantial Waterberg
Project. Firestone has therefore embarked on a process to invite selected
companies to submit proposals to become a cornerstone investor. BBY
Limited has been appointed as Corporate Advisor to the process and has a
strong track record of securing funding and cornerstone investors for
Australian and international resource companies.
OVERVIEW
Pre-Feasibility Study
As stated earlier the drilling programme has been designed to be able to
respond to specific customer requirements and ensure that the technical
understanding of the resource and confidence therein is at a high level.
During the quarter the Preliminary Feasibility Study (PFS) report on the
Waterberg Coal JV Project report was reviewed. The BFS activities are being
prioritised to meet the required confidence and tolerance levels of the
project.
Environmental and Socio-Economic Impact Assessment
During the quarter, Firestone Energy continued with the finalisation of its
drafts of Environmental Management Plan and Social and Labour Plan Impact
Assessment (SEIA) documentation in accordance with Department of Mineral
Resources requirements. During the first quarter of 2010, stakeholder
meetings to discuss and receive questions on the SEIA will be held at the
Lephalale Local Municipality and Waterberg District Municipality.
Mining Right Application
The Company finalised the social and labour plan studies as part of finalising
the environmental management plan documentation. The Mining Right
Application and associated social and labour plan is scheduled for submission
during May 2010.
Business Development
Firestone Energy continues to engage in extensive market and business
development activities with the objective of identifying and
communicating with potential customers. Further exploratory drilling has
been planned in response to potential metallurgical coal demand.
The Company is participating in working committees with potential key
strategic alliance partners, including emerging miners, to explore
synergies and address constraints of accessing competitively priced rail
and port infrastructure.
For further information please contact:
Information in this report that relates to exploration results, coal
resources or reserves on the properties Smitspan 306LQ, Hooikraal 315LQ,
Minnasvlakte 258LQ and Massenberg 305LQ is based on information compiled
by Ms Catherine Telfer 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 2004 Edition of the
"Australasian Code for the Reporting of Exploration Results, Mineral
Resources and Ore Reserves". 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
For further information please contact:
John Wallington
Managing Director
+61 (08) 9381-2755
About Firestone Energy
Firestone Energy is an independent Australian exploration company focused
on developing coal projects in South Africa. The company is currently
exploring the richly endowed Waterberg coal field in the Limpopo Province
of South Africa.
The Company is committed to value-added growth through becoming an
independent coal and energy producer at its projects in South Africa.
The Company has entered into three joint ventures with Sekoko Resources, a
South African black empowerment company (BEE) and Sekoko has two directors on
the Board of Firestone Energy.
Corporate Details
ASX: FSE
JSE: FSE
Issued Capital:
2,331 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
Non Executive Directors:
John Dreyer (Chairman)
Timothy Tebeila (Deputy Chairman)
Amanda Matthee
Colin McIntyre
Managing Director
John Wallington
Company Secretary
Rance Dorrington
Contact:
Level 1, 63 Hay Street
Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
Pretoria
29 April 2010
Sponsor and Corporate Advisor
River Group
Date: 29/04/2010 07:43:01 Produced by the JSE SENS Department.
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