| Thu 6 May 2010, 8:48 | | FSE - Firestone Energy - Updated and ammended Hooikraal Acquisition Announcement |
|
FSE
FSE
FSE - Firestone Energy - Updated and ammended Hooikraal Acquisition Announcement
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")
UPDATED AND AMMENDED HOOIKRAAL ACQUISITION ANNOUNCEMENT
Firestone Energy Limited (ASX:FSE) advises that in the last paragraph on the
first page of the announcement released on 4 May 2010 referred to "SAMREC
compliant resources". The sentence should have read, "In the SAMREC and JORC
compliant resources held by the Company, Hooikraal accounts for 7.3 million tons
(coal gross tons in situ) in the indicated category, and 155.5 million tons
(coal gross tons in situ) in the inferred category, as announced to the ASX on
26 November 2009, Wallington said".
The amended announcement is set out below and now also includes the coal
resource statement as released to the ASX on 26 November 2009.
Johannesburg and Perth: Monday 3 May 2010. Firestone Energy Limited
(ASX/JSE:FSE) today announced the purchase of an additional property in South
Africa`s highly prospective Waterberg coal district. The Hooikraal farm covers a
surface area of 955.3 hectares, and represents the second property in the
portfolio of eight properties in this area over which Firestone Energy has
purchased surface rights.
This acquisition represents a further land acquisition in one of Firestone`s
three identified areas of activity.
Hooikraal is favourably situated in the coalfield, and is one of two farms in
the portfolio which is immediately adjacent to an established paved provincial
road and within 5 kilometres of the Transnet freight rail line (Transnet is the
national railway company).
The North West portion of the property has the potential for a small open pit
mine with easy access to the lower, high quality coal seams (zones 3, 2 and 1).
Once again the situation is ideal for product stockpiles, a laboratory,
weighbridges and other surface infrastructure including a conveyor transfer
point en route to power stations. This is a particularly important
consideration, in view of the Medupi power station being only 8 kilometres away.
Firestone Managing Director John Wallington commented today that the month of
May would see the start of drilling of between six and ten boreholes on the
Vetleegte and Hooikraal farms to confirm the existence of the "graben"
structure, a geological feature which would support the view that the lower
three coal seams, zones 1 through 3, are present at depths conducive to open pit
mining. These seams have shown attractive metallurgical coal qualities both
with low ash and low phosphorous values. "In the SAMREC and JORC compliant
resources held by the company, Hooikraal accounts for 7.3 million tons (coal
gross tons in situ) in the indicated category, and 155.5 million tons (coal
gross tons in situ) in the inferred category, as announced to the ASX on 26
November 2009", Wallington said
Updated Coal Resource Statement as released to the Market on 26 November 2009
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 Tonnage Coal Coal
Mt 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.
Further information can be obtained by contacting Mr John Wallington.
John Wallington
Managing Director
+61 (08) 9381-2755
www.firestoneenergy.com.au
Information in this announcement 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
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
Date: 4 May 2010
Company secretary
Print name: Rance Dorrington
Pretoria
6 May 2010
Sponsor and Corporate Advisor
River Group
Date: 06/05/2010 08:48:23 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
