| Fri 14 May 2010, 7:05 | | FSE - Firestone Energy Limited - Operational update - BFS at FSE`s Waterberg |
|
FSE
FSE
FSE - Firestone Energy Limited - Operational update - BFS at FSE`s Waterberg
Coalfield Ahead of Schedule
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")
OPERATIONAL UPDATE - BFS at FSE`s Waterberg Coalfield Ahead of Schedule
Perth and Johannesburg
BFS TO BE COMPLETED TWO MONTHS AHEAD OF SCHEDULE
OPEN CAST MINE PRODUCTION CAPABILITY BY MID 2011
DRILLING PROGRAM NEARING COMPLETION WELL WITHIN BUDGET
Bankable Feasibility Study
Firestone Energy Limited (ASX/JSE: FSE) announced today that good progress was
being made on the bankable feasibility study (BFS) at the company`s flagship
Waterberg project in South Africa, with results now expected in July 2010.
The BFS follows on the Prefeasibility Study which was completed and approved in
January 2010. The objective of the study is to define an open cast mine that
could meet expected customer requirements and which can be brought into
production by mid 2011 on the Smitspan farm.
A further 12 boreholes, of which 6 were large diameter(165mm) as required for
detailed customer analysis have been completed by the end Aril 2010. This
significantly enhances the qualitative and technical data base that was
developed with the 122 boreholes drilled previously.
Metallurgical Coal Update
Additional holes are currently being drilled on a selected area of the Vetleegte
and Hooikraal Farms to confirm the presence of higher yielding metallurgical
coal at potentially attractive stripping ratios.
Cash Flow and Funding
The board of Firestone would like to advise that although Firestone`s last
quarterly report indicated that FSE has $1,684 million of cash, the Company, as
previously announced, entered into a $25 million fully underwritten draw down
facility in September 2009, which still has $10 million left to be drawn. At its
present and projected rate of cash utilisation FSE remains fully funded
(including the acquisition of Hooikraal and Smitspan farms), until the second
quarter of 2011. This excludes any further capital injections from the
cornerstone investor process.
Cornerstone Investor Process
Firestone has engaged with over twenty interested international parties, some of
which are undertaking detailed due diligence and site visits. The current strong
global demand for both metallurgical and thermal coal is bringing strong
interest to FSE`s project. The market will be informed as this process
progresses.
Further information can be obtained by contacting Mr John Wallington.
John Wallington
Managing Director
+61 (08) 9381-2755
www.firestoneenergy.com.au
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: 14 May 2010
Company secretary
Print name: Rance Dorrington
Pretoria
14 May 2010
Sponsor and Corporate Advisor
River Group
Date: 14/05/2010 07:05:43 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.
