| Thu 12 Aug 2010, 8:58 | | FSE - Firestone Energy Limited - 5.173 Billion Tonnes of coal zones in resource |
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FSE
FSE
FSE - Firestone Energy Limited - 5.173 Billion Tonnes of coal zones in resource
identified in accordance with Samrec and Jorc codes
FIRESTONE ENERGY 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")
5.173 BILLION TONNES OF COAL ZONES
IN RESOURCE IDENTIFIED IN ACCORDANCE WITH SAMREC AND JORC CODES
The Firestone Energy Ltd/Sekoko Resources Joint Venture is pleased to announce
that independent geological consulting company Venmyn Rand (Pty) Ltd have
completed a significant upgrade of the shallow coal resources within the
Waterberg Coal Region located at the north end of South Africa.
HIGHLIGHTS
Significant increase of total Coal Zone Resource to 5.173 billion tonnes (+36%)
and Coal Gross Tonnes In-situ (GTIS) of 1.881 billion tonnes (+41%) compared to
the October 2009 coal resource summary.
The main Smitspan farm has now a Measured Resource of 238.67 million tonnes Coal
GTIS (+145%) where the 21 year mine life open cast was located and highlighted
within the DFS release on 29th June 2010 which included total coal sales of
120.8 million tonnes.
The total measured and indicated resource at Smitspan has increased to 714.51
million tonnes (+39%) where the last 12 recent in fill holes all intersected
coal.
The relatively undrilled Swanepoelpan farm (4 holes) is located directly west
and adjacent to the Smitspan large open cast and creates the potential to
dramatically extend the DFS open cast design to the west and northwest. Please
note the geological 3D Model on Page 4.
The comparisons of the 2 Venmyn reports are summarised below:-
August 2010 October 2009 Variance (%)
(7 farms) (5 farms)
ZONE COAL ZONE COAL ZONE TONNAGE COAL
TONNAGE (GTIS) TONNAGE (GTIS) (GTIS)
(mill (mill (mill (mill
tonnes) tonnes) tonnes) tonnes)
5,173.480 1,881.679 3,802.014 1,330.576 +36% +41%
August 2010 Venmyn Report
Farm Zone Measured Indicated Inferred Total
Tonnage GTIS GTIS Coal GTIS GTIS Coal
"1" Coal Tonnage Coal "2"
Tonnage
(mill (mill (mill
tonnes) (mill tonnes) (mill tonnes)
tonnes) tonnes)
Smitspan 1,881.758 238.668 475.844 - 714.512
Hooikraal 358.444 - 7.282 155.491 162.773
Minnasvlakte 755.805 - 26.507 230.687 257.194
Massenburg 337.034 - 20.797 109.539 130.336
Vetleegte 570.265 1.224 204.499 17.893 223.616
Swanepoelpan 1,239.974 - 1.072 378.227 379.299
Duikerfontein 30.200 - - 13.949 13.949
Total 5,173.480 239.892 736.001 905.786 1,881.679
October 2009 Venmyn Report
Farm Zone Measured Indicated Inferred Total
"1" GTIS GTIS Coal GTIS GTIS
Tonnage Coal Tonnage Coal "2"
Tonnage
(mill (mill
tonnes) (mill tonnes) (mill (mill
tonnes) tonnes) tonnes)
Smitspan 1,901.058 97.152 416.109 106.836 620.097
Hooikraal 358.444 - 7.282 155.491 162.773
Minnasvlakte 755.805 - 26.507 230.687 257.194
Massenburg 337.034 - 20.797 109.539 130.336
Vetleegte 449.673 - 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 identify 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 coal tonnage.
Since the previous announcement, considerably more analytical information has
become available, Smitspan results increased from 55 to 82 boreholes with
qualities, and Vetleegte from 13 to 34. This has enabled the resources on these
two farms to be upgraded significantly in resource status.
In-fill drilling conducted was on;
Smitspan, 12 holes, including 6 large diameter holes that were subjected to
rigorous coal processing test work both on size and quality analyses. These
samples were also composited into the 2.5 ton sample sent for combustion tests
on 4 August.
Six boreholes on Vetleegte, of which 5 intersected coal and 2 on Massenberg,
both intersecting coal and proving an extension of the Vetleegte low phosphorous
resource.
Bankable Feasibility Study
The Bankable Feasibility Study currently nearing completion by Parsons
Brinckerhoff has determined that the planned mining area, situated within the
measured resources on the Smitspan farm, can be mined economically. This report
is anticipated to be released in September 2010, once issued this final BFS
report will include the definitive value of the proven reserve on the Smitspan
farm.
Shareholders are referred to the following website to view the 3D modelling
showing all farms and zones: www.asx.com
Further information can be obtained by contacting Mr John Dreyer.
John Dreyer
Chairman
+61 (08) 9381-2755
www.firestoneenergy.com.au
Competent Persons Statement
Information in this announcement (and in the attached report) that relates to
exploration results, coal resources or reserves on the properties Smitspan
306LQ, Hooikraal 315LQ, Minnasvlakte 258LQ, Massenburg 305LQ, Swanepoelpan 262LQ
and Duikerfontein 263LQ is based on information compliled by Ms Catherine Telfer
who is employed by Venmyn Rand (Pty) Ltd and is a member of The Australasian
Institute of Mining and Metallurgy and the Geological Society of South Africa.
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" (The JORC Code). Ms Telfer consents to the
inclusion in the announcement (and as included in the attached 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
Jerry Monzu
Contact:
Level 1, 63 Hay Street
Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
Company secretary
Pretoria
12 August 2010
Sponsor
River Group
Date: 12/08/2010
Date: 12/08/2010 08:58:01 Produced by the JSE SENS Department.
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