| Wed 2 Mar 2011, 8:31 | | FSE - Firestone Energy Limited - Significant Metallurgical Coal - Confirmed in |
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FSE
FSE
FSE - Firestone Energy Limited - Significant Metallurgical Coal - Confirmed in
Shallow Boreholes
FIRESTONE ENERGY LIMITED
(formerly: Centralian Minerals Limited)
(Incorporated in Australia)
(Registration number ABN 058 436 794)
Share code on the JSE Limited: FSE
Share code on the ASX: FSE
ISIN: AU000000FSE6
(SA company registration number 2008/023973/10)
("FSE" or "the Company")
SIGNIFICANT METALLURGICAL COAL
CONFIRMED IN SHALLOW BOREHOLES
PRIME COAL UPGRADE - CLOSE TO SURFACE
Firestone Energy Limited(ASX/JSE : FSE) is pleased to announce that its joint
venture with Sekoko Resources (Pte) Limited has received a significant
independent geological report relating solely to the joint venture`s southern
three Waterberg farms, called Vetleegte, Massenberg and Hooikraal.
The report highlights an increaseof +26.5% in the Coal Zone Tonnage for the
whole 12 seams in the area covered by the report, and significantly an increase
of +45% in the Coal Zone Tonnage for higher quality and shallow metallurgical
coal (met coal) in seams 3, 2 and 1, compared to the values announced on 12
August 2010 (Venmyn Rand (Pty) Ltd Geological Report).
COAL ZONE RESOURCE TONNES SUMMARY
Vetleegte,Massenberg and Hooikraal farms only and underMeasured /
Indicated/Inferred JORC and SAMREC category.
TABLE "A"
Coal Seams SMS ( tonnes) Venmyn (tonnes) Variance(%)
All 12 seams 1,601,611,738 1,216,743,000 +26.5
Seams 3, 2 and 1 352,215,097 242,231,506 +45
The raw coal data results which are set out in table 3, page 13of the attached
SMS Geological report (The Report), show consistently high Calorific Values and
low Phosphorous levels, particularly for Zones 3, 2 and 1.
The shallowness of the coal is indicated in Figure 5, Page 9 of the Report. The
3D geological model indicates that the lower 3 quality coal seams have been
thrust upwards(Figure 6 of the Report), in an area surrounded by major fault
structures with one of the top stacked seams (Zone 2), being as close
asapproximately 25 vertical metres from the surface.
The shallow met coal seams contain a combination of `Metallurgical` and `Export
Thermal` Coal and covers a considerable area of approximately 726 hectares. The
eastern edgejoins a 4km long commonboundary withneighbours Exxaro`s Grootegeluk
mine, referfigure 7,page 11 of the Report. Also note that the shallow coal seams
traverse from the west edge of the farms to the extreme east edge, a distance of
6.6km.
It is anticipated that these shallow Met coal seams will be optimised within a
large shallow open cast design with a moderate strip ratio, especially at the
shallower western end. The potential exists for the recovery of additional "2
zone" coal from underground. This seam shows a consistent thickness of over 4
metres, ideal for continuous mining operations. After washing, the qualities of
this seam can also enable it to be sold to the infrastructure companies located
in South Africa.
The 3 southern farms are within 4kms from the Joint Venture`s proposed Smitspan
open cast mine which is being established to supply coal to Eskom on the
recently announced Eskom Offtake MOU.
The additional test work carried out on the metallurgical coal since our
previous report (12 August 2010: Venmyn Rand (Pty) Ltd Geological Report) has
identified higher and consistent Calorific Values and Yields for the coalseams,
particularly from Zones 3, 2 and 1. These results are summarized in Tables 3-6;
pages 13-16 of the Report.
The Joint Venture is currently preparing a plan of the outline of a proposed
shallow Met coal open cast for the southern farms and an indicative underground
operation.
FSE technical director, Mr Colin McIntyre, considers the potential for the new
shallow Met coal open cast mine adds significant benefit to the Joint Venture,
he stated,"This potential new mine provides the Joint Venture with the added
flexibility of treating higher quality coal in the shorter term. The completed
DFS model on the nearby Smitspan farm only contemplated the mining the top seams
(11 to 7) in the first 21 years of mine life and incorporates only 6% of the
total Coal GTIS (7 farms) in the Venmyn Report. The opening up of this new area
should provide considerable synergies and saving as well as providing a higher
quality product for additional markets".
FSE chairman, David Perkins said "Since the Shareholders agreement has been
signed, FSE is now planning a presentation to South African, Australian and
overseas investors to promote these world class open cast coal resources and to
raise funds for the mining and treatment of coal to meet the schedule in the
recently signed Eskom Offtake MOU.
"The quality of these resources gives us great confidence in the long term
nature of our investment in the Firestone Sekoko Joint Venture. We envisage the
Waterberg Coal Region as being a major supplier to several domestic coal power
stations and other uses over several generations with the majority of supply
emanating from opencast reserves".
David J Perkins
Chairman
www.firestoneenergy.com.au
Competent Persons Statement
Information in this announcement (and 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 compiled by Mr Petrus Cornelius
Meyer who is employed by PC Myer Consulting and is a member of the Geological
Society of South Africa. Mr Myer has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he 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). Mr Meyer consents
to the inclusion in the announcement of the matters based on his 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:
2,627 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
Non Executive Directors:
David Perkins (Chairman)
Dr Pius Kasolo
Colin McIntyre
SizweNkosi
Peter Tshisevhe
Company Secretary
Jerry Monzu
Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (0)8 9287 4600
Web: www.firestoneenergy.com.au
Pretoria
02 March 2011
Sponsor and Corporate Advisor
River Group
Date: 02/03/2011 08:31:07 Produced by the JSE SENS Department.
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