| Thu 15 Dec 2011, 7:05 | | FCR - Ferrum Crescent Limited - Moonlight Iron Ore project update South Africa |
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FCR
FCR
FCR - Ferrum Crescent Limited - Moonlight Iron Ore project update, South Africa
Ferrum Crescent Limited
(Previously Washington Resources Limited)
(Incorporated and registered in Australia and registered as an external company
in the Republic of South Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR ISIN: AU000000FCR2
("Ferrum Crescent" or "the company" or "the group")
Moonlight Iron Ore Project Update, South Africa
Ferrum Crescent today announces it has appointed the South African geological
advisory firm, Mineral Corporation Consultancy (Pty) Ltd ("The Mineral
Corporation") to prepare an updated mineral resource report on the Moonlight
Iron Ore Project ("Report"). The Mineral Corporation has extensive experience in
magnetite in South Africa and will assist Ferrum Crescent as they develop the
Moonlight Iron Ore Project. The Mineral Corporation has been engaged to:
- Complete an update of the resource estimate for the Moonlight iron ore
deposit (due by end of Q1 2012);
- Manage and oversee a drilling programme on the Julietta area; and
Carry out a resource estimate in respect of the mineralisation on the
Julietta area, with a view to publishing an updated resource estimate for
the entire Moonlight Project, including the Julietta deposit, by Q3 2012.
The Company`s flagship project, the Moonlight Iron Ore Project, is located on
three farms (Moonlight, Julietta and Gouda Fontein) in Limpopo Province in South
Africa. It currently has a JORC compliant resource of 74Mt @ 33% Fe in the
Indicated Resource category and 225Mt @ 29% Fe in the Inferred Resource category
at a grade of 30% Fe, which is situated entirely within the Moonlight farm. The
Mineral Corporation has been commissioned to carry out an updated JORC compliant
resource estimate taking into account the results of the phase 3 drilling and
assays on the Moonlight deposit. Phase 3 consisted of 11 holes totalling 990m of
diamond core drilling and 12 holes totalling 1,540m of reverse circulation (RC)
drilling. It is anticipated that the Report, including the Julietta and Gouda
Fontein exploration results and resource estimate, will be completed by Q3 2012.
As a result of the appointment of a new mining adviser, the updated Moonlight
Resource will be released by the end of Q1 2012 rather than by the end of this
year as previously announced.
The proposed drilling programme at the Julietta and Gouda Fontein farms adjacent
to the Moonlight deposit, will seek to confirm the magnetite mineralisation
previously drilled by South African Iron and Steel Industrial Corporation
("Iscor"). Iscor was the South African government-owned integrated iron and
steel company which is now owned by ArcelorMittal. It is anticipated that
upwards of 10,000m of drilling will be carried out, consisting of both RC and
core drilling. The purpose of the drilling is to establish a total resource
estimate for the deposit on all three farms.
Mining Right Application
The Group`s mining right application, which was submitted in January 2011, was
expected to be granted by the end of Q4 2011. It is now expected to be
completed in Q1 2012.
Ferrum Crescent Managing Director, Bob Hair, commented, "The Mineral Corporation
has extensive experience in magnetite in South Africa, and we look forward to
working with them to ensure that we have an updated resource figure for the
extended Moonlight Project. The approach to drilling at Julietta will be an
integrated one enabling us to achieve a better understanding of the geology and
metallurgy obtained as well as geotechnical information which will be invaluable
when finalising the mining pit design. Our objective remains to develop a high
grade, premium magnetite iron ore product to our offtake partners, Duferco, and
other potential customers."
For more information, please visit www.ferrumcrescent.com or contact:
Australia and Company enquiries:
Ferrum Crescent Limited
Ed Nealon T: +61 8 9380 9653
Executive Chairman
Robert Hair -T: + 61 414 926 302
Managing Director
UK enquiries:
Ocean Equities Limited (Broker)
Guy Wilkes T: +44 (0)20 7786 4370
Ambrian Partners Limited (Nominated Adviser)
Richard Morrison T: +44 (0) 20 7634 4700
Jen Boorer T: +44 (0) 20 7634 4859
Threadneedle Communications Limited
Laurence Read/Beth Harris T: +44(0)20 7653 9855
South Africa enquiries:
Sasfin Capital
Sarah Williams/Leonard Eiser T+27 11 809 7500
About the company
Ferrum Crescent Limited is an Australian company, listed on the Australian
Securities Exchange (ASX), the London Stock Exchange`s Alternative Investment
Market (AIM) and the Johannesburg Stock Exchange Limited (JSE). The Company
seeks to capitalise on the future global demand for iron and steel by producing
iron products in the Republic of South Africa, for both the domestic and export
markets.
To that end, the Company has acquired a controlling interest in a South African
company that holds the rights to significant iron ore mineralisation in South
Africa. The Moonlight Iron Ore Project is the Company`s flagship project, based
around the high quality iron ore (magnetite) deposit known as Moonlight, which
is situated in Limpopo Province in South Africa.
The Moonlight Deposit consists of coarse-grained magnetite-quartz rocks that
display the following features which set it apart from comparable magnetite
deposits:
- the ability to produce very high quality concentrates at a coarse grind size;
- exceptionally low level of detrimental elements in the concentrates;
- near-surface mineralisation; and
- low stripping ratios.
The mineralisation is close to surface and consequently represents a low
stripping ratio target with consequential mining cost benefits. The contained
iron within the Indicated Resource is sufficient to exceed 20 years` production.
The Company also holds an interest in the De Loskop prospect, which is located
approximately 150km east of Moonlight and only 50km north of Polokwane, the
regional service centre.
The Company`s board and management team have, in aggregate, more than 280 years
of mining and/or iron-making experience, having managed and operated development
stage and production stage mining and processing operations, with in-depth
knowledge of South Africa and the iron ore market.
Competent Person`s Statement:
The information in this report is based on information compiled by Lindsay
Cahill, who is a Member of the Australasian Institute of Mining and Metallurgy.
Mr Cahill has sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Mr Cahill is a consultant to the mining industry. This report is
issued with Mr Cahill`s consent as to the form and context in which the
exploration results appear.
Canada
15 December 2011
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 15/12/2011 07:05:01 Produced by the JSE SENS Department.
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