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Quarterly activities and cashflow report for the period ended 31 December 2017
FERRUM CRESCENT 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
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
31 January 2018
Ferrum Crescent Limited
(“FCR”, the “Company” or the “Group”)(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 31 December 2017
Highlights:
Operational - Toral lead-zinc-silver project, Spain
• Full review of project’s exploration strategy with new team suspending further drilling activity
whilst undertaking a comprehensive geological and database assessment
• Exploration licence renewed until 2020 further to a successful application to the Director
General of Mines of the Province of Le?n
• Addison Mining Services Limited (“AMS”) appointed to define a maiden JORC (2012)
compliant resource estimate, including verification and analysis of silver (Ag) grades
recorded in the historic data set
Corporate
• Full corporate and operational review undertaken by new executive and operational team
• Myles Campion appointed as Technical Director and as a main board Executive Director
• £185,250 (gross) raised via a strategic placement to Mr Colin Bird and certain of his
associates, including African Pioneer Plc
Post Quarter End
• Colin Bird appointed to the board as Non-Executive Chairman and Daniel Smith as
Company Secretary and a Non-Executive Director
• Maiden independent JORC (2012) resource estimate completed for Toral of 16Mt@6.9%
Zn Equivalent (including Pb credits) and 25g/t Ag
Additional Information
Fundraisings
On 2 November 2017, the Company announced that it had conditionally raised £185,250 (before
expenses) through a placement via Beaufort Securities Limited as AIM Broker for the Company,
of 370,499,858 new ordinary shares of no par value each in the capital of the Company, at a
price of 0.05 pence per share, together with the issue of 185,249,929 options exercisable at a
price of 0.075 pence per share for a period of thirty months from the date of issue (the “Placing”).
The Placing shares were issued to Mr Colin Bird and certain of his associates, including African
Pioneer Plc, using the Company’s existing placement capacity under ASX Listing Rule 7.1. The
Placing completed on 8 November 2017, with the net proceeds being utilised to support ongoing
exploration activities at the Company’s Toral lead-zinc-silver project in northwest Spain and for
general working capital purposes. The issue of the associated options remains subject to
shareholder approval at a general meeting of the Company to be convened in due course.
Board and corporate changes
On 17 October 2017, FCR announced the appointment of Mr Myles Campion to the Board as
an Executive Director. Mr Campion has a comprehensive background in all technical and
financial facets of the resources sector, specialising internationally in resource evaluation and
project assessment. Mr Campion holds a BSc (Hons) in Geology from University of Wales
College, Cardiff and an MSc (MinEx) from the Royal School of Mines in London, and also holds
a graduate Diploma of Business (Finance).
Subsequent to the quarter end, on 12 January 2018 the Company announced the appointment
of Mr Colin Bird as a Non-Executive Director and Chairman with Mr Grant Button, interim Non-
Executive Chairman, resuming his former role as a Non-Executive Director. Mr Bird is a
chartered mining engineer with extensive multi-commodity mine management experience in
Africa, Europe, Latin America and the Middle East.
On 16 January 2018, the Company announced the appointment of Mr Daniel Smith as Company
Secretary and Non-executive Director. Mr Smith is a member of the Australian Institute of
Company Directors and the Governance Institute of Australia and has over 10 years’ primary
and secondary capital markets expertise. At the same time, Minerva Corporate Pty Ltd., a
company which is part owned and controlled by Mr Smith, was appointed by FCR to provide
administrative and financial services and support as part of a cost reduction and efficiency
review.
Toral Licence renewal
On 22 November 2017, the Company announced that its exploration licence in respect of its
Toral lead-zinc-silver project had been renewed for a further 3 year term to November 2020
following a formal application made to the Director General of Mines of the Province of León.
Maiden JORC (2012) Resource Estimate
On 30 January 2018, the Company announced a maiden independent Mineral Resource
estimate completed in accordance with JORC (2012) in respect of the Toral Project. FCR
commissioned the maiden mineral resource estimate in late 2017 from AMS based on all the
available historical data from three drill campaigns conducted on the 15.199 licence area (the
1972 - 1984 Peñarroya-Adaro campaign, the 2006 - 2008 Lundin Mining campaign and the
2016 - 2017 FCR campaign), along with underground channel sampling results from the
numerous adits. The Inferred resource for the Toral Pb-Zn-Ag mineralisation located on the
Toral property, was estimated at various cut-offs (as set out in Table 1 below).
The Company reviewed a new block model along with its appointed geological consultants,
AMS, and concluded that a 4% cut-off was appropriate utilising estimated mining parameters
typical for similar types of projects and mineralogy, and an historical three-year trailing average
for metal prices, which, although conservative, was deemed appropriate at this stage in the
project’s development.
Zn Price Used: US$2,400/t US$c/lb1.09
Pb Price Used: US$2,000/t US$c/lb0.91
Ag Price Used: US$17/oz
The maiden resource identified potentially economic mineralisation ranging from surface to
approximately 1,100m below surface. The block model currently extends for a strike length of
3,300m and is still open to the east along strike and also at depth where it has not yet been
closed off.
Contained Contained
Cut Off Ag Troy
Tonnes Zn_Eq Zn Eq Zn Pb Zn Pb
Zn Eq Density Ag g/t Oz
(Millions) (Pb)% (PbAg)% % % Tonnes Tonnes
(PbAg)% (Millions)
(000’s) (000’s)
6.0 9 2.65 8.8 9.5 5.0 4.3 31 470 400 9
5.0 12 2.57 7.8 8.4 4.6 3.7 28 580 470 11
4.0 16 2.52 6.9 7.5 4.0 3.3 25 670 540 13
3.0 20 2.50 6.2 6.7 3.7 2.9 23 750 600 15
Table 1: Summary of Inferred mineral resources for the Toral property reported at a 4.0% Zn equivalent cut-off grade
and estimated grade and tonnages at the various cut-off grades, as extracted from the AMS Resource Statement
released by the Company on 30 January 2018.
Laurence Read, Executive Director of FCR, today commented:
“The quarter under review saw us rapidly restructure the Company, a refocusing of our
exploration strategy and introduction of the expertise required to build value in FCR. We have
subsequently published a maiden independent JORC 2012 resource estimate which serves to
demonstrate the undoubted potential of Toral and we shall now pursue appropriate workflows
in a cost effective manner to unlock further economic understanding of the asset from this
important first step. Our goal remains to prove up an economically viable European lead, zinc
and silver project.”
Exploration Interests
The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for
the quarter ended 31 December 2017:
Project Location Right Number Right Status Holder Percentage
Interest
Toral León Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Lago II 6.056 Exploration GoldQuest 100%
Province, Permit in Iberica, S.L.
Spain progress
Lago III 6.058
Investigation
Permit in
progress
No tenements were acquired or relinquished during the quarter.
Appendix 5B can be viewed here: http://www.ferrumcrescent.com/site/news-announcements/quarterly-
reports
For further information on the Company, please visit www.fcrexploration.com or
www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Dan Smith, Non-Executive Director and Company Secretary (Australia)
T: +61 417 978 955
Laurence Read, Executive Director (UK)
T: + 44 (0)20 3289 9923
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Matthew Chandler
T: +44 (0)20 7409 3494
Peterhouse Corporate Finance Limited (Broker)
Lucy Williams / Duncan Vasey / Heena Karani
T: +44 (0)20 7469 0930
Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Melanie De Nysschen
T (direct): +27 11 459 5052
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
Competent person’s statement
The information contained in this announcement that relates to the Toral maiden resource estimate was
prepared by Mr J.N. Hogg, MSc. MAIG Principal Geologist for AMS, who is an independent Competent
Person within the meaning of the JORC (2012) code and meets the criteria of a qualified person under
the AIM guidance note for mining and oil & gas companies. The maiden resource estimate was aided by
Mr R. J. Siddle, MSc, MAIG Senior Resource Geologist for AMS, under the guidance of the competent
person. Mr Hogg has reviewed and verified the technical information that forms the basis of, and has
been used in the preparation of, such mineral resource estimate including all analytical data, diamond
drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical
techniques. Mr Hogg consents to the inclusion in this announcement of the matters based on the
information, in the form and context in which it appears. Mr Hogg has also reviewed and approved the
technical information in his capacity as a qualified person under the AIM Rules.
Date: 31/01/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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