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FSE - Firestone Energy Limited - Update Mining Exploration Quarterly Report
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")
UPDATE MINING EXPLORATION QUARTERLY REPORT
The directors have the pleasure in presenting the quarterly report to
shareholders.
MARCH 2009
QUARTERLY ACTIVITIES REPORT
Waterberg Coal Field - South Africa
Olieboomsfontein 220LQ
During the period, 7 Reverse Circulation (RC) holes were drilled on the
property, 4 holes in a north/south pattern to identify the extent of boundary
faults, and 3 holes in an east/west pattern. The quality of the coal still
needs to be determined from the samples taken during the course of this
drilling. An estimated contained coal tonnage is currently being determined
from the information. The Company`s geologists have prepared a plan for the
next phase of 6 diamond core holes to determine geological structure and to
collect samples.
Vetleegte 304LQ
Early stage exploration drilling on the property is complete and no more
drilling is required at this stage. Priority listing of the samples have been
completed by the Perth office to select the best areas to assay (with coal
zones 6-11). Resource tonnage estimates are currently being determined from the
information on hand and future in-fill drilling to increase the resource
confidence to indicated and measured will be conducted on the next drilling
programme.
Northern Territory - Australia
The two exploration licenses (ELs 7810 and 10166) near Tennant Creek in the
Northern Territory continue to be explored by Emmerson Resources Ltd, on behalf
of the Company, for Tennant Creek style iron oxide copper-gold deposits.
Corporate
Further negotiations with Sekoko Resources took place during March to conclude
the "T2" transaction which includes over 4 properties in close proximity to the
2 properties forming part of the current Joint Venture (JV) with Sekoko. The
transaction will deliver a 60% interest in four additional farms, Minnasvlakte
258 LQ, Massenberg 305 LQ, Smitspan 306LQ and Hooikraal 315 LQ. Together the
six farms comprise one of the largest land holdings in the Waterberg coalfield
and through this transaction will substantially expand the Company`s coal
inventory in the area. The JV agreement was executed on 31 March and is subject
to financial and technical due diligence, as well as regulatory and shareholder
approvals.
To meet immediate working capital requirements during the quarter the Company
placed 22,727,273 shares to sophisticated investors raising $249,500 and drew
down $300,000 from an available loan facility of $500,000.
During March 2009, Mr. Simon Storm was appointed as Company Secretary and Chief
financial Officer. Mr. Storm is a chartered accountant with over 20 years
experience in accounting and commerce.
Firestone Energy is an independent Australian exploration company focused on
developing coal and copper-gold projects in South Africa and Australia. 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. Drilling and assay
test work is underway on its two tenements, Vetleegte 304 LQ and
Olieboomsfontein 220 LQ in the Waterberg coal field.
The Company has entered into a joint venture with Sekoko Resources, a South
African black empowerment company (BEE) and Sekoko has two directors on the
Board of Firestone Energy.
Firestone Energy Limited
Quarter ended ("current quarter") 31 March 2009
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A`000 (9 months)
$A`000
1.1 Receipts from product sales and
related debtors - -
1.2 Payments for (a) exploration and evaluation - -
(b) development - -
(c) production - -
(d) administration (436) (692)
1.3 Dividends received - -
1.4 Interest and other items of a
similar nature received 2 53
1.5 Interest and other costs of
finance paid (14) (14)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (448) (653)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects (598) (3,811)
(b) equity investments - -
(c) other fixed assets - (21)
1.9 Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - 58
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - 105
1.12 Other - -
Net investing cash flows (598) (3,669)
1.13 Total operating and investing
cash flows (carried forward) (1,046) (4,322)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 250 1,912
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings 300 300
1.17 Repayment of borrowings - -
1.18 Other- share issue expenses - -
1.19 Other - -
Net financing cash flows 550 2,212
Net increase (decrease) in cash held (496) (2,110)
1.20 Cash at beginning of quarter/year to date 556 2,170
1.21 Exchange rate adjustments to item 1.20 (2) (2)
1.22 Cash at end of quarter 58 58
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A`000
1.2 Aggregate amount of payments to the parties included in
item 1.2 80
1.2 Aggregate amount of loans to the parties included in
item 1.10 -
1.2 Explanation necessary for an understanding of the
transactions
Directors, consulting, company secretarial and accounting fees.
Non-cash financing and investing activities
2 .1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash flows
N/A
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest
N/A
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A`000 $A`000
3.1 Loan facilities 500 300
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A`000
4.1 Exploration and evaluation -
4.2 Development -
Total -
Reconciliation of cash
Reconciliation of cash at the end of
the quarter (as shown in the Current quarter Previous quarter
consolidated statement of cash flows)
to the related items in the $A`000 $A`000
accounts is as follows.
5.1 Cash on hand and at bank 58 56
5.2 Deposits at call - 500
5.3 Bank overdraft - -
5.4 Other - -
Total: cash at end of quarter (item 1.22) 58 556
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference (note (2)) beginning end of
of quarter quarter
6.1 Interests in mining Nil
tenements relinquished,
reduced or lapsed
6.2 Interests in mining Nil
tenements acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total number Number quoted
7.1 Preference
+securities Nil Nil
(description)
7.2 Changes during
quarter Nil Nil
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary securities 1,300,701,295 1,300,701,295
CME
7.4 Changes during
quarter
(a) Increases 22,681,818 22,681,818
through issues
(b) Decreases
through returns of - -
capital, buy-backs
+Convertible
7.5 debt securities
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured,
converted
7.7 Options
FSEAI 2,500,000 Nil
FSEAK 30,000,000 Nil
FSEAM 110,000,000 Nil
FSEAO 96,904,767 Nil
7.8 Issued during 6,904,767 Nil
quarter - FSEAO
7.9 Exercised during - -
quarter
7.10 Expired during - -
quarter
7.11 Debentures - -
(totals only)
Issue price per Amount paid up
security (see note per security (see
3) (cents) note 3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-
backs,
redemptions
7.3 +Ordinary securities Fully Paid
CME
7.4 Changes during
quarter
(a) Increases n/a Fully Paid
through issues
(b) Decreases
through returns of n/a n/a
capital, buy-backs
+Convertible
7.5 debt securities
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured,
converted
7.7 Options Exercise Price Expiry
FSEAI 1 cent 30 Jun 09
FSEAK 5 cents 30 Nov 12
FSEAM 6 cents 31 May 13
FSEAO 6 cents 30 Jun 13
7.8 Issued during 6 cents 30 Jun 13
quarter - FSEAO
7.9 Exercised during - -
quarter
7.10 Expired during - -
quarter
7.11 Debentures
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act or other standards
acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
Simon Storm Date: 30 April 2009
Notes
1 The quarterly report provides a basis for informing the market how the
entity`s activities have been financed for the past quarter and the effect on
its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of
interests in mining tenements acquired, exercised or lapsed during the
reporting period. If the entity is involved in a joint venture agreement and
there are conditions precedent which will change its percentage interest in a
mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not
required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive
Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address
a topic, the Australian standard on that topic (if any) must be complied with.
Garth Higgo
Chief Executive Officer
For further information please contact:
Mr. Garth Higgo
Chief Executive Officer
Tel: +61 8 9381 2755
Fax: +61 8 9381 4799
Email: enquiries@firestoneenergy.net
Corporate Details
ASX: FSE
JSE: FSE
Issued Capital:
1,300.7 M Ordinary Shares
Substantial Shareholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Vernon Finance Ltd
Directors and Officers:
Non Executive Directors:
Lee Boyd
Daryl Henthorn
John Dreyer
John Wallington
Timothy Tebeila
Amanda Matthee
Chief Executive Officer
Garth Higgo
Company Secretary
Simon Storm
Contact:
Level 1, 63 Hay Street
Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
30 April 2009
Sponsor
River Group
Date: 30/04/2009 10:21:01 Supplied by www.sharenet.co.za
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