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FSE - Firestone Energy Limited - Shareholder update
FIRESTONE ENERGY LIMITED
(formerly Centralian Minerals 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")
SHAREHOLDER UPDATE
Firestone Energy Limited (ASX: FSE) is pleased to provide the following update
to Shareholders on the Company`s activities. In brief, there have been three
primary areas of activity during the past few months:
Exploration progress
The acquisition of land
Embarking on a process to seek a cornerstone investor.
In addition, this document provides an update on the Company`s Coal Resources.
Exploration Progress
Following the completion of our pre-feasibility study and in order to increase
the confidence in the ore body at Smitspan to a Proven Reserve level, infill
drilling in the initial mining pit was required. Additional geotechnical and
hydro geological studies was also undertaken for mine planning purposes, with,
in particular, large diameter boreholes required for a `washability` analysis,
taking into account coal particle sizing.
Drilling commenced at the beginning of February, 2010 with two ZWF (153mm
diameter), two T6146 (123mm diameter.), and six PQ (85 mm diameter) boreholes
drilled. The programme was completed in April 2010.
In addition, following a technical meeting with the national power utility,
Eskom, two additional ZWF boreholes have been drilled to enable the Company to
submit a 3 tonne sample of washed coal so that Eskom may carry out boiler
combustion tests. Firestone continues to engage with Eskom on a wide range of
issues.
All borehole cores have been logged and sampled, with a number of samples
already submitted for laboratory analysis. All the results are expected by mid
June 2010.
Further drilling of between six to ten boreholes will be drilled on the
Vetleegte and Hooikraal farms to confirm the existence of a suspected "graben"
structure which the lower three coal seams, zones 1 through 3, may be present
at depths which would be conducive to open cast mining. These seams have shown
attractive metallurgical coal qualities both with low ash and low phosphorous
values, suitable for marketing as "low phos" coal. This drilling will begin in
May 2010.
Land Acquisition
The acquisition of Smitspan 306LQ was completed and registered in February 2010.
The Company now has sole use of this farm and is investigating options to
upgrade the existing buildings, to be utilised as offices and living
accommodation.
An agreement has been reached with the owner of Hooikraal 315 LQ for the
purchase of that farm. This farm borders the existing paved provincial road and
will provide easy access for the rest of the property, including product
stockpiles and weighbridge facilities.
Cornerstone Investor Sought
Firestone has achieved several milestones and believes that the best mechanism
for increasing shareholder value at this stage would be via a competitive
process to attract and secure an appropriate partner to develop its substantial
Waterberg projects. Firestone has therefore embarked on a process to invite
selected companies to submit proposals to become a cornerstone investor.
BBY Limited has been appointed as the Corporate Advisor to Firestone. BBY is an
Australian focused stock broking, corporate advisory and asset management firm
with offices in Sydney, Melbourne, UK and UAE along with a global presence in
the USA and Asia. BBY combines the strength of an international partnership
with leading Asian investment bank CIMB-GK, (www.cimb.com), and an equity
partnership with major US investment bank, Jefferies Inc (www.jefferies.com).
BBY Limited has a strong track record of securing funding and cornerstone
investors for Australian and international resource companies.
Coal Resources
The following table summarizes the current coal Samrec Compliant Resources held
by the Company
as at 30 November 2009.
FSE/Sekoko
Agreement Farm name Resource Category Coal gross tons in situ (Mtons)
T1 Vetleegte 315 LQ Indicated 28.873
Inferred 131.303
Olieboomfontein 220 LQ Not classified
T2 Smitspan 306LQ Measured 97.153
Indicated 416.109
Inferred 106.836
Massenberg 305 LQ Indicated 20.797
Inferred 109.539
Hooikraal 315LQ Indicated 7.282
Inferred 155.491
Minnasvlakte 258LQ Indicated 26.507
Inferred 230.687
T3 Swanepoelpan 262LQ Indicated 1.072
Inferred 378.227
Duikerfontein 263 LQ Inferred 13.949
Total FSE 1,723.825
Information in this report that relates to exploration results, coal resources
or reserves on the properties Smitspan 306LQ, Hooikraal 315LQ, Minnasvlakte
258LQ and Massenberg 305LQ is based on information compiled by Ms Catherine
Telfer who is employed by Venmyn Rand (Pty) Ltd and is a member of The
Australian Institute of Mining and Metallurgy and The South African Institute of
Mining and Metallurgy. 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". Ms Telfer consents to the
inclusion in the report of the matters based on her information in the form and
context in which it appears
Further updates will be provided to shareholders in due course.
John Wallington
Managing Director
+61 (08) 9381-2755
www.firestoneenergy.com.au
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
Rance Dorrington
Contact:
Level 1, 63 Hay Street
Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
Date: 8 March 2010
Company secretary
Print name: Rance Dorrington
Pretoria
28 April 2010
Sponsor and Corporate Advisor
River Group
Date: 28/04/2010 07:12:03 Supplied by www.sharenet.co.za
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