Wrap Text
FSE - Firestone Energy Limited - Quarterly activities report for the period
to 30 September 2010
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")
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD TO 30 September 2010
The Board of Firestone Energy Limited (ASX/JSE: FSE) provides shareholders
with its Quarterly Activities Report for the 3 month period ended 30 June
2010. A full copy of this report, as released today on the ASX and JSE, is
available at the Company`s website, www.firestoneenergy.com.au
Highlights
-The assessment of the New Order Mining Right ("NOMR") Application by the
Department of Minerals Resources ("DMR") for the Waterberg coal project
("Waterberg Project") in Limpopo is ongoing and in progress;
-Ongoing progress with the Bankable Feasibility Study (BFS);
-Discussions with power producer(s) regarding off-take agreements and
other major consumers who have expressed interest in securing a supply of
coal from the Waterberg Project are ongoing; and
-The tender processes for opencast mining contractors and wash/processing
plant contractors are in progress and the appointment of preferred
service providers will be made in due course.
Post Quarter Events
-Parsons Brinckerhoff presented the results of the Feasibility Study
document on the Waterberg Project to Management and the Board;
-Agreement in principle on the terms of the draft Shareholders Agreement
incorporating and consolidating the three previous joint venture
agreements taking the JV Company closer to compliance with the relevant
requirements for the granting of mining title legislation; and
-Appointment of Sizwe Nkosi as Financial Director in the place of Amanda
Matthee who resigned to pursue other opportunities.
Planned Activities for next Quarter ending 31 December 2010
-Continue BFS and associated studies for the Waterberg coal mining
project. Meet with potential contractors and suppliers, and collate
within the BFS.
Commenting on the results today, John Dreyer, Chairman of FSE, said, "I am
pleased to announce that the Company`s Waterberg coal project continued to
be developed according to schedule. In addition, the Company is in advanced
stages of negotiations with the potential buyers of the Waterberg Project
thermal coal in Limpopo. Furthermore, the Company expects the granting of a
New Order Mining Right for its Waterberg Coal Project before the end of Q2
2011 and production is expected to follow within 12 months of concluding the
necessary offtake agreements and receiving the required legislative
approvals."
Firestone Energy Limited - September 2010 Quarterly Activities Report
OVERVIEW
Waterberg Coal Project - JV Project
The BFS is progressing well and Parsons Brinckerhoff has been mandated to
complete the Definitive Feasibility Study document on the Waterberg
Project, results of which were presented to Management and the Board
beginning of October 2010. The evaluation of the Waterberg Coal Project will
continue with a view to receiving necessary regulatory approvals.
Negotiations with potential developers, financiers and off-take parties will
be progressed as the final Feasibility Study is advanced.
As reported during Q2 2010, the New Order Mining Right Application for the
Waterberg Project was lodged and the Environmental Scoping Report was
submitted to the Department of Mineral Resources (DMR) during the quarter.
Specialist studies for the Environmental Impact Assessment and Environmental
Management Plan are almost complete and due to be submitted during Q4 2010.
Furthermore, an amended Acceptance Letter of the Waterberg Project New Order
Prospecting Right was submitted to the DMR for the inclusion of the
Duikerfontein and Swanepoelpan farms.
As previously announced, subject to the granting of the New Order Mining
Right, the current planning and project progress, suggests that the
Waterberg Project remains on schedule for delivering first coal in the
second half of 2012.
Negotiations with surface rights owners on the Waterberg Project is ongoing
to allow for the development of the required infrastructure once all
necessary legislative approval has been granted.
The tender processes for both the mining contractor and the supply of the
design and construction of a wash /processing plant are still in
progress. A Memorandum of Understanding will be signed in due course with
the preferred Service Providers.
Commitments will be made for procurement of long-lead items for the
Waterberg Coal Project, construction will commence following the receipt of
final regulatory approvals and transport alternatives will be progressed.
Marketing - Off-take Arrangements
Initially coal will be supplied to local markets within South Africa, and
other major consumers, which have also expressed interest in coal off-take
agreements. Logistics feasibility studies are being assessed as part of the
BFS.
Discussions are continuing with various parties regarding long term off-take
agreements for domestic and export coal mined at Waterberg; together with
the short and long term lean coal production. In addition, an offer for the
sale of thermal coal has been submitted to power producer(s).
CORPORATE
As at 30 September 2010 FSE had consolidated cash reserves of A$1.5million,
Management continues to monitor costs carefully and implement cost reduction
strategies were necessary.
Appointment of a Director
On 30 September 2010, the Company announced the appointment of Mr Sizwe
("Sizwe") Nkosi as Sekoko Resources` nominee director to the FSE Board,
effective from 3rd November 2010. Mr Nkosi replaced Ms Amanda Matthee, who
has resigned from Sekoko Resources and from the FSE Board as the director.
Mr. Nkosi is a registered South African Chartered Accountant and has a MBA
degree from the University of Cape Town`s Graduate School of Business. Sizwe
started his career with Foskor Limited as a Financial Manager and De Beers
as the Senior Management Accountant. Prior to joining the Company some three
years ago Sizwe worked for Investec Bank Limited "Investec", a reputable
South African merchant and investment bank, with a role focussed in mergers
and acquisitions.
For further information please contact:
Mr. John Dreyer
Chairman
Tel: +61 8 9381 2755
Fax: +61 8 9381 4799
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 Limpopo Province of South Africa.
The Company is committed to value-added growth through becoming an
independent coal and energy produces 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
Issued Capital:
2,331 million ordinary shares
Major Sharholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
John Dreyer (Chairman)
Timothy Tebeila (Deputy Chairman)
Colin McIntyre
John Wallington
Company Secretary
Jerry Monzu
Contact:
Level1, 63 Hay Street Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
Pretoria
22 October 2010
Sponsor and Corporate Advisor
River Group
Date: 22/10/2010 08:02:01 Supplied by www.sharenet.co.za
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