Wrap Text
FSE - Firestone Energy Limited - New `Met` Coal Mine
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")
New `Met` Coal Mine
Sound Mining Solutions (SMS) has submitted a mine design report (as attached)
which highlights approximately 100 million tonnes of Metallurgical (Met) Coal
being accessed via a large open cast (60%) followed by underground (40%)
within three of the farms in the Waterberg.
Optimised Open Cast
Following the recent geological studies on the southern farms of the
FSE/Sekoko Joint Venture, a preliminary Met coal open cast has been designed
on the shallow prime coal seams.
This open cast operation, which is within 500 metres of the proposed rail
siding installation, has a total of 58.8million ROM tonnes mainly from coal
seams 3 and 2 which have high Yields and Calorific Values (CV`s).
SMS have completed the preliminary optimised open cast over an extensive area
of 5.50km W-E to its widest point of 4.10km N-S, refer 3D models in figures
13,14,15 and 16 on pages 14 and 15 of the SMS report. This pit design
encompasses the majority of the prime coal seams 3, and 2 which have been
`thrust upwards` by strong regional faulting.
In the shallow, western half of the pit, the No.2 coal seam (zone) has
overburden cover of 25 to 30 metres, and has consistent thickness of around
3.8 metres. This coal is of excellent quality, and it is expected that markets
other than thermal power generation can be found. The maximum depth to pit
floor is 60 metres giving a strip ratio in this area of 4.40 BCM`s per ROM
tonne and has been identified as the ideal end to start mining operations.
A further 15 in fill holes are required to upgrade the resource to a
Measured/Indicated standard within the SAMREC/JORC codes.
The proposed excavation area occurs under the Vetleegte, Massenberg and
Hooikraal farms and to the north abuts onto the large Smitspan open cast which
will be the primary source of feed to accommodate the recent Eskom supply MOU.
Refer figure 1 on page 6 of SMS report. Some tonnages have been sterilised
near the eastern boundary shared with Exxaro.
Underground Mine
North wall access -
By accessing the deeper portions of the mining area from the open-pit high-
wall, some 20 million ROM tonnes from coal seams 2 and 1 can be recovered,
however more geotechnical work is required before this can be a substantive
mine plan.
Other underground potential -
Table 4 on page 23 indicates additional tonnes to be accessed since the lower
seams are still open in all directions.
Several options are being evaluated to access and develop the other stacked
seams in the west and south walls of the pit, refer 3D model in figures 6 and
7 on page 9 of the SMS report. This area requires additional drilling to
upgrade to SAMREC/JORC standards.
Low Phosphorous product
Section 5, table 2 on page 20 indicates consistent low phosphorous between
0.004% to 0.007%.
Although the Company is still awaiting final washability test results, the
preliminary data looks promising for high CV, high Yields, and low Moisture on
seams 3, 2 and 1. Please note the encouraging results for the raw data for
these lower seams outlined in table 5, page 26 of SMS report.
Chairman David Perkins stated "There is more exploration required within this
area, but the preliminary work is highly encouraging. Further Met test work
results are expected to confirm the high grade and thermal coal
specifications. This will give the board comfort that Firestone Energy has a
saleable prime coal product to meet supply shortfalls within South Africa."
David J Perkins
Chairman
www.firestoneenergy.com.au
Competent Persons Statement
Information contained in this announcement (and attached report) that relates
to exploration results, coal resources or reserves on the properties Smitspan
306LQ, Hooikraal 315LQ, Minnasvlakte 258LQ, Massenburg 305LQ, Swanepoelpan
262LQ, Duikerfontein 263LQ and Vetleegte304LQ is based on information compiled
by Mr Graham Peter Stripp who is employed by Sound Mining Solution (Pty) Ltd
and is a member of the South African Institute of Mining and Metallurgy. Mr
Stripp has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he 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" (The JORC Code). Mr Stripp
consents to the inclusion in the announcement of the matters based on his
information in the form and context in which it appears.
The full competent persons report is available on the compnay`s and ASX
website.
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:
2,627 million ordinary shares
Major Shareholders:
Sekoko Resources (Pty) Ltd
BBY Nominees Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
Non Executive Directors:
David Perkins (Chairman)
Dr Pius Kasolo
Colin McIntyre
Sizwe Nkosi
Peter Tshisevhe
Company Secretary
Jerry Monzu
Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (0)8 9287 4600
Web: www.firestoneenergy.com.au
Pretoria
17 March 2011
Sponsor and Corporate Advisor
River Group
Date: 17/03/2011 08:21:01 Supplied by www.sharenet.co.za
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