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FCR - Ferrum Crescent Limited- Iron Ore Project Mining Right Granted
FERRUM CRESCENT LIMITED
(Previously Washington Resources 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 ISIN: AU000000FCR2
("Ferrum Crescent" or the "Company")
Moonlight Iron Ore Project Mining Right Granted
Highlights:
- Mining right granted in respect of the Moonlight Iron Ore Project
in Limpopo Province of South Africa, covering three farms called
"Moonlight", "Julietta" and "Gouda Fontein"
- Existing JORC compliant mineral resource on Moonlight farm of 307.8
million tonnes @ 26.9% Fe
- Inferred category of 172.1 Mt @ 25.3% Fe, Indicated of 83.0 Mt
@ 27.4% Fe, Measured 52.6 Mt @31.3% Fe
- The Company will proceed with planned drilling campaign to expand
the JORC compliant resource, with the drilling programme focussing
on the part of the deposit situated within the farms Julietta and
Gouda Fontein, in areas drilled in circa 1990 by Iscor (1)
- Additional exploration to commence by the commissioning of a high-
resolution airborne magnetic survey and drilling at the earliest
opportunity
(1) The former South African Iron and Steel Corporation, parts of
which are now Kumba Iron Ore Limited
Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in
Limpopo Province, South Africa, today announces the grant of its new order
mining right in respect of the Moonlight Iron Ore Project for the iron ore
deposit located within the farms Moonlight, Julietta and Gouda Fontein. The
Company has received written confirmation from the South African Department
of Mineral Resources of the grant of the new order mining right in terms of
the Minerals and Petroleum Resources Development Act 28 of 2002, effective
for a term of thirty years. Its first activity on the ground will be the
implementation of a drilling programme within the area covered by the
Moonlight mining right, on the farms Julietta and Gouda Fontein to expand the
Mineral Resources. It is anticipated that upwards of 10,000m of drilling
will be carried out, consisting of both RC and core drilling. The purpose of
the drilling is to establish a total resource estimate for the deposit on all
three farms.
The grant of the Moonlight mining right represents the fulfilment of one of
the principal conditions precedent to the completion of the Company`s BEE
transaction by completion of the "flip". The flip is the process whereby the
interest of Mkhombi AmaMato (Pty) Ltd, the BEE controlled company that holds
an effective 15.6% interest of the Moonlight Iron Ore Project through its
indirect shareholding in Turquoise Moon Trading 157 (Pty) Ltd (holds the
Moonlight Project), will effectively swap that project interest for shares in
Ferrum Crescent. The other substantive conditions precedent to the
completion of the flip is Ferrum Crescent shareholder approval, and the
Company plans to hold a shareholders` meeting for this purpose as soon as
practicable. Ferrum Crescent currently owns 81.4% of the Moonlight Project
and at the completion of the flip, will hold an effective 97% of Moonlight,
with the remaining 3% being held by a trust representing the local community
that will be directly affected by Moonlight mining activities.
Executive Chairman Ed Nealon commented, "The grant of the Moonlight mining
right allows us to proceed to advance the Moonlight Project."
"We have a drilling programme planned for Julietta and Gouda Fontein, where
we know that Iscor drilled in the 1980/90s and encountered extensive
magnetite mineralisation, and we are confident that we will add significantly
to the JORC-compliant Moonlight resource, which currently stands at 307.8
million tonnes at 26.9% Fe, over 52 million tonnes of which is in the
measured category. This programme will now be carried out, along with an
aeromagnetic survey over these three farms and adjacent areas."
The Mineral Resources at Moonlight are now estimated to be as follows:
Category Gross Net (attributable to Ferrum
Crescent at 81.4%)
Tonne Fe SiO2 Al2O3 Cont Tonne Fe SiO2 Al2 Conta
(Mt) (%) (%) (%) aine (Mt) (%) (%) O3 ined
d Fe (%) Fe
Meta Metal
l (Mt)
(Mt)
Inferred 172.1 25.3 51.2 4.8 43.5 140.1 25.3 51.2 4.8 35.4
Indicated 83.0 27.4 50.1 4.0 22.7 67.6 27.4 50.1 4.0 18.5
Measured 52.6 31.3 47.3 2.5 16.5 42.8 31.3 47.3 2.5 13.4
Total 307.8 26.9 50.3 4.2 82.8 250.5 26.9 50.3 4.2 67.4
Tonnes are rounded
Note: Ferrum Crescent is the operator and owns 81.4% of the Moonlight Project
For further information, please visit www.ferrumcrescent.com or contact:
Australia and Company enquiries:
Ferrum Crescent Limited
Ed Nealon -T: +61 8 9380 9653
Executive Chairman
Bob Hair -T: +61 414 926 302
Managing Director
UK enquiries
Ocean Equities Limited (Broker)
Guy Wilkes T: +44 (0)20 7786 4370
RFC Ambrian Limited (Nominated Adviser)
Richard Morrison T: +44 (0) 20 7634 4700
Jen Boorer T: +44 (0) 20 7634 4700
Newgate Threadneedle (Financial Pr)
Graham Herring/Beth Harris T: +44(0)20 7653 9850
South African enquiries:
Sasfin Capital
Leonard Eiser T+27 11 809 7500
5 June 2012
Competent Persons` Statement:
The information that relates to Exploration Results and Mineral Resources in
the report of which this statement is a summary, is based on information
compiled by Stewart Nupen, who is registered with the South African Council
for Natural Scientific Professionals (Reg. No. 400174/07) and is a member of
the Geological Society of South Africa. Mr. Nupen is employed by The Mineral
Corporation, which provides technical advisory services to the mining and
minerals industry. Mr. Nupen 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 Reporting
Exploration Results, Mineral Resources and Ore Reserves`. Mr. Nupen consents
to the inclusion in this statement of the matters based on his information in
the form and context in which it appears.
Date: 05/06/2012 08:00:01 Supplied by www.sharenet.co.za
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