FERRUM CRESCENT LIMITED - Process engineering agreement signed with Danieli

Process engineering agreement signed with Danieli

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”)

PROCESS ENGINEERING AGREEMENT SIGNED WITH DANIELI C.
OFFICINE MECCANICHES. P.A.


Moonlight Iron Ore Project – South Africa:

Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron
ore developer in Northern South Africa, today announces
that it has signed an agreement (“the Agreement”) with
DANIELI C. Officine MeccanicheS. p.A. (“Danieli”), one of
the largest three suppliers of plant and equipment to the
metals industry worldwide, for the Italian based group to
fulfil the process engineering and associated technical
services to be used for the bankable feasibility study
(“BFS”) in process at the Moonlight Iron Ore Project in
South Africa.


Highlights:

- Ferrum enters into agreement with giant Italian iron and
steel making technology and equipment supplier, Danieli.
- Danieli to act as process engineer in BFS and in that
capacity to supply process engineering and other associated
technical services:
- Beneficiation Plant (“BP”) design at proposed Moonlight
open pit mine location comprising crushing, grinding and
beneficiation, tailings storage
- Pelletising Plant (“PP”) design, to produce direct
reduction (“DR”) grade pellet at a railhead for further
conveyance
- Laboratory testing and process work on Moonlight iron ore
to define and confirm the most suitable process
configuration of the BP and PP to produce high quality DR
grade pellet (based on metallurgical testwork).


- Additional engineering providers will be secured by
Ferrum for other components of the BFS (such as mine
design).
- Analysis by Ferrum of final pellet plant construction
location and related infrastructure near completion.

Danieli will carry out the role of process engineer in the
BFS and develop a full process engineering analysis and
final study for the beneficiation plant and the pelletising
plant build. It is anticipated that Moonlight will be
developed as an open-pit mine (using contract miners) with
on-site concentrate production. 

A slurry concentrate pipeline is to be built to transport 
concentrate from beneficiation to the pelletising plant near 
existing railhead, with return water to Moonlight. The pelletising
plant to produce 6Mtpa of iron ore oxide pellets for
international and domestic markets is planned with a
production of both direct reduction and blast furnace
grade.


Ferrum has sufficient confidence that the various upgrades
to infrastructure that have been announced by the South
African government and by its statutory enterprises such as
Transnet and Eskom will allow Ferrum to export its product
through Richards Bay and be in production by 2018.     

These upgrades to rail and port in particular are strategically
necessary to unlock the value of the Waterberg Region,
where the country’s most significant remaining coal
reserves are situated.    For this reason, rail, power, water
and port facilities are all being upgraded as a matter of
national priority.    In addition, initial scoping financial
models of the entire project indicate an attractive
business case which encourages the Company to progress
completion of the BFS over the next 12 to 18 month period.
Commenting today Ed Nealon, Chairman, said: “We are
delighted to enter into this relationship with Danieli, one
of the pre-eminent suppliers of plant and equipment in our
industry.    

Danieli has the expertise required to complete
the processing engineering side of the Moonlight Project.
It is now incumbent on us to secure the services of one or
more engineering groups to supply the other external
expertise needed to complete the BFS.    

Today’s Danieli Agreement, combined with that reached with 
Offtake partners Duferco SA, provide Ferrum with the backing 
to pursue development of a viable project, located near
infrastructure routes, capable of producing a DR grade iron
ore oxide product. Our work concluding the final pelletiser
plant location and route to market analysis is also near
conclusion and we look forward to announcing an update
shortly.”


For more 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 3440 6800
Jen Boorer   T: +44 (0) 20 3440 6800


Ferrum Crescent Limited
Laurence Read (UK representative)
T: +44 7557672432


South Africa enquiries

Sasfin Capital
Leonard Eiser    T: +27 11 809 7500


27 February 2013
Johannesburg


Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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