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Interim resource statement, project timeline and BFS update
FIRESTONE ENERGY 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")
About Firestone Energy
Firestone Energy Limited is an
independent, Australian exploration and
development company listed on the
Australian Stock Exchange Ltd (ASX) and
the Johannesburg Stock Exchange (JSE).
INTERIM RESOURCE STATEMENT, PROJECT TIMELINE and Firestone Energy has entered into a Joint
BFS UPDATE Venture with Sekoko Resources (Pty) Ltd
through which Firestone Energy has
acquired the right to 60% participation
Firestone Energy Limited (ASX/JSE: FSE) (“Firestone” or the interests in the Waterberg Coal Project
“Company”), wishes to advise that following a period of extensive located in Lephalale area, Limpopo Province,
drilling activity, the Company is pleased to report the results of an South Africa.
interim Resource Statement as prepared by SRK Consulting.
The first stage of the project is to develop the
Smitspan mine which has a substantial
Interim Resource Statement measured thermal coal resource and to
develop the Vetleegte mine which is a
The interim Resource Statement covers only two properties of the substantial metallurgical coal deposit.
four farms held by Sekoko Coal (a subsidiary of Sekoko Resources
Firestone Energy is committed to becoming a
(Pty) Ltd) under a Mining Licence in the Waterberg being, profitable independent coal and energy
Smitspan and Massenberg, and states the resource tonnage as producer at its projects in South Africa,
equal to 1,090.88 Mt at Measured Status, 69.04 Mt at Indicated thereby making a substantial contribution to
Status, and 23.27 Mt at inferred Status. the social and economic development of the
Lephalale area and South Africa.
The balance of the resources on the farms held under Mining
Corporate Details
Licence and Prospecting Licences are not included in this ASX: FSE
estimate and reflect further potential. JSE: FSE
Table 1: Smitspan and Massenberg Coal Resource Statement as Issued Capital:
3,549 million ordinary shares
at 31 December 2012
Major Shareholders:
Waterberg Coal Company
Million Ash CV IM TS VM TYL Sekoko Resources (Pty) Ltd
Linc Energy Ltd
tons (%) (MJ/kg) (%) (%) (%) (%) BBY Nominees Pty Ltd
Measured Directors and Officers
Resource 1,090.88 52.27 12.91 2.39 1.29 19.52 48.03
Non Executive Directors:
Indicated Mr Tim Tebeila (Chairman)
Resource 69.04 51.72 13.38 2.58 1.35 19.23 49.70 David Perkins (Deputy Chairman)
Dr Pius Kasolo
Inferred Ben Mphahlele
Resource 23.27 59.13 14.19 2.74 1.59 20.84 52.21 Kobus Terblanche
Oren Zohar
Total Jack James
Resource 1,183.19 52.36 12.96 2.41 1.30 19.53 48.20
Officers:
Mr David Knox CEO
The coal qualities, reflected in the Resource Statement, are those Ms Amanda Matthee CFO
for Raw Insitu Coal and do not represent the washed coal Mr Jerry Monzu Company Secretary
qualities. The beneficiated tonnages will be reported in the
completed BFS. Contact:
Suite B9, 431 Roberts Road
Subiaco, Western Australia 6008
Tel: +61 (08) 9287 4600
Project Timeline and BFS Update
The Technical Team have confirmed that the Bankable Feasibility Study ("BFS") is
currently scheduled to be completed by the end of June 2013. The delivery of the
BFS is one of the key Conditions Precedent ("CP") in the process of converting the
current Eskom MoU, to supply 10 million tonnes per annum, to a Coal Supply
Agreement ("CSA").
The finalising of a CSA would include several CP's to be met, including that;
1. Eskom are satisfied with the quality of the coal; and
2. An agreement is finalised on the price of the coal to be supplied and
purchased. The coal price negotiations are expected to commence during
2nd Half 2013 and Eskom have indicated that they may embark on a bulk
sample burn test to confirm the coal qualities, the results of which may be
available in 1st half 2014.
Based on the current timetable, production is expected to commence during 2nd
Half 2015, between 12 to 18 months after the completion of the CSA and the
confirmed drawdown of project financing facilities.
Yours sincerely,
David Knox
Chief Executive Officer
www.firestoneenergy.com.au
Tel: Australia (+61 08 9287 4600)
South Africa (+27 11 706 3548)
Competent Persons Statement
Information in this announcement that relates to exploration results, coal resources or reserves on the properties
Smitspan 306LQ and Massenburg 305LQ is based on information compiled by Mr Sello Nzama. Mr Nzama who is
employed by SRK Consulting (Pty) Ltd is a member of the South African Council for Natural Scientific Professions.
Mr Nzama 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 Nzama consents to the inclusion in the announcement of the matters based on his
information in the form and context in which it appears.
About Sekoko Resources
Sekoko Resources (Pty) Ltd is a South African-based black-owned energy and minerals company
developing the coal, magnetite iron ore and PGMs Projects in the Limpopo Province of South Africa.
This includes a significant exploration program and development of the Waterberg Coal Joint Venture
Project based on significant Coal Zone Resources. Sekoko is targeting to commence operations in 2012,
thus forming the basis for developing a global coal business.
Johannesburg
28 May 2013
Sponsor
River Group
2
Date: 28/05/2013 10:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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