Wrap Text
Quarterly Activities Report for the
Period to 30 June 2013
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
Quarterly Activities Report for the development company listed on the
Period to 30 June 2013 Australian Stock Exchange Ltd (ASX) and
the Johannesburg Stock Exchange (JSE).
The Board of Firestone Energy Limited (ASX/JSE: FSE) (the Firestone Energy has entered into a Joint
“Company”, "FSE" or “Firestone”) is pleased to provide Shareholders with Venture with Sekoko Resources (Pty) Ltd
through which Firestone Energy has
its Quarterly Activities Report for the 3 month period ended 30 June 2013.
acquired the right to 60% participation
interests in the Waterberg Coal Project
The Waterberg Coal Project: The Definitive Feasibility Study
located in Lephalale area, Limpopo Province,
South Africa.
During the quarter, the Waterberg Joint Venture Partners continued the
progression of the Definitive Feasibility Study (“DFS”) on the proposed The first stage of the project is to develop the
development of an opencast mining operation to produce 10 Million tonnes Smitspan mine which has a substantial
of coal (product) per annum to Eskom for an initial term of 30 years measured thermal coal resource and to
pursuant to the Memorandum of Understanding (“MOU”) that the joint develop the Vetleegte mine which is a
venture entered into with Eskom in March 2012 (as amended). substantial metallurgical coal deposit.
The production of the DFS is one of the Conditions Precedent in the Firestone Energy is committed to becoming a
process of converting the current Eskom MOU to a Coal Supply Agreement. profitable independent coal and energy
The Chapters of the DFS are in final draft stage, and the technical team are producer at its projects in South Africa,
currently interrogating the financial model as prepared by SRK and thereby making a substantial contribution to
reviewing the proposed mine plan. the social and economic development of the
Lephalale area and South Africa.
As part of the DFS, the technical team are engaging with strategic
Corporate Details
stakeholders, including inter-alia, Eskom, the Department of Water Affairs, ASX: FSE
and Transnet Freight Rail about the delivery of services to the project. JSE: FSE
These discussions regarding proposed arrangements for the delivery of
Issued Capital:
service are progressing well. 3,549 million ordinary shares
Based on current discussions and arrangements; and subject to Major Shareholders:
The Waterberg Coal Company Ltd
confirmation of funding arrangements, project start-up and pre-production Sekoko Resources (Pty) Ltd
works is expected to commence in January 2014; and coal production (of Linc Energy Ltd
product) is expected to commence in the 2nd half of 2015. BBY Nominees Pty Ltd
Directors and Officers
Drilling
Non Executive Directors:
All Phase 2 drilling to delineate major faults on the Smitspan Project area, Tim Tebeila (Chairman)
Dr Pius Kasolo
and extend the resources on Smitspan and Massenberg, was completed Ben Mphahlele
during the June quarter. Drill samples have been submitted to the Brian McMaster
laboratory; and sample results are expected at the end of July 2013. David Knox
Officers:
A further 55 boreholes are planned in order to upgrade the geological Mr Stephen Miller CEO and Executive
confidence from inferred to indicated levels on the remaining farms. 30 of Director
the holes are scheduled to be drilled on Hooikraal, and the remainder on Ms Amanda Matthee CFO
Mr David McEntaggart Company Secretary
Massenberg, Swanepoelpan and Vetleegte. The drill rigs are already on
site at Massenberg.
Contact:
Level1, 33 Richardson St, West Perth,
Western Australia 6005
Tel: +61 (08) 9200 4465
Fax:+61(08) 9200 4469
Web: www.firestoneenergy.com.au
Interim Resource Statement
During the June quarter SRK released an Interim Resource Statement1, covering the Smitspan
and Massenberg properties only. The updated Resource Statements2 reflect a resource
tonnage of 1,090.88 Million tonnes (“Mt”) at Measured Status, 69.04 Mt at Indicated Status,
and 23.27 Mt at inferred Status for Smitspan and Massenberg. The balance of the resources
on the farms held under Mining Rights and Prospecting Rights are not included in this estimate
and reflect further potential.
Geological Model
A new contract has been negotiated with Sable© to maintain and update the Sekoko
Geological Database. The updated database will be passed onto Gemecs Pty Limited, who
will create a new Geological Model incorporating the data, to be used for both a Resource
update and further mine planning and value engineering pursuant to the DFS.
Surface rights
During the quarter, negotiations for the purchase of surface rights, commenced with the
surface rights holders. It is expected that agreements with current owners will be finalised
during the next quarter.
Corporate Activities
There were several board changes during the quarter with the resignation of Mr David Perkins,
deputy chairman, Mr Oren Zohar, Mr Jack James and Mr Kobus Terblanche. Mr Brian
McMaster, Mr Stephen Miller and Mr David Knox were appointed to the board. Additionally, Mr
Stephen Miller was appointed CEO of the Company to replace Mr David Knox.
The Company continued discussions during the quarter with interested parties regarding the
future funding for Firestone. Discussions are on-going. The Company received notification
during the quarter that the Waterberg Coal Company’s off-market takeover bid for all the
ordinary shares in Firestone had been extended to 30 July 2013.
Yours sincerely
Stephen Miller
Chief Executive Officer
www.firestoneenergy.com.au
Footnote:
1
Competent Persons Statement: Information in this announcement that relates to exploration results, coal resources or reserves on the properties
Smitspan 306LQ and Massenberg 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 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.
2
This resource upgrade and attaching report was advised to the market and lodged with ASX on 28th May 2013.
30 July 2013
Johannesburg
Sponsor
River Group
Date: 30/07/2013 08:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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