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Independent Competent Persons Resource Statement - October 2013
FIRESTONE ENERGY LIMITED About Firestone Energy
(Incorporated in Australia)
(Registration number ABN 058 436 794) Firestone Energy Limited is an
Share code on the JSE Limited: FSE independent, Australian exploration and
development company listed on the
Share code on the ASX: FSE
Australian Stock Exchange Ltd (ASX) and
ISIN: AU000000FSE6
the Johannesburg Stock Exchange (JSE).
(SA company registration number 2008/023973/10) Firestone Energy has entered into a Joint
Venture with Sekoko Resources (Pty) Ltd
("FSE" or "the Company" through which Firestone Energy has
acquired the right to 60% participation
24 October 2013
interests in the Waterberg Coal Project
located in Lephalale area, Limpopo Province,
Independent Competent Persons Resource Statement - South Africa.
October 2013 The first stage of the project is to develop the
Smitspan mine which has a substantial
As previously advised to the market, The Waterberg Coal Joint Venture Partners measured thermal coal resource and to
commissioned a definitive feasibility study (DFS) in June 2012 for the proposed develop the Vetleegte mine which is a
development of The Waterberg Coal Project predicated on the then insitu coal resource substantial metallurgical coal deposit.
and the Memorandum of Understanding (MOU) entered into with Eskom for an off-take
of 10 million tonnes per annum (mtpa). Firestone Energy is committed to becoming a
profitable independent coal and energy
Firestone Energy Limited (FSE) is pleased to report the results of the updated Resource producer at its projects in South Africa,
Statement for the Waterberg Coal Project Properties, prepared on behalf of the thereby making a substantial contribution to
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Waterberg Coal Project Joint Venture Partners by Gemecs (Pty) Limited in their capacity the social and economic development of the
as Independent Competent Persons. Lephalale area and South Africa.
The updated Resource Statement reflects the considerably increased borehole database Corporate Details
following the completion of the 2013 drilling program and associated sample analysis on ASX: FSE
JSE: FSE
the Waterberg Coal Project Properties.
Issued Capital:
The Resource Statement covers the properties of the four farms under Mining Right in the 3,549 million ordinary shares
Waterberg (Smitspan, Massenberg, Hooikraal and Minnasvlakte), and the two farms held
Major Shareholders:
under Prospecting Permit (Vetleegte and Swanepoelpan). The Waterberg Coal Company Ltd
1. The Coal Resource for the four farms held under the Mining Right is 3.149 billion Directors and Officers
tonnes, of which 2.053 billion tonnes is a Measured Resource, 575.6 million tonnes is
Non Executive Directors:
Indicated, and 519.5 million tonnes is Inferred (Table 1). Tim Tebeila (Chairman)
Dr Pius Kasolo
Ben Mphahlele
Table 1 – Coal Resource on the four Waterberg Coal Project Properties held under Brian McMaster
Mining Right David Knox
Coal Ash % IM % Vol % CV (Mj/kg) TS % Officers:
Resource
Resource ¹ (ad) (ad) (ad) (ad) (ad) Mr Stephen Miller CEO and Executive
Classification
(Mt) Director
Measured 2053.9 57.9 2.2 17.6 10.49 0.96 Ms Amanda Matthee CFO
Indicated 575.6 58.0 2.2 17.5 10.56 0.99
Inferred 519.5 58.8 1.9 17.6 10.51 1.03
Total Contact:
3149.0 58.1 2.2 17.6 10.51 0.98 Level1, 330 Churchill Avenue Subiaco
Resources Western Australia 6008
Coal Resource ¹ based on minimum thickness cut-off of 0,5m Tel: +61 (08) 9200 4465
Fax:+61(08) 9200 4469
The coal qualities, reflected in the Resource Statement, are those for Raw Coal and do not Web: www.firestoneenergy.com.au
represent washed coal qualities.
Indicative washed qualities for the coal using a float of 2.0 gm/cm2 are shown in Table 2
below.
Table 2 – Typical air-dried washed quality values for Coal Resource on the Waterberg
The
2. Coal
Coal Project Properties held under Mining Right
Resource for
Ash % (ad) IM % (ad) Vol % (ad) CV (Mj/kg) (ad) TS % (ad)
the two farms
35.3 2.6 23.9 19.12 0.87
held under the
Values based on Primary Product at Wash density of 2.0 gm/cm2
Prospecting
Permit is 734 million tonnes, of which 16.4 million tonnes is a Measured Resource, 280.7 million tonnes is
Indicated, and 437.2 million tonnes is Inferred (Table 3).
Table 3 – Coal Resource on the two Waterberg Coal Project Properties under Prospecting Permit
Coal Resource
Resource Classification ¹ Ash % IM % Vol % CV (Mj/kg) TS %
(Mt)
Measured 16.4 53.23 1.63 19.18 12.38 1.18
Indicated 280.7 62.16 2.52 16.75 8.74 1.02
Inferred 437.2 58.97 2.46 17.32 9.96 1.03
Total Resources 734.3 60.1 2.5 17.1 9.55 1.03
Coal Resource ¹ based on minimum thickness cut-off of 0,5m
3. The total Coal Resource on all six of the properties held under both the Mining Right and Prospecting Permit,
is 3.883 billion tonnes, of which 2,070 billion tonnes is a Measured Resource (Table 4).
Table 4 – Coal Resource on all six Waterberg Coal Project Properties under both Prospecting Permit and
Mining Right
Coal Resource
Ash % IM % Vol % CV (Mj/kg) TS %
Resource Classification ¹
(ad) (ad) (ad) (ad) (ad)
(Mt)
Measured 2070.3 57.9 2.2 17.6 10.51 0.96
Indicated 856.3 59.4 2.3 17.2 9.96 1.00
Inferred 956.7 58.9 2.2 17.5 10.26 1.03
Total Resources 3883.3 58.5 2.2 17.5 10.33 0.99
Coal Resource ¹ based on minimum thickness cut-off of 0,5m
The updated Resource Statement represents a significant increase in the coal resource of the Waterberg Coal
Project Properties. SRK Consulting (Pty) Limited (December 2012) declared a Coal Resource of 1.183 billion
tonnes on the two farms Smitspan and Massenberg only, of which 1.004 billion tonnes was in the Measured
category (as part of the DFS process).
The doubling of the Measured Resource to 2.0 billion tonnes gives the project technical team the flexibility to
optimise the SRK Bankable Feasibility Study mine plan, currently set up to supply 10 million tonnes of coal
product per annum to Eskom. Optimisation of the mine plan could have a favourable impact on yields, operating
costs, and annual tonnes mined.
Additional Drilling
The joint venture partners have advised that there is an intention to carry out further and additional drilling on
the properties to further increase the minable resources so that the project partners have additional flexibility in
planning for the proposed start-up of the project.
The Eskom MOU
The Waterberg Coal Joint Venture partners (through Sekoko Coal) have executed an MOU with Eskom for the
supply of 10 million tonnes of coal product per annum; commencing mid-2015. Currently, the joint venture
partners are in the process of working through a formal Coal Supply Agreement (CSA) to reflect the salient terms
and conditions for the supply of the coal.
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The Bankable Feasibility Study
The project partners in the Waterberg Coal Project advise that the technical work on the Bankable Feasibility
Study (BFS) has now been completed. The project partners expect to publish the findings to the market in the
next 2 weeks following compilation of the final outstanding reports.
Yours sincerely
Stephen Miller
Chief Executive Officer
www.firestoneenergy.com.au
Note 1: Competent Person Statement
Gemecs (Pty) Limited was commissioned by Firestone Energy Limited "FSE", to undertake an Updated
Independent Persons Geological Report for the Sekoko Waterberg Coal Project.
The Coal Resources were estimated in accordance with the South African code for the Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC Code”), Australasian Code for
Reporting of Exploration Results. Mineral Resources and Ore Reserves (“the JORC Code”) and South
African National Standard (SANS 10320:2004) guidelines.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore
Reserves is based on information compiled by Mr Coenraad D van Niekerk, Pr.Sci.Nat (Reg. No
400066/98), M.Sc Hons (Geology), MDP, an employee of Gemecs (Pty) Limited, who is a Fellow of the
Geological Society of South Africa. Mr Niekerk is a mining geologist with 38 years’ experience in the
mining industry, sufficient experience 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. Mr Niekerk consents to the inclusion in the announcement of the matters based on
this information in the form and context in which it appears.
24 October 2013
Johannesburg
Sponsor
River Group
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