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December 2013 Quarterly Activities Report
FIRESTONE ENERGY LIMITED
(Incorporated in Australia)
Registration Number: ABN 058 436 794
Share Code on the JSE: FSE
Share Code on the ASX:FSE
ISIN AU000000FSE6
(SA Company Registration Number: 2008/023973/10)
About Firestone Energy
DECEMBER 2013 QUARTERLY Firestone Energy Limited is an independent,
Australian exploration and development
ACTIVITIES REPORT company listed on the Australian Stock
Exchange Ltd (ASX) and the Johannesburg
Stock Exchange (JSE). Firestone Energy has
During the quarter, Firestone Energy Limited (FSE or The Company), a party entered into a Joint Venture with Sekoko
to the Waterberg Coal Project Joint Venture, continued to progress matters Resources (Pty) Ltd through which Firestone
relating to the proposed development of an opencast mining operation to Energy has acquired the right to 60%
participation interests in the Waterberg Coal
produce 10 million tonnes per annum of coal (product) to Eskom, the South
Project located in Lephalale area, Limpopo
African parastatal power utility. Province, South Africa.
The material matters attended to during the quarter include as follows: The first stage of the project is to develop
the Smitspan mine which has a substantial
Updated Resource Statement measured thermal coal resource and to
develop the Vetleegte mine which is a
substantial metallurgical coal deposit.
An updated Independent Competent Persons Resource Statement was released
which reflect the increased borehole database following the completion of the Firestone Energy is committed to becoming a
2013 drilling programme and associated sample analysis on the Waterberg Coal profitable independent coal and energy
Project Properties. The Resource Statement was prepared on behalf of the producer at its projects in South Africa,
Waterberg Coal Project Joint Venture Partners (WCJVP) by Gemecs (Pty) thereby making a substantial contribution to
the social and economic development of the
Limited in their capacity as Independent Competent Persons. For more detailed
Lephalale area and South Africa.
information on the Independent Competent Persons Resource Statement please
refer to the ASX announcement dated 24 October 2013. Corporate Details
ASX: FSE
JSE: FSE
The resource statement for the Waterberg Coal Project now stands at 3.88 billion
tonnes of coal with coal in the measured category of 2.07 billion tonnes (Table Issued Capital:
3,549 million ordinary shares
1)1. This represents a substantial increase in the coal resource for the Project.
Previously, SRK Consulting (December 2012) declared a Coal Resource of Major Shareholders:
1.183 billion tonnes on the two farms Smitspan and Massenberg, of which 1.004 The Waterberg Coal Company Ltd
billion tonnes was in the Measured category. Directors and Officers
Non Executive Directors:
Brian McMaster
George Oupa Magashula
Table 1 – Coal Resource on all six Waterberg Coal Project Properties
under both Prospecting Permit and Mining Right Officers:
Mr Stephen Miller CEO and Executive
Director
Coal Ms Amanda Matthee CFO
Resource Ash CV Mr Jonathan Hart Company Secretary
Resource Vol % TS %
2 % IM % (ad) (Mj/kg)
Classification (ad) (ad)
(ad) (ad)
(Mt) Contact:
Level1, 330 Churchill Avenue Subiaco
Western Australia 6008
Measured 2,070.3 57.9 2.2 17.6 10.51 0.96 Tel: +61 (08) 9200 4465
Fax:+61(08) 9200 4469
Indicated 8,56.3 59.4 2.3 17.2 9.96 1.00 Web: www.firestoneenergy.com.au
Inferred 956.7 58.9 2.2 17.5 10.26 1.03
Total
3,883.3 58.5 2.2 17.5 10.33 0.99
Resources
Coal Resource 2 based on minimum thickness cut-off of 0.5m
Interaction with Lenders
WCJVP mandated The Standard Bank of South Africa Limited (SBSA), to arrange project finance
for the Project. Accruing from this mandate, SBSA has now appointed Independent Technical
Consultants to review all technical matters on behalf of the project financiers.
Plant EPC and Mining Contractor contracts
During the quarter, the project team commenced discussions with local and international process
engineering firms for the design, manufacture, supply, delivery, assembly, installation and
commissioning of a 22mtpa CHPP project in a phased approach within an EPC framework. The
successful EPC bid is expected to be announced during Q1, 2014.
The project team is also examining tender prices from mining contractors to load and haul between
40 million and 60 million cubic metres of material per annum, an exercise which will require a fleet
of 40 x 240 tonne trucks.
Water Use License (IWULA)
The Environmental work for the IWULA submission was completed during the quarter. Consultants
and the submission is ready to submit to the Department of Water Affairs
Stakeholder engagement
Generally, throughout the quarter, regular and productive engagement by the Project technical
team with project strategic stakeholders is ongoing. These discussions include, inter-alia,
Eskom, the Department of Water Affairs, and Transnet Freight Rail for the timely delivery of
services to the project. These discussions for proposed arrangements for the delivery of service
are progressing well.
Corporate Activities
Board Changes
Mr Tim Tebeila and Mr David Knox have announced their retirement from the Board. Mr Ben
Mphahlee, Mr Pius Kasolo and Mr David Knox were not re-elected at the Company’s annual general
meeting and Mr George Oupa Magashula has been appointed to the Board as a Non – Executive.
Funding
The short term loan from BBY Limited amounting to $250k has been repaid.
Yours sincerely
Stephen Miller
Chief Executive Officer
www.firestoneenergy.com.au
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Note 1: Please note that this information was prepared and first disclosed under the JORC Code 2004. It has not been
updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it
was last reported.
Note 2: Competent Person Statement
Gemecs (Pty) Limited was commissioned by the Waterberg Coal Project Joint Venture Partners, 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.
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Appendix 1 – Tenement Table
The Company’s interest in the Waterberg Coal Project, located in South Africa:
Properties Right under Relevant Holder Interest* at Issue Date Expiry Date
which the Joint beginning
properties are Venture and end of
held quarter
Vetleegte Vetleegte First Joint Uzalile 60% Granted New Renewal lodged 19
Prospecting Venture Joint Order September 2011 and
Right Venture Prospecting prior to the expiry date.
(Sekoko Right No.
Resourc 651/2006, on Section 18(5) of the
es and 19/10/06 MPRDA provides that
Uzalile) prospecting right in
respect of which an
application for renewal
has been lodged will
remain in force until
such time as the
renewal application has
been granted or
refused.
Olieboomsfontein Duikerfontein First Joint Sekoko 60% Granted New 3 July 2016
Prospecting Venture Coal Order
Right Prospecting
Right No.
681/2007, on
13/10/05.
Renewal on 3
July 2013
Duikerfontein Duikerfontein First Joint Sekoko 60% Granted New 3 July 2016
Prospecting Venture Coal Order
Right Prospecting
Right No.
681/2007, on
13/10/05.
Renewal on 3
July 2013
Swanepoelpan Duikerfontein First Joint Sekoko 60% Granted New 3 July 2016
Prospecting Venture Coal Order
Right Prospecting
Right No.
681/2007, on
13/10/05
Smitspan Mining Right Second Sekoko 60% Granted New 16/09/2041
Joint Venture Coal Order Mining
Right No.
22/2011, on
17/09/11
Massenberg Mining Right Second Sekoko 60% Granted New 16/09/2041
Joint Venture Coal Order Mining
Right No.
22/2011, on
17/09/11
Minnasvlakte Mining Right Second Sekoko 60% Granted New 16/09/2041
Joint Venture Coal Order Mining
Right No.
22/2011, on
17/09/11
Hooikraal Mining Right Second Sekoko 60% Granted New 16/09/2041
Joint Venture Coal Order Mining
Right No.
22/2011, on
17/09/11
* Firestone Energy has entered into a Joint Venture with Sekoko Coal Pty Ltd through which the Company has
acquired the right to a 60% “participation interest” in the project area that forms The Waterberg Joint Venture.
Summary of Expenditure Incurred per Project
Project Quarter Cash Spend
$A’000
The Waterberg Coal Project 202
Total 202
31 January 2014
Johannesburg
Sponsor
River Group
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