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FERRUM CRESCENT LIMITED - First BFS Drill Programme Complete and Potential New Mineralisation Discovered, South Africa

Release Date: 02/02/2015 08:00
Code(s): FCR     PDF:  
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First BFS Drill Programme Complete and Potential New Mineralisation Discovered, South Africa

FERRUM CRESCENT 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: AU000000WRL8

2nd February 2015

                                       Ferrum Crescent Limited
            ("Ferrum Crescent", the "Company" or the "Group")(ASX: FCR, AIM: FCR, JSE: FCR)

     First BFS Drill Programme Complete and Potential New Mineralisation Discovered, South Africa

Highlights
    - First BFS drilling programme concluded at Moonlight Iron Ore Project, South Africa
    - All holes intersected magnetic zones across various depths
    - Exploration results expected March 2015
    - Objectives to investigate the extent of northern most mineralised area, and provide information to
      inform pit location and locations for bulk sampling for the BFS metallurgical testwork
    - During programme new prospective area also identified outside of JORC (2012) resource
    - Drilling part of BFS recommencement begun in Q4 2014 - results part of mine/processing design
      and costing phase of the development study

Ferrum Crescent, the ASX, AIM and JSE Limited quoted iron ore developer, today announces that it has
completed an RC drilling programme as part of the bankable feasibility study (“BFS”) being undertaken at
the Company’s Moonlight Iron Ore Project (“Moonlight” or “the Project”) in Limpopo Province, South
Africa. Although not an objective of the programme, drill hole FCL 104 also intersected a new magnetic
zone, and potentially a new area of mineralisation, to the northern most mineralised area (Zone D).

The current drilling programme commenced in Q4 2014 following the formal restart of development at the
Project. The drilling programme was designed to investigate the extent of Zone D, and provide information
to inform the location of the mine, in addition to identifying areas where bulk sampling for the requisite
levels of metallurgical testwork should take place during the next stage of the Company’s BFS.

The drill programme comprised of 10 holes drilled (cumulative metres 1396) and was completed ahead of
time and below budget. All holes intersected magnetic zones across various depths and samples are
currently being analysed. An independent report on these exploration results from The Mineral
Corporation is expected during March 2015.

The results will enable the Company to finalise plans for the location and design of the open pit mine at
Moonlight, for inclusion in the final BFS. With the final locations also identified for definitive metallurgical
sampling operations, Ferrum Crescent can work towards recovering samples representative of the planned
run of mine of iron ore at Moonlight. These large-scale samples will be processed and allow for plant
engineering partners to conclude design and economics for a direct reduction (DR) pellet plant. Following
conclusion of all mine and processing assessments, the last stage of the development study can be
progressed: establishing optimal infrastructure agreements with government agencies operating in the
surrounding area.

Ferrum Crescent also awaits the exploration results from a potentially new mineralised area that has been
identified to the North of Zone D. Further updates will be announced to the market following processing of
results and interpretation by the Company and The Mineral Corporation.

Commenting today Tom Revy, CEO, said: “Following our decision to restart the Moonlight BFS at the end of
2014 I am delighted to see this phase of drilling completed ahead of schedule and under budget. Although
not anticipated as part of the programme, we have also identified a new prospective area, an event that
gives a clear indication of Moonlight’s upside outside of the established resource. Alongside new study
manager Ed Alymer, our objective is to now develop the final pit designs and be in a position to progress all
work on beneficiation as soon as possible. Moonlight is a realisable DR project with nearby infrastructure, a
premium product, an established resource and a secured mining licence. Further news will be announced
on the BFS shortly.”


For more information, please visit www.ferrumcrescent.com or contact:


 Australia enquiries:                          UK enquiries:
 Ferrum Crescent Limited                       Ferrum Crescent Limited
 Tom Revy T: +61 8 9367 5681                   Laurence Read (UK representative)
 Managing Director                             T: +44 7557672432

                                               RFC Ambrian Limited (Nominated Adviser)
                                               Andrew Thomson/Oliver Morse
                                               T: +61 8 9480 2500

                                               Hume Capital Securities (Broker)
                                               Jon Belliss
                                               T: +44(0)20 3693 1470

 South Africa enquiries:                       Bravura Capital
                                               Doné Hattingh T: +27 11 459 5000


Notes to Editors
Ferrum Crescent’s principal asset is the Moonlight Iron Ore Project “Moonlight” or the “Project”), located in
Limopo Province in northern South Africa. The Moonlight Deposit (upon which the Project is based) is a
magnetite deposit located on the farms Moonlight, Gouda Fontein and Julietta in Limpopo Province in the
north of South Africa and it is the main operational focus for the Company. Iscor, which explored the
Project in the 1980s and '90s, reported mineralisation, capable of producing a concentrate grading 68.7%
iron. At the time, Iscor concluded that the deposit, which was described as comparable to the world's best,
was easily mineable due to its low waste-to-ore ratio. The beneficiation attributes of Moonlight ore are
extremely impressive, with low-intensity magnetic separation considered suitable for optimum
concentration.

Metallurgical tests of Moonlight material, undertaken since by Ferrum, suggest that Iscor's results are
conservative, that good metal recoveries can be achieved, and that the resulting concentrates have a high
iron content and only negligible impurities, at grind sizes considered to be the industry standard (P80 of 75
microns).

Moonlight Project Highlights:
- 30 year Mining Right granted
- Environmental licence (EIA) in place for the Moonlight Project mining area (approved 4 April 2013)
-   Metallurgical test work indicates the potential for high quality pellets in excess of 69% iron and low
    deleterious elements possible
-   Low stripping ratio>slurry pipeline>beneficiation plant at rail head (Thabazimbi)> export through
    Richards Bay
-   Duferco offtake partner
-   Independent valuation 2014 – The Mineral Corporation's independent valuation of the Project
    released to the market on 11 June 2014
-   Located near Kumba railhead at Thabazimbi (Kumba depleting in grade), Limpopo Province,
    northern South Africa
-   New Eskom power stations being commissioned
-   Richards Bay port expansion

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