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First mine location identified following drilling results, 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
1 April 2015
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX: FCR, AIM: FCR, JSE: FCR)
First Mine Location Identified Following Drilling Results, South Africa
Highlights - Moonlight Iron Project BFS
- Zones A, B and C confirmed as primary mining areas for first 10 year mine design
o Final area drilling complete over Area D
o Infill drilling now to be allocated to primary mining development on Zones A,
B and C.
- New zone of mineralisation, Zone E offers future exploration potential
- Next BFS phases:
o Full Ore Reserve, in terms of JORC (2012), to be established - Infill drilling
over Zones A, B and C for advanced mine design work and metallurgical
analysis
o Decision to be made on whether bulk sampling is needed
o Final beneficiation and pelletiser designs/costings to be completed
o In the final phase, infrastructure negotiations and agreements to be
concluded.
Ferrum Crescent, the direct reduction iron (DRI) pellet project developer, today announces
that it has determined the final location for infill drilling and Ore Reserve development over
Zones A, B and C of the Moonlight Deposit, located in Limpopo Province, South Africa.
These zones have now been selected for the primary development model over the first 10
years of mine life.
Drilling over Zone D was the final phase of comprehensive area drilling undertaken to
identify where the next stage of the bankable feasibility study (“BFS”) will be focussed. Zone
D drilling confirmed comparable grades to those previously identified within the Inferred
Resource, and consequently the adjacent zones with shallower intersections, higher grades
and better stripping economics will progress first into development. A new mineralised zone
outside the limits of the current JORC (2012) Mineral Resource was also identified in Zone E
with the intersections detailed in the below table.
The drilling programme was a component part in the mine design, location and costing
element of the Moonlight BFS. The BFS was recommenced in Q4 2014 with the detailed
mine plan identified as being the next core element scheduled for completion. Following
analysis of the 10 reverse circulation (“RC”) drill holes, the first 10 year development model
will be based on Zones A, B and C and further infill drilling will commence next to establish a
JORC (2012) Ore Reserve and for advanced beneficiation work to be undertaken as part of
the DRI plant design process. The success of infill drilling will also determine whether bulk
sampling is necessary to complete the full mine design and plant costings.
Following completion of all mine plan and plant design the last stage of the Moonlight BFS
can be entered into, utilising the stand-alone project economics to complete all
infrastructure agreements for power, water and transportation.
Commenting today Tom Revy, CEO, said: “Following completion of this phase of mine design
drilling we have now selected the key zones for first mine development. Ferrum will work to
establish a full Ore Reserve and complete advanced metallurgical test work at Moonlight.
Because we are looking to establish a mining—beneficiation-DRI pellet manufacturing
operation to supply a premium, high-grade iron product, the current design phase is
especially important as we progress talks with a number of parties. As we continue to de-
risk Moonlight, by narrowing development parameters, I believe that the Company is well
positioned to take advantage of the significant changes now occurring with the iron supply
market.
“Given the positive advancement of the BFS and the advanced discussions we have entered
into with 3 separate parties, the market looks positive for us to achieve cash flow by
2019/20,” Mr Revy added.
For more information concerning the drilling results, please read the appended Exploration Results
report summary from The Mineral Corporation. For more information on the Company, 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
Beaufort Securities (Broker)
Tim Chandler
T: +44 (0)20 7382 8300
South Africa enquiries: Bravura Capital (Pty) Ltd
Doné Hattingh
T (direct): +27 11 459 5037
Notes to Editors
Ferrum Crescent’s principal project is the Moonlight Iron Project located in Limpopo Province in the
north of South Africa. The Moonlight Deposit (upon which the Moonlight Iron Project or "Moonlight"
or the "Project" is based) is a magnetite deposit located on the farms Moonlight, Gouda Fontein and
Julietta and 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 – 125 microns).
Key features of the Project are:
- JORC (2012) compliant Mineral Resource;
- Historical drilling, drilling by the Group, geological modelling and high density geophysical
survey conducted by the Company in 2012 confirm tonnage upside potential;
- 30 year Mining Right granted;
- Environmental licence (EIA) in place for the Moonlight 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 (DR grade pellets for use in direct reduction
iron/electric arc steel-making processes);
- Low stripping ratio; slurry pipeline>pellet plant at rail head (Thabazimbi); export through
Richards Bay;
- Duferco offtake partner (4.5 mtpa plus first right on 1.5 mtpa if not sold domestically);
- 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 operation depleting in grade), Limpopo
Province, northern South Africa;
- New Eskom power (4,800MW) commissioning first 800MW module;
- Richards Bay port expansion for iron ore products.
APPENDIX
Drilling Results and Parameters
Magnetite mineralisation within the Central Zone of the Limpopo Mobile Belt has been
identified in five mineralised zones, over which Ferrum Crescent has a valid mining right,
and for which Mineral Resources stated in terms of JORC (2012) were reported in May 2014.
The Phase 4 drilling programme sought to further investigate one of these mineralised
zones, Zone D, and to assist in determining if Zone D would be a likely place to start mining.
The drill programme, supervised by Mineral Corporation Consultancy (Pty) Ltd (The Mineral
Corporation) comprised 10 holes (for a cumulative total of 1,396 metres) and was
completed ahead of time and below budget. All holes intersected mineralised magnetic
zones across various depths as summarised below:
Sampling was by means of ten, vertical, RC boreholes, which were sampled at 1m intervals,
where magnetite mineralisation was identified using a hand-held magnetic susceptibility
meter. Samples were split using a 1-inch riffle splitter to obtain two representative sub-
samples, the Primary and Library samples. Primary samples were submitted to SGS (Pty) Ltd
(SGS), along with the appropriate QAQC samples for analysis by X-Ray Fluorescence (XRF).
The results of the QAQC samples have been analysed, and the results are considered
acceptable for the reporting of Exploration Results.
The locations of the boreholes drilled in Phase 4 are shown in the plan below, which also
shows the location of other boreholes drilled on Moonlight.
Relevant mineralised intervals have been identified by correlation with the existing
geological model, and these are summarised in the table below.
Depth From Depth To Intersection True Thickness (m) Fe SiO2 Al2O3
Borehole ID X Y Z (m) (m) Thickness (m) estimate Zone Grade% Grade% Grade% Borehole EOH (m)
FCL099 79400.262 2571114.846 974.458 95 139 44 41.6 C 36.7 41.7 1.0 144
FCL100 79400.891 2570997.549 974.345 147 156 9 8.5 C 39.7 37.8 2.0 158
FCL101 79478.709 2570882.196 974.516 65 83 18 17.0 D 27.3 46.5 5.4 140
FCL101 79478.709 2570882.196 974.516 88 117 29 27.4 D 34.3 41.2 2.6 140
FCL101 79478.709 2570882.196 974.516 124 132 8 7.6 D 27.2 48.1 4.2 140
FCL102 79527.605 2570800.775 974.396 68 79 11 10.4 D 24.2 46.3 5.9 90
FCL103 79395.469 2570793.083 973.632 102 104 2 1.9 D 28.8 38.3 6.6 114
FCL104 79310.959 2570701.221 972.645 5 7 2 1.9 E 22.4 53.7 7.2 208
FCL104 79310.959 2570701.221 972.645 11 15 4 3.8 E 23.7 54.6 3.9 208
FCL104 79310.959 2570701.221 972.645 143 146 3 2.8 D 26.5 42.4 4.9 208
FCL104 79310.959 2570701.221 972.645 164 175 11 10.4 D 34.3 39.3 2.9 208
FCL104 79310.959 2570701.221 972.645 186 199 13 12.3 D 35.8 42.2 1.6 208
FCL105 79405.672 2570695.276 973.082 122 125 3 2.8 D 28.8 41.9 4.2 170
FCL106 79510.067 2570689.619 973.621 90 94 4 3.8 D 25.5 44.6 6.3 150
FCL107 79524.725 2571093.633 975.486 82 87 5 4.7 D 36.8 41.3 1.4 100
FCL108 79514.464 2571201.667 975.671 36 45 9 8.6 D 36.9 39.8 2.0 122
FCL108 79514.464 2571201.667 975.671 75 117 42 39.7 C 30.5 46.8 3.5 122
* Co-ordinates are reported in a South African Local Grid. WGS1984 Lo29
* Barren zones of a maximum of 4m thickness have been included in the intersection
* An Fe grade of more than 16% Fe is considered as mineralised, on the basis of the current Mineral Resource cut-off grade
* All holes are vertical
* True thicknesses have been calculated assuming a mineralisation dip of 19° to the north-east
Zone D:
The structural interpretation suggests Zone D to be a folded magnetic feature, which
merges with Zone C in the south (see cross section A-A1 below). The folded Zone D
shows fold closures to the east. Guided by the interpretation as shown in cross
section A-A1, further drilling to the east of FCL107 is not warranted. Any further
exploration in this area is likely to confirm the presence of Zone C at depth.
The line of boreholes, FCL104, FCL105, and FCL106, intersected Zone D (cross section
B-B1). Zone D has proven to be deeper and thinner than postulated prior to Phase 4
drilling. Zone D is bounded by a fault to the west, as shown in the interpretation
B-B1 below; however, drilling has extended Zone D in a northerly direction.
Zone E:
The newly discovered Zone E is intersected at shallow depths of FCL104.
Geochemical results coupled with a constructed cross section B-B1 support this
interpretation.
The current Exploration Results have confirmed Zones A, B and C as the primary
mining areas for the first 10 year mine design. This area is also shown on the plan.
A description of the Exploration Results, as per the criteria in Table 1 of JORC (2012),
is provided in an appendix to this release, as required by Chapter 5.7.1 of the ASX
Listing Rules.
A separate appendix providing information relating to material boreholes, as
contemplated in Chapter 5.7.2 of the ASX rules, is not considered necessary, as it has
been provided in full, in the foregoing press release.
The information that relates to Exploration Results in the report of which this statement is a
summary, is based on information compiled by Andisani Netshilinganedza and Stewart
Nupen, who are registered with the South African Council for Natural Scientific Professionals
(Andisani Netshilinganedza: Reg. No. 400051/13 and Stewart Nupen: Reg. No. 400174/07)
and are members of the Geological Society of South Africa.
Mrs. Netshilinganedza and Mr. Nupen are employed by The Mineral Corporation, which
provides technical advisory services to the mining and minerals industry. Mrs.
Netshilinganedza and Mr. Nupen have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the 2012 Edition of the
‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’.
Mrs. Netshilinganedza and Mr. Nupen consent to the inclusion in this statement of the
matters based on this information in the form and context in which it appears.
Criteria Explanation Observations Reference
Section 1: Sampling techniques and Data
Sampling techniques Nature and quality of sampling (eg: cut channels, random chips, or specific specialised Sampling was by means of ten vertical, RC boreholes which were sampled at 1m intervals, where Appendix 2
industry standard measurement tools appropriate to the minerals under investigation, such magnetite mineralisation was identified using a hand held magnetic susceptibility meter.
as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not
be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate Sample representivity was ensured by sample splitting using a 1-inch riffle splitter to obtain two Appendix 2
calibration of any measurement tools or systems used. representative sub-samples, the Primary and Library samples
Aspects of the determination of mineralisation that are Material to the Public Report. In Reverse Circulation drilling was used to obtain 1m samples from an original 40kg sample collected Appendix 2
cases where ‘industry standard’ work has been done this would be relatively simple (eg from the cyclone, which was split down to a 5kg sample, to send to the laboratory for analysis.
‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised
to produce a 30 g charge for fire assay’). In other cases more explanation may be required,
such as where there is coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may warrant disclosure of
detailed information.
Drilling techniques Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka RC drilling method with casing rods of 165mm and drilling rods of 133mm in diameter was used. 4.1
etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, face- Appendix 2
sampling bit or other type, whether core is oriented and if so, by what method, etc.
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Samples were collected from the cyclone and directly into a plastic bag. Each bag was weighed in Appendix 2
order to monitor sample recovery. The weight was recorded in kilograms.
Measures taken to maximise sample recovery and ensure representative nature of the With the exception of surficial rubble, the sample recovery through the mineralised zones was Appendix 2
samples. acceptable.
Whether a relationship exists between sample recovery and grade and whether sample bias Due to the generally high sample recovery, this relationship was not investigated. N/A
may have occurred due to preferential loss/gain of fine/coarse material.
Logging Whether core and chip samples have been geologically and geotechnically logged to a level Detailed lithological logging and magnetic susceptibility measurements were completed on all 4.3
of detail to support appropriate Mineral Resource estimation, mining studies and chip tray material by a field geologist. Detailed logging coupled with the Exploration Results Appendix 2
metallurgical studies. formed the basis for a revised structural interpretation of Zone D and the newly discovered Zone Appendix 4
E.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) All geological information was logged in acceptable detail, and stored in an MS Access database. Appendix 2
photography. This included lithological and magnetic susceptibility information. Chip tray photography was
completed.
The total length and percentage of the relevant intersections logged. 1396m of chip logging was completed, which is equivalent to 100% of logging of the drilled Appendix 2
material. Appendix 4
Sub-sampling techniques If core, whether cut or sawn and whether quarter, half or all core taken. No core was cut as this was an RC drilling programme and not a diamond core drilling programme. N/A
and sample preparation
If non-core, whether riffled, tube sampled, rotary split etc. and whether sampled wet or dry. A 40kg dry sample collected from the cyclone was split down to a required 5kg sample, using a 1 Appendix 2
inch riffle splitter.
For all sample types, the nature, quality and appropriateness of the sample preparation The sampling standard procedures applied are considered acceptable for the magnetite Appendix 2
technique. mineralisation. The initial 40kg sample collected from the cyclone was split to obtain two
representative sub-samples
Quality control procedures adopted for all sub-sampling stages to maximise representivity of A 1 inch riffle splitter was used to obtain two representative sub-samples. The same procedure of Appendix 2
samples. splitting the 40kg sample three times to archive a 5kg sample was applied for every single field Appendix 3
sample collected.
Measures taken to ensure that the sampling is representative of the in situ material A geologist was present on site to ensure that all the protocols and procedures pertaining to RC Appendix 2
collected. sampling were followed and to ensure that no sample swopping or mislabeling was done.
Criteria Explanation Observations Reference
Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes were appropriate to the grain size of the material being sampled. 5kg of material per Appendix 2
sample was collected and submitted to the laboratory for analysis. This was sufficient material for
analysis by XRF.
Quality of assay data and The nature, quality and appropriateness of the assaying and laboratory procedures used and 432 samples, primary, along with quality control samples were submitted to SGS Laboratory Appendix 2
laboratory tests whether the technique is considered partial or total. Services (Johannesburg) for analysis. Sample analysis was by X-Ray Fluorescence (XRF) Appendix 3
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in No non-laboratory techniques have been applied. N/A
determining the analysis including instrument make and model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external Appropriate standards, blanks and duplicates were inserted in the sample stream. These 4.2
laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision constituted 10% of the 432 samples submitted. The Mineral Corporation has reviewed the results Appendix 2
have been established. from these control samples and considers the accuracy and reliability of the analyses to be Appendix 3
acceptable for exploration results.
Verification of sampling The verification of significant intersections by either independent or alternative company The borehole data location was verified by means of surveying of the borehole collars in the field Appendix 2
and assaying personnel. by an independent qualified surveyor from Survey House (Johannesburg). Appendix 6
The use of twinned holes This is an ongoing exploration programme. No twinning was deemed to be required during this N/A
phase of drilling.
Documentation of primary data, data entry procedures, data verification, data storage Exploration data is well documented and the data entry and validation for Phase 4 drilling Appendix 2
(physical and electronic) protocols. campaign is considered to be acceptable. The Mineral Corporation supervised the exploration
programme and considers the database to be acceptable.
Discuss any adjustment to assay data. The only adjustments made to assay data were the appropriate conversions from oxide to N/A
elemental concentrations.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), All ten RC boreholes were surveyed by a registered surveyor from Survey House, Johannesburg. Appendix 2
trenches, mine workings and other locations used in Mineral Resource estimation. Boreholes were surveyed using differential Geographic Positioning System. Appendix 6
Specification of the grid system used. The co-ordinate system applied for the survey was the South African Local Grid, WGS1984, Lo29. 4.1
4.3
Quality and adequacy of topographic control. The differential GPS uses real time kinematic techniques with results in X, Y and Z in 20mm Appendix 2
accuracy. This is deemed adequate as a control of topography. Appendix 6
Data spacing and Data spacing for reporting of Exploration Results. Borehole spacing is on an approximate 100m x 100m grid. A borehole location plan was 4.1
distribution. generated. 4.3
Whether the data spacing and distribution is sufficient to establish the degree of geological The data spacing and distribution is deemed sufficient to establish the degree of geological 4.3
and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation continuity. This was evident during the structural interpretation where geological continuity was
procedure(s) and classifications applied. observed.
Whether sample compositing has been applied Sample compositing of the 1m sample intervals was completed across the full width of the various 4.3
zones of mineralisation intersections. Appendix 4
Orientation of data in Whether the orientation of sampling achieves unbiased sampling of possible and the extent The samples are in the form of chips and not core material which can be orientated to archive N/A
relation to geological to which this is known, considering the deposit type. unbiased sampling. During sample riffle-splitting, sample homogeneity is introduced, which
structures eliminates unbiased sampling.
If the relationship between the drilling orientation and the orientation of key mineralised All boreholes were drilled vertically. There is no indication that the drilling orientation could have 4.1
structures is considered to have introduced a sampling bias, this should be assessed and introduced a sampling bias, considering that this is a bulk commodity. 4.3
reported if material.
Sample security The measures taken to ensure sample security. Samples were collected by a geologist on site and stored in a locked core facility until being Appendix 2
collected for delivery to the laboratory by an exploration logistics company. As the commodity
being drilled is a bulk product and not a precious metal, no additional sample security was
undertaken.
Audits or reviews The results of any audits or reviews of sampling techniques and data. No external audits or reviews for this phase of work. Previous phases have been audited. N/A
Criteria Explanation Observations Reference
Section 2: Reporting of Exploration Results
Mineral tenement and land Type, reference name/number, location and ownership including agreements or material The Mineral Corporation has not concluded a legal due diligence on the mineral title, and the N/A
tenure status issues with third parties such as joint ventures, partnerships, overriding royalties, native title following summary is based on information provided by Ferrum Crescent Limited: The Project is
interests, historical sites, wilderness or national park and environmental settings. covered by a Mining Right that was executed on 10 October 2012. The Mining Right is valid for 30
years commencing 10 October 2012 to 9 October 2042.
The security of the tenure held at the time of reporting along with any known impediments The Mineral Corporation has not concluded a legal due diligence on the mineral title, and the N/A
to obtaining a licence to operate in the area. following summary is based on information provided by Ferrum Crescent Limited: The Project is
covered by a Mining Right that was executed on 10 October 2012. The Mining Right is valid for 30
years commencing 10 October 2012 to 9 October 2042.
Exploration done by other Acknowledgment and appraisal of exploration by other parties. Iscor Limited conducted exploration activities in the 1980s and 1990s. Iscor’s exploration data 1
parties assisted in the interpretation of Ferrum’s current Phase 4 drilling. 5
Geology. Deposit type, geological setting and style of mineralisation. The Project area is situated within the Mount Dowe Group of the Beit Bridge Complex, in the 2
Central Zone of the LMB. The Archaean LMB is believed to have been formed during the collision 3
of the granite-greenstone terrain of the Kaapvaal and Zimbabwe Cratons. 4.3
5
Magnetite mineralisation is identified in five mineralised zones, which are interpreted to be the
result of the duplication by folding of one or more magnetite-bearing layers.
Drill hole A summary of all information material to the understanding of the exploration results Ten vertical boreholes were drilled and collar surveyed. A drill summary detailing the collar 4.1
Information including a tabulation of the following information for all Material drill holes: positions, date of drilling, the number of samples collected, the end of borehole depths and 4.3
- easting and northing of the drill hole collar mineralisation intersection depths is provided. Appendix 4
- elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole
collar
- dip and azimuth of the hole
- down hole length and
- interception depth hole length.
If the exclusion of this information is justified on the basis that the information is not This information has not been excluded. N/A
Material and this exclusion does not detract from the understanding of the report, the
Competent Person should clearly explain why this is the case
Data aggregation methods. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum An Fe grade of more than 16% Fe is considered as mineralised, on the basis of the current Mineral 4.3
grade truncations (e.g. cutting of high grades) and cut-off grades are usually material and Resource cut-off grade. Barren zones of a maximum of 4m have been included in the intersection.
should be stated. True thicknesses have been calculated assuming a mineralisation dip of 19° to the northeast
Where aggregate intercepts incorporate short lengths of high grade results and longer Not applicable to this grade distribution. N/A
lengths of low grade results, the procedure used for such aggregation should be stated and
some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalent values were considered. N/A
Relationship between These relationships are particularly important in the reporting of Exploration Results. If the True thicknesses have been calculated assuming a mineralisation dip of 19° to the northeast 4.1
mineralisation widths and geometry of the mineralisation with respect to the drill hole angle is known, its nature should 4.3
intercept lengths be reported.
If it is not known and only the down-hole lengths are reported, there should be a clear Downhole lengths and approximate true thicknesses/widths have been reported. 4.1
statement to this effect (eg. ‘downhole length, true width not known’). 4.3
Criteria Explanation Observations Reference
Diagrams. Appropriate maps and sections (with scales) and tabulations of intercepts should be included Plans and sections of the interpretive geological model are provided. These formed the basis of 4.3
for any significant discovery being reported These should include, but not be limited to a plan the conclusions and recommendations to Ferrum. Appendix 4
view of drill hole collar locations and appropriate sectional views.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative Comprehensive reporting of all exploration results was completed. Strip logs for all ten boreholes 4
reporting of both low and high grades and/or widths should be practised to avoid misleading showing mineralisation intersections and Fe grade were produced, these were accompanied by Appendix 4
reporting of Exploration Results. interpretive cross sections. Appendix 5
Other substantive Other exploration data, if meaningful and material, should be reported including (but not . Lithological observations from previous phases of drilling have been included and formed part of 4.3
exploration data limited to): geological observations; geophysical survey results; geochemical survey results; the structural interpretation
bulk samples – size and method of treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics; potential deleterious or contaminating
substances.
Further work The nature and scale of planned further work (eg. tests for lateral extensions or depth The Mineral Corporation has concluded that while Zone D does not warrant re-prioritisation as an 6
extensions or large-scale step-out drilling). area which mining could start, Zone D (and Zone E to the north) offer Ferrum the opportunity for
future exploration. The Mineral Corporation recommends that Ferrum proceeds with the current
conceptual mine plan which focuses on mining over Zones A, B or C.
Diagrams clearly highlighting the areas of possible extensions, including the main geological A figure has been included, showing an area of potential future exploration. Figure 9
interpretations and future drilling areas, provided this information is not commercially
sensitive.
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