Wrap Text
Quarterly Activities and Cashflow Report for the Period ended 31 March 2015
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
29 April 2015
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX: FCR, AIM: FCR, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 31 March 2015
Highlights
Moonlight Iron Project BFS:
- Zones A, B and C confirmed as phase 1 development areas for first 10 year mine life
design following Q4 2014-Q1 2015 drilling programme
- 10 reverse circulation holes with a combined 1,396 metres
- All holes intersected magnetic zones across various depths
- Final area drilling complete over Area D
- 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
- Planning ongoing with infrastructure suppliers (power, water, rail and port)
- Next BFS phases:
- 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
- Decision to be made on whether bulk sampling is needed
- Final beneficiation and pelletiser designs/costings to be completed
- In the final phase, infrastructure negotiations and agreements to be concluded.
Corporate:
- Discussions progressing with potential development parties
- Consequently Investment agreement with Anvwar Asian Investments formally
terminated
- Internal RSA steel supply route under evaluation with parties
- Investment agreement with Anvwar Asian Investments formally terminated
- Changes during the quarter result in the appointment on 23 March 2015 of Beaufort
Securities as Ferrum Crescent’s AIM broker
- Strand Hanson Limited appointed on 3 March 2015 as Ferrum Crescent financial
adviser
- 10 million options granted to Ferrum Crescent advisers during the quarter with an
exercise price of GBP0.0075 (for 4 million options) and GBP0.02 (for 6 million
options), all with an exercise period of 3 years
- Cash balance at the end of the quarter: AUD$592,000
Ferrum Crescent, the direct reduction iron (DRI) pellet project developer, today submits its
quarterly activities and cashflow report for the period ending 31 March 2015.
The period saw the final confirmation of where the Phase 1 mine development work will be
located for the first 10 years of mine life at Moonlight. 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, MD, said: “Since recommencing the BFS at the Moonlight
project in the last quarter of 2014 we have confirmed the location for open pit mining
during the first 10 years of mine life and have begun advanced pit design work. Using the
recent drilling data we shall continue to progress the economic model of both the mine and
the DRI pellet complex to be situated at the Thabazimbi railhead. Our recent work is also
assisting us in negotiations with development parties and related infrastructure groups. I
look forward to updating the market shortly on both operational and corporate progress.”
For more information concerning the drilling results, please read the Exploration Results report
summary from The Mineral Corporation that was released on 1 April 2015 and may be viewed on
the Company’s website, www.ferrumcrescent.com. For more information on the Company, please
visit that website 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)
Elliot Hance
+44 (0)20 7382 8416
South Africa enquiries: JSE Sponsor
Bravura Capital (Pty) Ltd
Doné Hattingh
T (direct): +27 11 459 5037
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.
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.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity
Ferrum Crescent Limited
ABN Quarter ended (“current quarter”)
58 097 532 137 31 March 2015
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities (9 months)
$A’000 $A’000
1.1 Receipts from product sales and related
debtors
1.2 Payments for (a) exploration & evaluation (207) (778)
(b) development
(c) production
(d) administration (268) (1,006)
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 3 7
1.5 Interest and other costs of finance paid
1.6 R&D recoupment tax
1.7 Other – net income on restricted cash
investments - (43)
Net Operating Cash Flows (472) (1,820)
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.9 Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (restricted cash investments) - 772
Net investing cash flows - 772
1.13 Total operating and investing cash flows
(carried forward) (472) (1,048)
1.13 Total operating and investing cash flows
(brought forward) (472) (1,048)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, - 1,033
etc.
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19.1 Other
1.19.2 Other
1.19.3 Other – share issue costs (14) (211)
(14) 822
Net financing cash flows
Net increase (decrease) in cash held (486) (226)
1.20 Cash at beginning of quarter/year to date 1,062 738
1.21 Exchange rate adjustments to item 1.20 16 80
592 592
1.22 Cash at end of quarter
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 100
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on
consolidated assets and liabilities but did not involve cash flows
2.2 Details of outlays made by other entities to establish or increase their share in projects in
which the reporting entity has an interest
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A’000 $A’000
3.1 Loan facilities
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation 300
4.2 Development
4.3 Production
4.4 Administration 200
Total 500
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter
shown in the consolidated statement of cash flows) $A’000 $A’000
to the related items in the accounts is as follows.
5.1 Cash on hand and at bank 583 903
5.2 Deposits at call 9 159
5.3 Bank overdraft
5.4 Other (provide details)
592 1,062
Total: cash at end of quarter (item 1.22)
Changes in interests in mining tenements
Tenement reference Nature of interest Interest at Interest
(note (2)) beginning at end of
of quarter quarter
6.1 Interests in mining
tenements and
petroleum tenements
relinquished, reduced or
lapsed
6.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number quoted Issue price per Amount paid up per
security (see security (see note
note 3) (cents) 3) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs,
redemptions
7.3 +Ordinary 518,787,353 516,487,353 Various Fully Paid
securities
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital, buy-
backs
7.5 +Convertible
debt securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description and 400,000 - $0.10 14 December 2015
conversion 500,000 - $0.03 21 November 2016
factor) 2,500,000 - $0.08 19 February 2017
2,000,000 - GBP0.0075 2 February 2018
3,000,000 - GBP0.02 2 February 2018
2,000,000 - GBP0.0075 1 March 2018
3,000,000 - GBP0.02 1 March 2018
7.8 Issued during 2,000,000 - GBP0.0075 2 February 2018
quarter 3,000,000 - GBP0.02 2 February 2018
2,000,000 - GBP0.0075 1 March 2018
3,000,000 - GBP0.02 1 March 2018
7.9 Exercised
during quarter
7.10 Expired /
cancelled
during quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Act or other standards acceptable to ASX (see note
5).
2 This statement does /does not* (delete one) give a true and fair view of the matters
disclosed.
Sign here: Date: 28 April 2015
(Company secretary)
Print name: Bob Hair
Notes
1 The quarterly report provides a basis for informing the market how the entity’s activities
have been financed for the past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to do so, in a note or notes
attached to this report.
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining
tenements acquired, exercised or lapsed during the reporting period. If the entity is involved
in a joint venture agreement and there are conditions precedent which will change its
percentage interest in a mining tenement, it should disclose the change of percentage
interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items
7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial
Reporting Standards for foreign entities. If the standards used do not address a topic, the
Australian standard on that topic (if any) must be complied with.
== == == == ==
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