Wrap Text
Quarterly Activities and Cashflow Report for the period ending 30 September 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
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
("Ferrum Crescent", the "Company", the “Group”)(ASX: FCR, AIM: FCR, JSE: FCR)
30 October 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 30 September 2015
Highlights
Moonlight Iron Project Bankable Feasibility Study (“BFS”):
- The Moonlight Iron Project (“Moonlight” or “Project”) involves the proposed future
mining and beneficiation of the Moonlight Deposit in Limpopo Province, northern
South Africa for the production of a premium iron product for sale in South Africa
and potentially internationally
- Planning activities ongoing with infrastructure suppliers (power, water, rail and port)
- Project on schedule to benefit from new regional/national infrastructure
developments
- Recent farm-in and joint venture agreement (detailed below) will result in the
resumption of full BFS activities
- Planned next BFS phases:
o Full JORC (2012) compliant Ore Reserve to be established - Infill drilling over
Zones A, B and C for advanced mine design work and metallurgical analysis
o The success of such infill drilling will determine whether bulk sampling is
necessary
o Final beneficiation and pelletiser designs/costings to be completed
o In the final phase, negotiations and agreements to be concluded with
infrastructure providers
- Cash balance at the end of the quarter: AU$587,000
Post Quarter End:
- On 14 October 2015, the Company announced that the group had entered into a
legally binding farm-in and joint venture agreement (the “Agreement”) with Business
Venture Investments No. 1709 (Proprietary) Limited (“BVI”) to form a joint venture
for the completion of the BFS for the Project
- Under the terms of the Agreement, in return for fully funding and completing the
BFS across two phases (BFS Phase 1 and BFS Phase 2), BVI will earn up to a 43%
equity interest in Ferrum Iron Ore (Pty) Limited (“FIO”), the Group subsidiary that
holds the Project
- BVI is a sister company of South African BEE investment house Ovation Capital. It is a
BEE controlled South African company with mining and processing interests in South
Africa. ‘BEE’ is the term used within South Africa to describe entities that meet
relevant regulatory criteria as being controlled by historically disadvantaged South
Africans
- Memorandum of understanding with Principle Monarchy Investments (Proprietary)
Limited formally terminated
Commenting today Tom Revy, Managing Director, said:
“We now have a fully committed and legally binding agreement in place for completion of
the Moonlight Project BFS. I look forward to working with our new partners, BVI, on the
development of the Project. The BFS Phase 1 activities should recommence by the end of
2015 and I look forward to reporting on a regular basis as to the status of the Project as the
various planned key BFS milestones are progressed.
“BVI, a sister company of Ovation Capital, will earn up to a 43% equity interest in Moonlight
- through funding and completing all the requisite workstreams to produce a full BFS to a
fixed timeline. We continue to align the Project with the infrastructure plans of the South
African and Limpopo governments and seek to address the aspirations and interests of such
authorities and those of the local communities and municipalities. Our aim continues to be
the maximisation of the value of Moonlight for the benefit of all stakeholders.”
For further 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 9474 2995 Laurence Read (UK representative)
Managing Director T: +44 7557672432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 20 7409 3494
Beaufort Securities Limited (Broker)
Jon Belliss/Elliott Hance
T: +44 20 7382 8300
South Africa enquiries: Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh
T (direct): +27 11 459 5037
APPENDIX 5B:
http://www.ferrumcrescent.com/IRM/Company/ShowPage.aspx/PDFs/1778-
10000000/SeptemberQuarterCashflowReport
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 Project is based) is a magnetite
deposit located on the Moonlight, Gouda Fontein and Julietta farms and is the main operational
focus for the Company. Iscor Limited (“Iscor”), which explored the Project in the 1980s and '90s,
reported mineralisation capable of producing a concentrate grading at 68.7% iron. At that time, Iscor
concluded that the deposit, which was described as being 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 on Moonlight material, undertaken since then by Ferrum Crescent, suggest that
Iscor’s historical 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 industry standard (P80 of 75 - 125 microns).
Key features of the Project to date are:
- JORC (2012) compliant Mineral Resource;
- Historical drilling, drilling by the Group, geological modelling and a high density geophysical
survey conducted by the Company 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 concentrate and/or pellets
with in excess of 69% iron content and low deleterious elements (DR grade pellets for use in
direct reduction iron/electric arc steel-making processes);
- The quality of product that can potentially be produced at Moonlight is a clear differentiator
against its industry peers, as is the access to infrastructure (port, power and rail);
- Duferco offtake partner (4.5 Mtpa plus first right on a further 1.5 Mtpa if not sold
domestically). South Africa currently has a growing demand for high grade iron concentrate
and/or pellets for its steel industry;
- Independent valuation by The Mineral Corporation completed in June 2014 - this valuation
served as the basis for the recent BVI (Ovation Capital) transaction;
- BEE compliant South African investment company (BVI) will provide a completed BFS to the
Group by 2017/18 at no expense to the Group in return for a 39-43% equity position in the
Project;
- Located near Kumba railhead at Thabazimbi (Kumba operation depleting in grade), Limpopo
Province, northern South Africa;
- New Eskom power plant (4,800MW) commissioning first 800MW module;
- Richards Bay port expansion for iron ore products;
- Local community, Ga-Seleka, has an effective 3% carried interest in the Project.
Date: 30/10/2015 08:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.