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Quarterly Activities and Cashflow Report For the period ended 30 September 2016
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
31 October 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 30 September 2016
Highlights
Moonlight Iron Project
- Development options under review for potential reduced cost production pathways
- Study initiated on pelletising technology
- Review of product offtake agreements
- Transportation costing review for various product types
- Mining Right Annual Compliance Report completed and filed
- Memorandum of Agreement and co-operation framework signed with Lephalale
Local Municipality securing the necessary consents from local stakeholders for
progression of the project into future development
Spanish lead-zinc exploration projects
- 100% of the share capital of GoldQuest Iberica, S.L. ("GoldQuest") acquired by
Ferrum Crescent following exercise of the Company’s exclusive option from TH
Crestgate GmBH (“Crestgate”) on 22 September 2016
- Toral & Lago lead-zinc exploration assets 100% owned by GoldQuest (the "Spanish
Projects")
- Planned exploration work programme developed seeking to reinterpret the historic
data package, including historic drill core samples and surface work with processing
analysis to then be carried out
Corporate
- £374,453 raised through a share placement with the net proceeds to be utilised for
general working capital purposes and the progression of the Spanish Projects.
205,949,134 options, in aggregate, issued in connection with this fundraising
entitling the holders to subscribe for new ordinary shares at a price of 0.30 pence
per share for a two year period
- 117,054,266 new ordinary shares issued further to the exercise of options at a price
of 0.165 pence per share
- £326,500 paid in cash and 100 million new ordinary shares of no par value each in
the capital of the Company issued to Crestgate’s wholly owned subsidiary,
GoldQuest Mining (Spain) Corp., as consideration for the acquisition of 100% of the
shares in GoldQuest, further to the exercise of the Company’s abovementioned
option
- Cash balance at the end of the quarter: A$1,162,000
Post Quarter End:
- A further 181,560,288 options exercised at a price of 0.165 pence per new ordinary
share, raising £299,574 gross
Exploration Interests
The following information is provided in accordance with ASX Listing Rule 5.3 for the
quarter ended 30 September 2016:
1. Listing of tenements held:
Project Location Right Number Right Status Holder Percentage
Interest
Moonlight Limpopo Province, 30/5/1/2/2/201 MR Mining Right Ferrum Iron Ore 97%
South Africa Granted (Pty) Ltd
Moonlight Limpopo Province, LP30/6/1/1/2/11868PR Prospecting Ferrum Iron Ore 97%
South Africa Right Application (Pty) Ltd
2. Listing of tenements acquired (directly or beneficially) during the quarter:
Project Location Right Number Right Status Holder Percentage
Interest
acquired
during quarter
Toral León Province, 15.199 Investigation GoldQuest 100%
Spain Permit Iberica, S.L.
Lago Galicia Province, Lago II 6.056 Lago II GoldQuest 100%
Exploration
Permit
Spain Lago III 6.058 Lago III Iberica, S.L.
Investigation
Permit
No tenements were disposed of during the quarter.
Justin Tooth, Executive Chairman of Ferrum Crescent, today commented:
“In the quarter under review we focused on dual elements; we continued to work towards
progressing our Moonlight project whilst our exclusive option over promising brownfield
lead-zinc assets in Spain required careful evaluation and negotiation. At Moonlight, we have
been reviewing and discussing development pathways with potential engineering partners
for a possible reduced cost production model.
“Regarding Spain, following two short nil-cost option extensions to ensure that the vendors
had addressed the various conditions precedent to the Board’s satisfaction, in late
September the Company exercised its right to acquire 100% of Goldquest and its promising
lead-zinc assets. We are now progressing exploration activities at the Toral project site and
have simultaneously begun to reassess the considerable amounts of historical geological
data on the asset and prepare it for suitable recodification and release. I look forward to
updating the market further in due course.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Company Secretary
T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative)
T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler
T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance
T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh
T (direct): +27 11 459 5037
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014.
APPENDIX 5B:
See attachment
Notes to Editors:
Further Information on the Spanish lead-zinc Exploration Projects
Toral Project
The Toral Project has been extensively explored historically by its previous owners Portex Minerals
Inc. and Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc
mineralisation. Located in north-west Spain, approximately 400km north-west of Madrid, the
project's licence area hosts excellent road, rail and power infrastructure and is situated in a known
historic mining jurisdiction. The asset also has a pre-existing NI 43-101 resource estimate reported
by Micon International Co. Limited on 30 April 2012.
Lago Project
The Lago Project is located approximately 54km to the north-east of the Toral Project. Historical
investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera
International Espana S.A. ("EXMINESA"), between 1985 and 1990, indicated that mineralisation at
the Lago Project may be similar to that encountered at the Toral Project with vertical, lenticular
bodies (probably more than one) approximately 800m long by 300m wide.
2016 Spanish work programme overview
- Analysis and re-interpretation of existing historic data on the Company’s Spanish Exploration
Projects commenced in September 2016.
- Planned work programme comprises:
o re-mapping of the main Toral Project area applying re-interpreted historical
geological understanding of the regional controls on mineralisation;
o in-fill surveys over the main prospect area where detailed soil geochemistry has not
previously been conducted;
o structural mapping of the existing adits, outcrop and the nearby mineralisation
occurrences in order to gauge the balance between local (not fully tested) and
regional (well documented) controls on mineralisation;
o re-logging of historical drill-core and re-assaying of areas where incomplete assays
were taken previously in order to seek to identify potential new shallow high grade
targets at the Toral Project;
o creation of a revised geological model incorporating existing and new geological
data (geochemistry, structural interpretation, assays, logs, maps); and
o generation of a highly targeted drill plan, focused on high-grade near surface ore
shoots linking known surface occurrences and known high-grade mineralisation at
depth, for testing in 2017.
Further Information on the Moonlight Project, South Africa
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 1990s,
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 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 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;
- BEE compliant South African investment company (BVI) to provide a completed BFS to the
Group by 2018/19 at no expense to the Group in return for a 39-43% equity position in the
Moonlight 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 potential export of future iron ore products; and
- Local community, Ga-Seleka, has an effective 3% carried interest in the Moonlight Project.
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