TIDMFCR
RNS Number : 6549D
Ferrum Crescent Ltd
28 April 2017
28 April 2017
Ferrum Crescent Limited
("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Quarterly Activities and Cashflow Report
For the period ended 31 March 2017
Highlights:
Moonlight Iron Project
-- Termination of farm-in and joint venture agreement with
Business Venture Investments No. 1709 (Proprietary) Limited ("BVI")
following BVI's failure to complete Phase I of the Bankable
Feasibility Study by the agreed extended date
-- Detailed negotiations held with a new third party group in
relation to the potential development of the Moonlight Project
Spanish lead-zinc exploration projects
-- Work programme designed and underway for the Toral Project
with the goal of establishing the presence of mineralisation at
surface and then defining the most prospective areas of
mineralisation for a targeted drill campaign
-- Targeted areas for sampling sit above mineralisation
identified at depths between 370m and 929m by historic drilling
which was the subject of a foreign resource estimate for the
purposes of the ASX Listing Rules, comprising of an NI 43-101
compliant Inferred and Indicated foreign mineral resource
estimate
-- Channel sampling identified first mineralisation near surface, including:
o 0.9m @ 10.5% Zn & 2.5% Pb average on the main structure
within Adit 49
o 1.2% Cu, 6.5% Zn & 13.5% Pb returned from a 1.2m channel
sample in Adit 54
o Soil sampling identified distinct, continuous zinc--in--soil 2
kilometre anomaly, approximately 150 metres wide, including peak
zinc--in--soil values of 1.4% zinc
-- Drill programme plans to intersect shallow untested targets within the main anomalous area:
o Phase 1 drill programme at the Toral Project designed to
intersect mineralising features at a series of shallow targets
which are untested to date
o The two kilometre soil geochemistry anomaly at this depth will
be targeted in three separate zones containing a variety of
mineralising styles that will be tested down to depths of
approximately 100m below surface
o The refined programme has been designed with an expected nine
firm hole locations, with an average hole length of 155m for a
minimum total to be drilled of 1,400m
o Five holes are planned for Zone 1, one 250m hole for Zone 2
(which crosses several separate targets) and three holes for Zone
3. The remaining 700m will be distributed on a discretionary basis
during the drilling programme and may be used to test continuity at
depths down to 150m below surface
Corporate
-- New contract terms agreed for FCR's Executive Chairman,
Justin Tooth, to continue his role as sole executive director of
the Company and appointment of Merlin Marr-Johnson as Project
Manager to oversee progression of the Company's lead-zinc project
portfolio. Proposed adoption of a new equity incentive plan to
replace the Company's existing equity incentive arrangements to be
considered at a general meeting of shareholders to be held on 11
May 2017
-- Laurence Read appointed to the Board as a non-executive
Director, replacing Klaus Borowski who resigned to pursue other
interests
-- Cash balance at the end of the quarter: A$725,373
Post Quarter End
-- Diamond drilling contract signed with Sondeos y Perforaciones
Industriales de Bierzo SA for Phase 1 drill programme at the Toral
Project
o Minimum of 1,400m and maximum of 2,100m to be drilled and
programme expected to take up to three months to complete
o Drill cost of EUR80 per metre
-- Work completed by FCR has recently identified mineralisation
in multiple sub-vertical, sub-parallel planes and also
mineralisation associated with crosscutting faults. In addition,
several different styles of mineralisation have been identified,
complementing data from the channel samples and soil geochemistry
reported on 23 February 2017
-- Moonlight Project update announced on 27 April 2017 stating
that negotiations with a potential new third party partner had
ceased without reaching any viable agreement. Consequently, the
Board of FCR has decided, unless an alternative development
opportunity can be secured in the short term, to undertake an
orderly winding-up and hand-over process in respect of the Group's
operations and licences associated with the project with a view to
terminating all activities and expenditures in South Africa as soon
as practicable
Exploration Interests
The following listing of tenements held is provided in
accordance with ASX Listing Rule 5.3 for the quarter ended 31 March
2017:
Project Location Right Number Right Holder Percentage
Status Interest
----------- ------------ --------------------- --------------- ----------- -----------
Limpopo Ferrum
Province, Mining Iron
South 30/5/1/2/2/201 Right Ore (Pty)
Moonlight Africa MR Granted Ltd 97%
Limpopo Ferrum
Province, Prospecting Iron
South Right Ore (Pty)
Moonlight Africa LP30/6/1/1/2/11868PR Application Ltd 97%
León GoldQuest
Province, Investigation Iberica,
Toral Spain 15.199 Permit S.L. 100%
Lago II
Exploration
Lago II 6.056 Permit
Galicia Lago III GoldQuest
Province, Investigation Iberica,
Lago Spain Lago III 6.058 Permit S.L. 100%
No tenements were acquired or disposed of during the
quarter.
Justin Tooth, Executive Chairman of FCR, today commented:
"During the quarter under review, we have advanced our lead-zinc
assets in Spain smoothly through channel sampling, soil sampling
and mapping activities, culminating in the final stages of
preparation for a drilling campaign. The drill programme is
scheduled to start imminently and is designed to test lead-zinc
mineralisation in the top two hundred metres below the main surface
anomalies. Historic work has defined mineralisation at depth and
FCR is now targeting mineralisation at higher levels in the
structure, closer to surface.
"The Company has spent considerable time, effort and resources
in searching for the right development partner for the Moonlight
Project, but, regrettably, despite our best endeavours, we have
been unable to secure a sustainable path to development. Mindful of
the significant costs involved in maintaining the good standing of
the project and the Mining Licence, we yesterday announced that the
Board has decided that, unless an alternative development
opportunity can be secured in the short term, the Company will
undertake an orderly winding-up process for the project leading to
the planned relinquishment of the licences at the earliest
opportunity. Thereafter our resources will be increasingly focussed
on the exciting Spanish lead-zinc project we are about to drill at
Toral."
For further information on the Company, please visit
www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and 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.
APPIX 5B:
http://www.rns-pdf.londonstockexchange.com/rns/6549D_-2017-4-28.pdf
Notes to Editors:
Further Information on the Spanish lead-zinc Exploration
Projects
Toral Project
The wholly owned Toral zinc-lead-silver permit is located near
Ponferrada in the west of the province of León, Autonomous
Community of Castile and León, Spain approximately 400km northwest
of Madrid.
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 (the "NI 43-101 Report"). The NI 43-101
Report estimated that the project has a NI 43-101 compliant
Inferred and Indicated foreign resource estimate of 8.71Mt at an
economic cut-off grade of 7% Pb + Zn (as set out in the Company's
announcement of 10 November 2016).
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.
The company news service from the London Stock Exchange
END
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