Firestone Energy is making good progress with its definitive feasibility study on its coal project in the Waterberg and hopes to produce 10 Mtpa of coal to Eskom in H2, 2015.
Interim Resource StatementDuring the June quarter SRK released an Interim Resource Statement1, covering the Smitspan and Massenberg properties only. The updated Resource Statements reflect a resource tonnage of 1,090.88Mt at Measured Status, 69.04Mt at Indicated Status, and 23.27Mt at Inferred Status for Smitspan and Massenberg. The balance of the resources on the farms held under Mining Rights and Prospecting Rights are not included in this estimate and reflect further potential.
Geological ModelA new contract has been negotiated with Sable to maintain and update the Sekoko Geological Database. The updated database will be passed onto Gemecs Pty Limited, who will create a new Geological Model incorporating the data, to be used for both a Resource update and further mine planning and value engineering pursuant to the DFS. Surface rights During the quarter, negotiations for the purchase of surface rights, commenced with the surface rights holders. It is expected that agreements with current owners will be finalised during the next quarter. Corporate Activities There were several board changes during the quarter with the resignation of David Perkins, deputy chairman, Oren Zohar, Jack James and Kobus Terblanche. Brian McMaster, Stephen Miller and David Knox were appointed to the board. Additionally, Stephen Miller was appointed CEO of the company, replacing David Knox. The company continued discussions during the quarter with interested parties regarding the future funding for Firestone. Discussions are on-going. The company received notification during the quarter that the Waterberg Coal Company’s off-market takeover bid for all the ordinary shares in Firestone had been extended to 30 July 2013. Firestone Energy Limited is an independent, Australian exploration and development company listed on the Australian Stock Exchange and the Johannesburg Stock Exchange.