JOHANNESBURG (miningweekly.com) – Triple-listed iron-ore developer Ferrum Crescent has updated the Joint Ore Reserves Committee- (Jorc-) compliant mineral resource at its Moonlight project, in Limpopo, to an estimated 307-million tonnes at 26.9% iron.

This included 172.1-million tonnes at 25.3% iron in the inferred category, 83-million tonnes at 27.4% iron in the indicated category and 52.6-million tonnes at 31.3% iron in the measured category.

Within a cutoff grade of 16% iron, geological losses of 5% and a depth constraint of between 100 m and 250 m from surface, the updated resource report noted that there were “reasonable prospects for eventual economic extraction”.

“The updated Jorc resource forms an important part of our plans to progress the Moonlight bankable feasibility study (BFS) in 2014. Not only is the mineral resource suitable to inform the more detailed feasibility study work to come, but the up-to-date assessment of ‘reasonable prospects for eventual economic extraction’ gives us further confidence in the project’s potential.

“What is interesting about Moonlight is that the project is about a premium, high-value product, with the potential to be mined at a low stripping ratio,” MD Tom Revy said in a statement on Tuesday.

His comments came as the company received the first $500 000 tranche from Oman-based investment firm Anvwar Asian Investment (AAI) as part of a final investment agreement with AAI to progress the BFS at the Moonlight project.

Ferrum announced in March that it had signed a final investment agreement with AAI, which would see the company receive $10-million in exchange for the granting of a 35% interest in its subsidiary Ferrum Iron-Ore, the holder of the Moonlight assets.

Ferrum expected a further tranche of $500 000 to be paid by AAI by April 30 and, following receipt of this payment, the company would restart the BFS.

Commenting on the company’s first-quarter performance, Revy added that Ferrum had spent the first three months of the fiscal year gearing up to complete the BFS at the Moonlight project and make it “construction ready”.

“One of the primary motivations for me joining the company [earlier this year] was to ensure that Moonlight can access the necessary infrastructure and produce and deliver to customers a premium iron-ore product. We look forward to receiving the next tranche of funds from AAI and updating the market on various aspects of the BFS [in future],” he said in a report for the quarter ended March 31.