Name and Location
Moonlight Crescent iron-ore project, Limpopo, South Africa.

Client
Ferrum Crescent.

Project Description
The Moonlight Crescent iron-ore project, located on the Moonlight, Julietta and Gouda Fontein farms, in Limpopo, has been configured as a 4.5-million-tonne-a-year pelletised iron-ore concentrate operation. The project is expected to produce iron concentrate of about 69%.

In April this year, Ferrum updated the Joint Ore Reserves Committee- (Jorc-) compliant mineral resource to an estimated 307-million tonnes at 26.9% iron. This includes 172.1-million tonnes at 25.3% iron in the inferred category, 83-million tonnes at 27.4% in the indicated category and 52.6-million tonnes at 31.3% iron in the measured category.

The updated Jorc resource forms an important part of Ferrum’s plans to progress the project’s bankable feasibility study (BFS) in 2014. Ferrum says the mineral resource is suitable to inform the more detailed feasibility study work to be done and the up-to-date assessment of “reasonable prospects for eventual economic extraction” also adds confidence to the project’s potential.

Value
The total value of the project has not been disclosed.

Duration
Construction at Moonlight is expected to start by 2015 and will be completed by 2018.

Latest Developments
Despite halting the start of the bankable feasibility study (BFS) for the Moonlight iron-ore project until sufficient funding has been negotiated, Ferrum continues to map out the work planning programme.

During the June quarter, the South Africa-focused iron-ore developer continued to prepare for the start of the BFS, concluding a detailed review of the A$10-million to A$13-million 18-month study.

A work plan identified advanced metallurgy, pilot plant construction and final product analysis as the next key components for the BFS. This work allows for final costing to be made for the mining plan and items such as the pellet plant.

The company is pursuing funding options – in South Africa and internationally – after Oman-based Anvwar Asian Investments (AAI) failed to deliver on a second payment of $500 000 by April 30 under a two-tranche, $1-million funding agreement between the parties.

Ferrum expects to restart the BFS on receipt of the funding.

Key Contracts and Suppliers
ProMet Engineers (detailed scoping study) and Mineral Corporation Consultancy (updated resource estimate).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ferrum Crescent, tel +27 11 510 0159, fax +27 86 219 5701 or email info@ferrumcrescent.com.
ProMet Engineers, tel +27 21 556 9759, fax +27 21 556 9758 or email info@promet.co.za.