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
Ferrum is undertaking a nonrenounceable pro rata rights issue to raise about A$2.03-million.

The rights issue will be partially underwritten by Patersons Securities, ensuring that the company will raise at least A$860 000.

The funds will be used to complete key components of the bankable feasibility study (BFS) currently under way at the company’s Moonlight iron-ore project, and for corporate overheads.

The directors of the company consider an opportune time to move the BFS process significantly forward, owing to the infrastructure upgrade programmes currently under way in support of the project.

The BFS objectives are to assess the economic viability of extracting iron-ore from a low stripping ratio, openpit mine. The iron-ore will be slurried to an existing Transnet rail terminal, where a high-grade pellet could be produced and shipped.

The results of completed BFS metallurgical work have indicated that the Moonlight project will produce a pellet product with a 68% to 70% grade.

Ferrum has noted that it will deploy funds from the rights issue to complete final costings for most of the major mining and processing elements.

Completion of this phase of work will allow for final negotiations and planning with major infrastructure partners and local communities.

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.