Name of the Project
Moonlight Crescent iron-ore project.

Location
The Moonlight deposit is a magnetite deposit located on the Moonlight, Gouda Fontein and Julietta farms in  Limpopo, South Africa.

Client
Ferrum Crescent.

Project Description
The beneficiation attributes of the Moonlight deposit ore are extremely impressive, with low-intensity magnetic separation considered suitable for optimum concentration.

Metallurgical tests on Moonlight material undertaken by Ferrum have suggested that good metal recoveries can be achieved, and that the resulting concentrates have a high iron content and only negligible impurities at grind sizes considered to be industry standard (P80 of 75  to 125).

Metallurgical testwork has indicated the potential for high-quality concentrate and/or pellets with more than 69% iron content and low deleterious elements – direct-reduction- (DR)-grade pellets for use in DR iron/electric arc steelmaking processes.

The proposed project involves mining and beneficiating at Moonlight, a slurry pipeline to the area close to railhead, as well as the manufacturing of a six-million-tonne-a-year blast furnace and DR iron-grade pellets for export and domestic sale.

An offtake agreement has been secured with Swiss-based Duferco SA for the sale of 4.5-million tonnes a year of pellets for export and first right of refusal in respect of 1.5-million tonnes a year, if they are not sold domestically.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

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

Duration
Not stated.

Latest Developments
Ferrum Crescent has reported that the stalled farm-in and joint venture (JV) agreement between its Ferrum Iron Ore (FIO) subsidiary and Business Venture Investments (BVI) has been formally terminated.

The parties had, under the JV agreement, sought to develop Ferrum’s Moonlight iron-ore project, but BVI failed to complete the first phase of the project’s bankable feasibility study (BFS).

In October 2015, BVI agreed to fund the BFS in return for a 43% stake in the project’s holding company FIO; however, in January 2016, Ferrum announced that the completion of the BFS had been extended to January, 2017, which BVI was again unable to complete.

Consequently, BVI has not earned any equity interest in FIO.

Ferrum Crescent is considering its options regarding the potential development of the Moonlight project.

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.