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 has announced that it will withdraw from the Moonlight iron-ore project unless an alternative development opportunity can be secured in the short term.

This follows the February termination of a joint venture (JV) agreement with Business Venture Investments (BVI), which had intended to earn a 43% interest in the project, in exchange for funding a bankable feasibility study (BFS) on the project. BVI was unable to fund the BFS.

Ferrum subsequently entered into negotiations with a third-party group about the potential development of the project, but negotiations have since been terminated.

The company has spent considerable time, effort and resources in searching for the right development partner for the Moonlight project to help address the significant headwinds of the global iron-ore market.

The board has also explored conventional technology routes and, more recently, certain new technological advancements, which potentially offered lower capital requirements and operating expenses.

“However, despite our best endeavours, we have been unable to secure a path for the development of the Moonlight project and are mindful of the significant costs associated with continuing to hold and maintain the project,” Ferrum chairperson Justin Tooth said in a statement to shareholders on April 28.

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.