Ferrum Crescent Ltd Quarterly Activities and Cashflow Report (5375M)

TIDMFCR

RNS Number : 5375M

Ferrum Crescent Ltd

31 July 2017

31 July 2017

Ferrum Crescent Limited

("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)

Quarterly Activities and Cashflow Report

For the period ended 30 June 2017

Highlights:

Toral lead-zinc project, Spain

-- Drilling contractor engaged to conduct exploration campaign to test for the presence of further lead-zinc mineralisation (above historic drilled areas) from surface in a series of angled holes.

-- 9 firm hole locations were planned to intersect near-surface lead-zinc mineralisation with an average hole length of 155m for a minimum total to be drilled of 1,400m.

-- Myles Campion contracted as senior technical consultant to advise the Board on the geological development of the Company's asset portfolio.

-- Visual identification of lead-zinc associated minerals in the core extracted from all of the drill holes completed within the reporting period.

Moonlight Iron Ore Project, South Africa

-- Sale of the Company's Mauritian subsidiary, Batavia Ltd ("Batavia"), holding all of the Group's South African assets, including the Moonlight iron ore project in Limpopo Province, northern South Africa (the "Moonlight Project"), to NPSPL Africa Holdings Limited and its BEE partner, Ngwenya Capital (Pty) Limited (together, the "Purchasers").

-- The sale of Batavia, for nominal consideration, terminated the group's exposure to the significant ongoing costs and commitments associated with maintaining the Moonlight Project.

Corporate

-- Capital raising of GBP225,521 gross through the placement of 322,173,789 new ordinary shares of no par value each in the capital of the Company at a price of 0.07 pence per new ordinary share to pursue the Toral lead-zinc project's exploration programme.

   --     Cash balance at the end of the quarter: A$504,041 

Post Quarter End

Toral lead-zinc project, Spain

-- Drilling of 6 holes completed which have all returned visually-identified lead-zinc intersections from which samples are now being prepared and sent for assay in Spain.

-- All drilling conducted was within 200 metres from surface and, due to the drilling occurring across various elevation levels on a hill, it has been possible to recover core at various levels within the structure.

-- A revised structural thrust model whereby mineralisation is constrained within a series of thrusts and driven to surface from depth has been established with confirmation from the intersections encountered at each and every hole drilled.

-- With the geological aims of the exploration drill programme having substantially been met, the programme has been deemed completed by the Board after hole 6 and halted.

-- The results from the ongoing assays will be analysed once received, entered into the revised structural model for Toral and announced accordingly.

-- Significant data set and analytics relating to the historic NI43-101 resources report now recovered from Micon International Ltd ("Micon").

-- Principal objective is now to relate the latest understanding of the thrust model to the significant amounts of new core and the assay results obtained from the drill programme.

-- The analysis of the new core will facilitate a review of the core from the historic third party drill campaign with a view to assaying specific previously-untested sections of the historic core for shallower mineralisation.

-- All the assays plus the historic data set will enable the swift development of the next phase of exploration in order to pursue specific project economic targets, to include the expansion of the resource.

-- The drilling of 'long-holes' which is a previously untested approach designed to move through multiple shale/slate layers will also be assessed. The objective is to encapsulate the entire mineralised section in each hole by traversing the complete series of parallel, mineralised planes.

-- Internal scoping and comparative studies commenced in July 2017 in order to support economic development planning towards a Pre-Feasibility Study.

Moonlight Iron Ore Project, South Africa

-- Orderly hand-over process of all of the Group's operations and licences associated with the Moonlight Project underway.

Justin Tooth, Executive Chairman of FCR, today commented:

"The last quarter and subsequent month have seen FCR complete its near-surface, lead-zinc exploration drill campaign at Toral in Spain and dispose and cease its exposure to its South Africa assets, including the Moonlight Project.

"The objective for our initial drill programme at Toral was to confirm our new geological model by establishing the presence of lead-zinc mineralisation near surface, and the existence of multiple planes of mineralisation rather than just a single mineralised zone at depth as previously established by prior owners of the asset.

"From visual inspection, the recovered core from every one of the six holes drilled contained apparently mineralised intersections of varying widths. Accordingly, we decided to call an end to this initial drilling campaign while our geological team assesses the results and relates them to the data set received from Micon, and to the core we hold from the historic Lundin drill programme. The core samples are now being prepared and sent to the ALS Global laboratory in Seville for assay and analysis.

"It is probable that in light of our drill programme we shall also choose to sample and assay certain sections of the historic core in order to ratify our findings, as that core was never assayed for shallow mineralisation because there was a different geological model under consideration at that time.

"We now look forward to receiving those assay results which are currently anticipated within the next 6 weeks. We will make a comprehensive announcement of the results from this campaign as soon as practicable.

"Incorporating all this new data into our geological model at Toral is our current priority so that we can model the latest drill campaign's results alongside the significant historic data in order to enhance our understanding and to focus our exploration activities for the maximum of benefit. We aim to develop the thrust model at Toral rapidly and continue to build a better understanding of the project's resource and economics.

"Lastly, the divestment of our South African assets is leading to a significant reduction in ongoing costs with our attention now focused on progressing our promising Spanish lead-zinc projects."

Exploration Interests

The following listing of tenements held is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 30 June 2017:

 
 Project    Location             Right Number      Right Status     Holder      Percentage 
                                                                                 Interest 
---------  -------------------  ----------------  ---------------  ----------  ----------- 
 
            León                                               GoldQuest 
             Province,                             Investigation     Iberica, 
 Toral       Spain               15.199             Permit           S.L.       100% 
                                                   Exploration 
                                                    Permit in 
                                 Lago II 6.056      progress 
 
                                                    Investigation   GoldQuest 
            Galicia Province,                       Permit in        Iberica, 
 Lago        Spain                Lago III 6.058    progress         S.L.       100% 
 

As at 30 June 2017, the Company has disposed of interests in the following:

 
 Project      Location         Right Number            Right Status          Holder        Percentage 
                                                                                            Interest 
-----------  ---------------  ----------------------  --------------------  ------------  ----------- 
 
              Limpopo                                                        Ferrum 
               Province,       30/5/1/2/2/201          Mining Right           Iron Ore 
 Moonlight     South Africa     MR                      Granted               (Pty) Ltd    97% 
              Limpopo                                                        Ferrum 
               Province,                               Prospecting            Iron Ore 
 Moonlight     South Africa    LP30/6/1/1/2/11868PR     Right Application     (Pty) Ltd    97% 
 

For further information on the Company, please visit www.ferrumcrescent.com or contact:

Ferrum Crescent Limited

Justin Tooth, Executive Chairman

Grant Button, Director and Company Secretary

T: [phone]

UK enquiries:

Laurence Read (UK representative)

T: [phone]

Strand Hanson Limited (Nominated Adviser)

Rory Murphy/Matthew Chandler

T: [phone]

Beaufort Securities Limited (Broker)

Elliot Hance

T: [phone]

Bravura Capital (Pty) Ltd (JSE Sponsor)

Melanie De Nysschen

T (direct): [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

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