Firestone Energy (ASX: FSE) is an independent, Australian exploration and development company listed on the Australian Stock Exchange (ASX) and the Johannesburg Stock Exchange (JSE). Firestone Energy and Sekoko Coal are in joint venture agreements whereby Firestone Energy can acquire participation interests in the Waterberg coal project located in Lephalale area, Limpopo Province, South Africa.
Firestone Energy encouraged by Waterberg Coal Project Pre-feasibility Study
Firestone Energy (ASX/JSE: FSE) has released results for the half-year ended 31 December 2009. The Pre-feasibility Study on Firestone’s flagship Waterberg Project in South Africa was completed and approved in January 2010 and the Bankable Feasibility Study is expected to be completed in the third quarter of 2010.
During the half year, the group raised $25 million to complete the Bankable Feasibility Study.
“Work is now proceeding at an accelerated pace to complete a more detailed Bankable Feasibility Study,” said John Wallington, Firestone Managing Director.
“Environmental baseline studies have been completed and social and labour plans are underway," he added.
The company said the current focus of exploration is on the Smitspan farm, which supports a mine layout covering 507ha, extending for 3.5km (east to west) and 1.8km (north to south).
This area contains sufficient coal to produce 85 million tonnes of domestic coal for local power stations and 20 million tonnes of high grade coal. The latter is suitable for both the metallurgical and the thermal export market.
"A particularly encouraging feature of the Pre-feasibility Study has been the increase in the SAMREC and JORC-compliant measured resource at Smitspan, rising to 97 million tonnes, thus improving our confidence in the project." Wallington said.
Other highlights of the period were:
- surface rights acquired at Smitspan.
- shareholder approval of the acquisition of interests in four additional properties.
- third agreement signed to acquire a further two properties from Sekoko in the Waterberg area, bringing the total number of farms in the JV to eight.
- Tim Tebeila, Executive Chairman of Sekoko Resources, appointed as Deputy Chairman of
Firestone Energy.
- continued participation in the Eskom Request for Proposal (RFP) process.
- the company remains cash positive with 50% of the convertible note still intact.
In line with expectations for a development company, the company reported a net loss for the six months to 31 December 2009 of A$1,532,146. This is a basic loss per share of A$0.08.
