Johannesburg, South Africa — MININGREVIEW.COM — 14 May 2010 – Firestone Energy Limited “’ an independent Australian exploration company focused on developing coal projects in South Africa “’ has announced that its bankable feasibility study (BFS) at the company’s flagship Waterberg project will be completed two months ahead of schedule, with results now expected in July 2010.
The BFS follows on the prefeasibility study which was completed and approved in January 2010. The objective of the study is to define an open cast mine that could meet expected customer requirements, and which can be brought into production by mid-2011 on the Smitspan farm.
A further 12 boreholes, of which 6 were large diameter(165mm) as required for detailed customer analysis, were completed by the end of April 2010. This significantly enhances the qualitative and technical data base that was developed with the 122 boreholes drilled previously.
Additional holes are currently being drilled on a selected area of the Vetleegte and Hooikraal Farms to confirm the presence of higher yielding metallurgical coal at potentially attractive stripping ratios.
The board of Firestone has advised that, at its present and projected rate of cash utilisation, the company remains fully funded (including the acquisition of Hooikraal and Smitspan farms), until the second quarter of 2011. This excludes any further capital injections from the cornerstone investor process.
Firestone has engaged with over 20 interested international parties, some of which are undertaking detailed due diligence and site visits. The current strong global demand for both metallurgical and thermal coal is bringing strong interest to the project, and the company assures that the market will be kept informed as this process progresses.