10 November 2016
Ferrum Crescent Limited
("Ferrum Crescent", the "Company" or the "Group")(ASX, AIM, JSE: FCR)
Commencement of Toral Lead-Zinc Exploration Project Work Programme
Ferrum Crescent, the ASX, AIM and JSE quoted metals project developer, announces that further to its acquisition on 23 September 2016 of GoldQuest Iberica, S.L. ("GoldQuest"), which owns 100% of the Toral lead-zinc exploration project located in the province of León in Spain ("Toral Project"), it has now commenced a simple, cost-effective and highly-focussed work programme. This programme includes re-interpretation of significant foreign and historic geological and exploration data available in respect of the Toral Project, including data contained in a NI 43-101 Technical Report prepared by Micon International Co. Limited in respect of the Toral Project on 14 April 2011 and amended on 30 April 2012 (the "NI 43-101 Report").
In the period since completion of the acquisition, the Company has had the opportunity to further consider the NI 43-101 Report and has further developed and refined its planned work programme for 2016 and 2017. The 2016/2017 work programme includes:
-
structured reinterpretation and analysis of the original foreign and historic geological and exploration data;
-
re-mapping of the main Toral Project area applying re-interpreted geological understanding of the regional controls on mineralisation;
-
in-fill surveys over the main prospect area where detailed soil geochemistry has not previously been conducted and extensions of the grid where the fringes of the existing survey data continued to display anomalous values;
-
structural mapping of the existing adits, outcrop and the nearby mineralisation occurrences in order to gauge the balance between local (not fully tested) and regional (well documented) controls on mineralisation;
-
re-logging of historical drill-core and re-assaying of areas where incomplete assays were taken previously in order to seek to identify potential new shallow high grade targets;
-
creation of a revised geological model incorporating existing and new geological data (geochemistry, structural interpretation, assays, logs, maps); and
-
generation of a highly targeted drill plan, focused on high-grade near-surface ore shoots linking known surface occurrences and known high-grade mineralisation at depth, for testing in 2017.
The drill plan design will also test:
-
a number of cross-cutting and intersecting fault zones that are apparent in geological maps and geochemical surveys; and
-
the main mineralised zone for the possibility of structural repetition and the potential for multiple sub-parallel zones of mineralisation.
ACN 097 532 137 Suite 6, Ground Floor, 9 Bowman Street Share code FCR on the ASX, AIM and the JSE SOUTH PERTH WA 6151, AUSTRALIA www.ferrumcrescent.com PO Box 189, South Perth, WA 6951
[email protected] Tel: +61 8 9474 2995 Fax: +61 9474 2937
The work programme is being undertaken by the Company with a view to defining the economic and geological characteristics of the project including the definition of a JORC compliant resource estimate in respect of the Toral Project.
Justin Tooth, Executive Chairman of Ferrum Crescent, commented:
"The Toral Project represents an exciting low-cost acquisition in a mining-friendly jurisdiction which has the potential to become a significant asset for Ferrum Crescent and I look forward to updating the market in due course on the progress of our work programme."
Additional information on the Toral Project
The Toral Project has been extensively explored by its previous owners Portex Minerals Inc. and Lundin Mining S.L. and the 2,024ha of mineral right contains extensive zinc mineralisation. Located in north-west Spain, approximately 400km north-west of Madrid, the project's licence area hosts road, rail and power infrastructure and is situated in a known historic mining jurisdiction.
Foreign Estimate of Mineral Resources
As noted above, there is an existing NI 43-101 Report that has been prepared in respect of the Toral Project which estimated that the project has a NI 43-101 compliant Inferred and Indicated foreign resource estimate of 8.71Mt at an economic cut-off grade of 7% Pb + Zn (the "Foreign Estimate", please refer to Table 1).
Micon International Co. Limited was commissioned by GoldQuest Mining Corporation on 14 April 2011 to prepare an independent Technical Report on the Toral Project suitable for reporting purposes under the standards of Canada's National Instrument 43-101. The Technical Report was reissued at the request of Portex Minerals Inc. on 30 April 2012. The Foreign Estimate was prepared in compliance with the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Reserves ("CIM Standards") and utilised data from diamond drilling completed by Lundin Mining S.L. in 2007 and 2008, and assay data from older Peñarroya/Adaro diamond drill holes. Surpac mining software was used for mineral resources modelling. Mineral resources were reported based upon their potential for economic extraction.
Table 1: Foreign Estimate of Mineral Resources as at 1 February 2011, Cut-Off Grade of 7% Pb + Zn (NI 43-101 Mineral Resources Estimate)
|
Indicated
|
Inferred
|
|
Mt
|
Pb (%)
|
Zn (%)
|
Cu (%)
|
Ag (g/t)
|
(Pb + Zn) (%)
|
Mt
|
Pb (%)
|
Zn (%)
|
Cu (%)
|
Ag (g/t)
|
(Pb + Zn) (%)
|
|
4.04
|
5.30
|
6.50
|
0.11
|
41
|
11.8
|
4.67
|
4.44
|
5.40
|
0.14
|
32
|
9.8
|
|
Indicated
|
Inferred
|
|
Pb (t)
|
Zn (t)
|
Cu (t)
|
Ag (t)
|
(Pb + Zn)
(t)
|
Pb (t)
|
Zn t)
|
Cu (t)
|
Ag (t)
|
(Pb + Zn)
(t)
|
|
214,416
|
262,562
|
4,285
|
165
|
476,978
|
207,316
|
252,348
|
6,447
|
149
|
459,664
|
Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101 Technical Report prepared by Micon International Co Limited, 30 April 2012
The mineral resources presented in Table 1 above are not mineral reserves as they have not been subject to adequate economic studies to demonstrate their economic viability.
Pursuant to the requirements of ASX Listing Rule 5.12.9, Ferrum Crescent provides the following cautionary statement:
The Foreign Estimate of mineralisation reported by Micon International Co. Limited and included in this announcement is not compliant with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a 'Foreign Estimate' for the purposes of the ASX Listing Rules.
A Competent Person (as defined under the ASX Listing Rules) has not yet carried out sufficient work to classify the Foreign Estimate as a Mineral Resource or Ore Reserve in accordance with the 2012 JORC Code and it is uncertain that following evaluation and/or further exploration work that the Foreign Estimate will be able to be reported as mineral resources in accordance with the 2012 JORC Code.
Please refer to the information provided in Appendix A to this announcement in accordance with ASX Listing Rule 5.12.
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: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative) T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh T (direct): +27 11 459 5037
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 ('MAR').
Extract: NI 43-101 Technical Report in respect of the Toral Project
The following information has been selectively extracted from the NI 43-101 Technical Report prepared in respect of the Toral Project to enable an understanding of the reliability of the Foreign Estimate set out above.
-
Description of the Project
The Toral zinc-lead-silver permit is located near Ponferrada in the west of the province of León, Autonomous Community of Castile and León, Spain approximately 400 km northwest of Madrid.
Location of the Toral Zinc-Lead-Silver Permit Area
-
Historic Work
-
Between 1975 and 1985, the Adaro/Peñarroya joint venture carried out exploration on the four separate licences which now correspond, approximately, to the Toral permit area. Over a period of nine years, a topographical survey, geological mapping, a hydrogeological study and more than 40,000m of diamond drilling (62 holes and 41 wedges) were carried out.
-
Lundin Mining S.L. (Lundin) acquired the Toral investigation permit no. 15.199 in 2007 and commenced exploration in April 2007. Lundin compiled the information collected by the previous licence holders including:
-
a review of the available geological maps, plans, sections and assays;
-
surveying old workings, old drill pads, and drill hole locations; and,
-
a study of the existing Peñarroya/Adaro drill holes, description, photography.
In addition, samples of drill core were sent to ALS Chemex in Canada in order to validate the reliability of the existing assays and exploration information was digitised. The results of Lundin's preliminary work confirmed the mineral potential of the Toral area. However, it was apparent that the continuity and the thickness of the mineralisation were insufficiently detailed.
Consequently, an exploration programme was designed to add information to the data set for a better understanding of the deposit. In 2007 to 2009, seven diamond holes for a total of 4,523.7m were drilled for the purpose of confirming the continuity of the mineralisation in the San Jose area of the Toral permit and also to test the possibility of an extension of the mineralisation in depth (see section 6 below).
-
GoldQuest acquired Lundin, including the Toral permit, in January 2010. During 2011 and 2012, GoldQuest conducted systematic geological mapping and soil sampling.