Company announcements

March 2009 quarterly activities report

20 April 2009

Waterberg Coal Field South Africa

Olieboomsfontein 220LQ

During the period, 7 Reverse Circulation (RC) holes were drilled on the property, 4 holes in a north/south pattern to identify the extent of boundary faults, and 3 holes in an east/west pattern. The quality of the coal still needs to be determined from the samples taken during the course of this drilling. An estimated contained coal tonnage is currently being determined from the information. The Company's geologists have prepared a plan for the next phase of 6 diamond core holes to determine geological structure and to collect samples.

Vetleegte 304LQ

Early stage exploration drilling on the property is complete and no more drilling is required at this stage. Priority listing of the samples have been completed by the Perth office to select the best areas to assay (with coal zones 6 11). Resource tonnage estimates are currently being determined from the information on hand and future in fill drilling to increase the resource confidence to indicated and measured will be conducted on the next drilling programme.

Northern Territory Australia

The two exploration licenses (ELs 7810 and 10166) near Tennant Creek in the Northern Territory continue to be explored by Emmerson Resources Ltd, on behalf of the Company, for Tennant Creek style iron oxide copper gold deposits.


Further negotiations with Sekoko Resources took place during March to conclude the "T2" transaction which includes over 4 properties in close proximity to the 2 properties forming part of the current Joint Venture (JV) with Sekoko. The transaction will deliver a 60% interest in four additional farms, Minnasvlakte 258 LQ, Massenberg 305 LQ, Smitspan 306LQ and Hooikraal 315 LQ. Together the six farms comprise one of the largest land holdings in the Waterberg coalfield and through this transaction will substantially expand the Company's coal inventory in the area. The JV agreement was executed on 31 March and is subject to financial and technical due diligence, as well as regulatory and shareholder approvals.

To meet immediate working capital requirements during the quarter the Company placed 22,727,273 shares to sophisticated investors raising $249,500 and drew down $300,000 from an available loan facility of $500,000.

During March 2009, Mr. Simon Storm was appointed as Company Secretary and Chief financial Officer. Mr. Storm is a chartered accountant with over 20 years experience in accounting and commerce.

For further information please contact:

Mr. Garth Higgo
Chief Executive Officer
Tel: +61 8 9381 2755
Fax: +61 8 9381 4799


^ Jump to the top

© 2013 Firestone Energy