Ferrum Crescent Ltd FCR Quarterly Activities and cash flow report

  Ferrum Crescent Ltd (FCR) - Quarterly Activities and cash flow report

RNS Number : 9065P
Ferrum Crescent Ltd
31 October 2012




31 October 2012



                           Ferrum Crescent Limited

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

                   Quarterly Activities and Cashflow Report

                    For the period ended 30 September 2012



Ferrum Crescent Limited,  the ASX, AIM  and JSE quoted  iron ore developer  in 
Northern South Africa,  today announces  its quarterly results  for the  three 
month period ending 30 September 2012.



HIGHLIGHTS:



Moonlight Iron Ore Project:



· Interpretation of  the results  of a high  resolution airborne  magnetic 
survey at  Moonlight  has further  increased  the Group's  confidence  in  the 
geological interpretation of the Moonlight Deposit

o The  survey covered  the area  of the  Group's New  Order Mining  Right  at 
Moonlight (which covers the farms Moonlight, Julietta and Gouda Fontein)

o A report  on this survey  was prepared by  Mineral Corporation  Consultancy 
(Pty) Ltd and its associates

o This report  highlighted several magnetic  targets, including targets  that 
indicate the strong possibility of an extension of the iron ore mineralisation
within Moonlight Farm itself and a target on Julietta Farm outside of the area
previously planned to be drilled

· Continued assessment  of logistical  solutions (rail,  power, water  and 
port services) required for progressing the detailed feasibility study

· Moonlight Mining Right (granted in May 2012) executed and submitted  for 
registration

·  The  Moonlight  Mineral  Resource  estimate  currently  has  sufficient 
resources to support over  20 years of  magnetite concentrate production,  for 
which the  Company has  a granted  Mining Right  and associated  environmental 
approval



Corporate:



· Shareholder  approvals obtained  on 8  August 2012  for the  BEE  "flip" 
(effectively the swap of Black Economic Empowerment interest in the  Moonlight 
Iron Ore  Project from  the Turquoise  Moon  or project  level for  shares  in 
Ferrum) and for  the implementation  of a  salary sacrifice  plan under  which 
directors and executives may forego fees  and salary and subscribe for  shares 
in the Company

· Cash as at 30 September 2012 is approximately A$2.5m



Moonlight Iron Ore Project



During the  quarter,  Ferrum Crescent  announced  that it  had  received  from 
Mineral Corporation  Consultancy  (Pty)  Ltd of  South  Africa  ("The  Mineral 
Corporation") a detailed  report on  the high  resolution aeromagnetic  survey 
conducted earlier in the year at  and around the Company's Moonlight Iron  Ore 
Deposit in Limpopo  Province, South  Africa. The  Mineral Corporation,  which 
carried out  the  most recent  Mineral  Resource estimate  at  Moonlight,  was 
engaged to provide  interpretation of the  geophysical data generated  through 
the survey.



The current Moonlight Mineral Resource, estimated by The Mineral  Corporation, 
is only based on the exploration of the farm Moonlight to date and consists of
307.8 Mt at 26.9% Fe,  including 172.1 Mt at  25.3% in the Inferred  category, 
83.0 Mt  at 27.4%  in the  Indicated  category and  52.6 Mt  at 31.3%  in  the 
Measured category. The  Group has  been granted a  New Order  Mining Right  in 
respect of the  Moonlight Iron Ore  Deposit, and this  right covers the  farms 
Moonlight, Julietta and Gouda Fontein.



Drilling on  the  farms Julietta  and  Gouda  Fontein to  increase  the  total 
resource estimate on the Moonlight Iron Ore Project has been postponed as  the 
Company has sufficient resources on the  Moonlight farm to support mining  for 
in excess of 20 years  (for which the Group has  an existing Mining Right  and 
associated mining  environmental approvals),  whilst management  attention  is 
focused on  obtaining definitive  answers  to logistical  questions  including 
rail, power, water and port services to achieve the optimal infrastructure mix
for  the  definitive  feasibility  study.  The  Company  continues  to   have 
discussions with  Transnet and  other  infrastructure providers  and  industry 
peers to ensure that these answers are obtained as soon as possible.







The Report



The Mineral Corporation  and its  associates have quality  controlled the  raw 
geophysical data, extracted and processed  geophysical results from the  data, 
provided a geological interpretation of the results, integrated these with the
existing geological modelling  and analysed the  implication of these  results 
for future exploration targets.



The  magnetite-bearing  quartzite,  which  comprises  the  Moonlight  Deposit, 
provides high  intensity magnetic  anomalies that  have permitted  a  detailed 
interpretation.



With regard  to the  current  Mineral Resource  area  on Moonlight  Farm,  The 
Mineral Corporation  is  of the  view  that  the geophysical  results  do  not 
identify  any   significant  inconsistencies   in  the   existing   structural 
interpretation, which  informs  the  current Mineral  Resource  estimate.  The 
geophysical  results  and  interpretation  support  the  existing   structural 
interpretation with respect  to the major  interpreted fault orientations  and 
with respect to  Zone A,  Zone B  and Zone  C West.  The geophysical  results 
suggest that the interpreted  western extent of Zone  C East and the  sparsely 
drilled Zone D warrant  review and further exploration  to test the  potential 
for additional mineralised zones. The Mineral Corporation concludes that these
results have  identified  targets  on Moonlight  Farm  which  could  represent 
potential upside for  the current  Mineral Resources at  a modest  exploration 
cost.



The geophysical data interpretation  on the adjacent  Julietta Farm and  Gouda 
Fontein Farm  confirms and  significantly enhances  the reconnaissance  ground 
magnetic surveys  that were  carried out  by  Ferrum on  these farms,  and  an 
important anomaly close  to, but outside,  the previously planned  exploration 
drilling area has been identified. The improved understanding of the  geology 
on Julietta and Gouda Fonteinshould enable the proposed exploration  drilling 
plans on these farms to be substantially optimised.



Mining Right Execution



Subsequent to the end  of the quarter, the  Moonlight Mining Right (which  was 
granted in May 2012) was executed  under applicable South African law and  has 
been submitted for  registration. The mining  right covers the  areas of  the 
three farms, Moonlight, Julietta and Gouda Fontein.



Corporate



Shareholder approvals  were obtained  on  8 August  2012  for the  BEE  "flip" 
(effectively the swap of Black Economic Empowerment interest in the  Moonlight 
Iron Ore  Project from  the Turquoise  Moon  or project  level for  shares  in 
Ferrum) and for  the implementation  of a  salary sacrifice  plan under  which 
directors and executives may forego fees  and salary and subscribe for  shares 
in the Company.



Three individuals have  elected at  this stage  to participate  in the  salary 
sacrifice plan, and the  shares that have "accrued"  (calculated on a  monthly 
basis by way  of volume  weighted average share  prices for  Ferrum shares  as 
traded on the Australian Securities Exchange during that month) as a result of
such participation are as follows:





                April   May 2012 June 2012 July    Aug 2012 Sept    Total
                 2012                       2012             2012
Ed Nealon        111,111 133,333  182,891   95,238  95,238   133,333 751,145

($6,667      per 
month)
Bob Hair         283,333 340,000  466,372   242,857 242,857  340,000 1,915,419

($17,000     per 
month)
Andrew    Nealon -       -        -         -       -        100,000 100,000
($5,000      per 
month)
VWAP             $0.06   $0.05    $0.036    $0.07   $0.07    $0.05   



The shares will be  issued at a time  that is not a  "close period" under  the 
Company's share trading policy.



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



Australia and Company enquiries: UK enquiries:
Ferrum Crescent Limited          Ocean Equities Limited (Broker)

Ed Nealon T: +61 8 9380 9653    Guy Wilkes T: +44 (0) 20 7786 4370

Executive Chairman               

                                RFC Ambrian Limited (Nominated Adviser)

Bob Hair T: +61 414 926 302     Richard Morrison T: +44 (0) 20 3440 6800

Managing Director                Jen Boorer T: +44 (0) 20 3440 6800

                                 
South Africa enquiries:          Sasfin Capital

                                 Leonard Eiser T: +27 11 809 7500



Competent Persons' Statement:



The information that relates to  Exploration Results and Mineral Resources  in 
the report  of which  this statement  is a  summary, is  based on  information 
compiled by Stewart Nupen,  who is registered with  the South African  Council 
for Natural Scientific Professionals (Reg. No.  400174/07) and is a member  of 
the Geological Society of  South Africa. Mr Nupen  is employed by The  Mineral 
Corporation, which  provides technical  advisory services  to the  mining  and 
minerals industry. Mr Nupen has sufficient experience which is relevant to the
style of mineralisation  and type of  deposit under consideration  and to  the 
activity which he is undertaking to  qualify as a Competent Person as  defined 
in the 2004  Edition of the  'Australasian Code for  Reporting of  Exploration 
Results, Mineral  Resources  and  Ore  Reserves'. Mr  Nupen  consents  to  the 
inclusion in the report of  the matters based on  his information in the  form 
and context in which it appears.



About Ferrum Crescent Limited



Ferrum Crescent  Limited is  an Australian  company listed  on the  Australian 
Securities Exchange (ASX: FCR),  the AIM market of  the London Stock  Exchange 
(AIM: FCR) and the Johannesburg Stock Exchange (JSE: FCR).



The Company  seeks to  capitalise on  the  future demand  for iron  and  steel 
worldwide by producing iron products in the Republic of South Africa, for both
the domestic  and  the  export  markets.  South  Africa,  a  relatively  under 
developed market, which was dominated historically by Iscor (part of which  is 
now Kumba  Iron Ore  Limited) and  now  by Arcelor  Mittal, has  been  largely 
overlooked, and  FCR wishes  to develop  its Moonlight  Iron Ore  Project  and 
pursue other opportunities in Southern Africa.

Within the  constraints of  having a  cut off  grade of  16% iron,  geological 
losses of 5% and a depth constraint  of between 100m and 250m, depending  upon 
dip and the number  of mineralised zones present,  the JORC compliant  Mineral 
Resources on  the Moonlight  farm  section of  the  granted Mining  right  are 
estimated to be 307.8 million tonnes @ 26.9% and are shown as follows:

Category  Gross                                 Net (attributable to Ferrum Crescent
                                                at 81.4%)
          Tonne Fe   SiO[2] Al[2]O[3] Contained Tonne Fe   SiO[2] Al[2]O[3] Contained
          (Mt)  (%)                   Metal     (Mt)                        Metal
                     (%)    (%)       (Mt)            (%)  (%)    (%)       (Mt)
Inferred  172.1 25.3 51.2   4.8       43.5      140.1 25.3 51.2   4.8       35.4
Indicated 83.0  27.4 50.1   4.0       22.7      67.6  27.4 50.1   4.0       18.5
Measured  52.6  31.3 47.3   2.5       16.5      42.8  31.3 47.3   2.5       13.4
Total     307.8 26.9 50.3   4.2       82.8      250.5 26.9 50.3   4.2       67.4

 Tonnes are rounded

Note:  Ferrum  Crescent  subsidiary  is  the  operator  and  owns  81.4%  (the 
beneficial ownership interest as accounted for at 30 June 2012 is 97%) of  the 
Moonlight Iron Ore Project

The  Moonlight  Deposit  (upon  which  the  Moonlight  Iron  Ore  Project   or 
"Moonlight" is based) is a magnetite  deposit located on the farms  Moonlight, 
Gouda Fontein and Julietta  in Limpopo Province in  the north of South  Africa 
and it is the  main operational focus for  the Company. Iscor, which  explored 
the Project  in  the  1980s  and '90s,  reported  mineralisation,  capable  of 
producing a concentrate grading 68.7% iron. At the time, Iscor concluded  that 
the deposit, which was described as comparable to the world's best, was easily
mineable due to its  low waste-to-ore ratio.  The beneficiation attributes  of 
Moonlight ore are extremely impressive, with low-intensity magnetic separation
considered suitable for optimum concentration.

                                                                      Rule 5.3

                                 Appendix 5B



                  Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98,  30/09/01, 
01/06/10, 17/12/10





Name of entity
Ferrum Crescent Limited



ABN              Quarter ended ("current quarter")
58 097 532 137  30 September 2012



  Consolidated statement of cash flows

                                                 Current quarter Year to date

Cash flows related to operating activities                       (3 months)

                                                 $A'000          $A'000
1.1  Receipts from product sales and related
     debtors

     
1.2  Payments for (a) exploration &                     (206)        (206)
     evaluation
                                                                            
                 (b) 
     development                                                            

      (c) production           (495)        (495)

                 (d) 
     administration
1.3  Dividends received
1.4  Interest and other items of a similar nature                           
     received
                                                               19           19
1.5  Interest and other costs of finance paid
1.6  Income taxes paid
1.7  Other - income from restricted cash                       11           11
     investments
                                                                           

     Net Operating Cash Flows                               (671)        (671)
     

     Cash flows related to investing activities
1.8  Payment for purchases of:                                             

      (a) prospects                            

      (b) equity                               
     investments
                                                              (1)          (1)
      (c) other
     fixed assets
1.9  Proceeds from sale of:

      (a) prospects

      (b) equity
     investments

      (c) other
     fixed assets
1.10 Loans to other entities                                    -            -
1.11 Loans repaid by other entities                            --            -
1.12 Other (restricted cash investments)                    (141)        (141)
                                                                           

     Net investing cash flows                               (142)        (142)
1.13 Total operating and investing cash flows                               
     (carried forward)
                                                            (813)        (813)
1.13 Total operating and investing cash flows                               
     (brought forward)
                                                            (813)        (813)
     

     Cash flows related to financing activities
1.14 Proceeds from issues of shares, options,                   -            -
     etc.
1.15 Proceeds from sale of forfeited shares                     -            -
1.16 Proceeds from borrowings                                   -            -
1.17 Repayment of borrowings                                    -            -
1.18 Dividends paid                                             -            -
1.19 Other - share issue costs                                  -            -
     Net financing cash flows                                   -            -
                                                                           

     Net increase (decrease) in cash held                   (813)        (813)

     
1.20 Cash at beginning of quarter/year to date              3,352        3,352
1.21 Exchange rate adjustments to item 1.20                  (30)         (30)
1.22 Cash at end of quarter                                 2,509        2,509

  Payments to directors of the entity and associates of the directors

  Payments to related entities of the  entity and associates of the  related 
  entities

                                                              Current quarter

                                                               $A'000
                                                                           

1.23 Aggregate amount of payments to the parties included in                78
     item 1.2
                                                                           

1.24 Aggregate amount of loans to the parties included in item               
     1.10
    

1.25 Explanation necessary for an understanding of the transactions
    

    

     

     

  Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material
    effect on consolidated assets and liabilities but did not involve cash
    flows
    

    

    



2.2 Details of outlays made by other entities to establish or increase their
    share in projects in which the reporting entity has an interest
    

    

    

    

  Financing facilities available

Add notes as necessary for an understanding of the position.

                               Amount available Amount used

                                $A'000           $A'000
3.1 Loan facilities

    
3.2 Credit standby 
    arrangements

    

  

  Estimated cash outflows for next quarter

                               $A'000
4.1 Exploration and evaluation    200

    
4.2 Development

    
4.3 Production

    
4.4 Administration                400

    
                                   

    Total                         600



Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in Current Previous
the consolidated statement of cash flows) to the related      quarter quarter
items in the accounts is as follows.
                                                              $A'000  $A'000
5.1           Cash on hand and at bank                          2,509    3,352
5.2           Deposits at call
5.3           Bank overdraft
5.4           Other (provide details)
              Total: cash at end of quarter (item 1.22)         2,509    3,352



  Changes in interests in mining tenements



                           Tenement reference Nature of  Interest at Interest
                                              interest   beginning   at end of
                                                         of quarter  quarter
                                              (note (2))
6.1 Interests in mining
    tenements
    relinquished, reduced
    or lapsed

    

    
6.2 Interests in mining    30/5/1/1/2/0402/PR Mining     81.4%       81.4%
    tenements acquired or                     Right
    increased              (Moonlight Mining  granted
                           Right)
    

    

  Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion  rights 
together with prices and dates.



                         Total number Number quoted Issue price  Amount paid
                                                    per security up per
                                                    (see note 3) security (see
                                                    (cents)      note 3)
                                                                 (cents)
7.1  Preference
     +securities
     (description)
7.2  Changes during
     quarter

     (a) Increases
     through issues

     (b) Decreases
     through returns of
     capital, buy-backs,
     redemptions
7.3  +Ordinary            298,841,705   292,246,705      Various    Fully Paid
     securities
7.4  Changes during                                                       
     quarter
                                                                          
     (a) Increases
     through issues                                                       

     (b) Decreases
     through returns of
     capital, buy-backs
7.5  +Convertible debt
     securities
     (description)
7.6  Changes during
     quarter

     (a) Increases
     through issues

     (b) Decreases
     through securities
     matured, converted
7.7  Options                                         Exercise   Expiry date
     (description and                                      price
     conversion factor)     2,350,000             -                07 December
                                                          $0.198          2013
                           21,496,727    21,496,727
                                                          $0.400   31 December
                                                                          2013
7.8  Issued during
     quarter
7.9  Exercised during
     quarter
7.10 Expired during                                   Exercise   Expiry date
     quarter                                               price
                              600,000     2,350,000                07 December
                                                          $0.198          2013
7.11 Debentures

     (totals only)
7.12 Unsecured notes
     (totals only)



Compliance statement



1 This statement has been prepared under accounting policies
which comply with accounting standards as defined in the Corporations Actor
other standards acceptable to ASX (see note 5).



2 This statement does give a true and fair view of the matters
disclosed.






31 October 2012

Sign here: 
............................................................
Date: ............................

(Company secretary)



Print name:  Andrew Nealon................... .............



Notes



1 The quarterly report provides a basis for informing the market
how the entity's activities have been financed for the past quarter and the
effect on its cash position. An entity wanting to disclose additional
information is encouraged to do so, in a note or notes attached to this
report.



2 The "Nature of interest" (items 6.1 and 6.2) includes options
in respect of interests in mining tenements acquired, exercised or lapsed
during the reporting period. If the entity is involved in a joint venture
agreement and there are conditions precedent which will change its percentage
interest in a mining tenement, it should disclose the change of percentage
interest and conditions precedent in the list required for items 6.1 and 6.2.



3 Issued and quoted securities The issue price and amount paid
up is not required in items 7.1 and 7.3 for fully paid securities.



4 The definitions in, and provisions of, AASB 6: Exploration for
and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows
apply to this report.



5 Accounting Standards ASX will accept, for example, the use of
International Financial Reporting Standards for foreign entities. If the
standards used do not address a topic, the Australian standard on that topic
(if any) must be complied with.

                                == == == == ==



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MSCMMBPTMBIJBIT -0- Oct/31/2012 07:00 GMT