Name and Location
Moonlight Crescent iron-ore project, Limpopo, South Africa.

Client
Ferrum Crescent.

Project Description
The Moonlight Crescent iron-ore project, located on the Moonlight, Julietta and Gouda Fontein farms, in Limpopo, has been configured as a 4.5-million-tonne-a-year pelletised iron-ore concentrate operation. The project is expected to produce iron concentrate of about 69%.

In April this year, Ferrum updated the Joint Ore Reserves Committee- (Jorc-) compliant mineral resource to an estimated 307-million tonnes at 26.9% iron. This includes 172.1-million tonnes at 25.3% iron in the inferred category, 83-million tonnes at 27.4% in the indicated category and 52.6-million tonnes at 31.3% iron in the measured category.

The updated Jorc resource formed an important part of Ferrum’s plans to progress the project’s bankable feasibility study (BFS) in 2014. Ferrum says the mineral resource is suitable to inform the more detailed feasibility study work to be done and the up-to-date assessment of “reasonable prospects for eventual economic extraction” also adds confidence to the project’s potential.

Net Present Value/Internal Rate of Return
Not stated.

Value
The total value of the project has not been disclosed.

Duration
Construction at Moonlight is expected to start by 2015 and will be completed by 2018.

Latest Developments
Ferrum has granted a deadline extension for the first payment of R2-million, owed by Principle Monarchy Investments (PMI) as part of a BFS financing agreement.

Ferrum says that the first payment was due on June 1, but that PMI had requested an extension to complete its internal restructuring.

Ferrum and PMI signed a memorandum of understanding (MoU) on May 5, in terms of which PMI would acquire 39% of the Moonlight project, in Limpopo.

The payment deadline has been extended to July 14 and upon payment, the MoU will become legally binding.

PMI will then be required to contribute R2-million a month until completion of the first subscription tranche of R30-million, which must still be paid by December 1, with the monthly payments to be credited towards this first subscription tranche.

Key Contracts and Suppliers
ProMet Engineers (detailed scoping study) and Mineral Corporation Consultancy (updated resource estimate).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Ferrum Crescent, tel +27 11 510 0159, fax +27 86 219 5701 or email info@ferrumcrescent.com.
ProMet Engineers, tel +27 21 556 9759, fax +27 21 556 9758 or email info@promet.co.za.