Moonlight

Moonlight

Moonlight project

As per the announcements of 27 April 2017 The Company regrettably decided, unless an alternative development opportunity can be secured in the short term, to undertake an orderly winding-up and hand-over process of all of the Group’s operations and licences associated with the Moonlight Project with a view to terminating all activities and expenditures in South Africa as soon as practicable.

Historic

2008 - 2010

  • 5,800 metres of reverse circulation drilling carried out and maiden resource estimated
  • Scoping study completed by ProMet Engineers Pty Ltd in Perth, Western Australia
  • Reverse takeover of ASX-listed Washington Resources
  • Completion of BEE acquisition
  • Admission to AIM market in London, and completion of a GBP10 million capital raising (approximately AUD16 million)
  • New development option decided for Moonlight Project

2011

  • Core storage and processing facility constructed
  • Core cutting sampling and bulk density measurement now to be conducted on site, resulting in improved sample turnaround
  • Offtake agreement with Swiss based Duferco SA signed
    • Offtake for direct reduction and/or blast furnace product from iron ore projects in South Africa
    • Anticipated 4.5 million tonnes (mt) of iron ore pellets per year export to be produced (plus 1.5mt per year to be sold domestically) initially from Moonlight project
  • 990m of diamond core drilling and 13 holes totalling 1,600m of reverse circulation (RC) drilling completed
  • Definitive feasibility study ("DFS") progressed, including work on the metallurgical testwork programme, pipeline engineering and access studies, and identification of construction contractors and processing plant suppliers.
  • Admission to JSE in South Africa
  • The Mineral Corporation Consultancy (Pty) Ltd appointed for resource expansion and associated study

2012

  • New JORC compliant resource at Moonlight Iron Ore Project of 307.8 million tonnes @ 26.9% Fe
  • Mining right covering the farms "Moonlight", "Julietta" and "Gouda Fontein" granted
  • New prospective targets identified south, east and west of the Moonlight Deposit
  • Moonlight Mining Right (granted in May 2012) executed and registered
  • 2,827 line km on 50m line airborne aeromagnetic survey completed and interpretation of the results of the high resolution survey confirms fresh exploration targets
  • Infrastructure solution analysis progressed with supplier discussions
  • Strong relationship with the local communities to be impacted by mining and with local municipalities
  • First tranche of BEE "flip" completed, resulting in transfer to Ferrum of the BEE partner's interest in the Moonlight Iron Ore Project and issue of Ferrum shares to that partner

Moonlight Iron Ore Project

  • 97% owned by Ferrum, with the remainder owned by local community trust
  • JORC compliant resource of 52.6Mt at 31.3% Fe in the Measured category, 83Mt at 27.4% Fe in the Indicated Resource category and 172.1Mt at 25.3% Fe in the Inferred Resource category
  • 20 year mine life supported
  • High resolution aeromagnetic survey confirms exploration upside
  • Mining Right granted
  • Metallurgical test work demonstrates high recoveries and extremely low contaminant levels
  • Comparative low energy levels likely for production- projects magnetite grain size coarse - production of a commercial concentrate will cost less and require less energy
  • Project concept involves mining and beneficiating at Moonlight, slurry pipeline to area close to railhead, manufacture of 6 Mtpa blast furnace and direct reduction iron grade pellets for export and domestic sale
  • Offtake agreement secured with Swiss-based Duferco SA, for sale of 4.5 Mtpa pellets for export and first right of refusal in respect of 1.5 Mtpa, if it is not sold domestically
  • Discussions with a number of potential strategic development partners underway, including technology suppliers and steel producers

Rail Connections
Transnet

Production profile concept

  • Contract, open-pit mining and concentrate production at Moonlight
  • Slurry concentrate pipeline to pelletising plant near railhead, with return water to Moonlight (100 - 220km), Lephalale and Thabazimbi preferred sites
  • Pelletising plant to produce iron ore pellets (68.5% Fe) for international and domestic markets
  • Planned production at 6 Mtpa DRI and BF grade pellets
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