FerrAus Limited (ASX:FRS) Quarterly Report For The Period Ended 31 December 2009
Perth, Feb 3, 2010 AEST (ABN Newswire) - FerrAus Limited (
ASX:FRS) (PINK:FRRAF) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.
CORPORATE ACTIVITY
A placement to China Railway Materials Commercial Corporation (CRM) through its wholly owned subsidiary Union Park Company Limited (UPC) was completed on 15 December 2009.
The placement is equal to 12 per cent of the fully diluted enlarged capital structure of FerrAus Limited (the Company) and based on the capital structure of the Company at that time, the investment (which has a 12 month escrow period), was valued at A$12.6 million.
FerrAus Limited and CRM have agreed to cooperate in respect of other potential iron ore resource opportunities in the eastern Pilbara region of Western Australia that, together with the Company's existing resources, can be used to support the financing and construction of necessary rail and port infrastructure.
Under the Share Subscription Agreement, UPC was entitled to appoint a representative to the Company's Board and Mr Guoping Liu was appointed as UPC's representative, in the role of a Non-Executive Director.
Mr Liu is the Vice President of CRM, Chairman to the Board of UPC and has extensive international experience within the USA, Europe and South America. The Board considers that Mr Liu's expertise, industry experience and relationships will be of great assistance in the next phase of the Company's development.
EXPLORATION ACTIVITY
As a statutory requirement annual returns have been completed for all tenements.
In an ongoing effort to explore the regional potential for iron ore occurrences within FerrAus's Pilbara tenure, an airborne aeromagnetic survey was commissioned during November 2009.
In all, 9,000 line kilometres were surveyed over the entire FerrAus Pilbara Project area to produce a detailed, high resolution series of magnetic images.
Across the entire area, a number of priority target areas have been identified. These areas will be drill tested during early 2010.
Importantly, the Company have identified an excellent target on its 2009 granted Exploration Licence E52/1901 (Murramunda area) and anticipate drilling early to mid 2010, once heritage and environmental approvals are in place.
During the quarter a total of more than 14,000 metres of exploration drilling (consisting of 72 RC drill holes at 9,961 metres and 88 Air Core drill holes at 4,431 metres) were completed.
Of the company's total reported iron ore resource, which stands at 166.6 million tonnes, Davidson Creek* holds 114.4 million tonnes (23 million tonnes - Indicated, 91.4 million tonnes - Inferred) and Robertson Range* accounts for the remaining 52.3 million tonnes (23.8 million tonnes - Measured, 20.2 million tonnes - Indicated, 8.2 million tonnes - Inferred).
* Resource estimates are in accordance with AusIMM JORC Code 2004 reported in ASX announcements 17/4/ 2009 and 3/6/2009
Exploration Expenditure Summary Exploration Expenditure Silver Swan North 7,342 Enachedong 2,747 Robertson Range 343,698 Davidson Creek 1,489,853 Murramunda 71,070 Robertson Range ML 409,111 ----------- 2,323,821 -----------
ROBERTSON RANGE (E 52/1630) Pilbara Region, WA
Iron ore exploration activity continued during this quarter and drilling was conducted at Robertson Range.
The drilling was focused on the south west zone of the orebody targeting detrital iron ore following interpretation of earlier drilling work completed in 2008.
On 28 October 2009 the Company announced that recent drilling had identified a new, near surface detrital iron ore zone at its Robertson Range Project in the East Pilbara region, Western Australia.
Located in the South West portion of King Brown Prospect, this new detrital iron ore zone sits adjacent to subcropping iron mineralization in the Marra Mamba Iron Formation (Newman Member) and extends into a deep palaeo-channel trending to the South East.
A reverse circulation drilling program (12 holes for 1,722 metres) was completed across the target area as followup to earlier positive results. This new detrital iron ore zone is approximately 700 metres long, 200 metres wide with a best intersection of 86 metres at 57.9 per cent Fe from 24 metres to 110 metres.
DAVIDSON CREEK (E53/1658) Pilbara Region, WA
Iron ore exploration activity at Davidson Creek continued to test new targets in Marra Mamba Iron Formation and stratigraphy interpreted to be elements of the Brockman Iron Formation.
On 13 October 2009 the Company announced that its recent reconnaissance drilling at Davidson Creek had identified prospective Marra Mamba Iron Formation stratigraphy.
The newly identified three strike kilometres are located south east of Tiger Resource and the other, previously announced, three strike kilometres are located at the Mirrin Mirrin Prospect.
These drill results have the potential to add significantly to the Company's resource inventory; given the success of exploration drilling efforts along strike in Mara Mamba Iron Formations at Davidson Creek.
MURRAMUNDA (E52/1901) Pilbara Region, WA
This area was included in the airborne aeromagnetic survey undertaken during the quarter.
ENACHEDONG MANGANESE PROJECT (E46/614) Pilbara Region, WA
Although no exploration activity was conducted during the second quarter, statutory reports were completed.
SILVER SWAN NORTH NICKEL & GOLD PROJECT (EL27/209 and ML's 27/262-265) Kalgoorlie Area, WA
A reconnaissance expedition to this area was conducted during the second quarter.
For the complete FerrAus Limited Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62207-ASX-FRS-176613.pdf
Contact
Investor / Media Contact:
FerrAus Limited
Tel: +61-8-9474-3770
Fax: +61-8-9474-3700
Email: info@ferraus.com
Website: www.ferraus.com
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