31st Jan 2017 09:05
LONDON (Alliance News) - Ferrum Crescent Ltd on Tuesday said the final quarter of 2016 was a "pivotal point" for the business after starting exploration work at the Toral project and continuing to consider the best way forward to develop the Moonlight project.
Ferrum Crescent shares were trading down 11% on Tuesday morning at 0.213 pence per share.
Ferrum Crescent recently acquired the Toral lead and zinc project in northern Spain in full and said it has now formed a field geology unit comprised of six professionals and requisite mapping equipment.
The exploration programme at Toral has started. Structured reinterpretation and analysis of the original foreign and historic geological and exploration data will be undertaken, and a revised geological model will be created incorporating the existing data.
Detailed mapping and sampling has also been conducted over a 2.0 kilometre strike, submitting 577 soil samples, 108 rock chip samples and 23 channel samples for assay.
A "highly-targeted" drill plan will be drawn up, focused on high-grade, near-surface ore shoots linking known surface occurrences to the known high-grade mineralisation at depth, for drill testing in 2017, Ferrum Crescent said.
"The final quarter of 2016 was a pivotal point for the company as we began exploration activities at our newly acquired Toral lead-zinc project in northern Spain," said Executive Chairman Justin Tooth. "We have swiftly progressed our planned work programme, including the recent submission of over six hundred soil, rock chip and channel samples for assay and the generation of our phase one drill plan."
In South Africa, Ferrum Crescent said it has completed desktop studies and independent metallurgical and pelletising analysis on the new magnetite concentrate at the Moonlight iron ore project.
Discussions about developing infrastructure have taken place with the Lephalale Regional Development Forum about sharing local pathways with other mining groups in the region, including rail, water and power. An annual corporate and social responsibility report for Moonlight has also been filed.
Ferrum Crescent recently revealed that the terms of the agreement with Business Venture Investments No. 1709 (Proprietary) Ltd were not satisfied after the latter failed to complete a bankable feasibility study in time.
"The company, whilst reserving its rights under the agreement, is in ongoing discussions with BVI and is considering its options in relation to the potential development of the Moonlight project," said the miner.
Cash at the end of 2016 stood at AUD1.3 million, following a GBP550,000 share placing in the final quarter and further shares being issued to satisfy options that were exercised. Ferrum Crescent said it has also implemented further cost controls at the Moonlight project in light of the current circumstances.
By Joshua Warner; [email protected]; @JoshAlliance
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