Ferrum Crescent has taken an important step towards mining at its Moonlight iron ore project in South Africa with the granting of the mining right by the South African Government.

Importantly, the grant of the Moonlight mining right represents the fulfillment of one of the principal conditions precedent to the completion of the company's black economic empowerment transaction by completion of the flip.

The flip is the process whereby the interest of Mkhombi AmaMato, the black economic empowerment controlled company that holds an effective 15.6% interest of the Moonlight Iron Ore Project through its indirect shareholding in Turquoise Moon Trading 157, will effectively swap that project interest for shares in Ferrum.

Ferrum currently owns 81.4% of the Moonlight Project and at the completion of the flip, will hold an effective 97% of the project. The remaining 3% will be held by a trust representing the local community that will be directly affected by Moonlight mining activities.

Exploration plan
Ferrum has outlined a 10,000 meter reverse circulation and core drilling program.

The program is targeting a total Resource estimate for the Moonlight, Julietta and Gouda Fontein farms within the Moonlight Project.

Extensive magnetite mineralization has previously been uncovered at Julietta and Gouda Fontein through drilling by Iscor in the 1980s and 90s.

The Moonlight JORC Resource is currently 307.8 million tonnes at 26.9% iron, with more than 52 million tonnes of that already in the high confidence Measured category.

Ferrum will also undertake an aeromagnetic survey over the three farms in conjunction with drilling.

Ferrum Crescent seeks to capitalize 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.

Source - Proactive Investors

(www.steelguru.com)