Firestone Energy, an Australian exploration and development company, has released interim resource statement confirming gross tons in situ to be 1.09-billion tons at its joint venture Waterberg coal project in South Africa.

The drilling results have also reported the combined indicated and inferred resource to be 92.31 million tons. The interim resource statement covered two properties of the four farms held by Sekoko Coal, with which Firestone shareholder Ariona held a formal share sale and purchase agreement.

The company has scheduled the completion of bankable feasibility study by the end of June 2013 following confirmations from its technical team.

Firestone has also stated that the delivery of BFS is a key aspect for the company to convert its memorandum of understanding with Eskom into Coal Supply Agreement (CSA). Under this agreement, the company would supply 10 million tons of coal per annum.

The company expects to begin the coal price negotiations during second half of 2013 after Eskom’s satisfaction pertaining quality of coal.

Eskom is likely to undertake a bulk sample burn test to confirm the coal qualities, the results of which may be available in first half of 2014, reported Firestone.

It is anticipating the commencement of production during latter half of 2015, between 12 to 18 months after the completion of the CSA.