TIDMEDL
RNS Number : 8185Z
Edenville Energy PLC
16 December 2014
16 December 2014
Edenville Energy plc
("Edenville" or the "Company")
Mkomolo Test Pit Results
Edenville Energy is pleased to announce positive coal quality
results from the near-surface seam at Mkomolo, part of the Rukwa
Coal Project, near Sumbawanga in Western Tanzania.
Following on from the results reported at Namwele (24 November
2014), which returned significantly better coal quality than
previously attributed to the deposit, the Company is delighted to
report similarly positive results from test pits excavated at
Mkomolo.
Highlights
-- Test Pit coal quality surpasses internal expectations
-- Raw coal energy values approximately 100% higher than previously modelled
o Likely to have a material impact on project economics for both
the coal mine and Power Station components of Edenville business
model
-- Lahmeyer India's site visit, incorporating a detailed review
of infrastructure, logistics and the development timeframe,
completed
-- Publication of the full Power Plant Feasibility Study in Q1, 2015 remains on schedule
-- "The improved coal quality will reduce the projected
production costs for coal and, as a consequence, improve the
economic and technical parameters of our coal to power project by
reducing the cost of fuel input." - Rufus Short
The coal quality at Mkomolo has surpassed internal expectations,
returning an average raw energy value of 15.11MJ/kg. A simple wash
process (to a relative density of 1.7) increases the energy value
to 24.4 MJ/kg, with a yield of approximately 45%. Sulphur washes
down to an average of 3% and ash content to 19.37%, levels which
sit within a manageable range for use in a coal fired Power Plant.
Technical detail is reported at the end of this news release.
Significantly, the raw coal energy values from Namwele and
Mkomolo are approximately 100% higher than previously modelled;
this will have a material impact on project economics for both the
coal mine and Power Station components of Edenville's business
model.
Operational Update
Topographic Survey
A detailed topographic site survey of the prime mining areas at
Namwele and Mkomolo along with potential sites for the location of
a coal processing plant and the coal-fired Power Plant, is now
complete. The survey data will be integrated into the Power Plant
Feasibility Study and used to develop engineering designs for
siteworks, mine plans and the accurate calculation of overburden
quantities for the mining operations.
Power Plant Feasibility Study, Lahmeyer
The site visit by Lahmeyer India, which incorporated a detailed
review of infrastructure, logistics and the development timeframe
of the transmission system in Western Tanzania, is now
complete.
The new coal quality data from Namwele and Mkomolo will be
incorporated into the Power Plant Feasibility Study, with the
economic model reflecting lower production costs from the coal mine
and reduced fuel supply costs to the Power Station.
We remain on schedule for publication of the full Power Plant
Feasibility Study in Q1, 2015.
Rufus Short, CEO of Edenville Energy commented: "We are
delighted by the results returned from our Mkomolo test pits. The
confirmation of consistent high quality coal very close to surface
at both Namwele and Mkomolo is outstanding news and potentially
transformative for the Company and its shareholders. The improved
coal quality will reduce the projected production costs for coal
and, as a consequence, improve the economic and technical
parameters of our coal to power project by reducing the cost of
fuel input. It is worth emphasising that Edenville's Rukwa Coal
Project is well advanced in terms of the costly, time-consuming
technical elements needed to take a deposit into production. We
have a JORC-compliant, Measured and Indicated resource of 170
million tonnes of total coal in-situ. Under the JORC code, only
Resources classified as Measured or Indicated can be converted into
Bankable Mine Reserves, an important consideration influencing the
time and cost of project development. Both the Mkomolo and Namwele
deposits also have an EIA Certificate in place, which derisks the
project significantly and brings Edenville closer to the point
where a Mining Licence can be issued."
"Our very encouraging test pit results will feed into the Power
Plant Feasibility Study and the assessment of production options,
and we look forward to updating shareholders with news of our
progress in due course."
Technical detail:
Test pits are the optimum way to sample coal that lies close to
surface, allowing a specific seam to be exposed, examined and
sampled. Four test pits were excavated at Mkomolo targeting the top
seam along a strike length of 2.4kms, to expose the near-surface
coal. The excavation and sampling work was carried out by Edenville
personnel with full quality control processes and procedures in
place.
This near-surface coal seam has an average thickness of 1.60m
and was sampled to a maximum depth from surface of 4.96 m, with an
average depth from surface of 2.53m.
The samples from the four test pits at Mkomolo have been
analysed at Alfred H Knight's ('AHK') laboratory in Scotland, UK.
The first test results from Mkomolo are presented below, with the
sampling analysis from Muze expected to be announced in January
2015. The results shown in Table 1 below show the combined raw coal
analysis and the washed results at a Relative Density ('RD') of 1.7
for the Mkomolo test pits.
Table 1 - Raw Coal Analysis (Air Dried Basis)
Sample Inherent Ash Volatile Sulphur Gross Calorific
Moisture (%) Matter (%) Value(Mj/Kg)
(%) (%)
-------- ---------- ------ --------- -------- ----------------
5526 3.30 50.10 17.90 1.96 13.28
-------- ---------- ------ --------- -------- ----------------
5527 7.70 40.40 22.70 5.19 15.66
-------- ---------- ------ --------- -------- ----------------
5528 8.00 35.00 24.30 3.87 17.53
-------- ---------- ------ --------- -------- ----------------
5531 4.50 46.80 19.10 4.19 13.96
-------- ---------- ------ --------- -------- ----------------
Average 5.88 43.08 21.00 3.80 15.11
-------- ---------- ------ --------- -------- ----------------
Table 2 - Floats Basis Float and Sink Coal Analysis (Air Dried),
'Washed Coal'
Sample Mass Yield R.D. Inherent Ash Volatile Sulphur Gross Calorific
(g) (%) Moisture (%) Matter (%) Value (Mj/Kg)
(%) (%)
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
5526 3922.5 29.75 F1.70 2.89 25.00 27.63 2.28 23.04
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
5527 7304.0 52.76 F1.70 5.59 17.34 35.75 4.25 25.14
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
5528 8995.7 65.80 F1.70 7.21 15.52 32.66 2.84 25.33
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
5531 3811.8 31.49 F1.70 2.73 26.53 26.77 2.60 22.45
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
Average 6008.5 44.95 F1.70 5.30 19.37 31.85 3.14 24.44
-------- ------- ------ ------ ---------- ------ --------- -------- ----------------
Note that the improved coal quality applies to the near surface
seam which was exposed across its width and sampled. The original
quality data, reported in the SMS Resource Report (March 2013)
applies to the entire coal measures sequence that comprises 'bar
code coal' that can include barren shales and sandstone between the
coal sequences.
Mkomolo Block FB5, from which the samples were taken, lies at
the southern end of the Mkomolo deposit and sampling was conducted
over a 2.4km strike. The entire Mkomolo deposit is over 8.5km in
length. Whilst localised variations in quality may exist over the
8.5km, previous test work that coal quality suggests the coal is
reasonably consistent in the Mkomolo deposit. We therefore expect
coal to the north of the test pits to demonstrate similar quality
characteristics to the test pit results.
Qualified Person Review
Mark J. Pryor, Pr.Sc.Nat. has reviewed and approved the
technical information contained within this announcement in his
capacity as a Qualified Person, as defined by the AIM Rules and
National Instrument 43-101 Standards of Disclosure for Mineral
Projects.
Enquiries:
Edenville Energy plc +44 (0)20 7653 9850
Sally Schofield - Chairman
Cantor Fitzgerald Europe (Nominated Adviser
and Broker) +44 (0) 207 894 7000
Stewart Dickson / Jeremy Stephenson
Newgate Threadneedle (Financial PR) +44 (0) 207 653 9850
Roddy Watt / Edward Treadwell
This information is provided by RNS
The company news service from the London Stock Exchange
END
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