Edenville Energy PLC Exploration Update (2309X)
August 27 2015 - 2:04AM
UK Regulatory
TIDMEDL
RNS Number : 2309X
Edenville Energy PLC
27 August 2015
27 August 2015
Edenville Energy plc
("Edenville" or the "Company")
Exploration Update - Tanzania
Edenville Energy plc (AIM: EDL), the company developing a coal
to power project in south western Tanzania, is pleased to update
shareholders on the exploration work in progress at the project
site.
During the past quarter, Edenville has been conducting
exploration work across the Rukwa Coal Project, the area which
hosts its 170Mt Measured and Indicated Coal Resource.
The focus of the ground magnetics exploration programme was to
define the edges of the coal-bearing basins at Namwele and Mkomolo
and investigate the Mwerang'anda and Wankulwe areas to the west of
Mkomolo.
The exploration work is ongoing, but results to date can be
summarised as follows:
-- 'Marker units' have been identified in each of the coal
basins which give a better understanding of the form, distribution
and extent of the coal-bearing horizons at the margins of the
Mkomolo and Namwele deposits
-- The Mkomolo basin shows potential for additional coal in the
western margins; additional test work is required to better define
the location of any coal structures
-- The edges of the Namwele basin and the area between Namwele
and Mkomolo have been accurately constrained, with coal-bearing
sediments surrounded by Ubendian Gneiss and Granites. These barren
areas can now be demarcated for site development
-- Geophysical data gathering will continue until the end of the dry season in December
Detail
The ground magnetic survey utilises the principle of 'marker
units' - bands within the sedimentary layers that are significantly
different to the rest of the sediments - which generate a different
geophysical signal/response to the surrounding rocks. Possible
marker units are: a) coal horizons, which are less dense and finer
grained than the shales and siltstones that make up the majority of
the basin sediments, and b) a coarse grained sandstone unit that
lies directly above the start of the coal measures sequence, which
also exhibits a contrast sufficient to develop its own geophysical
response.
Gathering of magnetic data in the field will continue until the
end of the dry season in December 2015, with a focus on the edges
of the Mkomolo basin.
Conclusions
Mkomolo
The identification of marker units will allow Edenville to test
the depth of coal-bearing horizons at the western margins of the
Mkomolo Basin without incurring the costs of a drill programme. The
exploration activity is secondary to the development of the power
generation project, but could provide valuable data regarding the
increased potential for near surface coal seams at the edges of the
Mkomolo basin.
Namwele
The magnetic survey has confirmed the location of the basin edge
along the eastern and western margins. Historically the eastern
margin had been mapped based on changes in soil colour and rare
outcrops, and this margin is now confirmed. To the west the basin
edge was estimated as no outcrops were located. The magnetic survey
has now shown that the historical mapping is within +50m of the
defined edges from the latest work. The ground between the Namwele
and Mkomolo basins was surveyed and, as expected from previous
mapping and field activities, it is concluded no sedimentary
deposits exist in this area.
From this it can be concluded that there are no western
extensions to the Namwele basin, and no coal bearing sediments
between Namwele and Mkomolo, allowing barren areas close to the
coal deposit to be demarcated for potential site development.
Next Steps
Once the Mkomolo magnetic survey is complete at year end, the
field data will be interpreted with 3D geophysical software in
order to test whether the coal measures and coarse sandstone units
are useful marker units which can be mapped at depth. If positive,
a more accurate depth to coal measures can be determined and, if
they come close to surface at the western margin of the basin, they
may be economic for extraction, increasing the amount of mineable
coal available in the immediate area.
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.
Rufus Short, CEO of Edenville commented, "Once the magnetic
survey field work in the Mkomolo area is complete at year end we
will be in a position to analyse the data using a specialist
consultant. This interpretation will allow the company to make an
informed decision as to the presence and viability of any coal
measures indicated on the western margin of Mkomolo.
We must emphasise that whilst additional tonnes in the Mkomolo
area would be a positive outcome, these are not required for the
current plan for the 120MW Power Plant development. We will
continue to use our in-country resources in the most cost-effective
way to identify any targets and additional coal tonnes through
continued exploration work on the western margins of the Mkomolo
basin.
We will continue to update our shareholders on developments as
we progress."
Contact
Edenville Energy Plc +44 (0) 20 7652
Rufus Short - CEO 9788
Cantor Fitzgerald Europe
(Nominated Advisor and Corporate
Broker)
Stewart Dickson
Philip Davies +44 (0) 20 7894
Jeremy Stephenson 7000
IFC Advisory
(Financial PR and IR)
Tim Metcalfe +44 (0) 20 3053
Graham Herring 8671
This information is provided by RNS
The company news service from the London Stock Exchange
END
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