Edenville Energy PLC Commencement of Mining at the Northern Area (5618D)
June 27 2019 - 2:00AM
UK Regulatory
TIDMEDL
RNS Number : 5618D
Edenville Energy PLC
27 June 2019
27 June 2019
Edenville Energy PLC
("Edenville" or the "Company)
Commencement of Mining at the Northern Area
Edenville Energy Plc (AIM: EDL), the AIM quoted company
developing a coal project in southwest Tanzania, is pleased to
announce the commencement of mining at the new northern mining area
(the "Northern Area") of its flagship Rukwa Coal Project (the
"Project") together with other recent Project developments.
Highlights
-- Access and haul road to the Northern Area (2km north of
current pit) completed ahead of schedule;
-- Overburden stripping and exposing of coal has now commenced in the Northern Area;
-- Northern Area has thicker seams (in areas up to 40m thick
starting about 2 meters from surface) than those previously
mined;
-- The wash plant has started batch processing of fine coal
stockpiles through the pre-screen, enabling approximately 40% of
the fine coal stockpiles to be reclassified as sized coal product,
available for washing or direct sale; and
-- Analysis of this screened, but unwashed coal, is returning
values of approximately 5,000 kcal/kg.
Following the completion of the work carried out on the haul
road which runs from the plant to the Northern Area, mining has
commenced in the Northern Area. Overburden has been removed to
allow access to the coal seam and the coal is being progressively
exposed for excavation and transport to the wash plant. The
Directors believe the coal from the Northern Area has the potential
to provide greater yields and better qualities than areas mined
previously.
Batch processing of fine coal from the stockpiles through the
pre-screen has produced encouraging results which show
approximately 40% of the stockpiled fine coal can be reclassified
as sized coal product, which will be available for washing or
direct sale. Whilst recoveries can be variable due to the origin of
the fine coal, the Company believes that use of the pre-screen can
reclaim a significant amount of saleable material from the existing
fine coal stockpiles, possibly up to 10,000 tonnes of saleable
coal.
This coal has been analysed with results of 5,000kcal/kg being
achieved. This is close to the calorific value of some of the
Company's washed coal enabling this recovered coal to either be fed
through the wash plant to further upgrade the product or, if the
quality is appropriate, to be sold directly without washing. It
should be noted that calorific values will vary depending on the
origin of the coal being processed, but the Company is encouraged
by these initial results.
Going forward, these results indicate the pre-screening process
should be able to increase the coal available to be washed by an
amount comparable to the results achieved from the initial
processing, again depending on the nature of the coal being
processed. Correspondingly, the amount of fine coal sent to
stockpiles should reduce.
The Company remains in discussions with potential buyers of fine
coal. Other opportunities available to the Company with regards to
sales of fine coal are also still being assessed.
Rufus Short, Chief Executive Officer of Edenville, commented:
"We are delighted to have commenced mining at the Northern Area
following the receipt of proceeds from the recent placing.
"We will continue to push forward with the Northern Area which,
coupled with the recent plant improvements we have made, should
enable us to increase production. We believe Edenville is on track
to become cashflow positive within the next 10 months, targeting an
initial washed coal production of 6,000 tonnes per month, which we
consider to be a breakeven level, increasing to 10,000+ tonnes per
month thereafter. I look forward to providing further updates
regarding progress at the Project."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman
Rufus Short - CEO +44 (0) 20 3934 6630
SP Angel Corporate Finance LLP
(Nominated Adviser and Joint
Broker)
David Hignell
Jamie Spotswood
Abigail Wayne +44 (0) 20 3470 0470
Brandon Hill Capital Ltd
(Joint Broker)
Oliver Stansfield, Jonathan Evans +44 20 7936 5200
IFC Advisory Limited
(Financial PR and IR)
Tim Metcalfe
Graham Herring
Heather Armstrong +44 (0) 20 3934 6630
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END
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