Edenville Energy PLC Mining Update (8903F)
July 18 2019 - 2:00AM
UK Regulatory
TIDMEDL
RNS Number : 8903F
Edenville Energy PLC
18 July 2019
18 July 2019
Edenville Energy PLC
("Edenville" or the "Company)
Mining Update
Edenville Energy Plc (AIM: EDL), the AIM quoted company
developing a coal project in southwest Tanzania, is pleased to
provide an update on current mining operations at its flagship
Rukwa Coal Project (the "Project").
Highlights
-- Coal mining has now commenced in the new northern mining area
(the "Northern Area") following the overburden stripping and
exposing of coal, announced on 27 June 2019;
-- The main coal measures that have been exposed and are being
mined in the Northern Area are collectively approximately 20m thick
(in certain areas coal measures up to 40m thick starting
approximately 2 meters from surface have been identified). This
compares to coal measures of approximately 3.5m thickness in the
previously mined areas;
-- Analysis of unwashed Northern Area coal is returning energy
values averaging 6,200kcal/kg, the highest being over 6,800kcal/kg.
These energy values are significantly higher than those seen in
previously mined areas, which averaged approximately 5,000kcal/kg;
and
-- Average daily washed coal production is increasing, with 730
tonnes produced from 1 July to 15 July 2019, including a record
daily production of 102 tonnes of washed coal on 15 July 2019 from
a single shift.
Following the overburden stripping which exposed the coal seams,
the extraction of coal has commenced in the recently developed
Northern Area pit. The main coal measures of approximately 20m in
thickness have been exposed and this is where operations are
currently focused. The coal from the Northern Area pit has been
extensively sampled by the Company and has returned gross energy
values averaging 6,200kcal/kg, the highest being over
6,800kcal/kg.
The coal measures appear consistent with only moderate amounts
of material such as mudstone currently seen within the seam
structure. The Directors believe that a portion of this coal has
the potential to be screened and sold unwashed, owing to its
already high calorific value.
Further coal is also starting to be uncovered to the west of the
already exposed coal measures within the Northern Area. This will
be progressively uncovered in the future, but for now mining is
concentrating on further opening up the coal measures, both north
and south, along the strike of the coal in the Northern Area.
The wash plant is continuing to increase production from the low
levels in Q2 2019, averaging 60 tonnes of washed product produced
from the original mining area per day (excluding any coal mined
from the Northern Area), on a single shift.
Once sufficient material from the Northern Area is available,
the Directors expect the wash plant to move back to a double shift
basis. As well as increased throughput rates, the Directors believe
the recent upgrades to the plant will result in less plant downtime
and allow a more consistent production profile to be achieved at
the Project.
Rufus Short, Chief Executive Officer of Edenville, commented:
"It has only been three weeks since mining in the Northern Area
commenced and extensive coal measures have already been uncovered.
This is encouraging and the coal quality has so far exceeded what
we expected from measures so close to the surface. As the Project
is developed further, we believe that significant quantities of
coal can be extracted from the Northern Area with our current
mining fleet. This, coupled with the plant improvements we have
made, should enable Edenville to become cashflow positive within
the next 9 months, as we target 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."
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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