TIDMCZA
RNS Number : 2386F
Coal of Africa Limited
13 June 2012
13 June 2012
SIGNIFICANT INCREASE IN COAL RESOURCES LED BY ACQUISITION OF
SOUTPANSBERG ASSETS
Estimated gross tonnes in situ increase by 429% to 8.0 billion
tonnes from 1.5 billion tonnes in the Greater Soutpansberg area
Coal of Africa Limited ("CoAL" or "the Company"), the coal
exploration, development and mining company operating in South
Africa, is pleased to announce another strategic milestone in its
strategy to grow into a significant coking coal producer in the
region. The Company today provided an update to its resource and
reserve estimates for the prospecting areas (tenements) in its
Greater Soutpansberg project area (the "Greater Soutpansberg"),
located in the Limpopo Province of South Africa. The Greater
Soutpansberg is a consolidation of nine potential coking and
thermal coal assets in the Soutpansberg coalfield, several of which
were held under prospecting rights held by the companies whose
shares were acquired from Rio Tinto Minerals Development Ltd ("Rio
Tinto") and Kwezi Mining (Pty) Ltd ("Kwezi"), in the transaction
that closed on 11 May 2012 (the "Acquisition"). These have been
grouped into three proximate regions, namely Mopane, Makhado and
Chapudi.
The updated resource and reserve estimates follow the conclusion
of the Acquisition in terms of which the shares in companies
previously held by Rio Tinto and Kwezi were acquired and the
estimates include the coal resources associated with the New Order
Prospecting Rights ("NOPRs") held by those companies as well as
other NOPRs over properties in the Greater Soutpansberg already
held by CoAL or its subsidiaries.
Highlights
The Technical Statement indicates an increase in estimated coal
resources for the Greater Soutpansberg of more than 1.3 billion
mineable tonnes in situ ("MTIS") across the measured, indicated and
inferred resource categories, principally due to the additional
assets acquired. Additional exploration drilling and delineation of
the resources is underway with further increases in the estimated
coal resources anticipated upon completion.
Additional highlights of the updated resource estimates for the
Greater Soutpansberg include the following:
-- Gross tonnes in situ ("GTIS") increased by 429% to 7.957
billion tonnes from 1.505 billion tonnes;
-- Total tonnes in situ ("TTIS") increased by 404% to 6.443
billion tonnes from 1.279 billion tonnes;
-- Mineable tonnes in situ ("MTIS") increased by 209% to 2.004
billion tonnes from 0.648 billion tonnes;
-- Total licenced area of 99,719 hectares.
-- Acquisition cost of US$0.055 per MTIS tonne
Following the Acquisition, the total strike drilled to the
extent sufficient to enable declaration of resources under the JORC
Code, increased by 106% from 33km to 68km. A further 66km of strike
remains to be drilled, representing a substantial opportunity for
further increases in the overall resource measured in terms of
GTIS, TTIS and MTIS.
Coal of Africa chief executive, John Wallington said today, "The
additional prospecting rights represent an important development in
the evolution of Coal of Africa and its partner Rothe Investments,
by consolidating the potential coking and thermal coal assets in
the Soutpansberg coalfield. Following the conclusion of the
Acquisition from Rio Tinto and Kwezi Mining in early May 2012, we
are pleased to report a significant increase in the consolidated
coking and thermal resources in our Greater Soutpansberg assets
taking Coal of Africa's estimated gross tonnes in situ in this
coalfield from 1.5 billion tonnes to approximately 8 billion
tonnes.
Having completed the Acquisition, we have started the
exploration programmes and related technical work required to
evaluate the potential of these assets in the Greater Soutpansberg
area. We will continue to provide progress updates to the markets
as we reach our milestones.
With this platform in place, the Company is well positioned to
achieve its goal of creating a world class coking coal business
producing in excess of 10 million tonnes per annum of saleable
coking coal over the next ten years. The further upside potential
of export grade thermal coal and middlings from our various assets
remains attractive. On a broader basis, we continue to focus on our
near term objectives of ramping up Vele to full production, and
finalising the various work streams and Definitive Feasibility
Study on the Makhado Project."
Technical Statement
The updated resource estimates are presented in detail in the
"Independent Technical Statement for Greater Soutpansberg Projects
for Coal of Africa Limited, 31st May 2012" ("Technical Statement")
prepared by Venmyn Rand (Pty) Ltd ("Venmyn"), which is available on
the Coal of Africa website, www.coalofafrica.com.
The information contained in this announcement is presented on a
summarised basis and the full details are set out in the detailed
Technical Statement.
Webcast
Management will provide further insight on the Technical
Statement and resource update via a webcast presentation at
16h00(CAT)/15h00(BST) on 13 June 2012. To register for attendance
please follow the instructions below:
The presentation at 16:00 (CAT) will be simultaneously webcast
at the following address:
http://themediaframe.eu/links/coalofafrica120613.html
Teleconference
South Africa +27 11 535 3600
UK (Toll-free) +44 800 917 7042
South Africa - JHB Alternate +27 10 201 6616
South Africa - Cape Town +27 21 819 0900
South Africa - Durban +27 31 812 7600
South Africa (Toll-Free) +27 800 200 648
Australia (Toll-Free) +1 800 350 100
South Africa (Toll-Free) +27 800 200 648
Other Countries (Intl Toll) +27 11 535 3600
Other Countries (Alternate) +27 10 201 6616
============================== ================
Playback
A playback of the teleconference will be available for 48 hours
afterwards on the following telephone numbers:
South Africa and Dial in no: +27 11 305 2030 Code:
other 20980#
Other Countries Dial in no: +27 11 305 2030 Code:
(Intl Toll) 20980#
Australia (Toll-Free) Dial in no: +1 800 091 250 Code:
UK (Toll-Free) 20980#
Dial in no: +44 808 234 6771
Code: 20980#
====================== ==================================
Following the webcast, the presentation will be available on the
Coal of Africa website, www.coalofafrica.com.
JORC Code
All coal resources are defined in accordance with the Australian
Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, the Australasian
Institute of Geoscientists and Minerals Council of Australia.
The Greater Soutpansberg
Following the Acquisition, CoAL's Greater Soutpansberg
comprising nine areas has been re-organized into three regions,
namely:
-- the Chapudi Region, comprising the Chapudi, Chapudi West and Wildebeesthoek areas;
-- the Makhado Region, comprising the Makhado Project and the
Telema & Gray combined area (formerly referred to the Makhado
Extension), Mount Stuart and Generaal areas; and
-- the Mopane Region, comprising the Voorburg and Jutland areas.
These assets are held under various NOPRs by CoAL or its
subsidiaries and the shares or rights, as applicable, were obtained
pursuant to Ministerial consent in terms of Section 11 of the
Mineral and Petroleum Resources Development Act.
Table 1: Summary of CoAL's resources and reserves
Project Coalfield JORC compliant Strike Strike JORC
Area Resources (Measured, length length compliant
indicated and inferred)(1) drilled to Reserves
to be (Proven
date drilled and
(km)(2) (km)(3) probable)(4)
--------------------- -------------- -------------------------------- --------- --------- --------------
Gross Total Mineable Mineable
tonnes tonnes tonnes tonnes
in situ in situ in situ in situ
(GTIS) (TTIS) (MTIS) (MTIS)
Mt Mt Mt Mt
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
GREATER SOUTPANSBERG(4)
-------------------------------------------------------------------------------------------------------------
CHAPUDI REGION
-------------------------------------------------------------------------------------------------------------
- Chapudi Soutpansberg 6,399.02 5,119.22 1,318.42 33.08 -
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
- Chapudi Soutpansberg - - - - -
West(7)
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
- Wildebeesthoek(7) Soutpansberg - - - - 17.50
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
MAKHADO REGION
-------------------------------------------------------------------------------------------------------------
- Generaal(7) Soutpansberg - - - - 15.00
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
- Makhado Soutpansberg 795.61 691.69 344.37 16.51 -
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
- Mount
Stuart Soutpansberg 407.16 325.73 55.46 6.31 4.25
----------
- Telema
& Gray(5) Soutpansberg 84.13 73.00 66.79 2.71 -
--------------------- ----------
MOPANE REGION
-------------------------------------------------------------------------------------------------------------
- Jutland(7) Soutpansberg - - - - 20.90
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
- Voorburg Soutpansberg 270.71 233.76 219.36 9.32 8.48
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
Total 7,956.63 6,443.40 2,004.40 67.93 66.13
------------------------------------- ---------- --------- --------- --------- --------- --------------
OTHER ASSETS(6)
-------------------------------------------------------------------------------------------------------------
Vele Limpopo 803.82 680.20 369.63 NA NA 332.71
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
Mooiplaats Ermelo 92.32 85.62 50.76 NA NA 31.59
--------------------- ---------- --------- --------- --------- --------- --------------
Vuna Witbank 6.82 6.48 6.16 NA NA 6.16
--------------------- -------------- ---------- --------- --------- --------- --------- --------------
Total 902.96 772.30 426.55 370.46
------------------------------------- ---------- --------- --------- --------- --------- --------------
(1) Refer to the 'Independent Competent Person's Report on the
Principal Coal Assets of Coal of Africa Limited' dated 24 October
2011 and the 'Independent Technical Statement for Greater
Soutpansberg Projects for Coal of Africa Limited, 31(st) May 2012'
for a breakdown of these coal resources into measured, indicated
and inferred
(2) Strike length drilled to the extent sufficient to enable
declaration of resources under the JORC Code
(3) Strike length to be drilled to the extent sufficient to
enable declaration of resources under the JORC Code
(4) Resources and reserves information extracted from the
'Independent Competent Person's Report on the Principal Coal Assets
of Coal of Africa Limited' dated 24 October 2011 by Venmyn
(5) Previously referred to as Makhado Extension
(6) Refer to the 'Independent Competent Person's Report on the
Principal Coal Assets of Coal of Africa Limited' dated 24 October
2011 for a breakdown of these coal resources into measured,
indicated and inferred and reserves into proven and probable
(7) Project areas where drilling is either in progress or has
not yet been completed and resources to be defined thereafter
Due to the current state of exploration and the limited
information available, no resources as per the JORC code have yet
been declared for the Chapudi West, Wildebeesthoek, Generaal and
Jutland areas. However the presence of potentially significant coal
resources are known.
Table 2: Summary of current coal resources of the Greater
Soutpansberg Area as at 31 May 2012(1)
Region Project/Area Resource Gross Total Mineable Coal
Category Tonnes Tonnes Tonnes Attribu-table
in Situ in Situ in Situ 100%
(GTIS) (TTIS) (MTIS)
(t) (t) (t)
--------- -------------- ----------- -------------- -------------- -------------- ---------------
Mopane Voorburg Measured 109,435,158 98,491,642 94,915,200 100%
--------- -------------- ----------- -------------- -------------- -------------- ---------------
Makhado Makhado 402,780,570 362,502,682 264,982,700 100%
--------- --------------------------- -------------- -------------- -------------- ---------------
Telema
& Gray 42,244,854 38,020,369 36,240,800 100%
--------------------------- -------- -------------- -------------- -------------- ---------------
TOTAL/WT. AVE MEASURED 554,460,582 499,014,693 396,138,700 100%
-------------------------------------- -------------- -------------- -------------- ---------------
Mopane Voorburg Indicated 125,033,852 106,278,774 100,500,000 100%
--------- -------------- ----------- -------------- -------------- -------------- ---------------
Makhado Makhado 298,594,886 253,805,653 76,390,000 100%
--------- --------------------------- -------------- -------------- -------------- ---------------
Telema
& Gray 29,581,152 25,143,979 23,225,000 100%
--------------------------- -------- -------------- -------------- -------------- ---------------
TOTAL/WT. AVE INDICATED 453,209,890 385,228,406 200,115,000 100%
-------------------------------------- -------------- -------------- -------------- ---------------
Mopane Voorburg Inferred 36,238,997 28,991,198 23,940,000 100%
--------- -------------- ----------- -------------- -------------- -------------- ---------------
Makhado Makhado 94,232,132 75,385,706 2,998,000 100%
--------- --------------------------- -------------- -------------- -------------- ---------------
Telema
& Gray 12,301,228 9,840,982 7,320,000 100%
--------------------------- -------------- -------------- -------------- ---------------
Mount
Stuart 407,162,828 325,730,262 55,460,000 100%
--------------------------- -------- -------------- -------------- -------------- ---------------
Chapudi Chapudi 6,399,023,436 5,119,218,749 1,318,420,000 100%
--------- --------------------------- -------------- -------------- -------------- ---------------
TOTAL/WT. AVE INFERRED 6,948,958,621 5,559,166,897 1,408,138,000 100%
-------------------------------------- -------------- -------------- -------------- ---------------
GRAND TOTAL RESOURCES 7,956,629,093 6,443,409,996 2,004,391,700 100%
-------------------------------------- -------------- -------------- -------------- ---------------
(1) Refer to the 'Independent Technical Statement for Greater
Soutpansberg Projects for Coal of Africa Limited, 31(st) May 2012'
for a detailed report on these resources
Table 3 : Summary of coal reserves of other CoAL assets as at 24
October 2011(1)
Mineable Primary Saleable
Project/ Reserve Tonnes Saleable Secondary
Region Area Category in Situ ROM Tonnage Product Product %(2)
(MTIS) (t) (t)
(t) (t)
------------------------------------- ------------ ------------ ------------ ----------- -----
Limpopo Vele Proven - - - - 100%
------------ ------------ ----------- ------------ ------------ ------------ ----------- -----
Ermelo Mooiplaats 31,590,200 18,656,800 9,433,300 779,900 100%
------------ ------------------------- ------------ ------------ ------------ ----------- -----
Mpumalanga Vuna 6,155,700 6,547,400 3,381,600 2,101,200 100%
------------ ------------------------- ------------ ------------ ------------ ----------- -----
TOTAL/WT. AVE PROVEN 37,745,900 25,204,200 12,814,900 2,881,100 100%
--------------------------------------- ------------ ------------ ------------ ----------- -----
Limpopo Vele Probable 332,709,000 299,391,000 92,387,000 - 100%
------------ ------------ ----------- ------------ ------------ ------------ ----------- -----
Ermelo Mooiplaats - - - - 100%
------------ ------------------------- ------------ ------------ ------------ ----------- -----
Mpumalanga Vuna - - - - 100%
------------ ------------------------- ------------ ------------ ------------ ----------- -----
TOTAL/WT. AVE PROBABLE 332,709,000 299,391,000 92,387,000 - 100%
--------------------------------------- ------------ ------------ ------------ ----------- -----
GRAND TOTAL RESERVES 370,454,900 324,595,200 105,201,900 2,881,100 100%
--------------------------------------- ------------ ------------ ------------ ----------- -----
(1) Refer to the 'Independent Competent Person's Report on the
Principal Coal Assets of Coal of Africa Limited' dated 24 October
2011 for a detailed report on these resources as contained in the
Registration Document filed on the same date and which is available
on the Coal of Africa website on www.coalofafrica.com
(2) Percentage attributable to CoAL
Table 4 : Summary of coal resources (inclusive of reserves) of
other CoAL assets as at 24 October 2011(1)
Region Project/ Resource Gross Total Mineable Coal
Area Category Tonnes Tonnes Tonnes Attributable
in Situ in Situ in Situ 100%
(GTIS) (TTIS) (MTIS)
(t) (t) (t)
------------ ------------ ----------- ------------ ------------ ------------ --------------
Limpopo Vele Measured 158,035,063 142,231,557 94,241,400 100%
------------ ------------ ----------- ------------ ------------ ------------ --------------
Ermelo Mooiplaats 73,995,856 70,296,063 48,330,100 100%
------------ ------------------------- ------------ ------------ ------------ --------------
Mpumalanga Vuna 6,820,858 6,479,815 6,155,700 100%
------------ ------------------------- ------------ ------------ ------------ --------------
TOTAL/WT. AVE MEASURED 238,851,777 219,007,435 148,727,200 100%
--------------------------------------- ------------ ------------ ------------ --------------
Limpopo Vele Indicated 426,854,188 362,826,060 200,298,000 100%
------------ ------------ ----------- ------------ ------------ ------------ --------------
Ermelo Mooiplaats 13,234,655 11,249,457 2,260,000 100%
------------ ------------------------- ------------ ------------ ------------ --------------
Mpumalanga Vuna - - - 100%
------------ ------------------------- ------------ ------------ ------------ --------------
TOTAL/WT. AVE INDICATED 440,088,843 374,075,517 202,558,000 100%
--------------------------------------- ------------ ------------ ------------ --------------
Limpopo Vele Inferred 218,931,575 175,145,260 75,090,000 100%
------------ ------------ ----------- ------------ ------------ ------------ --------------
Ermelo Mooiplaats 5,092,178 4,073,742 170,000 100%
------------ ------------------------- ------------ ------------ ------------ --------------
Mpumalanga Vuna - - - 100%
------------ ------------------------- ------------ ------------ ------------ --------------
TOTAL/WT. AVE INFERRED 224,023,753 179,219,002 75,260,000 100%
--------------------------------------- ------------ ------------ ------------ --------------
GRAND TOTAL RESOURCES 902,964,373 772,301,954 426,545,200 100%
--------------------------------------- ------------ ------------ ------------ --------------
(1) Refer to the 'Independent Competent Person's Report on the
Principal Coal Assets of Coal of Africa Limited' dated 24 October
2011 for a detailed report on these resources as contained in the
Registration Document filed on the same date and which is available
on the Coal of Africa website on www.coalofafrica.com
Resources by region
Chapudi Region
The Chapudi Region represents the most significant portion of
the overall resource in the Greater Soutpansberg, consisting of the
Chapudi, Chapudi West and Wildebeesthoek areas. The total
prospecting rights area covers 40,792 hectares.
A total of 33km of strike length was drilled in the Chapudi area
by Rio Tinto and based on the updated resource calculation prepared
for the Company, the total resource for this area has been
calculated as 1.318 billion tonnes (MTIS), 5.119 billion tonnes
(TTIS) and 6.399 billion tonnes (GTIS). The resource of the Chapudi
area, expressed as a percentage of total resource in the Greater
Soutpansberg, is 54% for MTIS, 71% for TTIS and 72% for GTIS.
It should be noted that CoAL's estimate for the Chapudi area of
6.399 billion tonnes (GTIS) is significantly higher than the
estimate for this area previously prepared by Rio Tinto (1.039
billion tonnes) on account of the following factors:
-- CoAL's estimate includes certain farms over which NOPRs were
already held by CoAL or its subsidiaries prior to completion of the
Acquisition, which were not considered in the Rio Tinto
estimate;
-- CoAL's estimate quotes GTIS to a depth determined by the
limit of the relevant NOPRs, whereas Rio Tinto's estimate assumed a
maximum depth of 200 metres; and
-- the Rio Tinto estimate was prepared prior to completion of
the Pre-Feasibility Study drilling undertaken in 2009 and therefore
does not reflect the results of that drilling program.
The Rio Tinto GTIS estimate for the Chapudi Project is more
directly comparable to the current CoAL MTIS estimate of 1.318
billion tonnes, which was also prepared to a maximum depth of 200
metres. The difference between the two is largely attributable to
the additional farms over which NOPRs were already held by CoAL or
its subsidiaries which are included in CoAL's estimate.
CoAL continues with further technical work to refine the
delineation of resource, including detailed analysis based on
mining selective coal horizons as opposed to the bulk mining method
intended by Rio Tinto. This will provide further clarity on the
extent of the coking coal, high grade thermal and middling products
available in the Chapudi area.
The Chapudi area lies to the west and along strike of the
Makhado Project in the Makhado Valley of the Soutpansberg
coalfield. Based on detailed technical work undertaken on the
Makhado Project to date, this provides an important reference point
to understand the continuity of the coal seams across the Chapudi
area when re-logging boreholes based on delineating the selective
coal horizons.
Makhado Region
The Makhado Region consists of the Makhado Project, which
represents the most advanced exploration project in the Greater
Soutpansberg, along with the Telema and Gray combined area
(previously referred to as Makhado Extension) and Mount Stuart area
to the east, and the Generaal area to the north. The total Makhado
Region covers 32,922 hectares, of which the Makhado Project is
8,190 hectares.
The Definitive Feasibility Study for the Makhado Project is
nearing completion, having recently received a favourable review by
the CoAL Board of Directors during the quarter ended 31 March 2012.
Detailed testing of product extracted from a bulk sample has been
completed and confirmed that the 10% ash coking coal product
performs well relative to other hard coking coals measured in terms
of the Coke Strength Reaction, Coke Reactivity Index and
Reflectance. Independent tests commissioned to confirm these
results further suggest that the coal will be classified as a hard
coking coal. Additional test work continues to determine the extent
of an export grade thermal and middlings product.
The Generaal area is the largest within the Makhado Region,
covering 13,470 hectares and a 20km, east-west striking, up-faulted
block within the northern part of the Waterpoort Basin, immediately
north of the Makhado Project. This provides the greatest synergy
with the Makhado Project, further analysis of this potential is
under review following completion of the Acquisition. Iscor drilled
48 holes and Rio Tinto a further 5 boreholes over this area. The
Iscor borehole database was acquired by CoAL and the resource has
good potential for both coking coal, and a middlings thermal
product.
Mopane Region
Following the Acquisition, the Mopane Region was further
consolidated with various additional NOPRs within the Voorburg and
Jutland areas that had not previously been held by CoAL, and have
now been acquired, creating contiguous properties in this area over
which the Company has NOPRs. The total consolidated area covers
26,005 hectares of which 11,504 hectares lie to the north on
Voorburg and 14,501 hectares lie to the south on Jutland. The
Voorburg area lies approximately 10km north of the main
Soutpansberg Coalfield.
A metallurgical coal with a potential domestic and export
thermal product has been identified in the Mopane Region. As a
result of the Acquisition, the total strike drilled on Voorburg and
Jutland increased from 7km to 9km and the remaining strike to be
drilled tripled from approximately 7km to 21km, with the drilling
program currently underway in this area.
Exploration drilling carried out by Iscor on the Voorburg area
consisted of 39 diamond core boreholes, a further 4 by Rio Tinto
and more recently 15 large diameter holes by CoAL. Previous
drilling results on the Jutland area by Iscor in the 1970's do not
conform to JORC standards and accordingly have not been included in
the resource estimates. Following the Acquisition, the estimated
resources for Voorburg increased marginally from previous estimates
by 38Mt (MTIS), 45Mt (TTIS) and 53Mt (GTIS) to 219Mt (MTIS), 234 Mt
(TTIS) and 271 Mt (MTIS) respectively. Further increases in the
resources are anticipated with the additional exploration work
planned for completion during the remainder of 2012.
In the late 1960's and early 1970's, exploration drilling on the
Jutland area was carried out by Trans Natal Coal Mining Corporation
with a total of 59 boreholes completed. Iscor continued with this
work in the 1970's and 1980's and more recently Rio drilled 3
vertical reverse circulation holes on these properties. The Jutland
area is likely to yield a coking coal product, with further testing
required to determine the extent of a thermal coal product.
Overall, the area has the potential to contribute significant
additional coking coal production from the region. No resource has
been declared and CoAL has commenced with the exploration program
in this area.
Competent Person
The information in this announcement that relates to mineral
resources or ore reserves has been compiled by Ms C Telfer (B.Sc.
Hons. (Geol.), (DMS) Dip Bus Man Pr. Sci. Nat., FGSSA, MAusIMM,
M.Inst.D) and Mr G Njowa (M.Sc. (Min. Eng), MRM, B.Sc.Hons. (Min.
Eng), Grad CIS, MSAIMM, Pr Eng, MIAS), both full time employees of
Venmyn Rand (Pty) Ltd, who both have relevant and appropriate
experience and independence to appraise the coal assets. Both Ms C
Telfer and Mr G Njowa are considered "Competent Persons", and each
have more than five years relevant experience in the assessment and
evaluation of the types of coal exploration and mining properties
presented in this announcement. Both Ms C Telfer and Mr G Njowa
consent to the inclusion of the resource information in these
Presentation Materials in the form and context in which it
appears.
Glossary
-- Definitive Feasibility Study - A study of the economic
viability of the mining and production of base or precious metals
or other minerals in such form and containing such detail as is
customarily required by a bank or other financial institution
engaged in mining project finance to enable it to determine whether
to finance the development of a commercial mining operation.
-- Export grade thermal coal - Coal that is used primarily for
its heating value, typically measured at 6,000kcal. Thermal coal
tends not to have the carbonization properties possessed by
metallurgical coal.
-- Gross tonnes in situ (GTIS) - At minimum thickness cut-off of 0.5m.
-- Hard coking coal - A type of coking coal which enables the
coke to be more efficient in/for steel making when it converts iron
ore to raw steel.
-- JORC Code - The 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, the Australasian
Institute of Geoscientists and Minerals Council of Australia.
-- km - Kilometre.
-- Mineral Resource - An estimated tonnage and grade of
mineralisation in the ground reported in-line with the JORC
Code.
-- Middlings product - A by-product of export grade thermal coal
of lower heating value typically used for power generation.
-- Mineable tonnes in situ (MTIS) - At maximum opencast mining
depth of 200m. No underground mining considered. Excludes all coal
with volatiles <20%
-- Resource - An estimated tonnage and grade of mineralisation in the ground.
-- Reserve - The economically mineable part of a mineral resource
-- Total tonnes in situ (TTIS) - At minimum thickness cut-off of 0.5m
For more information contact:
John Wallington Chief Executive Officer Coal of Africa +27 11
575 4363
Wayne Koonin Financial Director Coal of Africa +27 11 575
4363
Shannon Coates Company Secretary Coal of Africa +61 89 322
6776
Sakhile Ndlovu Investor Relations Coal of Africa +27 11 575
6858
Reuben Govender JSE Sponsor J.P. Morgan Equities Limited +27 11
507 0430
Charmane Russell/Jane Kamau Financial PR (South Africa) Russell
&
Associates +27 11 880 3924/
+27 82 372 5816
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock
+44 20 7920 3150
Chris Sim/Jeremy Ellis/Neil Elliot Nominated Adviser
Evolution Securities +44 20 7071 4300
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and
mining company operating in South Africa. CoAL's key projects
include the Vele Colliery (coking and thermal coal), the Greater
Soutpansberg Project, including CoAL's Makhado Project (coking
coal) and the Mooiplaats and Woestalleen Collieries (both thermal
coal).
The Mooiplaats Colliery commenced production in 2008 and is
currently ramping up to produce 2 Mtpa. The Woestalleen Colliery,
acquired through the acquisition of NuCoal Mining (Pty) Limited in
January 2010, currently processes approximately 2.5Mtpa of saleable
coal for domestic and export markets. The Woestalleen Complex also
incorporates three beneficiation plants with a total processing
capacity of 350,000 run-of-mine (ROM) feed tonnes per month.
CoAL's Vele Colliery commenced production in Q1 2012. During the
initial phase, the operation is targeting 2.7 Mtpa ROM production
to produce 1.0Mtpa of saleable coking coal. The Makhado Project,
CoAL's flagship project in the Soutpansberg coalfield, is well into
the feasibility stage, with a Definitive Feasibility Study having
been reviewed by the CoAL Board in March 2012. An application for a
New Order Mining Right for the Makhado Project was submitted in
January 2011.
In May 2012, CoAL acquired the Chapudi coal project and several
other coal exploration properties in the Soutpansberg coal basin in
South Africa, subsequently renamed the Greater Soutspansberg
Project, from the previous owners, including Rio Tinto. The Greater
Soutpansberg Project is a consolidation of nine potential coking
and thermal coal assets grouped into three proximate regions,
namely Mopane, Makhado and Chapudi. The acquisition of these assets
strengthens Coal of Africa's position as one of the most
substantial holders of prospecting and mining rights for coking
coal in South Africa's Soutpansberg coalfield.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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