18th Oct 2007 07:02
GVM Metals Ltd18 October 2007 GVM METALS LIMITED 18 October 2007 ACQUIRES SIGNIFICANT HISTORICAL DRILLING DATA ON BAOBAB GVM Metals Limited ("GVM" or "The Company") is pleased to announce that it hassuccessfully completed negotiations with Exxaro Resources Limited ("Exxaro") toacquire the historical database and geological modeling information generated byExxaro (then Iscor) from their exploration activities in the area during the1970 and 80's. The database was generated from some 1200 boreholes of which: • 940 have detailed lithographical descriptions (detailed descriptions of the individual rock types encountered in the core of the borehole); • 980 have sample information, (sampling of individual coal types according to a specific group of coal types); and • 960 have proximate analyses, (the chemical analysis of coal as per the percentages of ash content, moisture content, volatile matter content, specific heat value and total sulphur content). The cost of acquiring the data was ZAR$20 million (A$3.3 million) which has beenpaid and all data received. Deputy Managing Director Nonkqubela Mazwai said: "The database generated by Exxaro is very impressive. It gives us thepossibility of bringing the Fripp and Tanga farms (two of the sixteen propertiescomprising the Baobab project) into production 18 months earlier than wepreviously thought. Subject to permitting from the Department of Minerals andEnergy, it is a real possibility that we could be mining in 2009. The coal seamat Fripp and Tanga is 30 meters thick with favourable strike length, recoveriesand qualities. We expect to announce an initial resource estimate by calendaryear end. " HOLFONTEIN ACQUISITION In addition, GVM is pleased to announce that it has finalised agreement toacquire a 100% interest in various portions of Wildebeesfontein, which issituated adjacent to Holfontein. The acquisition is subject to variousconditions precedent, principally regulatory consents. The area of the newproperties is 552 hectares and enlarges GVM's current holdings by a third. Itis believed the acquisition will significantly enlarge the seam 5 soft cokingcoal resources outlined in an earlier Competent Persons Report (CPR). Drillingto define the new resource will be completed before year-end and the Companybelieves a CPR upgrading the total resource to the 'measured' category will befinalised shortly after drilling is finished. Under the terms of the Agreement, GVM has paid a deposit of US$100,000 and willcomplete a drilling program on the properties to define a SAMREC and JORCcompliant Indicated Resource. That part of the coal seam, having a seamthickness of greater than 1.4 meters and a Calorific Value greater than 23 MJ/Kg, will constitute the resource for which GVM will pay US$0.50 per tonne sodefined. Managing Director Simon Farrell commented: "The acquisition of Wildebeesfontein gives Holfontein a good increase in scaleand with the dramatic increase in export coal prices, the economics of the 5seam which is a semi-soft coking coal have improved significantly. Holfonteinis on track with the Bankable Feasibility Study underway along with theEnvironmental Impact Study and social and labour planning which will allow us tostart the process of converting our prospecting rights to a Mining Right withthe Department of Minerals and Energy in South Africa." Authorised by SIMON J FARRELLManaging Director For more information contact: Simon Farrell, Managing Director GVM +61 417 985 383 or +61 8 9322 6776 Nonkqubela Mazwai, Deputy Managing Director, GVM +27 83 690 9079 Petronella Gorrie The Event Shop +27 82 827 8815 Leesa Peters / Jos Simson Conduit PR +44(0) 20 7429 6606 Olly Cairns / Romil Patel Blue Oar Securities Plc +44(0) 20 7448 4400 or + 61 8 6430 1631 www.gvm.com.au This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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