24th Jul 2008 07:00
Strategic Natural Resources PLC
("SNR" or "the Company")
SNR APPLIES FOR SUBSTANTIAL INCREASE IN PROSPECTING RIGHTS AREA IN SOUTH AFRICA
AIM-quoted Strategic Natural Resources plc ("SNR" or the "Company")) is pleased to announce that its 74% owned subsidiary, Elitheni Coal (Pty.) Ltd ("Elitheni Coal") in South Africa has received acceptance from the DME for an additional prospecting rights application, which will almost double their existing prospecting areas in South Africa.
Elitheni Coal received acceptance from the DME for the submission of its Phase 4 prospecting rights application on 22 July 2008. This prospecting application adds a further 30,000 ha on fourteen farms in the Eastern Cape adjacent to its existing prospecting areas. Once granted, this would increase the area over which Elitheni Coal has prospecting rights to in excess of 60,000 ha.
Elitheni Coal has currently determined a measured resource of over 25 million tonnes on less than fifteen per cent. of the land covered by it's existing prospecting licences. Predictions from the on site technical team, including an independent mining consultants' assessment, is that this entire area has the potential, through extrapolation, to yield in excess of 200 million tonnes of extractable coal. The operations team in South Africa recommended the additional Phase 4 prospecting area based on favourable drilling results received so far this year, which indicate an extension of the coal seam on areas bordering the Phase 1& 2 areas. The operations team believes that the addition of Phase 4 could take the extractable tonnes available to over 300 million tonnes. AIM and AltX quoted IPSA Group PLC confirms that such a figure of extractable tonnes could supply power generation of over 3,500 MW for over twenty years.
SNR Chief Executive, Jeremy Metcalfe, said: "After a great deal of consultation with the operations team in South Africa, I am pleased that the Board has taken the decision to proceed with this substantial increase in our prospective reserve base, given the current favourable drilling results combined with negotiations with IPSA for increased planned power generation capacity. Furthermore, recent developments for additional alternative markets that are surfacing in the vicinity of the mine given the increased interest in coal resources globally, indicate that there will be a strong demand for our coal for many years to come".
For further information contact:
|
Jeremy P. Metcalfe, Chief Executive Strategic Natural Resources PLC |
Tel: +44(0)1303 874 798 |
|
Allan Piper / Andrew Dunn Tavistock Communications |
Tel: +44 (0) 20 7920 3150 |
|
Rod Venables / Cecil Jordaan HB Corporate |
Tel: +44 (0) 20 7510 8600 |
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