30th Sep 2008 07:00
ANNOUNCEMENT 30 SEPTEMBER 2008
CONSOLIDATED RESOURCE STATEMENT
Following the announcement on 24 September 2008 of a resource upgrade at its Vele Coking Coal Project in the Limpopo Province of South Africa, Coal of Africa Limited ("CoAL" or "the Company"), the AIM/ASX/JSE listed coal development company operating in South Africa (ticker: CZA), provides the following Consolidated Resource Statement reflecting the current resources across the Company's 3 major coal projects:
|
PROJECT |
MAKHADO |
VELE |
MOOIPLAATS |
TOTAL |
|
Measured |
230,067,117 |
177,421,481 |
88,200,000 |
495,688,604 |
|
Indicated |
548,642,540 |
416,953,682 |
- |
965,596,222 |
|
Inferred |
250,690,215 |
62,159,514 |
25,000,000 |
337,849,729 |
|
Reconnaissance* |
305,660,360 |
64,313,263 |
- |
369,973,623 |
|
TOTAL |
1,335,060,232 |
720,847,946 |
113,200,000 |
2,169,108,178 |
*As defined in SAMREC (SANS10320 ed 1) at 6.3.3.1:
"A reconnaissance coal resource is quantified as a minimum one cored borehole with coal quality data per 400 ha (approximately 2km spacing) for multiple seam deposit types, while for thick interbedded seam deposit types a reconnaissance coal deposit is quantified by a minimum one cored borehole with coal quality data per 1,600 ha (approximately 4km spacing)."
Importantly, approximately 95% of the resources are located within the significantly higher value coking coal projects of Makhado and Vele, where the Company's efforts are most focused. Further, it also noted that nearly 65% of all resources are classified within the "measured" and indicated" categories, providing additional confidence that the Company's projects are able to deliver Life of Mine terms in excess of 20 years.
Despite the significant tonnage already defined, exploration activities continue in earnest across all 3 coal projects in an effort to:
better understand the coal qualities, particularly the coking coal at Makado and Vele;
improve the confidence levels further through defining a greater proportion of the resource as "measured";
improve the geological understanding to maximise mine planning and production efficiencies; and
drill in areas over which the Company has exploration rights but which are largely unexplored.
CoAL looks forward to advising the results of the above mentioned explorations activities in due course.
Yours faithfully,
SIMON J FARRELL
Managing Director
For more information contact:
Simon Farrell, Managing Director GVM +61 417 985 383 or +61 8 9322 6776 Petronella Gorrie The Event Shop +27 82 827 8815 Jos Simson / Arabella Hobbs / Leesa Peters Conduit PR +44(0) 20 7429 6603 Olly Cairns / Romil Patel Blue Oar Securities Plc +61 8 6430 1631 +44(0) 20 7448 4400About CoAL:
Coal of Africa Limited ("CoAL"), is primarily focused on the acquisition, exploration and development of metallurgical and thermal coal projects. The Company's key projects, along with its leading metals processing company NiMag Group (Pty) Ltd are in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company's coal assets.
Resource Estimation:
Resource estimations have been compiled by Mr John Sparrow (Member of the South African Council of Natural Science Professions SACNASP) 400109/03, an independent geological and technical consultant with 26 years experience in the Southern African and Australian regions. Mr Sparrow has sufficient experience relevant to the assessment of this style of mineralization to qualify as a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - the JORC Code - and has compiled a number of Competent Person's reports for various organizations for the JSE, ASX and TSE. Mr Sparrow consents to the inclusion of the information in this report in the form and context in which it appears.
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