10th Oct 2007 07:00
Strategic Natural Resources PLC10 October 2007 Strategic Natural Resources plc ("SNR" or the "Company"; Ticker: (SNRP)) INITIAL MINING PLAN COMPLETED (IN ORDER TO COMMENCE MINING) FOR 5.5MILLION TONNES OF COAL Strategic Natural Resources PLC ("SNR"), the coal and energy investment grouppositioned to help ease South Africa's long term energy crisis, has confirmedthat its 90% owned subsidiary, Elitheni Coal (Pty) Limited, has completed aninitial mining plan for submission to the South African Department of Minerals &Energy ("DME"). This initial mining plan has been prepared in order toeconomically extract 5.5 million tonnes of coal from the Elitheni Phase 1 area,being the tonnage required for the initial 5 years of production for Elitheni.Whilst, Elitheni will continue, through further drilling, to convert itsinferred resource base into an indicated and measured resource for mine planningpurposes, this initial mining plan is significant as it provides the foundationfor Elitheni's application to the DME for mining authorisation and will allowElitheni to service its initial markets until the commencement of supply to theproposed mine mouth independent power plant. The area covered by the initial mining plan represents less than 4% of thecurrent Phase 1 & 2 area available to Elitheni to mine. According to currentdrilling progression as confirmed by the Competent Person and as previouslyannounced, the Phase 1 & 2 area has a resource of approximately 40 milliontonnes (comprising 10.1 million tonnes measured coal resource, 1.9 milliontonnes indicated coal resource and 28.1 million tonnes inferred coal resource)of coal. Extraction of the 5.5m tonnes will follow on immediately after the bulk samplingof 90,000 tonnes to provide continuity of sales revenue. SNR Chief Executive, Jeremy Metcalfe, commented: "The successful completion ofour initial Elitheni mining plan is a milestone achievement because a portion ofthe initial measured resource has now been elevated to a proven reserve with theevidence of a viable mining plan, thereby allowing Elitheni to cross the dividefrom an exploration company to become that of an operating coal mining company". For further info contact:Jeremy P. MetcalfeChief ExecutiveStrategic Natural Resources plcTel: +44 1303 874 798 Allan PiperFirst City Financial Public RelationsTel: +44 20 7242 2666 Rod Venables / Cecil JordaanHB CorporateTel: +44 20 7510 8600 Detail of Coal Reserve Audit William van der Schyff, from the Company's consultant geologists and producersof the Competent Person's Report (CPR), Golder Associates Africa (Pty) Ltd,confirms that Golder used the original 50x50m block model as reported in 10231/9399/2/G to include the variables as reported in the Elitheni mine designparameter file. The block centres of the 250x250m blocks were used as the basisfor the variable assignment "nearest neighbour" method. By this method the basicmining assumptions from the Elitheni reserve model were included in the Goldermodel enabling the assay variables and area of the Golder model to be used forconfirmation of the initial reserve calculation as follows: Golder Totals: Filtered for 1.2m minimum mining heightIn situ mineable tonnes: 9,030,000 (includes pillars to be left underground for safety purposes)Extractable Run of Mine (ROM) tonnes: 5,500,000 (60.9% extract rate) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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