9th Mar 2006 07:01
GVM Metals Ltd09 March 2006 FOR IMMEDIATE RELEASE 09 March 2006 Prospecting right granted to GVM's Holfontein coal project GVM Metals Limited (ticker: "GVM"), the South African mineral processing andcoal mining company, today announces that Holfontein Investments (Pty) Ltd hasbeen granted a prospecting right under section 17(1) of the Mineral andPetroleum Resources Development Act (28 of 2002) for its key coal mining asset,the Holfontein Project. GVM has a 49% joint venture interest in HolfonteinInvestments (Pty) Ltd. The Holfontein Project consists of two mineable coal seams, the No 5 seam, whichis a coking coal, and the No 4 Seam, which is a low-grade steam coal. GVM'sDecember 2005 Scoping Study was based on a resource of 56 million tonnes and 22million saleable tonnes. The Study indicates a project value of £16.6 million. The Holfontein Project is located in the South African Witbank coal field, anestablished mining region responsible for the major proportion of South Africa'spast coal production. The site is located two hours from Johannesburg with goodinfrastructure including rail, road and electricity. GVM is developing theproject with its joint venture BEE partner Motjoli Pty Ltd and funding andpayment obligations for the project will be the joint responsibility of GVM andMotjoli. Commenting today, Simon Farrell, Managing Director, GVM Metals said: "We are very excited with the grant of the licence as we can now get on with thedevelopment of the project. The next step is to complete an eighteen boreholeinfill program that will form the basis of the bankable feasibility study andestablish a measured reserve. The budget for the program is just over onemillion Rand which covers drilling, logging, analyses and modelling. Thisprogram is planned to be completed by June and the feasibility study finished byAugust. The great beauty of Holfontein is that it is in an area where thegeology is well understood, infrastructure and services are in place and keymarkets are nearby. " http://www.gvm.com.au/ GVM Metals Limited Simon Farrell T: + 61 8 9322 6776 Beaumont Cornish Limited, Roland CornishNominated Adviser T: +44 (0) 207 628 3396 Conduit PR Leesa Peters / Abigail Singleton T: +44(0) 20 7429 6600/ 6606 M: 0781 215 9885 / 07739 461 061 Emails: [email protected] / [email protected] . This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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