14th Oct 2008 07:00
SNR RESOURCE INCREASES BY 140%
Strategic Natural Resources PLC ("SNR") is pleased to announce that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni or the Company), has confirmed a substantial increase to its coal resource at Indwe in the Eastern Cape Province of South Africa.
According to the latest drilling results under SAMREC rules, Willem van der Schyff from the Company's Consultant Geologists, Golder Associates Africa (Pty) Ltd ("Golder"), confirms an in-situ coal resource of 97.2 million tonnes. This is an increase of 140% since the last resource statement of May 2008. The resource of 97.2 million tonnes comprises 44.5Mt of measured resource, 26.3Mt of indicated resource and 26.4Mt of inferred resource. Based on this, Elitheni's Mining Engineering Consultant Rudi Gerber, has confirmed 52 million tonnes of extractable coal.
Following an application from the Company to the Department of Mines and Energy ("DME") on the 10th September 2008, the total area under exploration and applied for now stands at approximately 190,000 hectares. To date, only 2500 hectares have been drilled representing 1.3% of the total area within the applied licence.
Jeremy Metcalfe, SNR's Chief Executive, said "In these uncertain times it is a relief to be able to report such an excellent result. We now have more than enough exctractable coal to satisfy the needs of a substantial electricity power producing station planned to be constructed at our mine site and to be able to deliver coal to a number of other customers in the Eastern and Western Cape Provinces."
The information regarding Elitheni's coal reserves in this announcement has been reviewed and approved by Rudi Gerber B.Eng (MIN) as an approved Competent Person of Algoa Consulting Mining Engineers . This CPR is undertaken in accordance with the South African code for representing mineral resources and mineral reserves(SAMREC 2007 Code).
For further information please contact:
The Company:Jeremy P. Metcalfe, Chief Executive Strategic Natural Resources plc Tel: +44 1303 874 798
Nominated Adviser:Imran Ahmad/Rod Venables/ Rory Creedon HB Corporate Tel: +44 20 7510 8600
Broker:Martin Lampshire/Sean Lunn Hichens, Harrison plc London/South Africa Tel: +44 20 7382 4450/+27 21 950 2711
PR:Allan PiperFirst City Financial Public Relations Tel: +44 20 7242 2666
Related Shares:
SNRP.L