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Resource Update

21st Jul 2010 11:45

RNS Number : 6852P
Strategic Natural Resources PLC
21 July 2010
 



21 July 2010

Strategic Natural Resources PLC

("SNR")

Resource update

 

SNR is pleased to announce a 55% increase in the coal resource of its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni" or the "Company").

Golder Associates, SNR's competent person has, in a recent updated competent persons report (the "Updated CPR"), confirmed an increase in Elitheni's resources from 97.2 million tonnes to 150.3 million tonnes, comprising, 45.6 million tonnes measured resource, 45.5 million tonnes indicated resource and 59.2 million tonnes inferred resource. The additional drilling undertaken in relation to the Updated CPR spans an area of circa 3,000 ha. The area drilled to date represents less than 3% of the total area available for drilling. Roughly 179,000ha of Elitheni's total rights area remains available for further assessment by Golder Associates.

In addition to the increase in resource, SNR has commissioned Golder Associates to investigate and highlight the areas of exportable quality coal within the area covered by the Updated CPR. Golder Associates have reported an area of just under 1,300ha within Elitheni's mining rights area which contains 31.4 million tonnes of coal that washes to economical yields to deliver an exportable quality coal, capable of servicing a variety of markets.

The Updated CPR is the first of three steps being taken by SNR in relation to its ongoing export feasibility study SNR has currently underway. In addition to the Updated CPR, SNR expects to release the results of the logistics component of its feasibility study shortly. This will be followed by a detailed washing and market application study.

SNR's CEO David Nel said; "It is most encouraging to receive such positive results from the first stage of our export feasibility study. The increase in resources will allow us to pursue an export strategy without any affect on our power generation supply strategy."

 

For Further Information, please contact:

Strategic Natural Resources plc

David Nel, Chief Executive Officer

+27 (0) 41 374 0842

Jeremy Metcalfe, Communications Director

+44 (0)7785 346 718

Nominated Adviser - Allenby Capital Limited

Nick Naylor / James Reeve

+44 (0) 20 3328 5656

Broker - SP Angel Corporate Finance Limited

Emin Eyi / Tercel Moore

+44 (0) 207 647 9646

Financial PR/IR - Blythe Weigh Communications

+44 (0) 207 138 3204

Ana Ribeiro / Tim Blythe

For further information about Strategic Natural Resources please visit:

www.snrplc.co.uk

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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