Kweneng Coal Project - Maiden 2.2 Billion Tonnes Coal Resource with a further Exploration Target of 5.0 Billion Tonnes
The Phase 1 drilling program completed in late 2011 and early 2012 identified 7 coal sub zones that have economic potential in the area namely: D3U, D3, J, D2, D1, M2 and M1 Zones. The D1, M2 and M1 zones are also known as the “K”, “A” and “E” Seams in the Mmamabula Coalfield. It is estimated that the whole prospect licence area is underlain by these economic coal zones. Reported coal resources, are however constrained to the area retained after the first renewal application, and covers only 50% of the total prospect licence area.
Due to the widely spaced nature of this first phase of drilling, only 30% of the identified coal resources can be classified as JORC compliant Resources, the balance of the in situ coal (approx. 70%) cannot be classified to any JORC coal classification resource category and is reported as an Exploration Target. The area of the Kweneng Coal Project that is covered by a drilling grid of less than 4,000m apart, is classified as an Inferred Resource according to the JORC code guidelines. A total gross in situ JORC Compliant Inferred Coal Resource of 2.2 Billion Tonnes has been calculated at the Kweneng Coal Project with a further Exploration Target of 5.0 Billion Tonnes reported for the retained portion of the prospecting license.
Washability tests confirm the excellent yields to produce a thermal coal product with a CV of 20MJ/kg that is ideally suitable for the Southern African power generation market. The Company has further completed washability tests to identify the potential of producing a higher value low grade export thermal coal product. These tests have further confirmed the potential to produce a low grade export thermal coal product with CV of 23MJ/kg. This low grade export thermal coal product is ideally suited to the Asian coal markets.
Further details of phase one drilling and coal quality results can be found here: http://www.conticoal.com/_content/documents/599.pdf