Serowe

The Phase 1 drilling program completed in late 2011 and early 2012 comprised a total of 21 cored boreholes across the two prospecting licenses (PL339/2008 and PL340/2008) that comprise the Serowe Coal Project. Thirteen(13) drill holes intersected coal, and the remainder were drilled into pre-Karoo basement.

 

An Exploration Target of 3.9 Billion Tonnes has been determined for the Serowe Coal Project comprising 2.0 Billion Tonnes for PL339/2008 and 1.9 Billion Tonnes for PL340/2008. Gross in situ coal tonnages on PL339/2008 are reported for 5 coal sub zones that have economic potential in the area namely: Z01 (Serowe Bright), Z03, Z05, Z07 and the Morupule Main Seam. On PL340/2008 gross in situ coal tonnages are reported for the Morupule Main Coal Seam only. Additional potential economic coal sub-zones are shown to be present in the boreholes on PL340/2008, but infill drilling on a denser grid is required to prove the continuity of these sub-zones before any coal resources can be reported.

 

Due to the widely spaced nature of the first phase of drilling, the in situ coal tonnages cannot be classified to any JORC coal classification resource category and is accordingly reported as an Exploration Target. Gross in situ resource tonnages, raw coal qualities as well as washed coal qualities are summarised for the Serowe Coal Project.

 

Further details of phase one drilling and coal quality results can be found here: http://www.conticoal.com/_content/documents/599.pdf