Wolvenfontein
- Located approx. 80km east of Johannesburg and 4km south of the town of Delmas in the Nkangala District Municipality, Mpumalanga Province
- The Company’s Vlakplaats Coal Project, which has total JORC compliant resources of 187.7Mt, is located less than 5km to the east
- The Wolvenfontein Coal Project lies at the western extent of the Witbank Coal Field and is well situated in respect of roads and rail infrastructure
- The Wolvenfontein Coal Project extends over Portions 4, 5, 6 and the Remaining Extent (REM) of the farm Wolvenfontein 244IR (‘the Property’) and has a valid Prospecting Right MP 30/5/1/1/2/1520 PR
- The Wolvenfontein Coal Project is bordered by four operating collieries and a number of advanced coal projects including Exxaro’s Leeuwpan Mine, the Stuart, Delmas and Ikhwezi Collieries and Total’s Eloff Project, Homeland Energy’s Delmas Project and Universal Coal’s Kangala Project
- The Company has completed the acquisition of the Wolvenfontein Coal Project to further consolidate its position in the Delmas area and around its Vlakplaats Coal Project, where the Company in joint venture with KORES, is looking to develop a significant low cost and initially open cast mining operation
- The 54% increase in total inferred resources for the Vlakplaats Coal Project, to 187.7Mt up from the previous 122Mt in June 2011, has further confirmed the strategic importance of the asset to the Company. The acquisition of the nearby Wolvenfontein Coal Project further enhances the Company’s resources in the area
- These two coal projects now have in excess of 220Mt of resources. The Company will advance these projects through feasibility studies and then towards development in the coming 18 months
- CCIC Coal (Pty) Ltd, an independent geological consultant, was retained by the Company to complete an updated resource assessment of the Wolvenfontein Coal Project within the southernmost portion, Portion 6
- The acquisition of the Wolvenfontein Coal Project from Universal Pulse Trading (Pty) Limited has been completed and Ministerial consent from the South African Department of Minerals and Resources (transfer of the prospecting right) has been received for the Company to complete the acquisition
A summary of the JORC compliant inferred resource as determined by CCIC is provided below.
GTIS = Global tonnes in situ
Cut offs applied included seam thicknesses less than 0.5m and/or dray ash-free volatile matter (DAFVOL) of less than 24%. In addition wetlands areas on the Wolvenfontein Coal Project were also excluded. For the tonnage calculations the average raw relative densities were used. A JORC compliant inferred resource of 36.7Mt has been determined of which the majority is contained within the No. 2 Seam. The average reported depth to the top of the No. 2 Seam is 28m and the average thickness is 9.0m.
The raw coal qualities are summarised in the table below
