Coal of Africa Limited, the AIM listed coal development company operating in South Africa, is pleased to announce an upgraded resource of 1.335 billion gross in situ tonnes (up from 713 mt) at its Makhado (formerly Baobab) coking coal project in the Limpopo Province of South Africa.
The resource upgrade follows further analysis of the borehole data recently acquired from Exxaro Resources Limited and subsequently incorporated into an updated three dimensional geological model. As yet not all of the CoAL borehole sample results have been received from the accredited South African Bureau of Standards (“SABS”) laboratory, but sufficient information is available to issue this resource estimation update.
The 1.335 billion gross in situ tonnes is situated on the six farms which represents approximately 40% of the total Makhado Project area. A further resource upgrade is expected before year end and following analysis of data covering the remaining project area.
Mr Simon Farrell, Managing Director of Coal of Africa, commented 'This resource upgrade is excellent news for the Company and a significant milestone in the development of the Makhado Project. The upgrade confirms our view that the Makhado Project is capable of becoming a very substantial long life producer of high quality hard coking coal. There is substantial global demand for a product of this type and we expect this project to become our primary focus as we take the Company forward.'
More information can be found at www.coalofafrica.com/-INVESTORS-.html