Firestone Energy (ASX/JSE: FSE) has reported the purchase of an additional property in South Africa’s highly prospective Waterberg coal district in the Limpopo Province.
The Hooikraal farm covers a surface area of 955.3 hectares, and represents the second property in the portfolio of eight properties in this area over which Firestone Energy has purchased surface rights.
This acquisition represents a further land acquisition in one of Firestone’s three identified areas of activity.
Hooikraal is favourably situated in the coalfield, and is one of two farms in the portfolio which is immediately adjacent to an established paved provincial road and within 5 kilometres of the Transnet freight rail line (Transnet is the national railway company).
The north west portion of the property has the potential for a small open pit mine with easy access to the lower, high quality coal seams (zones 3, 2 and 1).
John Wallington, Managing Director, commented that the situation is ideal for product stockpiles, a laboratory, weighbridges and other surface infrastructure including a conveyor transfer point en route to power stations.
He said this is a particularly important consideration, in view of the Medupi power station being only 8 kilometres away.
Wallington added that the month of May would see the start of drilling between six and ten boreholes on the Vetleegte and Hooikraal farms to confirm the existence of the “graben” structure, a geological feature which would support the view that the lower three coal seams, zones 1 through 3, are present at depths conducive to open pit mining.
These seams have shown attractive metallurgical coal qualities both with low ash and low phosphorous values.
“In the SAMREC compliant resources held by the company, Hooikraal accounts for 7.3 million tons (coal gross tons in situ) in the indicated category, and 155.5 million tons (coal gross tons in situ) in the inferred category,” Wallington said.