resgen.com.au
Resource Generation (ASX: RES) is developing one of South Africa’s largest remaining coal deposits, with the company's focos on the Boikarabelo tenements, in the Waterberg region of South Africa.
The strategy for the company is to develop high grade “energy” related resources into viable and competitive mining operations. Accelerated shareholder value will be delivered through the delivery of physical mining activity.
Resource Generation acquires land at South Africa coal mine
Resource Generation (ASX: RES), which is developing one of South Africa’s largest remaining coal deposits, has consolidated its landholdings around its planned Boikarabelo mine with the acquisition of a 1,273 hectare property.
The purchase price was approximately A$3 million. Resource Generation now owns sufficient land for its Boikarabelo mine and associated infrastructure to sustain mining operations for several decades.
"This parcel of land is critical to our plans. It forms a keystone between Resource Generation’s other landholdings and will facilitate our mining rights application and ensure minimum start-up costs for our Boikarabelo mine," said Paul Jury, managing director of Resource Generation.
"This is the land where we have undertaken the latest infill drilling, with 21 cored holes and four percussion holes completed during the past quarter. Analysis of these results is expected to lead to an increase in the tenement’s resource and reserve classification," he added.
The company’s Boikarabelo tenements, which are in the Waterberg region of South Africa, currently have probable saleable reserves of 603 million tonnes of coal, plus an indicated resource of 570 million tonnes and an inferred resource of 1.7 billion tonnes.
Production is scheduled to start in January 2013 subject to securing mining rights and development funding.
