www.africanenergyresources.com
African Energy (ASX:AFR) owns 100% of the Sese Coal and Power Project in northerm Botswana which has a defined near-surface coal deposit containing indicated resources in excess of 2.5 billion tonnes. The entire resource is amenable to low-cost open pit mining and can produce large tonnages of both domestic power station fuel amd washed coal for regional and export sales.
African Energy Resources inks 2.73Bt maiden JORC Resource at Sese coal project
African Energy Resources (ASX:AFR) has achieved an initial gross in-situ JORC Resource of 2.73 billion tonnes at its Sese coal project in Botswana, and is now looking to upgrade to the Indicated Resource category.
The better-than-expected resource provides a boost for the company, which also recently increased African exposure with the 100% acquisition of two uranium based projects in Zambia.
The Resource estimation was supervised by senior consultants at Coffey Mining.
Significantly, the coal occurs in one main seam which averages 14 metres thickness, is close to surface and is expected to be amenable to low strip‐ratio open pit mining.
Block‐B has been classified as an Indicated Resource containing 500 million tonnes (Mt) coal. Block‐A and Block‐C (2,230 Mt) are classified as Inferred Resources.
The Lower Main Seam accounts for 62% of the total resource and contains coal which is suitable for washing to create an export quality product (up to 5,420 Kcal/kg).
The Upper Main Seam coal can be washed, or blended with the Lower Main Seam middlings to make a product which is suitable for use as power station fuel.
The Sese Coal project comprises one wholly owned prospecting licence (PL96/2005) and six prospecting licence applications located in northeast Botswana, about 50 kilometres southwest of the town of Francistown.
African Energy discovered the large deposit of thermal coal at Sese in June 2010.
Importantly, the project is close to the sealed highway between Francistown and Gaborone and is easily accessible. Rail, road and power infrastructure is also close to the project.
Infill drilling is currently underway, and the company expects to upgrade the entire resource to an Indicated Resource category during the July‐September quarter.
On March 8 African Energy acquired two uranium based projects in Zambia. The two projects, Chirundu Uranium and Kariba Valley, were initially part of a joint venture with Albidon (ASX: ALB).
African Energy is funding the acquisition from existing cash reserves, with working capital funded by a partial drawdown of the $5 million convertible loan facility with Macquarie Bank (ASX: MQG).
The company is looking to move the acquisitions forward quickly, and is evaluating a number of additional exploration targets at Chirundu and Kariba Valley tenements with the aim of boosting the resource.
