Strategic Natural Resources (AIM: SNRP), which is developing and expanding on the Elitheni Coal Project in South Africa, announced that it had doubled its existing prospecting area. The new area, named Phase 4, covers 30,000 hectares bordering Phase 1 & 2, where the company has already defined 25 million tonnes of measured resource.
Strategic Natural Resources' also added that it could define up to 300 million tonnes of extractable coal from the combined 60,000 hectare exploration area.
SNR Chief Executive, Jeremy Metcalfe, said: "After a great deal of consultation with the operations team in South Africa, I am pleased that the Board has taken the decision to proceed with this substantial increase in our prospective reserve base, given the current favourable drilling results combined with negotiations with IPSA for increased planned power generation capacity. Furthermore, recent developments for additional alternative markets that are surfacing in the vicinity of the mine given the increased interest in coal resources globally, indicate that there will be a strong demand for our coal for many years to come".