Ncondezi Coal, a coal exploration and development company with coal assets in the Tete Province in Mozambique, has updated its coal resources at its Ncondezi Project.
Resources at the project, which is part of the company's on-going work programme to complete a definitive feasibility study by mid-2012, are now 1.7bn tonnes following an update for three of the six coal blocks.
Testing suggests that, once all six blocks have been updated, the total Ncondezi Project resource is likely to be significantly larger than the maiden 1.8bn tonne resource classified in February 2010.
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Drilling has also revealed that coal zones are at or near the surface on all three coal blocks and more than 1.4bn tonnes of the updated coal resource estimate has occured at depths of less than 250m below surface and is considered potentially mineable.
Chief executive officer Graham Mascall said: "I am very encouraged by the updated resource statement produced by the company's geological consultants TMC, on the three blocks on which data from our recent DFS drilling programme is available.
"Further resource updates will be forthcoming once all outstanding information has been processed for all six blocks in Q1 2012. These coal resources together with wash simulations will then be used to determine mineable reserves and a production profile in the DFS for the Ncondezi Project, which is scheduled for completion during H2 2012."
The share price rose 1.94% to 52.5p by 15:04.
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