Edenville Energy (LON:EDL) – which is developing an integrated coal to power project in western Tanzania – is encouraged by the first set of results it has received from SGS Laboratories on the bulk sampling programme carried out on the Mkomolo and Namwele.
– Results from seam MK2 confirm coal as suitable for the provision of power plant feed
– Only moderate, or in certain cases, no washing, will be required for Rukwa coal to be used in the combustion process in a coal fired thermal power plant
– Where washing is required, high yields of approximately 75% are confirmed as achievable to produce a power plant feed product
– The results from the sampling and wash tests both support and validate the recently constructed financial model and resource technical assessment
– Applying a greater level of washing to this seam, produces a product above 20MJ/kg which offers scope for supply into the local and regional markets; and
– Further test results on the other Mkomolo near surface coal seam are expected shortly.
Edenville said the results from seam MK2 confirm the coal is well suited for use in thermal power generation and this data will form a crucial part of the process going forward to design and construct a coal fired power plant at the Rukwa project site.
Both raw and washed values indicate the coal is suitable for power generation purposes and any washing of the coal will primarily be to optimise and maximise the technical and economic parameters.
It days: “Moderate treatment of the coal will produce a fuel that is optimum for the combustion process and maximise the tonnage available.
“This coal is accessible at surface which will result in both low mining costs and the deposit being able to be opened up in a short timeframe. “Additionally, the results are consistent with our recently completed resource technical assessment as announced on 1 November 2016, to determine the available coal resources for an expanded project greater than 120MW. Subsequent to the wash results, the Company can now confirm the suitability of this coal to provide a sustained and reliable fuel supply to a power plant project. Combined with the recent analysis carried out on available coal resources, we can now provide a high degree of validation around the coal deposit at Rukwa.”
Chief executive Rufus Short said: “We are extremely pleased and encouraged with the test results to date. The results show and confirm suitable coal quality and very high yields will be available for the Rukwa Coal to Power Project and give us great confidence in the economic viability of our coal deposit to produce power for Tanzania.
“Importantly, the results indicate we can maximise the value of the insitu coal and there will only be moderate treatment costs incurred to prepare the coal for use in the power generation process. This is likely to have a positive flow through impact on all areas of the mining operation, enabling the project to maximise its economic potential and minimise both capital and operating costs for the mine.
“Edenville is primarily a mining and resources focused group and we are working alongside organisations whose speciality is power development and generation to take this opportunity towards its full potential. We look forward to further updating our shareholders in the near future, particularly with regard to the further test results and the potential suitability of our coal for near term sale to the local market.”
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Botswana Diamonds (LON:BOD) has issued an update on the H2 2016 Alrosa/Botswana Diamond exploration joint venture programme in the Orapa and Gope regions of Botswana.
The group said 1,290 metres were drilled on 3 licences, 440 metres on kimberlite AK 22 on PL 260, 200 on prospecting licence PL 085; both in Orapa and 650 metres on PL 135 in Gope. Highlights:
– Second diamond found in concentrate reanalysis of AK 21 samples on PL 260;
– A diamond has been found in visual observation of kimberlite core from AK 22 drilling on PL 260;
– Two samples of 200 kg each sent to an independent processing facility in South Africa for detailed mineralogical analysis; and
– Drilling on PL 085 in Orapa and PL 135 in Gope completed without encountering kimberlite.
PL 260 contains kimberlite AK 21 and AK 22. A second diamond has been recovered from the re-analysis of Dense Media Separation (DMS) concentrate from LDD holes drilled on AK 21.
The work continues. Two holes were drilled on AK 22 on the same licence. The total drilled was 440 metres. A diamond has been observed in the core which has been sent to a processing facility in South Africa for micro-diamond analysis. The analysis will take approximately 3 months.
Two drill holes on PL 085 in Orapa encountered a dolerite sill instead of kimberlite. Four drill holes were drilled on a clearly defined anomaly on Prospecting Licence 135 in the Gope region.
The sand cover was up to 150 metres. Rather than the hoped for kimberlite an intensively weathered part basalt dolerite rock was found. The results are being reviewed. Chairman John Teeling said: “We are making good progress in Botswana. Visual analysis of the core from drilling the AK 22 kimberlite identified a small diamond. This is rare. The core is now in South Africa undergoing detailed microdiamond analysis. As previously reported, we are reworking the concentrate from drilling on AK 21 – on the same licence as AK 22. We have found a second diamond. The question now is to try to estimate whether the grade is good enough to continue exploration.
“Grassroots drilling on PL 085 and PL 135 did not find kimberlites. Meanwhile teams have been active with sampling and geophysical studies identifying drill targets for the 2017 campaign.”
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Shares in Nyota Minerals (LON:NYO) have been temporarily suspended pending the publication of an admission document.
This followed an earlier announcement by the company, which confirmed it had entered into a loan agreement with BigDish Ventures for a total maximum loan of £200,000.
The Loan will be used to provide additional funds for general working capital purposes and initial due diligence and transaction expenses in respect of the proposed acquisition, further details on which are set out below.
The Company has also signed a non-binding letter of intent with BigDish Ventures, a company registered in Jersey, and BigDish Ventures’ wholly-owned subsidiary, Bigdish Inc, a Philippines-registered company.
“As the Acquisition would, should it proceed, amount to a Reverse Takeover under the AIM Rules and a back-door listing for the purposes of the ASX Listing Rules, the Directors have requested that trading in the Company’s shares on ASX and AIM be suspended with immediate effect in accordance with the policies and rules of the two exchanges pending the Company’s satisfaction with all of the re-admission requirements of ASX and as applicable AIM (including re-compliance with Chapters 1 and 2 of the ASX Listing Rules and the publication of an AIM Admission Document) or confirmation that the Acquisition is not proceeding.”
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Anglo American (LON:AAL) has announced the value of rough diamond sales for De Beers’s ninth sales cycle of 2016, amounting to $470 million, compared with the $494 million value of the eighth sales cycle of 2016. De Beers chief executive Bruce Cleaver said: “Encouragingly, the ninth sales cycle of 2016 showed continued good demand for De Beers rough diamonds, with sales in line with expected seasonal demand patterns.”
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The sector’s biggest riser was Anglesey Mining (LON:AYM) – up by more than 49.3% in late trading. The biggest faller was Weatherly International (LON:WTI) – down by over 15.3%.
(LON:AAL) Anglo American PLC share price was -80.75p at 1094.25p
(LON:AYM) Anglesey Mining PLC share price was +0.95p at 2.88p
(LON:BEM) Beowulf Mining PLC share price was +0.5p at 6.63p
(LON:BKY) Berkeley Energia Ltd share price was +0.25p at 44.75p
(LON:BOD) Botswana Diamonds PLC share price was +0.08p at 1.68p
(LON:CEY) Centamin PLC share price was +1.2p at 137p
(LON:CHL) Churchill Mining PLC share price was +0.63p at 29.63p
(LON:CZA) Coal of Africa Ltd share price was -0.12p at 3.38p
(LON:EDL) Edenville Energy PLC share price was +0.06p at 0.6p
(LON:FDI) Firestone Diamonds PLC share price was -0.5p at 56p
(LON:FRES) Fresnillo PLC share price was +6.5p at 1411.5p
(LON:GEMD) Gem Diamonds Ltd share price was -3.87p at 111.13p
(LON:HOC) Hochschild Mining PLC share price was +5.6p at 237.3p
(LON:KMR) Kenmare Resources PLC share price was -14.75p at 252.5p
(LON:NYO) Nyota Minerals Ltd share price was 0p at 0.05p
(LON:VED) Vedanta Resources PLC share price was -48.5p at 765.5p
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