Exploration Programme and Project Update

RNS Number : 8464M

Edenville Energy PLC

12 May 2015

 

12 May 2015

Edenville Energy plc

("Edenville" or the "Company")

Exploration Programme and Project Update

Following the announcement of successful raising of funds on 23 April 2015, the next stage of Edenville's relatively low-cost, high value exploration programme will begin shortly. The primary aim of the programme is to better define extensions to Edenville's Rukwa Coal Project, already known to host 171 million tonnes of Measured and Indicated coal, sufficient to support a 120MW power station over the life of the project. 

Edenville's recently announced Power Plant Feasibility Study (see announcement dated 2 March 2015) outlined the potential to scale up the Power Station beyond 120MW (Phase 1) as the power demand increases over time, and this exploration work will delineate prime targets for the future expansion of the coal resource. 

The exploration programme builds on the results from the 2014 ground magnetic survey, conducted across Namwele, Mkomolo and Muze; the three deposit areas which comprise Edenville's Rukwa Coal Project.  The 2014 work programme tested the possibility of additional areas of near-surface coal within the larger Mkomolo basin and better defined the edges of the coal-bearing basins which are overlain by recent alluvial sediments and not exposed at surface.

The majority of the 2014 magnetic survey data was good quality, although a small portion of the NE grid needs some additional survey work to further define structures.   

The processed data set revealed the following:

1)    The western edge of the Mkomolo basin is further west than originally mapped. The basin maybe larger than originally thought and has the potential to contain a larger area of coal measures. 

2)    The Namwele basin is well defined but further lines will be placed to the west and east of the existing grid in order to confirm the western fault contact and throw, to give a better understanding of where additional coal measures may lie.

3)    At Muze the western limit of coal measures is well defined; further magnetic surveying to define the southern and northern portions of the Muze Basin will assist in the planning of any future drilling programme targeting the historical 60 million tonnes of coal resource.

In summary, this exploration programme is a relatively low-cost exercise which is expected to generate significant information relating to the potential for additional coal, west of the existing Measured and Indicated Coal Resource of 160 million tonnes at Namwele and Mkomolo and extensions to the Muze deposit, currently host to a 11 million tonnes Measured and Indicated Coal Resource.

Project Update:

The Mining Licence application requires several areas to be defined and presented as part of the application process.  These areas include a Mine Plan, CSR Policy, a Procurement Plan and an Employment Plan. 

With regard to the Mine Plan, pit shells have been generated by Sound Mining Systems (SMS), our Johannesburg based mining specialist consultants, for a range of mining options and the selection of appropriate outlines for mining is in progress.  Stage Designs will then be completed to feed into the Mining Licence application. 

The Employment Plan, CSR Policy and Procurement Plan are being developed in parallel with the Mine Plan and will be refined to match the final mining option, once finalised.  

We continue to work closely with Tansheq, our Environmental Management and Mining Services consultants based in Dar es Salaam, and continue to make good progress compiling the key components of the Mining Licence application, ready for submission later in Q2 2015.

Rufus Short, CEO of Edenville plc commented, "We are pleased to be embarking on the next stage of our exploration programme which is expected to better delineate our already substantial coal resource.  The Mining Licence application process is on schedule and we look forward to submitting the application before the end of June. "

Qualified Person Review

Mark J. Pryor, Pr.Sc.Nat. has reviewed and approved the technical information contained within this announcement in his capacity as a Qualified Person, as defined by the AIM Rules and National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Contact
Edenville Energy Plc Rufus Short - CEO	[phone]
Cantor Fitzgerald Europe (Nominated Advisor and Corporate Broker) Stewart Dickson Jeremy Stephenson	[phone]
IFC Advisory (Financial PR and IR) Tim Metcalfe Graham Herring	[phone]

 

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