Exploration Update

RNS Number : 2309X

Edenville Energy PLC

27 August 2015

 

27 August 2015

Edenville Energy plc

("Edenville" or the "Company")

Exploration Update - Tanzania

Edenville Energy plc (AIM: EDL), the company developing a coal to power project in south western Tanzania, is pleased to update shareholders on the exploration work in progress at the project site.    

During the past quarter, Edenville has been conducting exploration work across the Rukwa Coal Project, the area which hosts its 170Mt Measured and Indicated Coal Resource.

The focus of the ground magnetics exploration programme was to define the edges of the coal-bearing basins at Namwele and Mkomolo and investigate the Mwerang'anda and Wankulwe areas to the west of Mkomolo.

The exploration work is ongoing, but results to date can be summarised as follows:

·     'Marker units' have been identified in each of the coal basins which give a better understanding of the form, distribution and extent of the coal-bearing horizons at the margins of the Mkomolo and Namwele deposits

·     The Mkomolo basin shows potential for additional coal in the western margins; additional test work is required to better define the location of any coal structures

·     The edges of the Namwele basin and the area between Namwele and Mkomolo have been accurately constrained, with coal-bearing sediments surrounded by Ubendian Gneiss and Granites.  These barren areas can now be demarcated for site development

·     Geophysical data gathering will continue until the end of the dry season in December

Detail

The ground magnetic survey utilises the principle of 'marker units' -  bands within the sedimentary layers that are significantly different to the rest of the sediments - which generate a different geophysical signal/response to the surrounding rocks. Possible marker units are: a) coal horizons, which are less dense and finer grained than the shales and siltstones that make up the majority of the basin sediments, and b) a coarse grained sandstone unit that lies directly above the start of the coal measures sequence, which also exhibits a contrast sufficient to develop its own geophysical response.

Gathering of magnetic data in the field will continue until the end of the dry season in December 2015, with a focus on the edges of the Mkomolo basin.

Conclusions

Mkomolo

The identification of marker units will allow Edenville to test the depth of coal-bearing horizons at the western margins of the Mkomolo Basin without incurring the costs of a drill programme.  The exploration activity is secondary to the development of the power generation project, but could provide valuable data regarding the increased potential for near surface coal seams at the edges of the Mkomolo basin.

Namwele

The magnetic survey has confirmed the location of the basin edge along the eastern and western margins. Historically the eastern margin had been mapped based on changes in soil colour and rare outcrops, and this margin is now confirmed. To the west the basin edge was estimated as no outcrops were located. The magnetic survey has now shown that the historical mapping is within +50m of the defined edges from the latest work. The ground between the Namwele and Mkomolo basins was surveyed and, as expected from previous mapping and field activities, it is concluded no sedimentary deposits exist in this area.

From this it can be concluded that there are no western extensions to the Namwele basin, and no coal bearing sediments between Namwele and Mkomolo, allowing barren areas close to the coal deposit to be demarcated for potential site development.

Next Steps

Once the Mkomolo magnetic survey is complete at year end, the field data will be interpreted with 3D geophysical software in order to test whether the coal measures and coarse sandstone units are useful marker units which can be mapped at depth. If positive, a more accurate depth to coal measures can be determined and, if they come close to surface at the western margin of the basin, they may be economic for extraction, increasing the amount of mineable coal available in the immediate area.

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.

Rufus Short, CEO of Edenville commented, "Once the magnetic survey field work in the Mkomolo area is complete at year end we will be in a position to analyse the data using a specialist consultant.  This interpretation will allow the company to make an informed decision as to the presence and viability of any coal measures indicated on the western margin of Mkomolo.

We must emphasise that whilst additional tonnes in the Mkomolo area would be a positive outcome, these are not required for the current plan for the 120MW Power Plant development.  We will continue to use our in-country resources in the most cost-effective way to identify any targets and additional coal tonnes through continued exploration work on the western margins of the Mkomolo basin.

We will continue to update our shareholders on developments as we progress."

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

 

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