Information  X 
Enter a valid email address

Homeland Energy (HEG)

  Print      Mail a friend

Monday 07 July, 2008

Homeland Energy

Homeland Energy Completes Initial Public Meetin...



July 7, 2008

Homeland Energy Completes Initial Public Meetings Regarding the Development of Eloff Mining Project, South

- Successful public consultation process for parties affected by the development of Homeland's Eloff Mining

- Homeland issues preliminary production schedule as part of public process

- Preliminary production schedule to be supported by pre-feasibility study currently underway

TORONTO, ONTARIO--(Marketwire - July 7, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or 'the
Company') participated in due-course public meetings last week held as a discussion forum for parties -
farmers, land owners, current residents, local businesses - which will be affected by the development of
Homeland's half billion tonne coal resource near Delmas, South Africa. This public consultation is a
significant part of the process toward the submission of an environmental management program report for the
development of this resource, thereby moving Homeland closer to satisfying the requirements for obtaining a
mining right from the Department of Minerals and Energy (DME), South Africa.

As part of this process, it was necessary for Homeland to issue a preliminary coal production schedule for the
next 24 years. This schedule is based on management's estimates and it is anticipated that this estimate will
be supported by a pre-feasibility -study now underway - due to be completed in September 2008. The preliminary
production schedule indicates that an average of 48 million cubic metres of waste material (overburden) will be
removed per year to produce an average run-of-mine production of 8 million tonnes of coal per year.

"We are extremely pleased with the tone and outcome of this public discussion," commented Mike Nell, Chief
Operating Officer. "The purpose of this meeting was to inform local interested and affected parties about the
development schedule and invite inputs that will be valuable to Homeland for the submission of an Environmental
Management Program Report to the Department of Minerals and Energy."

Table 1 illustrates the amount of material estimated to be extracted as well as the breakdown by type of
material (waste, run-of-mine material) and quality of the coal as estimated by drilling done over the course of
the past 17 months on the Eloff Mining Project located 50km southeast of Johannesburg.


Table 1 - Abbreviated preliminary annual production schedule for Eloff
Mining Project

Description   Unit     Year 1     Year 2      Year 3      Year 4     Year 5
  Topsoil       m3    241,878    384,352     600,725     700,828    796,030
  Softs         m3  1,355,462  1,972,797   2,480,385   3,586,103  4,084,364
  Hards         m3  6,427,671 14,625,631  27,457,707  31,354,673 34,916,309
  Interburden   m3               390,725   1,478,691   1,438,916  1,385,187
Total Waste     m3  8,025,011 17,373,505  32,017,508  37,080,520 41,181,890
ROM (seam)
4Lower       tonne          0    102,219     370,627     344,072    309,972
2Upper       tonne      8,646    620,315   1,378,413   1,434,841  1,368,614
2Lower       tonne  1,995,067  2,924,327   5,351,184   5,909,662  6,321,674
Total ROM    tonne  2,003,713  4,646,861   7,100,242   7,688,575  8,000,260
Strip Ratio   m3/t       4.01       3.74        4.51        4.82       5.15

Description   Unit     Year 6     Year 7      Year 8      Year 9    Year 10
  Topsoil       m3  7,971,186    826,616     856,795     889,485  1,020,786
  Softs         m3  4,091,893  3,932,218   3,934,767   3,817,348  4,360,428
  Hards         m3 36,237,980 34,840,219  37,077,449  36,844,177 37,737,760
  Interburden   m3  1,559,865  1,745,933   1,906,685   1,723,644  2,084,386
Total Waste     m3 42,686,924 41,344,986  43,784,696  43,274,654 45,203,360
ROM (seam)
4Lower       tonne    319,524    360,042     323,980     305,705    306,678
2Upper       tonne  1,576,086  1,786,248   1,617,308   1,082,722  1,748,679
2Lower       tonne  6,112,441  5,894,871   6,106,965   5,872,336  5,938,006
Total ROM    tonne  8,808,051  8,017,161   8,048,253   7,980,763  7,993,363
Strip Ratio   m3/t       5.33       5.16        5.44        5.42       5.66


Homeland anticipates the completion of the Eloff pre-feasibility study by early September, 2008.

Homeland Energy Group Ltd. is a producing coal company, traded on the Toronto Stock Exchange under the symbol
"HEG". The company is focused on energy exploration and development in Southern Africa. Homeland owns two
producing operations - the Kendal Mine near Witbank, South Africa and the Northfield site reclamation project
near Dundee, South Africa - an advanced development coal project in South Africa (Eloff coal mining project)
and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The
Company is currently negotiating to acquire interests in a number of additional coal properties in eastern
South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a
Canadian uranium exploration and development company focused on projects in Niger and the United States, and
has several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock
Exchange on March 5, 2008 and has 150,079,642 common shares issued and outstanding.



Homeland Energy Group Ltd.
Naomi Nemeth
Vice President, Investor Relations
(416) 506-1979
Email: [email protected]


Homeland Energy Group Ltd.
Stephen Coates
President and Chief Executive Officer
+44 20 7 399 4390
Email: [email protected]


Homeland Energy Group Ltd.


a d v e r t i s e m e n t