NCONDEZI COAL COMPANY LTD
("Ncondezi" or the "Company")
Coal Resource on Ncondezi Project Upgraded to 4.7 Billion Tonnes and
Update on Other Licences
Ncondezi Coal Company Limited (AIM: NCCL), a coal exploration and
development company with coal assets in the Tete Province in Mozambique,
announces a coal resource update on the complete Ncondezi Project
including coal resources from previously excluded East, West and River
blocks as part of the Companys on-going work programme to complete a
definitive feasibility study ("DFS") by Q3 2012 (the "DFS Work
Programme").
Highlights:
* Total JORC coal resource on the Ncondezi Project upgraded to
4,655 million tonnes[1] as a result of additional coal resources being
classified on the East, West and River blocks
- Maiden coal resource of 716 million tonnes1 classified on the East
Block, of which 65% is classified in the indicated category
- Inferred resources of 1,203 million tonnes1 and 898 million tonnes1
classified on the West and River blocks respectively
* Represents an increase of 157% compared to maiden 1,809 million
tonnes1 JORC coal resource classified in February 2010
* Includes 1,338 million tonnes of coal classified in the
indicated category, a 108% increase over the measured and indicated
resources classified in the 2010 maiden resource
* 4,071 million tonnes of the updated coal resource occur at
depths of less than 250m below surface and are considered potentially
mineable by open pit
* Only the South, North, Central and East blocks will be included
in the DFS, representing 2,555 million tonnes1 of coal, of which 52% is
classified in the indicated category
* East Block coal zones are identified at surface and extend below
340m
* Wash yields indicate that the East Block has higher quality
coals with higher yields compared to other blocks in the project
Graham Mascall, CEO of Ncondezi Coal Company, commented:
"The increased resource estimates represent a significant development
for the Ncondezi Project and are a clear indication of its full
potential.
All resource blocks on the Ncondezi Project have now been
modelled, and we are pleased to note that of the 4.7 billion tonnes
classified, 1.3 billion tonnes has been classified in the indicated
category which is eligible for transition into mineable coal reserves.
The East Blocks size, classification and higher average product yields
suggest that it will form a significant part of the final mine plan.
The
next phase of the DFS work programme will focus on mine optimisation and
scheduling.
Further updates and guidance on the Ncondezi Project will be
made as information becomes available during the year, with an update on
coking coal potential expected in the next 4 to 6 weeks."
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[1] Resources are in-situ ("TTIS").
Geological losses and a 0.5m
minimum coal ply thickness cut-off were applied.
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