vaalbank to be fastracked, page-112

Somebody reminded me of this from the recent Edison report:

Vaalbank

Following Penumbra and in parallel with its development of De Wittekrans, Continental Coal has its sights set on the development of Vaalbank. Located 230km east of Johannesburg and adjacent to TOTAL South Africa?s Forzando Colliery (an underground thermal coal mine), the company plans to
develop Vaalbank into a conventional underground board and pillar mine using contract miners.An application for a New Order Mining Right has been lodged.

The company has the opportunity to be producing coal in 2011 if it is successful in finalising a potential joint development agreement which would allow it to accelerate development by making use of existing nearby underground access to the No 4 seam which occurs here at depths of
between 60m and 160m and with an average thickness of 2.44m. Run-of-mine production rates of 200,000tpm are planned to produce both a domestic and export quality thermal coal product. With a resource of 54Mt, this equates to a mine life of over 20 years. The company is currently in
discussions with neighbouring operations in order to accelerate the development by accessing existing, neighbouring infrastructure and wash plants.

Let's say only 50k export and 50k domestic, with margins of $55pt and $7pt respectively. This means $37m operating profit. On a conservative p/e's of 10-20, this is $370m-$740m value attributed to Vaalbank or 10c-20c per share fully diluted.

Make no mistake, this is the closest major piece of news which could significantly alter the price of Conti

We need the new order mining right which has been applied for. This is what the JV must be waiting on.