coal resource of over one billion tonnes

7 February 2008 ELS 57 2008
AVIVA ANNOUNCES A COAL RESOURCE OF OVER ONE
BILLION TONNES AT MMAMANTSWE
Integrated energy company Aviva Corporation Limited (ASX:AVA), today
announces an initial resource estimate of 1.287 billion tonnes of coal at the
Mmamantswe Coal Project in Botswana.
The result is a major resource boost for Aviva, and is more than double the 600Mt
target proposed in April 2007 when the prospecting licences were granted.
Aviva CEO, Mr Lindsay Reed, said the initial resource estimate highlighted the
potential of the project, where Aviva has been investigating the merit of a 1,500MW
power station.
“The resource estimate affirms the Mmamantswe Project as very low strip ratio open
pit thermal coal deposit, with the potential to supply the six million tonnes per annum
required to support the 1,500MW power project,” Mr Reed said.
“The in situ tonnage of 1.3 billion tonnes significantly exceeds the 600 million target
set by the company, and is a major milestone in the development of the project,” he
said.
Coal quality is in line with expectations, and testwork confirms that around half the
ash is removed at high relative densities of 1.8-1.9.
The average overburden cover in the resource area suggests a stripping ratio of around
1 bcm/tonne of in-situ coal.
Drilling revealed that the volume of the coal basin was larger than targeted because
the thickness of the carbonaceous sequence persisted further to the west than
anticipated. Coal quality test work results received to date confirm the coal content of
the carbonaceous sequence also persists to the west.
Page 2 of 8
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80
Volume Mm3 658.4 658.4 658.4
Ash % ad 57.7 30.5 25.2
Calorific Value GJ/t ad 9.2 18.2 20.1
Fixed Carbon % ad 21.3 40.2 43.6
Inherent Moisture % ad 3.3 5.0 5.3
Relative Density 2.0
Sulfur % ad 0.8 0.4 0.4
Volatiles % ad 17.6 24.4 25.9
Cumulative Yield % 51.8 41.2
Thickness m 43.7 43.7 43.7
Tonnes Mt 1,287.9 648.3 487.9
The coal quality test work confirms Aviva’s expectation that the coal would be
amenable to beneficiation at a relatively high cut point. Cumulative floats in the 1.8 to
1.9 relative density range show 50% reduction in ash at a 40-50% yield. The calorific
value of the coal in these cumulative floats ranged from 18-20 GJ/tonne which is at
the high end of the company’s expectation. Particularly pleasing is the sulphur content
of 0.84% which is reduced to less than 0.5% in the cumulative floats.
The resource estimate is based on a 32 hole 3500m drill program. Of these holes 23
intersected coal and have been utilised in the resource volume calculation. Coal
quality test work results for 13 of these holes were used to model the coal quality
parameters. Coal quality results from another nine holes are now available and will be
incorporated in the resource model. It is expected that these results will upgrade some
of the resource from the Inferred to Indicated category. A drill hole location map,
table of drill holes, description of coal zoning and break down of the resource
estimate by zone is appended to this release.
A new drilling program to upgrade the deposit to reserve is currently being planned to
commence in late March. The program will comprise 150-250 holes and will be
designed to upgrade the resource to reserve status. The drill program will increase the
density of coal quality information across the deposit, enable coal preparation test
work and design to be completed and provide a composite sample of a representative
washed product for combustion test work to enable boiler design.
For further information, please call:
Lindsay Reed Robert Kirtlan
Aviva Aviva
Chief Executive Officer Director
Tel: +61 (0) 8 9367 2344 Tel: +61 (0) 8 9367 2344
Issued by:
Warrick Hazeldene Purple Communications Tel: +61 (0) 8 9485 1254
Page 3 of 8
Page 4 of 8
BOREHOLE DATA*
BH No
End of Hole
(m) Longitude Latitude
Top of
carbonaceous
sequence (m)
Base of
carbonaceous
sequence (m)
AVM1 66.22 26.62621 -24.23213 60.89 127.11
AVM2 41.58 26.6174 -24.23659 66.1 107.68
AVM3 59.33 26.60711 -24.22751 63.44 122.76
AVM4 56.2 26.59662 -24.23834 146.28 202.48
AVM5 167.68 26.6081 -24.24225
No Coal
intersected
AVM6 64.31 26.63931 -24.23592
No Coal
intersected
AVM7 85.13 26.64344 -24.24947
No Coal
intersected
AVM8 0.3 26.628 -24.2458 47.66 47.95
AVM9 54.1 26.63353 -24.22139 67.05 121.15
AVM10 73.13 26.64478 -24.21619
No Coal
intersected
AVM11 100.21 26.63698 -24.20624
No Coal
intersected
AVM12 8.98 26.62464 -24.20962 59.17 68.15
AVM13 97.56 26.61647 -24.21818
No Coal
intersected
AVM14 13.47 26.60652 -24.21081 52.63 66.1
AVM15 65.82 26.60019 -24.20078
No Coal
intersected
AVM16 37.97 26.59739 -24.21846 54.89 92.86
AVM17 8.02 26.58963 -24.20963 49.25 57.27
AVM18 3.51 26.57908 -24.21887 86.69 90.2
AVM19 49.19 26.58795 -24.22782 123.26 172.45
AVM20 31.23 26.61121 -24.21491 51.29 82.52
AVM21 9.79 26.624 -24.22368 57.68 67.47
AVM22 25.36 26.61659 -24.22692 54.44 79.8
AVM23 40.13 26.56321 -24.2087
No Coal
intersected
AVM24 133.18 26.56496 -24.22493
No Coal
intersected
AVM25 64.13 26.58635 -24.20139
No Coal
intersected
AVM26 94.13 26.63293 -24.2138
No Coal
intersected
AVM27 6.9 26.62413889 -24.20980556 62.06 68.96
AVM28 34.94 26.59739 -24.21846 56.72 91.65
AVM29 7.78 26.6245 -24.22391667 57.21 64.99
AVM30 42.68 26.6081 -24.24225 97.74 140.42
AVM31 5.61 26.5817 -24.24084 99.6 105.21
AVM32 22.94 26.61778 -24.24556 53.64 76.58
Page 5 of 8
TYPICAL CARBONACEOUS SEQUENCE – HOLE AVM 3
Coal
Conglomerate
Carbonaceous Shale
Carbonaceous Mudstone
Carbonaceous Siltstone
Carbonaceous Sandstone
Zone D
Zone C
Zone B
Zone A
Page 6 of 8
By comparing the geological and geophysical logs the carbonaceous
sequence as been loosely divided into four zones based on coal quality and
density, as indicated by the geophysical wireline log.
ALL ZONE RESOURCE ESTIMATE AND COAL QUALITY*
All zones included
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80 RD 1.70 RD 1.60
Volume Mm3 658.4 658.4 658.4 658.4 658.4
Ash % ad 57.7 30.5 25.2 20.2 15.3
Calorific Value GJ/t ad 9.2 18.2 20.1 21.9 23.7
Fixed Carbon % ad 21.3 40.2 43.6 46.6 49.2
Inherent Moisture % ad 3.3 5.0 5.3 5.6 6.0
Relative Density 2.0
Sulfur % ad 0.8 0.4 0.4 0.5 0.5
Volatiles % ad 17.6 24.4 25.9 27.6 29.4
Cumulative Yield % 51.8 41.2 30.5 19.8
Thickness m 43.7 43.7 43.7 43.7 43.7
Tonnes Mt 1,287.9 648.3 487.9 341.6 208.6
* A separate estimate of the all zone resource was made, therefore it will not exactly
equal the sum of the individual zone resource estimates tabled on the following page.
Page 7 of 8
RESOURCE ESTIMATE AND COAL QUALITY BY ZONE*
Zone D
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80 RD 1.70 RD 1.60
Volume Mm3 227.7 227.7 227.7 227.7 227.7
Ash % ad 61.1 30.7 24.2 19.3 15.3
Calorific Value GJ/t ad 7.9 18.1 20.6 22.3 23.7
Fixed Carbon % ad 18.3 38.3 42.2 45.1 47.5
Inherent Moisture % ad 3.2 5.0 5.4 5.8 6.2
Relative Density 2.0
Sulfur % ad 0.7 0.5 0.5 0.6 0.6
Volatiles % ad 17.3 26.0 28.2 29.8 31.0
Cumulative Yield % 51.9 38.3 28.2 20.5
Thickness m 21.2 21.2 21.2 21.2 21.2
Tonnes Mt 451.3 224.7 157.0 109.2 74.5
Zone C
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80 RD 1.70 RD 1.60
Volume Mm3 71.6 71.6 71.6 71.6 71.6
Ash % ad 46.3 28.8 24.3 19.8 15.0
Calorific Value GJ/t ad 12.6 18.7 20.4 22.1 23.8
Fixed Carbon % ad 28.5 40.4 43.3 46.1 49.0
Inherent Moisture % ad 3.9 5.1 5.4 6.0 6.0
Relative Density 1.8
Sulfur % ad 1.2 0.4 0.4 0.5 0.5
Volatiles % ad 21.3 25.7 27.0 28.5 30.0
Cumulative Yield % 62.6 49.9 38.0 25.6
Thickness m 6.3 6.3 6.3 6.3 6.3
Tonnes Mt 128.7 85.2 64.4 46.3 29.3
Zone B
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80 RD 1.70 RD 1.60
Volume Mm3 182.8 182.8 182.8 182.8 182.8
Ash % ad 67.0 33.3 27.9 22.2 16.3
Calorific Value GJ/t ad 6.5 17.1 19.0 20.9 23.1
Fixed Carbon % ad 15.2 39.1 42.7 46.4 49.9
Inherent Moisture % ad 2.7 4.7 5.1 5.5 5.9
Relative Density 2.1
Sulfur % ad 0.4 0.3 0.3 0.6 0.4
Volatiles % ad 15.1 22.9 24.3 25.9 27.8
Cumulative Yield % 40.1 31.3 19.6 7.9
Thickness m 15.1 15.1 15.1 15.1 15.1
Tonnes Mt 381.2 139.2 102.9 61.0 23.2
Zone A
RESOURCE ESTIMATE TOTAL RD 1.90 RD 1.80 RD 1.70 RD 1.60
Volume Mm3 176.3 176.3 176.3 176.3 176.3
Ash % ad 45.4 29.0 25.2 21.0 15.9
Calorific Value GJ/t ad 13.2 18.8 20.2 21.7 23.5
Fixed Carbon % ad 30.6 42.5 45.0 47.6 50.3
Inherent Moisture % ad 3.8 4.9 5.1 5.3 5.7
Relative Density 1.8
Sulfur % ad 1.4 0.5 0.5 0.5 0.6
Volatiles % ad 20.1 23.7 24.7 26.1 28.1
Cumulative Yield % 68.7 58.9 47.0 33.2
Thickness m 10.7 10.7 10.7 10.7 10.7
Tonnes Mt 317.4 230.0 187.1 141.0 93.7
Page 8 of 8
ABOUT AVIVA
Aviva is an integrated energy company listed on the Australian Stock Exchange with
its head office in Perth. The company is growing a portfolio of integrated energy
assets. Aviva’s most advanced asset is the Coolimba Power project in Western
Australia.
Coolimba Power is a 400MW base load power station in the Mid West. The project is
ideally located in the northern half of the SWIS power grid to take advantage of
demand growth both in the SWIS and from new resource projects in the Mid West
Region. The location has the advantage of low cost fuel, available water, adjacent
infrastructure, existing mining lease and freehold land.
Aviva is earning a 90% interest in the Mmamantswe Coal project in Botswana where
it has delineated a 1.3 billion tonne inferred resource. The project is well positioned,
being on the South African border and adjacent to key infrastructure including,
highway, railway, and high voltage transmission lines. Aviva is investigating the
technical and commercial merit of a 1,500MW power station at Mmamantswe.
Please visit: www.avivacorp.com.au
The information relating to the Mmamantswe Resource Estimate, is based on
information compiled and reviewed by Mrs. Cecilia Hattingh, who is a Member of the
South African Council for Natural and Scientific Professions, the Geological Society
of South Africa, and a member and principal geologist at Rock and Stock Investments
cc. Cecilia Hattingh has more than 11 years experience as a geologist, of which the
last nine have included exploration and mineral resource estimation for a variety of
deposits throughout Southern Africa. This experience is more than adequate to qualify
her as a Competent Person for the purpose of Exploration Reporting as defined in the
2007 edition of the SAMREC Code.