drilling start on mbuyura and mkapa coal block

http://www.proactiveinvestors.com.au/companies/news/2875/shares-in-atomic-resources-up-26-per-cent-after-drilling-start-on-mbuyura-and-mkapa-coal-blocks-2875.html

Thursday, October 15, 2009

Shares in Atomic Resources up 26 per cent after drilling start on Mbuyura and Mkapa coal blocks

Shares in Atomic Resources (ASX: ATQ) shot up yesterday after the company commenced drilling on two recently acquired coal blocks Mbuyura and Mkapa in western Tanzania.

Shares in the Perth-based mineral exploration company had jumped 26.9 per cent, or 3.5c, to 16.5c on the back of the news.

The drilling relates to two blocks covering northern extensions to the main Mbalawala block, where the current JORC compliant resource stands at more than 210 million tonnes of thermal coal.

Based on the drilling and test work previously completed potential coal tonnage of between 30 million and 50 million tonnes is anticipated.

Atomic is embarking upon a verification and validation diamond drilling program due for completion before the end of the year.

This program will seek to extend the area of previous drilling and is designed to upgrade as well as extend current potential tonnage targets.

The drilling is a key step in the completion of the Bankable Feasibility Studies currently under way, which includes development of the coal mine for export and internal consumption as well as assistance to the Tanzanian Government in the establishment of a 400Mw power station.

Atomic is particularly focused on solid energy, including coal and uranium and has a portfolio of assets in Western Australia and in Tanzania.