todays afr artical , page-9

Some details from the immediate Serowe neighbours, Asenjo Energy (50% owned by ASX listed Aquila Resources:

LECHANA & TSHIMOYAPULA

Approximately 2.3 billion tons of good quality export thermal coal identified at Lechana and Tshimoyapula.

Two main coal seam horizons defined, one suitable for high quality export thermal coal and the other suitable for high quality thermal coal (similar to Morupule Colliery)

Area known to contain large resources of groundwater as well as two large seasonal rivers (from historical drilling)

Located in close proximity to Morupule, allowing the potential sale of coal to the industry in the surrounding area

Potential for domestic and regional supply of coal

Suitable rail infrastructure in place as project located 10-20km west of the Francistown highway and the main rail line linking Zimbabwe to South Africa, which will facilitate domestic and regional supply of coal into Africa (Zambia, Angola and Malawi)

Potential opencast block identified at Lechana, containing the Taukome Bright seam at relatively shallow depths

Could produce a high quality export product with high volatile content, as well as for regional and domestic supply of coal

Morupule Main seam is suitable for the production coal to be used in a domestic power plant, with the project tenements located within 30km of a 220 KVa transmission line

and from near neighbours in Mmamabula, CIC Energy:

CIC Sept 2008 Technical Report

CIC Presentation Nov 2011

Resource extensively drilled – 1,900 holes and 163,000 metres
CIC Energy has drilled more coal exploration holes than all other coal
companies in Botswana combined

From CIC Website:

Based on quality and thickness, three economic coal seams have been identified as the principal economic targets at CIC Energy’s Mmamabula Coal Field; these are the D1, D2 Upper and M2 seams. On the main Mmamabula PL11/2004 licence, the seams are relatively flat lying and in the areas of economic interest occur at depths of less than 140 m below surface. The D1, D2 Upper and M2 seams have average mineable thickness of approximately five, three and three metres, respectively.

Coal qualities across the Mmamabula licence area are mostly suitable for thermal power generation with raw coal calorific values (“CV”) for the major seams being approximately 20.3 megajoules per kilogram (“MJ/kg”) for the D1 seam and 22.6 MJ/kg for the M2 seam. Work to date by CIC Energy on the M2 seam, indicates that coal qualities generally increase from west to east, with the potential for higher-quality export coal in the M2 seam of the Western and Eastern Blocks.

Based on current mining cost parameters, approximately 30% of the Mmamabula coal resource could be extracted economically by open cut mining methods and underground bord and pillar mining methods using conventional continuous miners is being planned for the remaining 70%. Alternative mining methods (such as underground long wall extraction) that could further optimize resource utilization are also being investigated.

Washability (beneficiation) tests have shown that for a large portion of the resource, it is possible to beneficiate the coal to produce an export quality coal, as well as a lower quality coal suitable for on-site power generation and/or gasification. The relatively high sulphur contents, which average 1.8 %in the raw coal, could easily be reduced to less than 1% through beneficiation.

Table 2 is a summary of the total resource base showing tonnages, and thicknesses of the various seams in the different areas.