Disappointing initial results from the Tanzania Manda and Iwela projects, though not unexpected.
Searching for large sources of Coking coal in Tanzania will probably turn out to be a waste of time, though I hope that I am proved wrong.
Seven (7) boreholes with no viable coal seams, so the team is mapping other parts of Tanzania - good luck.
Energy Corporation (IEC) have been in Tanzania for years, and they have the rights to a lot of ground, and they are producing Thermal coal and selling it via TanCoal to Tanzania and Malawi. Tanzania only has Thermal coal.
Paying for Intierra Resource Intelligence reports on Coking coal in Tanzania will clearly illustrate to anybody that there is "not much Coking coal in Tanzania, nor are there any prospects".
http://www.intierra.com/Homepage.aspx
So why are CKA wasting shareholder funds on this venture? How long will it take them to cut their losses and go somewhere in Africa where there is Coking coal?
The Kalimantan exploration looks more likely, but then again, let us wait and see what the initial JORC presents in December, especially by way of volume. There may only be a small quantity of high quality Coking coal, and if so, the market is going to sell this down. Good to see that the company remains active in pursuing other opportunities in the area.
And so to Mozambique. The write up in the quarterly was interesting. It says that under the terms of the agreement with EMEM (Mozambique government), that EMEM will bring tenements to CKA for review. It implies that CKA are not actively in the field searching for prospects themselves.
Overall, this was a poor quarterly, better things to come we hope.
From an investment point of view, there is probably no hurry to get into this one, and especially for the price when you consider quality coal companies like AKM, AFR, HDG, GUF, CPL, CLR, SMR and others.
Gw
CKA Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
