Please note, below is a copy from ASX announcement dt., 29th...

Please note, below is a copy from ASX announcement dt., 29th March 2012 13:58 hours. Source ETrade.

Development activities have advanced further in the twin declines at the Penumbra Coal Mine

Key Points:
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Penumbra Mine twin declines significantly advanced
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Key underground mining equipment orders placed
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Civil works completed, power supply installed and pollution control dam finalised
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Thermal coal mining operations at the Ferreira and Vlakvarkfontein Coal Mines continue to outperform with production and sales in January and February 2012 exceeding targets
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Ferreira and Vlakvarkfontein Coal Mines report unaudited gross sales revenue of ZAR107m and gross profit of ZAR15.5m for the months of January and February 2012
Continental Coal Limited (“Continental” or the “Company”) is pleased to provide an update on the mine development activities and site construction and civil works at the Penumbra Coal Mine and an update on operating and financial performance at the Vlakvarkfontein and Ferreira Coal Mines and Delta Processing Operations in South Africa.
South Africa Australia
T +27 11 881 1420 F +27 11 881 1423 W www.conticoal.com T +61 8 9488 5220 F +61 8 9324 2400 W www.conticoal.com
9th Floor Fredman Towers, 13 Fredman Drive, Sandton 2196 Ground Floor, 1 Havelock Street, West Perth, WA 6005
PO Box 787646, Sandton 2146 PO Box 684, West Perth WA 6872
Independent Non-Executive Chairman Mike Kilbride Chief Executive Officer Don Turvey Executive Director Jason Brewer Executive Director Peter Landau
Non-Executive Director Connie Molusi Non-Executive Director Johan Bloemsma Non-Executive Director Andy Macaulay Non-Executive Director James Leahy
Penumbra Coal Mine
Construction of the pollution control dam has been completed and further progress made in the twin declines
Development activities at the Penumbra Coal Mine have continued to accelerate in 2012. The majority of the civil work on site has now been completed, with the pollution control dam, silt traps and storm water channels completed. Construction of the power line from the sub-station at the Delta Processing Operations to the Penumbra Coal Mine site has been completed with Eskom power of 3.5MVA installed and commissioned.
The current focus by the Company’s owners team and TWP Projects, as its EPCM contractor, is the continued advance of the twin declines by the decline development contractor, Murray & Roberts.
Activities at the entrance to the twin declines in the Penumbra Coal Mine box-cut
The twin declines, will have a final length of approx. 390m. One of the declines will be equipped with a conveyor and the second will serve as a trackless equipment travelling route. Currently the conveyor road has advanced down 60m and the travelling road down 16m.
Site visit to the Penumbra Mine and into the twin declines by new directors Mike Kilbride and Johan Bloemsma
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The Company has placed orders with Joy Mining Machinery for two 14HM15 Continuous Miners and four 10SC32 Shuttlecars, as well as orders with Rham Equipment for two Front End Loaders and two Roofbolters. In addition a temporary shaft conveyor system has been installed and is currently being commissioned. Tenders for the orders for the permanent conveyor structure, shaft gantry and drives are currently being finalised by the Company and will be awarded shortly.
Site visits by directors Mike Kilbride, Johan Bloemsma, Connie Molusi and representatives of the Company’s partner SIOC-cdt
During March 2012, site visits to the Penumbra Mine were undertaken by the Company’s newly appointed directors, Independent Non-Executive Chairman Mike Kilbride, Non-Executive Director Johan Bloemsma and Non-Executive Director Connie Molusi as well as representatives of the Company’s new partner in South Africa, Sishen Iron Ore Company Community Development Trust.
Ferreira Coal Mine and Delta Processing Operations
The Ferreira Coal Mine achieved ROM coal production of 105,119 tonnes over the months of January and February 2012, 14% above budgeted production levels. Total production of 100,986 tonnes of a high quality export thermal coal product was achieved at the Delta Processing Operations, 16% above budget. An average primary yield of 58.3% was achieved, above the average yield of 55.6% achieved in the December 2011 quarter. Sales of 96,709 tonnes of high quality export thermal coal, exceeded budget by 23%.
During the month of February 2012, the Ferreira Coal Mine was recognised by the Chief Inspectorate of Mines and Department of Mineral Resources for achieving 3,000 fatality free production shifts. The Ferreira Mine was further recognised with a third prize award at the Coal Safe 2012 Annual Colliery HSEC Campaign Performance Awards for achieving a zero Lost Time Injury Frequency Rate and recording 3,375 fatality free production shifts.
Vlakvarkfontein Coal Mine
During the months of January and February 2012, the Vlakvarkfontein Coal Mine achieved ROM coal production of 200,783 tonnes, a 1% and 6.5% increase on the average monthly ROM coal production in the December and September 2011 quarters respectively.
Thermal coal sales from the Vlakvarkfontein Coal Mine to the South African domestic market of 174,799 tonnes of thermal coal were made during the two months.
From 1 March 2012 domestic thermal coal sales from the Vlakvarkfontein Coal Mine have been made directly to South Africa’s state utility company, Eskom under the recently concluded Coal Supply Agreement. The Vlakvarkfontein Coal Mine is one of only 25 direct suppliers of coal to Eskom in South Africa. 3
For and on behalf of the Board.
Don Turvey
Chief Executive Officer
Ends