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Continental Coal Identifies New 6.6 Bt Exploration Targets In Botswana

Wednesday, September 29, 2010

by Proactive Investors

A massive 6.6 Bt exploration target has been identified at Continental Coal's (ASX: CCC) recently acquired Mashala Coal Project in Botswana, with 2.7Bt at a shallow to moderate depth.

The two highly prospective coal projects cover an area of 964km2, with independent South African consulting geologists Gemecs confirming the exploration target.

One of the projects is adjacent to CIC Energy Corporation's (TSX: ELC) Mmamabula prospecting license, with an unnamed Indian conglomerate recently acquiring CIC for C$480, which helps underlay the strategic value of the projects, as the CIC resource base is approximately only 2.9 Bt.

The CIC main project is just 5km east of Continental's Mashala Licence.

Don Turvey, chief executive officer, said, The Company has moved quickly to obtain an independent assessment of the potential of the Botswana Projects."

"The findings have clearly exceeded our expectations."

"Whilst our main focus remains the rapid development of our advanced South African based export thermal coal projects, it is important that Continental remains exposed to such a significant future coal field development in Botswana.

When the Continental acquisition of Mashala is complete, a 21 hole drilling program will begin at the Botswana projects, with the aim of defining an initial JORC compliant resource and providing coal quality analysis.

One major strategic advantage from the acquisition is that Mashala provides Continental with immediate export coal production, along with the key Richards Bay Coal Terminal and Transnet rail contracts.