coal article

all this while it is likely to be generating positive cash through its alloy business (subject to seeing june's quarterly report)...and around 1 million in GMA Resources shares (listed in UK). Not bad for a stock with a market cap of around 8 million imo (6 mill a couple days ago)...

Cdchi1

GVM Releases Coal Resource Statement

GVM Metals Limited has released the results of a geological coal resource statement in respect of the Holfontein Coal Project in the Highveld Coalfield near Lesley in the Mpumalanga Province.

The statement, which was prepaired by Mr Dawie Le Roux Van Wyk, indicated that coal resource of 18,482,274 tonnes has been determined for 5 Seam Holfontein. It is predicted to yield approximately 8 million tonnes of saleable coal.

The 5 Seam, which is of high-grade metallurgical quality (28 dry ash free volatile VM), occurs approximately 80 metres below surface and is proposed to be accessed by a box cut. The railway to Richards Bay passes through the property and a railway siding is located at Levan, which is adjacent to the Project.

A Scoping Study is also being prepared for the Company that provides operating cost estimates for the project based on the assumption that both mining and washing are provided by a suitable qualified mining contractor. The costs will be based on the mining contractor providing all mining and washing equipment.

The study incorporates a modest core-drilling program to validate previous work and is expected to be completed by the end of September.

Following granting of the prospecting rights which is expected to be received by the end of October 2005 and subject to the outcome of the scoping study, the Company and its joint venture partner, Motjoli Resources, will initiate a second round drilling program that will form the basis of a Bankable Feasibility Study, which is anticipated
to be completed by June 2006.

- 08 Jul 2005