coking coal discovery

28th March 2013
Just keeps getting better yet price not moving much?
COKING COAL DISCOVERY CONFIRMED AT SINAZONGWE, ZAMBIA
The Directors are pleased to report that recently received analytical data for its Sinazongwe coal
project has confirmed the potential for medium to hard coking coal fractions in the coal seams at
Sinazongwe in southern Zambia. The key aspects of this new discovery are as follows:
? Sinazongwe occurs in the Gwembe Valley, Zambia’s only coal producing region and where
a 300MW power station is currently under construction to provide electricity for the
Zambian domestic market.
? Previously announced reconnaissance drilling by African Energy discovered the presence of
multiple coal seams (up to 3 seams, each being 1-7m thick) in 8 holes drilled at Sinazongwe
(refer to Diagram 1).
? Analysis of the raw coal in these seams indicated calorific values of up to 26.2 MJ/kg (6300
kcal/kg) on an air-dried basis, with localised bright vitrinite bands. These vitrinite rich
bands have been selectively sampled and analysed for their coking potential.
? Results for 19 samples collected from the first 4 holes (holes SNZ001, SNZ002, SNZ004,
SNZ005) have been received to date.
? 17 of the samples were determined to have a Free Swelling Index (FSI) above 4.5.
Maximum FSI was 8.5, with a mean FSI of 6.1, indicating some potential for medium to
hard coking coal.
? FSI analyses of the coal seams in the remaining 4 holes are expected in the coming weeks
and will be reported once received.
? The Sinazongwe coal deposit occurs in prospecting licence 13646-HQ-LPL, which was
recently renewed for a further two-year term.
The Directors are highly encouraged by these results, which suggest that it may be possible to
derive a medium to hard coking coal primary product and a thermal coal middling by washing the
coal. Further drilling, proximate analyses and washing tests will be required to evaluate the full
potential of this project.
For and on behalf of the board.
For any further information, please refer to AFR’s website or contact us directly on +61 8 6465 5500.