Explorer sets sights on delineating maiden Jorc-compliant resource
2nd March 2012
Africa-focused coal-mining investment and production company Continental Coal hopes to delineate a maiden Joint Ore Reserves Committee-compliant resource in Botswana this year, according to a presentation made at this year’s Investing in African Mining Indaba, in Cape Town.
Samples have been taken from all the major coal horizons, including interbedded coals and carbonaceous mudstones at the company’s exploration licences. Individual seams thicker than 1 m were sampled separately and sent to an accredited laboratory in South Africa for quality determination. Analytical results for these are pending and scheduled to be received by Continental Coal this quarter.
Explorer geophysicist Poseidon Geophysics geophysically logged boreholes presenting coal across licences PL339/2008 and PL340/ 2008, recording natural gamma, density and calliper.
The explorer holds three prospecting licences covering 964 km2, through its Botswana subsidiary, Weldon Investments. Licences PL339/2008 and PL340/2008 are known as the Serowe coal project while the other, PL341/2008, is called the Kweneng coal project. Serowe is immediately north of Botswana’s only producing thermal coal mine, the Morupule, and Kweneng is 25 km west of Canadian-listed CIC Energy’s Mmamabula coal project.
The drilling programme of wide-spaced (4 km) boreholes at its Serowe project has defined the presence of major coal-bearing carbonaceous zones, while drilling at its Kweneng project restarted this quarter, with five rigs mobilised to site, states the com- pany’s quarterly activities report for the quarter ending on December 31, 2011.
Botswana exploration drilling company Discovery Contractors Africa was contracted to complete the 60-hole diamond drilling programme, which started in September last year at Serowe, with two drill rigs mobilised to site.
Sixteen diamond drill holes were completed at Serowe while another two drill holes were completed at Kweneng during the quarter ending December 31, 2011.
The results and intersections of the Phase 1 drilling on PL340/2008 and PL341/2008 will determine the final locations for Phase 2 drilling.
JOHANNESBURG (miningweekly.com) – Thermal coal junior Continental Coal on Thursday said it had achieved a significant increase in its gross profit to A$14.1-million for the six months ended December 31.
The miner started operations in South Africa two years ago and in the foregoing six months posted a gross profit of A$0.4-million.
It also reported its first after-tax profit of A$2 000, compared with a net loss of A$30.8-million a year earlier.
“The strong operating performances at the Vlakvarkfontein and the Ferreira coal mines and the Delta coal processing operations over the last six months have now started to flow through into a much-improved financial performance for the company,” CEO Don Turvey said.
Following record production and sales of thermal coal into both the export and domestic markets, we have seen total revenue increase to A$49.9-million over the period, up from A$13.0-million for the previous corresponding period.
“Costs have also been incurred over the period in anticipation of starting production from our third mine, the Penumbra coal mine and for the completion of the bankable feasibility study for our fourth mine, the De Wittekrans coal project, resulting in a maiden Joint Ore Reserves Committee-compliant reserve.
“This has allowed us to set out a very strong and clear pathway of growth for the company and our shareholders,” Turvey said.
Continental also managed to achieve significant improvement in fiscal management of controllable and one-off costs during the previous corresponding period. Finance fees were reduced by 82%, to A$6.6-million, consultant fees were reduced by 78%, to A$7.6-million and other expenses were reduced by 38%.
Further, the miner have been able to consolidate its position around the Vlakplaats coal project that it has in joint venture with Kores, through the opportunistic and strategic acquisition of the Wolvenfontein coal project.
Continental had also started greenfield exploration work at its Serowe and Kweneng coal projects, in Botswana.
Meanwhile, the company had executed subscription and shareholder agreements with broad-based black economic-empowerment partner Sishen Iron Ore Company Community Development Trust to become the company's new partner in South Africa.
“The finalisation of loan financing agreements with Absa Capital, under the current volatile capital markets was also a key milestone in the growth of our company and a further sign of support for our coal-mining strategy in South Africa,” Turvey said.
