nimrodel resources shares 67% stronger, defini

Nimrodel Resources (ASX: NMR) has attracted some investor attention of late with shares rallying 67% to an intra-day high of A$0.025 last Friday, up from $0.015 three days earlier on Tuesday 26 June.

The share price increase prompted the ASX to issue a price and volume query, with around 12.2 million shares traded over three days.

Nimrodel responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.

The company has been working to define a robust thermal coal operation at its 70% owned Takatokwane Coal Project in Botswana.

A recent Scoping Study has shown the potential for the Takatokwane Resource to support a large scale open pit mining operation for 20-plus years.

Importantly, the project can produce a washed coal quality potentially suitable for export markets and a raw coal quality suitable for domestic power generation, coal to liquids and by-product processes.

Each scenario modelled in the Scoping Study proved cash flow positive.

In November last year Nimrodel delivered a maiden Inferred JORC Resource of 4.23 billion tonnes of thermal coal for Takatokwane.

Improving the overall economics of the project, the coal is relatively shallow with average depth of less than 150 metres over the entire resource.

The resource, which is estimated using a 1.5 metre cut-off, has a 57% yield at a 1.6 SG float, providing a washed resource of 2.395 billion tonnes.

Nimrodel believes the Inferred Resource to be the largest thermal coal resource to be reported within Botswana, which bodes well for the potential of the region to host a major thermal coal deposit.

Demonstrating the potential for additional resources, Nimrodel has outlined an additional 2 to 2.4 billion tonne exploration target at the adjacent Takatokwane South.