Just thought I'd throw this in it is ALL opinion...- I have taken the last RES announcement 2 march and added some of my thoughts - Any comments?
2 March 2009
ASX Release
Update on South African Exploration Results
Further to the presentation made at the Shareholders Meeting on 23 January 2008 the
following update is provided:
A total of 67 percussion holes and 20 cored holes were successfully completed on
schedule. This required a concentrated effort involving five core rigs operating
simultaneously; a significant result given the short period of time involved. All cored
holes and 47 of the percussion holes were completed in the main deposit known as
Waterberg No.1. As previously announced, the coal seam is present across the total
tenement area of 1,365 hectares and is approximately 120 metres thick, commencing
approximately 20 metres below the surface. **** - This I think is significant - with it being present across the total tenement means that it extends beyond its current holding - which is why they acquired the surrounding tenements. ***** Following completion of the exploration program, analysis of the first two of the cored
holes has been completed providing confirmation that the coal sequence is as
anticipated. Coal quality results are such, that a range of thermal coals suitable for both
the domestic and export markets can be produced as well as a soft coking coal with a
PCI coal fraction. Although preliminary, these results are very encouraging. ***** Also another interesting statement - all that we have known to this point 739million tonnes of coal has just been confirmed this opens the door for 'very encouraging' growth ***** Given the large amount of coal core requiring analysis, completion of this process will
take approximately six months and involves two laboratories working full time. The
company will endeavour to publish an updated JORC statement during this period as
sufficient results become available.
****May hear news before August deadline
An exploration program for the recently acquired adjoining tenements, within the
Ledjadja joint venture, is expected to commence in March. This should provide
confirmation as to the extent and continuity of the same coal sequence into areas
adjoining Waterberg No.1.
****** The statement that says the coal seam is larger than we first thought and so we have bought the land around it. Why would you do this if you did not think - with supporting evidence that there was a LOT more coal next door. **** Significant progress has been made in respect to the mining approval process with
initial public consultation now completed and documentation well advanced for
submission to the Department Minerals & Energy.
**** Still reckon this is a year or more away - but the long term upside is huge....*****
RES Price at posting:
38.9¢ Sentiment: Hold Disclosure: Held
