|Rukwa Coalfields - Mkomolo|
• 25 km NW of Sumbawanga located in western Tanzania, the capital of the Rukwa Region and commercial centre.
• Project suited for rapid development of low cost, large tonnage, open pit mine.
• Strategically located with regards to electrification plan for South Western Tanzania's planned new power transmission lines linking north and south, all 3 projects within 10km of proposed route.
Explored: in 1950's by Tanganyika Geological Survey (TGS) and the Colonial Development Corporation (CDC) establishing resource of 2.5 Mt of coal.
Small Scale Mining: Local industrial demand for cement, paper and textile production. 10,000 tonnes were mined from Namwele to supply this demand but the current demand is for 15,000 tonnes/month, which the owner was unable to meet and therefore production ceased.
Drilling phase 1: Jul. - Oct. 2011 covered strike length of approx. 6km, leaving deposit open to the north for a potential further 3.5 km, and down dip. Total of 22 holes, approx 2,600m drilled.
April 2012: Results: maiden inferred JORC-compliant resource of 39 million tonnes (39Mt) of thermal coal @ 17 MJ/kg ('power station' coal) (float density - 2.0 and Yield - 26%).
Drilling phase 2: Q2-4 2012 Layne Drilling International completing drill programme recommended by consultants Wardell-Armstong International ("WAI").
Q2-4 2012: Sound Mining Solutions Ltd. ("SMS") of South Africa retained to upgrade the current maiden resource to the measured and indicated category continuing the work initiated by Wardell-Armstrong International ("WAI"). Results confirm additional thermal quality coal mineralisation, thickening of coal measures in northern part of basin reporting thicknesses of over 70m and cumulative coal thicknesses of 19.04m Intersections indicate improved coal grades and confidence within the Phase 1 drilling data.
• The Mkomolo project is potentially suited for rapid development of low cost, large tonnage, open pit mine.
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