|Three Core Projects within the Rukwa Coalfields
The 3 coal deposits of Mkomolo, Namwele and Muze all lie within the Rukwa Coalfield. All 3 projects are controlled by Edenville Energy and sit in a cluster; Namwele and Mkomolo are adjacent and Muze lies just 12km to the east.
Edenville Energy has a 90% interest in these deposits through Primary Mining Licences ("PML") and the remaining 10% is held by the local partner on the project. EDL also controls the Prospecting Licences surrounding the PML, that have been obtained from the Tanzanian Ministry of Mines and Energy.
All 3 projects are located close to existing infrastructure. Mkomolo and Namwele lie 25kms by road to the North-east of the major regional centre of Sumbawanga. Sumbawanga has a population of 30,000 and has banks, hotels, diesel, supermarket and regional government infrastructure. Muze is located close to the small village of the same name but does not have any services available.
There are several water sources nearby; Namwele and Mkomolo have a series of streams and small rivers close by, some of which flow all year round, and Muze is located close to the shore of Lake Rukwa which is a major source of water for the district. These supplies of water have the potential to wash the coal post extraction, adding value to the final product and supporting its commercial viability for power generation.
The Rukwa regions are currently dependent on electricity imported across the border from Zambia. Edenville's Rukwa Coalfields projects have strong political support and are located in the Mtwara Development Corridor; this is a Government backed development zone and an area of significant energy-related activity.
Edenville's projects have the potential for low cost setup to generate near-term positive cash flow. The combination of shallow outcropping coals and an established local/regional industrial demand to facilitate cement, paper and textile production gives flexibility regarding size of initial operations and end user. The Rukwa Coalfields are strategically located with regards to electrification plan for South Western Tanzania's scheduled new power transmission lines linking the north and south of the country. All 3 projects lie within 10km the east of the proposed route for the powerline and are some 300 km from the next nearest source of coal at Kwira.
Should the proposed powerline be built, the clustered nature of Edenville's 3 projects could potentially allow flexibility in production to satisfy both industrial and power production requirements.
The Environmental Impact Assessment (EIA) commenced in August 2012 with the registration of the project with the National Environment Management Council ("NEMC"). It is anticipated this study will take approximately 6 months complete.
The Scoping Study commenced in August 2012 in tandem with the EIA; data from the upgraded Resource Report will feed into this Study which has an estimated completion time of Q2, 2013.
Baseline Hydrogeological Assessment Report
"TANSHEQ Limited (2012), "Baseline Hydrogeological Assessment for the Proposed Namwele Coal Mining Project in Rukwa Region Edenvile Energy Plc". Complete August 2012.
Consultants and Laboratories
Sound Mining Solutions Ltd. ("SMS") of South Africa have been retained to upgrade the resource to the measured and indicated category continuing the work initiated by global coal industry specialist consultants Wardell-Armstrong International ("WAI").
Tansheq Consultants, a Dar es Salaam based consulting group, have been retained by the Company to undertake a Scoping Study and an Environmental Impact Assessment ("EIA") on the Rukwa Coalfield Project.
Edenville Energy uses two internationally accredited laboratories for analysis of its coal samples; Inspectorate M and L (Pty) Ltd, South Africa, and Alfred H Knight Laboratory, Ayrshire, United Kingdom.