Exploration Report and Mining Plan

RNS Number : 5568W

Equatorial Mining & Exploration PLC

20 August 2015

 



Equatorial Mining & Exploration Plc

Exploration Report and Mining Plan

On 1^st June 2015 the Directors of Equatorial Mining & Exploration Plc ("EME" or the "Company") commissioned Tanylag Limited to commence exploration involving geological, geophysical, core drilling of six holes, for the evaluation of the coal resources in license area EL 7729, Afuze area of Edo State, Nigeria. The purpose of this report was to aid the Directors in the preparation of an open pit mine development plan.  The report is not a JORC report.

The results exceed the Directors' initial expectations with a reported estimated resource over the 24km² licence area of approximately 39 million tons of high grade thermal coal. 

In total EME has coal exploration licences covering 600km² in central Nigeria.

The evaluation was carried out by the Company's long term exploration contractor, Tanylag Ltd, led by geologist: Prof Okunlola "Benga" Olubenga PhD, Fellow Geological Society of London, Member Geological Society of South Africa and President of the Nigerian Mining and Geosciences Society. 

In his report, Prof Benga provided his summary conclusions as follows:

"The reserve estimation in the drilled area (1.2km X 0.75km) around the existing workings is 1,243,125 tons. For the explored area involving both geophysics and geology (3.075km X 1.958km) estimated resource is 9,750,000 tons. Assuming the continuity of the seam in the Mamu Formation horizon (lower coal measures) of the whole licence area and as confirmed from geological, geophysical and drilling programme of the licence area (9.5km X 2.5km, the resource estimate is 38,593,750 tons."

As a result of the report the Company has completed of an open pit mining plan and will shortly finalise a tender process with up to five independent contract mining companies.

Central to the mining plan is a target two metre coal seam beneath a sandy overburden ranging from one to ten metres. In order to develop the mine, the Company will need to raise additional capital from investors.

Alyn Evans, Group Managing Director, commented:

"Based on my 45 years of coal mining experience, I believe that we can commence open cast coal mining in the short term from the information we now have.  Our deliberations with the five prospective contract mining companies are being advanced."

Nicholas Nelson, Executive Chairman, commented:

"The Directors plan to move towards coal production shortly, our customers being West African industrial companies."

20^th August 2015

Enquiries:

Equatorial Mining & Exploration Plc: Nicholas Nelson, Executive Chairman	[e-mail]
ISDX Adviser and Broker Alexander David Securities James Dewhurst David Scott	[phone]
Financial PR and Investor Relations: Walbrook PR Ltd. Guy McDougall Nick Rome	[phone]

The Directors take responsibility for this announcement.

 

END

 

 

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