Bulk Sampling Results for Namwele

RNS Number : 2882S

Edenville Energy PLC

20 December 2016

 

20 December 2016

EDENVILLE ENERGY PLC

("Edenville" or the "Company")

Bulk Sampling Results for Namwele

Edenville Energy plc (AIM:EDL), the Company developing an integrated coal to power project in western Tanzania, is pleased to announce the third, and final, set of results the Company has received from SGS Laboratories in relation to the recent bulk sampling programme carried out on the Mkomolo and Namwele deposits and detailed in the Company's announcement on 27 September 2016.

These results cover seam NM1 and follow the results of the sampling of seam MK2 announced on 15 November 2016 and MK1 on 5 December 2016.

Key Points:

·    Results from seam NM1 for the Namwele deposit confirm coal as suitable for the provision of power plant feed;

·    It is considered no washing will be needed for the Namwele seam to be used as power plant feed;

·    Namwele NM1 seam results have exceeded expectations with approximately 60% of the coal averaging an energy value of 20MJ/kg;

·    The results from the sampling and wash tests of NM1 further support and validate the results from the Mkomolo MK1 and MK2 seams and the recently constructed financial model and Resource Technical Assessment; and

·    The Company is working with potential local customers assessing the options to establish mining operations in 2017.

Rufus Short, CEO of Edenville, commented: "The encouraging results from NM1 complete the wash test analysis on the bulk samples taken in September of this year. Namwele averaged above 15MJ/kg with 60% averaging 20MJ/kg and we consider we will not need to wash this coal in order for it to be used in the planned power plant.  This along with the previous test work from Mkomolo has shown our coal is ideal for power plant use with mining and treatment costs being moderate to low.  The work done at Mkomolo and Namwele is critical to giving confirmation around the characteristics of the fuel supply for the power plant and gives us a high degree of confidence in the quality and resulting economic viability of the project.  

"The coal quality has exceeded our expectations we are subsequently looking at the possibility of including this coal in planned commercial sales and we are in advanced discussions with customers to open up production in 2017.

"With the completion of the bulk sampling programme, we are now in a position to advance talks with several potential buyers of our coal and plan an initial mining operation.  Several aspects of the mining project including a stockpile area, access for road trucks, a detailed schedule and plan for 2017 and enlargement of the camp area at site are currently being worked on.  I very much hope to be able to update shareholders soon on all of these areas."

Technical Details

The results from seam NM1 confirm that the coal is well suited for use in thermal power generation.  As previously stated this data will form a crucial part of the process going forward to design and construct a coal fired power plant at the Rukwa project site.

The bulk sample produced results which indicate no washing would be needed to produce a coal suitable for use in the power generation process.  The raw coal averaged 15.2MJ/kg and would therefore fit the existing parameters for thermal power generation.  Significantly, high energy values were seen throughout the coal with over 78% of the bulk sample averaging coal of 18MJ/kg whilst approximately 60% averaged 20MJ/kg.    

Sample NM1 which lies in the southern end of the Namwele deposit produced raw unwashed values as shown in Table 1.

Table 1 Raw Coal

Inherent Moisture	Ash	Volatile Matter	Fixed Carbon	Calorific Value	Total Sulphur
%	%	%	%	MJ/kg	%
7.0	40.1	25.2	27.6	15.2	3.8

Applying a moderate or partial wash to the raw coal based on a density of 1.7 the following product was obtained as shown in Table 2.  The yield from this wash was high at approximately 60%.

Table 2 Washed Coal

Inherent Moisture	Ash	Volatile Matter	Fixed Carbon	Calorific Value	Total Sulphur
%	%	%	%	MJ/kg	%
6.8	25.5	31.3	36.5	20.6	3.6

The coal is considered suitable for the combustion process and typical of many coals used in power generation worldwide. 

All values have been calculated on an air dried basis.

Subsequent to these latest results, the Company can now confirm the suitability of the both the Mkomolo and Namwele coals to provide a sustained and reliable fuel supply to a power plant project.  The results provide a high degree of validation around the coal deposit quality and the subsequent fuel supply characteristics at Rukwa.  This is critical where a power plant will rely on a single source of fuel as is the case in Tanzanian coal fired projects and the bulk sample work has been viewed as an essential step in moving the project forward to bankable status.  Moving forward, the information gathered will directly contribute to the power plant design process.  

The higher energy value coal, both in Mkomolo and Namwele, also has the potential to be sold into the market for local industrial usage and we are working with potential customers to determine suitable products.    

Qualified Person Review

Mark J. Pryor, Pr.Sc.Nat. has reviewed and approved the technical information contained within this announcement in his capacity as a Qualified Person, as defined by the AIM Rules and National Instrument 43-101 Standards of Disclosure for Mineral Projects.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please contact:

Edenville Energy Plc Jeff Malaihollo - Chairman Rufus Short - CEO	[phone]
Northland Capital Partners Limited (Nominated Adviser) Gerry Beaney David Hignell	[phone]
Optiva Securities Limited (Broker) Jeremy King Graeme Dickson	[phone]
IFC Advisory (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong Miles Nolan	[phone]

 

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