Correction: Mkomolo and Muze Test Pit Results

RNS Number : 7606C

Edenville Energy PLC

21 January 2015

 



21 January 2015

Edenville Energy plc

("Edenville" or the "Company")

Correction: Mkomolo and Muze Test Pit Results

Correction - This announcement replaces the one released at 07:00 this morning. This announcement correctly states that, in Rufus Short's quote, "The Power Plant Feasibility Study is on course for completion in Q1 2015…" rather than in Q1 2014.

Please see the full amended release below.

21 January 2015

Edenville Energy plc

("Edenville" or the "Company")

Mkomolo and Muze Test Pit Results

Edenville Energy is pleased to announce the final two sets of coal quality results from the near-surface seams at Mkomolo and Muze, part of the Rukwa Coal Project, near Sumbawanga, in Western Tanzania. 

Following the results reported at Mkomolo (16 December 2014), which returned significantly better coal quality than previously attributed to the deposit, the Company is pleased to report the final tranche of results which further confirm the presence of high quality, near surface coal across the Rukwa Coal Project.

Mkomolo

Previously, sample 5528 from Mkomolo (reported December 16, 2014) was taken across a visually distinctive, near surface coal seam. A second sample (5529) was taken across the same coal horizon but also included an upper layer of weathered coal and carbonaceous mudstone previously excluded from testing.    

This second test was designed to determine the effect of bulk extraction of the entire coal horizon as opposed to extraction of a visually defined coal seam.    

The results, which include the weathered coal and carbonaceous mudstone, are very positive; the combined sample returned an energy value of 14.56MJ/kg across a 2.31m horizon, which includes the 1.1m of 17.53MJ/kg coal previously reported for sample 5528.   

These sample results illustrate that coal measures which include weathered material could contain sufficient energy value to add tonnage, without significant reduction in calorific value, to the near surface coal seams with the potential to improve project economics.

Detailed samples analysis is reported at the end of this news release.

Muze

A single sample was taken at Muze, through a coal seam with a thickness of 1.66m, exposed in a stream cutting at surface.  

The Muze coal sample gave a raw energy value of 15.26MJ/kg, 50% higher than previous estimates for the deposit as a whole.  A simple wash process, to a Relative Density of 1.7, increased the energy value to 22.13MJ/kg, with a yield of 55%. 

Mirroring the situation at Mkomolo and Namwele, the results from Muze indicate the uppermost seam is of a quality sufficient to supply coal to a coal-fired power plant, with improved project economics due to increased energy value.

The sulphur content in this sample was high, at approximately 7% raw value.  However, this was known to be a high-sulphur pocket and the sample location was selected due to its ease of access and existing outcrop.  The average sulphur level from drilling work in the 2013 Resource Report indicated average levels of sulphur below 3% and we consider this to be more representative of the Muze deposit as a whole.  

Full analysis is reported at the end of this news release.

Rufus Short, CEO of Edenville Energy commented: "This latest set of results concludes the current test work programme. We are very pleased with the results from the test pit samples at our Rukwa deposit and consider the values in all pits to both confirm commercial grade coal near to surface and to indicate significant upside potential for the deposit as a whole.  

This round of testwork confirms the near-surface coal seams have a specification which is better than that originally reported in the 2013 Resource Report.  Additionally, the higher than expected calorific values returned from the weathered coal at Mkomolo indicate increased tonnage of useable coal and an improved quality of the resource's calorific values.

The test pit results are now being reviewed alongside the assessment of the production options in the context of the Power Plant Feasibility Study being undertaken by Lahmeyer India.  The Power Plant Feasibility Study is on course for completion in Q1 2015 and we look forward to updating shareholders with news in due course.

Technical detail:

Test pits are the optimum way to sample coal that lies close to surface, allowing a specific seam to be exposed, examined and sampled.  Four test pits were excavated at Mkomolo targeting the top seam along a strike length of 2.4kms, to expose the near-surface coal.  One test pit was excavated in Muze deposit.   The excavation and sampling work was carried out by Edenville personnel with full quality control processes and procedures in place.

The remaining sample from the four test pits at Mkomolo and the one test pit at Muze have been analysed at Alfred H Knight's ('AHK') laboratory in Scotland, UK. 

Table 1 - Raw Coal Analysis (Air Dried Basis)

Mkomolo

Sample	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	Gross Calorific Value(Mj/Kg)
5528 Mkomolo From Nov 214 - Sample Width 1.09	8.00	35.00	24.30	3.87	17.53
5529 Mkomolo - Sample Width 2.31	8.30	39.70	23.00	2.69	14.56

Muze

Sample	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	Gross Calorific Value(Mj/Kg)
5530 Muze Sample Width 1.66	8.60	38.10	25.90	6.94	15.26

Table 2 - Floats Basis Float and Sink Coal Analysis (Air Dried), 'Washed Coal'

Mkomolo

Sample	Mass (g)	Yield (%)	Relative Density	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	Gross Calorific Value (Mj/Kg)
5528 Mkomolo From Nov 2014 - Sample Width 1.09	8995.7	65.80	1.7	7.21	15.52	32.66	2.84	25.33
5529 Mkomolo - Sample Width 2.31	6346.2	52.30	F1.70	4.50	18.00	32.70	2.42	24.07

Muze

Sample	Mass (g)	Yield (%)	Relative Density	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	Gross Calorific Value (Mj/Kg)
5530 Muze  - Sample Width 1.66	7576.0	55.90	F1.70	5.10	23.20	32.40	5.87	22.13

Note that the improved coal quality applies to the top near surface seam which was exposed across its width and sampled. The original quality data, reported in the SMS Resource Report (March 2013) applies to the entire coal measures sequence that comprises 'bar code coal' that can include barren shales and sandstone between the coal sequences. 

Mkomolo Block FB5, from which the samples were taken, lies at the southern end of the Mkomolo deposit and sampling was conducted over a 2.4km strike.  The entire Mkomolo deposit is over 8.5km in length.  Whilst localised variations in quality may exist over the 8.5km, previous test work that coal quality suggests the coal is reasonably consistent in the Mkomolo deposit. We therefore expect coal to the north of the test pits to demonstrate similar quality characteristics to the test pit results.    

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.

Enquiries:

Edenville Energy plc	[phone]
Sally Schofield - Chairman
Cantor Fitzgerald Europe (Nominated Adviser and Broker)	[phone]
Stewart Dickson / Jeremy Stephenson
Newgate Threadneedle (Financial PR)	[phone]
Roddy Watt / Edward Treadwell

 

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