Namwele Test Pit Results

RNS Number : 7699X

Edenville Energy PLC

24 November 2014

 

Edenville Energy plc

("Edenville" or the "Company")

Namwele Test Pit Results

Edenville Energy is pleased to announce positive results from the first set of detailed coal sampling and test work at the Namwele deposit, part of the Rukwa Coal Project, near Sumbawanga in Western Tanzania.

During the past three months, test pits were dug to a depth of approximately 3 metres at the Namwele, Mkomolo and Muze deposits, collectively known as the Rukwa Coal Project, and the samples analysed for quality. The test results from Namwele are presented below, with further sampling analysis from Mkomolo and Muze expected to be announced by the end of 2014.

Four test pits were excavated at Namwele to expose the near surface coal seam, better defining the coal that could be extracted in the initial stage of mining operations. For near surface coal seams, test pitting is the most common, efficient and effective way of gathering data, not only quicker and less costly than a drill programme but also allowing a specific coal seam to be exposed, examined and sampled more thoroughly. The excavation and sampling work was carried out by Edenville personnel with full quality control processes and procedures in place.

This near-surface coal seam has an average thickness of 2.0m and was sampled to a maximum depth from surface of 4m, with an average depth from surface of 2.56m. The four test pits were distributed along a total strike length of approximately 870 metres through the Namwele deposit.

The samples from these four test pits at Namwele have been analysed at Alfred H Knight's laboratory in Scotland, UK. Alfred H Knight ("AHK") is a highly respected analytical laboratory group that specialises in metals and minerals testing, with particular expertise in coal. It is ISO 9001:2008 accredited and operates in 35 countries carrying out a wide range of test work on coal and other fuel sources.

The results shown in Table 1 below show the combined raw coal analysis and the washed results at a Relative Density ('RD') of 1.7 for the Namwele test pits.

Table 1 - Raw Coal Analysis (Air Dried Basis)

Sample	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	GCV (Mj/Kg)
5523	6.80	39.00	22.80	2.36	15.40
5522	5.80	50.50	20.00	7.05	11.95
5521	8.30	37.80	23.60	7.54	15.22
5520	7.70	39.60	22.80	6.84	15.00
Average	7.15	41.73	22.30	5.95	14.39

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

Sample	Mass	Yield	R.D.	Inherent Moisture (%)	Ash (%)	Volatile Matter (%)	Sulphur (%)	GCV (Mj/Kg)
5523	8027.4	54.78	F1.70	4.80	27.78	29.02	1.70	21.18
5522	5049.3	35.89	F1.70	4.09	24.17	29.93	3.07	22.68
5521	7826.9	58.37	F1.70	5.79	18.90	33.39	4.15	23.32
5520	7602.9	54.29	F1.70	7.31	18.65	31.95	3.79	23.43
Average	7126.625	50.83	F1.70	5.62	22.27	31.16	3.17	22.63

Of specific note is the yield of over 50% from the latest wash tests at a relative density of 1.7, which produced an average 22.6MJ/kg product. The original wash tests on the Namwele resource, cited in the Geological Modelling and Resource Estimation for the Rukwa Coal Project dated March 2013 returned a washed yield of 11.6%, albeit on a global basis over the entire coal measures.

The recent test pit samples averaged a raw energy value of 14.39MJ/kg compared to a previous global value of 6.8MJ/kg in the original drill samples at Namwele, again described in the above report.

Sulphur and ash varied over the test pits with sulphur washing out to 1.7% in some areas whilst remaining above 3% in others. Washed ash averaged 22.27% being reduced to as little as 18.6% in some samples. A degree of selective mining and blending would be envisaged to give a consistent coal product.

Putting these test pit results in context, the improved coal quality applies to the uppermost, near surface seam, whilst the original resource values apply to the entire coal measures both laterally and vertically. We are, however, very encouraged by these positive results in the top seam of three at Namwele.

The results indicate high quality, near surface coal is available in the Namwele area. The utilisation of selective mining techniques to extract this coal may bring improvements in the quality of available feedstock for a Thermal Power Plant and also provides the basis for the detailed investigation into the potential to sell higher quality coal directly into the local and regional markets.

Rufus Short, CEO of Edenville Energy commented: "We are very encouraged by the positive results returned from our Namwele test pits. They show the Namwele deposit has the possibility to provide significantly higher quality coal and a higher washed yield than previously modelled. This could improve the technical and economic parameters for the coal-to-power development and also forms the basis for a detailed investigation into potential coal sales to the regional market. The testwork on the Mkomolo and Muze deposits is well underway and we will update our shareholders as the results become available".

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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