Coal Exploration Update

RNS Number : 1307Z

Edenville Energy PLC

10 January 2011

 

10 January 2011

EDENVILLE ENERGY PLC ("Edenville" or the "Company")

Coal Exploration Update, Tanzania

Edenville Energy plc (AIM:EDL), the coal focused African solid energy exploration and development company, today announces the results from samples collected on the Rukwa Coalfields project in Southern Tanzania. The Rukwa Coalfields have previously been subject to small-scale coal mining operations, with the primary areas located at Namwele, Mkomolo and Muze.

Highlights 

               Ground surface investigations at Rukwa:            

·          Grab samples continue to demonstrate thermal quality coal

·          Additional coal outcrop identified 3km west of known deposits

·          Geological mapping and pitting reveal extensive strike at Mkomolo with coal observed over at least 2.5km

               Revised drilling programme planned for Q2 2011

·          Current percussion drilling only able to penetrate the top of coal seams

·          Replacement drill rigs with greater depth and sample collection capability planned for resources delineation

·          Drill targets will test both historic and newly identified coal seams during Q2 and Q3 2011

A total of 32 grab samples were collected from coal outcrops at the Rukwa Coalfield project during regional scale geological mapping in the area covered by the Namwele and Mkomolo deposits. The samples were analysed at the accredited Inspectorate Laboratory, Middleburg, South Africa. In addition to the known deposits and the exploration of potential strike extensions, two further areas of coal outcrops were identified and sampled approximately 3km to the west of the known occurrences. A summary of the results is tabled below;

Location	Number of samples	Moisture	Ash	Volatile	Fixed Carbon	Sulphur	Gross Caloric Value		Geological Description
		%	%	%	%	%	MJ/kg	kcal/kg
Mkomolo	8	9.99	24.24	28.26	37.51	2.10	19.28	4603	Coal
	2	8.60	52.27	19.10	20.03	0.44	8.89	2123	Mudstone parting
	1	4.45	74.20	10.75	10.60	0.16	2.57	613	Mudstone
Namwele	11	7.26	26.76	27.68	38.29	3.98	20.00	4776	Coal
	3	6.63	52.92	19.77	20.68	0.49	9.79	2337	Mudstone parting
	2	2.10	87.15	8.95	1.80	0.13	1.00	239	Mudstone
Outcrop (3.5km west of Namwele)	1	11.10	17.05	31.50	40.35	2.57	21.62	5163	Coal
	3	3.00	83.05	10.17	3.78	0.44	1.00	239	Mudstone
Outcrop (3km NW of Namwele)	1	9.60	23.95	27.30	39.15	2.33	19.81	4731	Coal

Following these positive results from the outcrop sampling the Board of Edenville have taken the decision to replace the current shallow, percussion drill programme with a more extensive deeper drill programme using diamond and reverse circulation drilling. Such a programme will produce geological information and coal quality analysis data that can be used in a mineral resource estimation. The current shallow drilling is technically restricted to shallow depths, only penetrating the upper areas of the coal seams and cannot adequately test the down dip and lateral extensions  of these deposits.

The Company continues to collected data from its programme of geological mapping, pitting and trenching to expose sub-cropping coal and the collection of representative samples. The work is focused along the strike of the Mkomolo deposit with additional detailed mapping of the Namwele pit currently in progress.

Simon Rollason, Chairman of Edenville, commented:-

"The current geological surface programme confirms the thermal quality of the surface coal at Namwele and Mkomolo in addition to identifying additional coal outcrop west of Namwele.

Following the examination of these surface results and the results from the shallow percussion drillholes, the Board believe it is appropriate to undertake a programme of deeper drilling, whereby results can be developed into a future resource estimate. In addition to Namwele, the Mkomolo deposit is a primary target for Edenville due to coal already being traced over a 2.5km strike length. Edenville will continue to further outline the extent of the coal mineralisation at Namwele and Mkomolo. Our objective is to generate maiden resource estimate at Namwele for an open pit coal mine by the end of 2011. Edenville's strategy is to rapidly add value to our portfolio of assets through exploration and development. I look forward to announcing further results in the future, as work continues on the Edenville coal portfolio."

Contact:

Edenville Energy plc
Simon Rollason - Chairman Rakesh Patel - Finance Director www.edenville-energy.com	[phone]
ZAI Corporate Finance Ltd
Ray Zimmerman/ Marc Cramsie	[phone]
Threadneedle Communications
Laurence Read/Beth Harris	[phone]

 

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