Operational update

RNS Number : 8404C

Edenville Energy PLC

22 April 2013

 

22 April 2013

Edenville Energy Plc

 ("Edenville" or the "Company")

Operational Update

Edenville Energy plc (AIM:EDL), the coal focused African energy exploration and development company; today announces an operational update from its operations at the Rukwa Coalfield in South West Tanzania.

Highlights:

·         Commencement of Scoping Study at the Namwele coal deposit

·         Revised Environmental Impact Assessment ("EIA") submitted to Tanzania's National Environment Management Council ("NEMC")

·         £106,895 raised under its Equity Financing Facility ("EFF") for working capital purposes

Sound Mining Solutions ("SMS") of South Africa, have been contracted to undertake a first-pass scoping study at Namwele, located 4km to the south of Mkomolo, with the purpose of exploring the viability of a small open pit mining operation. The study, due for completion in Q3 of this year, will assess the potential of producing up to 25,000 tonnes of saleable product per month for transport to local and regional customers. SMS is very familiar with Edenville's operations in Tanzania having generated the upgraded resource statement published last month. Following the completion of the scoping study, the Company will review the options available to develop a Phase I mining operation to supply coal into the local market.

Further to the announcement made in January 2013 regards the Environmental Impact Assessment ('EIA'), Tanzania's National Environment Management Council ("NEMC") has completed its site visit and has sent a series of recommendations and questions to the Company. The Company has addressed all of the points raised by the NEMC and the EIA has been returned for further revision, with completion of the process expected during Q3 of this year.

The data garnered by the Company on completion of the scoping study and the EIA will feed into the Feasibility Study submission, which will in turn allow the conversion of Prospecting Licenses to Mining Licenses.

Sally Schofield, Edenville Chairman, commented: "The commencement of the scoping study is a step closer to our stated ambition of generating near-term revenues and becoming an established coal producer. We are pleased to be working alongside SMS who are very familiar with the project following the work done on the upgraded resource. We are also working closely with the NEMC to further the EIA to completion and alongside the scoping study it will form a key function in progressing the project at Namwele.

"In addition to the work programme at Namwele, the Company continues to pursue its longer term goal of establishing a partnership to provide coal to a mine mouth power station and will keep the market updated with any developments."

Contact:

Edenville Energy plc
Sally Schofield - Chairman Rakesh Patel - Finance Director www.edenville-energy.com	[phone]
finnCap
Charlotte Stranner/Geoff Nash	[phone]
Newgate Threadneedle
Graham Herring/Richard Gotla	[phone]

 

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