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Edenville delighted with Mkomolo test results

By BFN News | 08:35 AM | Tuesday 16 December, 2014


Edenville Energy is delighted by results returned from the near-surface seam at Mkomolo - part of the Rukwa coal project in Tanzania - with coal quality surpassing internal expectations. The company says raw coal energy values were approximately 100% higher than previously modelled and is is likely to have a material impact on project economics for both the coal mine and power station components of the business model. Coal quality at Mkomolo surpassed internal expectations, returning an average raw energy value of 15.11MJ/kg. A simple wash process (to a relative density of 1.7) increases the energy value to 24.4 MJ/kg, with a yield of approximately 45%. Sulphur washes down to an average of 3% and ash content to 19.37%, levels which sit within a manageable range for use in a coal fired Power Plant. Chief executive Rufus Short said: "We are delighted by the results returned from our Mkomolo test pits. The confirmation of consistent high quality coal very close to surface at both Namwele and Mkomolo is outstanding news and potentially transformative for the Company and its shareholders. "The improved coal quality will reduce the projected production costs for coal and, as a consequence, improve the economic and technical parameters of our coal to power project by reducing the cost of fuel input. It is worth emphasising that Edenville's Rukwa Coal Project is well advanced in terms of the costly, time-consuming technical elements needed to take a deposit into production. "We have a JORC-compliant, Measured and Indicated resource of 170 million tonnes of total coal in-situ. Under the JORC code, only Resources classified as Measured or Indicated can be converted into Bankable Mine Reserves, an important consideration influencing the time and cost of project development. Both the Mkomolo and Namwele deposits also have an EIA Certificate in place, which derisks the project significantly and brings Edenville closer to the point where a Mining Licence can be issued." "Our very encouraging test pit results will feed into the Power Plant Feasibility Study and the assessment of production options, and we look forward to updating shareholders with news of our progress in due course." At 8:35am: (LON:EDL) Edenville Energy PLC share price was +0.02p at 0.08p Story provided by StockMarketWire.com

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