Information  X 
Enter a valid email address

Edenville encouraged by sampling results

By BFN News | 04:02 PM | Tuesday 15 November, 2016


Edenville Energy - which is developing an integrated coal to power project in western Tanzania - is encouraged by the first set of results it has received from SGS Laboratories on the bulk sampling programme carried out on the Mkomolo and Namwele. Key points: - Results from seam MK2 confirm coal as suitable for the provision of power plant feed - Only moderate, or in certain cases, no washing, will be required for Rukwa coal to be used in the combustion process in a coal fired thermal power plant - Where washing is required, high yields of approximately 75% are confirmed as achievable to produce a power plant feed product - The results from the sampling and wash tests both support and validate the recently constructed financial model and resource technical assessment - Applying a greater level of washing to this seam, produces a product above 20MJ/kg which offers scope for supply into the local and regional markets; and - Further test results on the other Mkomolo near surface coal seam are expected shortly. Edenville said the results from seam MK2 confirm the coal is well suited for use in thermal power generation and this data will form a crucial part of the process going forward to design and construct a coal fired power plant at the Rukwa project site. Both raw and washed values indicate the coal is suitable for power generation purposes and any washing of the coal will primarily be to optimise and maximise the technical and economic parameters. It days: "Moderate treatment of the coal will produce a fuel that is optimum for the combustion process and maximise the tonnage available. "This coal is accessible at surface which will result in both low mining costs and the deposit being able to be opened up in a short timeframe. "Additionally, the results are consistent with our recently completed resource technical assessment as announced on 1 November 2016, to determine the available coal resources for an expanded project greater than 120MW. Subsequent to the wash results, the Company can now confirm the suitability of this coal to provide a sustained and reliable fuel supply to a power plant project. Combined with the recent analysis carried out on available coal resources, we can now provide a high degree of validation around the coal deposit at Rukwa." Chief executive Rufus Short said: "We are extremely pleased and encouraged with the test results to date. The results show and confirm suitable coal quality and very high yields will be available for the Rukwa Coal to Power Project and give us great confidence in the economic viability of our coal deposit to produce power for Tanzania. "Importantly, the results indicate we can maximise the value of the insitu coal and there will only be moderate treatment costs incurred to prepare the coal for use in the power generation process. This is likely to have a positive flow through impact on all areas of the mining operation, enabling the project to maximise its economic potential and minimise both capital and operating costs for the mine. "Edenville is primarily a mining and resources focused group and we are working alongside organisations whose speciality is power development and generation to take this opportunity towards its full potential. We look forward to further updating our shareholders in the near future, particularly with regard to the further test results and the potential suitability of our coal for near term sale to the local market." At 4:02pm: (LON:EDL) Edenville Energy PLC share price was +0.06p at 0.6p Story provided by StockMarketWire.com

a d v e r t i s e m e n t