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Potential to increase size of Rukwa, says Edenville

By BFN News | 09:07 AM | Tuesday 01 November, 2016


Edenville Energy says a technical assessment carried out by Sound Mining Solution (Pty) shows there is the potential to significantly increase the ultimate size of the Rukwa coal to power project from 120MW to 300MW. The company, in conjunction with SMS, has looked at several different scenarios with the focus on the provision of fuel of suitable energy value; the targeting of near surface coal to keep mining costs low and maximising the yield from any washing of the raw coal. The results indicate that the Mkomolo and Namwele deposits can provide a mineable resource of approximately 90 million tonnes based on an overall strip ratio of 4:1. This resource could provide enough fuel to supply a 300MW power plant for a period of approximately 30 years. The company is looking at suitable mining options to maximise the recoverable tonnage from the deposit with the aim to keep coal extraction and processing costs below US$30 per tonne. An update says: "Washing the coal to a moderate degree could provide a product with an energy value of approximately 14.5MJ/kg, the raw coal yielding a high recovery of approximately 74%. Recent independent feasibility work on the project by a major EPC (Engineering, Procurement and Construction) group has confirmed this grade of fuel product as being suitable for power generation utilising recognised Circulating Fluidized Bed (CFB) technology. "Whilst the company continues to focus on completing the Phase One feasibility requirements for a 120MW project we can now move forward with the knowledge that the project has sufficient minable coal resources to support a potential phased expansion for an increase in size of the power plant up to 300MW. "As mining progresses along the strike of the deposit there is also the possibility to selectively target coal through highwall or auger methods to extract tonnages without the need to mine overburden. The company will look at the potential of this in more detail as part of an overall life of mine plan." Edenville says these numbers only take into account the Mkomolo and Namwele deposits. Limited drilling already completed at Muze results in approximately 5 million tonnes of coal at a similar 4:1 strip ratio and high yield of 75% when washed at a similar coal specification. The Muze deposit has a historical resource of some 60 million tonnes and provides further potential for options on expanding fuel supply in the future. In parallel with the development of an integrated coal to power project, the Company continues to assess the potential for small scale mining to supply coal to the local market. Additionally, preliminary results are being received from SGS Laboratories who are analysing the bulk samples extracted in September. Full results are expected to be received in the coming weeks and will be announced when received. Chief executive Rufus Short said: "These latest calculations confirm the availability of minable resources to expand the Rukwa Coal to Power Project to a possible 300MW power project. We are both excited about the potential and also reassured that the existing project has access to ample near surface economic fuel supplies. "At this point we are concentrating on completing the phase one feasibility work for a 120MW project and will now build in expansion possibilities for a larger project as appropriate. The coal resources at Rukwa underpin significant potential for Tanzania to produce much needed power and we look forward to further working alongside the government of Tanzania to achieve this goal." At 9:07am: (LON:EDL) Edenville Energy PLC share price was +0.06p at 0.65p Story provided by StockMarketWire.com

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