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MMH
MMH
MMH - Miranda Coal Division Update - Extension And Consolidation Of
Coal Resources In KZN
MIRANDA MINERAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1998/001940/06)
Share code: MMH & ISIN: ZAE000074019
("MMH" or "the company" or "the group)
Miranda Coal Division update - Extension and consolidation of coal
resources in KZN
1. Uithoek coal project
The board of Miranda is pleased to announce that Miranda Minerals (Pty) Ltd
("MMPL") has entered into an agreement with the CLM Simpson and JV Zwane
Joint Venture ("Simpson") for the right to explore and mine coal on 3 253
hectares, covering various adjoining farms, in the Glencoe district in the
Klipriver coalfields of KZN ("Uithoek"). Simpson is the holder of a coal
prospecting right over Uithoek and the agreement allows for the transfer of
the prospecting permit to Miranda, subject to regulatory approval. Miranda
will pay Simpson a 7.5% share of the project`s revenue.
Salient features of the Uithoek coal project are:
* It is bordered by the Northfield Colliery to the northwest, the Burnside
Colliery to the west, and Indumeni Colliery to the southeast.
* All three collieries have historically produced high quality coking coal,
mined by Amcoal.
* The Uithoek deposit has similar geology to these three collieries.
* Drilling has intersected four main seams: the Top, Intermediate, Bottom
and Lower seams, the seams ranging in width from 0.8m to 1.5m.
* The total resource is estimated by management at some 22 million tons, of
which 600 000 tons are currently considered open-castable.
* The Intermediate and Bottom seams can be exploited through horizontal
shafts into the side of the hill, which makes mining considerably less
expensive than requiring vertical shafts.
* Initial investigations have indicated the project should sustain a
production rate of 40 000t per month.
* Uithoek is situated approximately 100km from Eskom`s Majuba power
station.
Miranda has already initiated the following actions in terms of its plans
to develop the deposit:
* appointed a technical expert to complete a pre-feasibility study;
* commenced with the conversion of the prospecting license to a mining
license; and
* started negotiations with mining contractors for bulk sampling and,
finally, full-scale mining.
2. Applewood coal project
As part of Miranda`s objective to extend and consolidate its KZN coal
resources an application has been submitted to the Department of Minerals
and Energy (DME) for a prospecting permit. The application has been
accepted by the DME.
The coal deposit at Applewood, which was previously drilled by Eskom, is
estimated at a similar size to that of Uithoek, namely around 22 million
tons. The prospect consist of the two farms adjourning the Uithoek deposit
referred to above and covers an area of approximately 6 600 hectares.
3. Miranda`s KZN coal resources
Following the above agreements, and including the group`s existing
Sesikhona Kliprand project, Miranda now have access to coal resources in
KZN estimated at around 64 million tons covering an area of some 12 000
hectares.
* Coal qualities on the three projects range from anthracite to coking and
power station coal.
* The deposits, of which about 35% is open-castable, are all situated
within a 100km radius from Eskom`s Majuba power station and close to rail
infrastructure.
* All projects have broad-based BEE in place at the project level through
the involvement of various local community-based empowerment partners/
vehicles.
19 April 2007
Centurion
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 19/04/2007 15:52:33 Produced by the JSE SENS Department.
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