| Thu 18 Oct 2007, 11:11 | | GVM - GVM Metals Acquires Significant Historical D |
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GVM
GVGVM
GVM - GVM Metals Acquires Significant Historical Drilling Data On Baobab
GVM Metals Limited
(previously, "Golden Valley Mines Limited")
(Incorporated and registered in Australia)
(Registration number ACN 008 905 388)
Share code on the JSE Limited: GVM & ISIN: AU000000GVM1
Share code on the Australian Stock Exchange Limited: GVM & ISIN:
AU000000GVM1
("GVM" or `the Company")
GVM ACQUIRES SIGNIFICANT HISTORICAL DRILLING DATA ON BAOBAB
"GVM Metals Limited ("GVM" or "The Company") is pleased to announce that it
has successfully completed negotiations with Exxaro Resources Limited
("Exxaro") to acquire the historical database and geological modeling
information generated by Exxaro (then Iscor) from their exploration
activities in the area during the 1970 and 80`s. "
The database was generated from some 1200 boreholes of which:
- 940 have detailed lithographical descriptions (detailed descriptions
of the individual rock types encountered in the core of the borehole);
- 980 have sample information, (sampling of individual coal types
according to a specific group of coal types); and
- 960 have proximate analyses, (the chemical analysis of coal as per the
percentages of ash content, moisture content, volatile matter content,
specific heat value and total sulphur content).
The cost of acquiring the data was ZAR$20 million (A$3.3 million) which has
been paid and all data received.
Deputy Managing Director Nonkqubela Mazwai said:
"The database generated by Exxaro is very impressive. It gives us the
possibility of bringing the Fripp and Tanga farms (two of the sixteen
properties comprising the Baobab project) into production 18 months earlier
than we previously thought. Subject to permitting from the Department of
Minerals and Energy, it is a real possibility that we could be mining in
2009. The coal seam at Fripp and Tanga is 30 meters thick with favourable
strike length, recoveries and qualities. We expect to announce an initial
resource estimate by calendar year end. "
HOLFONTEIN ACQUISITION
In addition, GVM is pleased to announce that it has finalised agreement to
acquire a 100% interest in various portions of Wildebeesfontein, which is
situated adjacent to Baobab. The acquisition is subject to various
conditions precedent, principally regulatory consents. The area of the new
properties is 552 hectares and enlarges GVM`s current holdings by a third.
It is believed the acquisition will significantly enlarge the seam 5 soft
coking coal resources outlined in an earlier Competent Persons Report
(CPR). Drilling to define the new resource will be completed before year-
end and the Company believes a CPR upgrading the total resource to the
`measured` category will be finalised shortly after drilling is finished.
Under the terms of the Agreement, GVM has paid a deposit of US$100,000 and
will complete a drilling program on the properties to define a SAMREC and
JORC compliant Indicated Resource. That part of the coal seam, having a
seam thickness of greater than 1.4 meters and a Calorific Value greater
than 23 MJ/Kg, will constitute the resource for which GVM will pay US$0.50
per tonne so defined.
Managing Director Simon Farrell commented:
"The acquisition of Wildebeesfontein gives Holfontein a good increase in
scale and with the dramatic increase in export coal prices, the economics
of the 5 seam which is a semi-soft coking coal have improved significantly.
Holfontein is on track with the Bankable Feasibility Study underway along
with the Environmental Impact Study and social and labour planning which
will allow us to start the process of converting our prospecting rights to
a Mining Right with the Department of Minerals and Energy in South Africa.
Authorised by
SIMON J FARRELL
Managing Director
For more information contact:
Simon Farrell, Managing Director ..GVM +61 417 985 383
Or +61 8 9322 6776
Nonkqubela Mazwai, Deputy Managing Director,
GVM+27 83 690 9079
Petronella Gorrie The Event Shop +27 82 827 8815
Leesa Peters / Jos Simson Conduit PR
+44(0) 20 7429 6606
Olly Cairns / Romil Patel Blue Oar Securities Plc
+44(0) 20 7448 4400
www.gvm.com.au
18 October 2007
Sponsor
South African Sponsor to GVM
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Date: 18/10/2007 11:11:47 Produced by the JSE SENS Department.
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