| Tue 30 Sep 2008, 9:51 | | CZA - Coal of Africa Limited - Consolidated Resource Statement |
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CZA
CZA
CZA - Coal of Africa Limited - Consolidated Resource Statement
Coal of Africa Limited
(previously "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
Share code on the JSE Limited: CZA
ISIN AU000000CZA6
Share code on the Australian Stock Exchange Limited: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
30 September 2008
CONSOLIDATED RESOURCE STATEMENT
Following the announcement on 24 September 2008 of a resource upgrade
at its Vele Coking Coal Project in the Limpopo Province of South
Africa, Coal of Africa Limited ("CoAL" or "the Company"), the
AIM/ASX/JSE listed coal development company operating in South Africa
(ticker: CZA), provides the following Consolidated Resource Statement
reflecting the current resources across the Company`s 3 major coal
projects:
PROJECT MAKHADO VELE MOOIPLAATS TOTAL
Measured 230,067,117 177,421,481 88,200,000 495,688,604
Indicated 548,642,540 416,953,682 - 965,596,222
Inferred 250,690,215 62,159,514 25,000,000 337,849,729
Reconnaissance* 305,660,360 64,313,263 - 369,973,623
TOTAL 1,335,060,232 720,847,946 113,200,000 2,169,108,178
*As defined in SAMREC (SANS10320 ed 1) at 6.3.3.1:
"A reconnaissance coal resource is quantified as a minimum one cored
borehole with coal quality data per 400 ha (approximately 2km spacing)
for multiple seam deposit types, while for thick interbedded seam
deposit types a reconnaissance coal deposit is quantified by a minimum
one cored borehole with coal quality data per 1,600 ha (approximately
4km spacing)."
Importantly, approximately 95% of the resources are located within the
significantly higher value coking coal projects of Makhado and Vele,
where the Company`s efforts are most focused. Further, it also noted
that nearly 65% of all resources are classified within the "measured"
and indicated" categories, providing additional confidence that the
Company`s projects are able to deliver Life of Mine terms in excess of
20 years.
Despite the significant tonnage already defined, exploration activities
continue in earnest across all 3 coal projects in an effort to:
1. better understand the coal qualities, particularly the coking coal
at Makado and Vele;
2. improve the confidence levels further through defining a greater
proportion of the resource as "measured";
3. improve the geological understanding to maximise mine planning and
production efficiencies; and
4. drill in areas over which the Company has exploration rights but
which are largely unexplored.
CoAL looks forward to advising the results of the above mentioned
explorations activities in due course.
Yours faithfully,
SIMON J FARRELL
Managing Director
For more information contact:
Simon Farrell, Managing Director
GVM
+61 417 985 383 or +61 8 9322 6776
Petronella Gorrie
The Event Shop
+27 82 827 8815
Jos Simson / Arabella Hobbs / Leesa Peters
Conduit PR
+44(0) 20 7429 6603
Olly Cairns / Romil Patel
Blue Oar Securities Plc
+61 8 6430 1631/ +44(0) 20 7448 4400
About CoAL:
Coal of Africa Limited ("CoAL"), is primarily focused on the
acquisition, exploration and development of metallurgical and thermal
coal projects. The Company`s key projects, along with its leading
metals processing company NiMag Group (Pty) Ltd are in South Africa.
The Company was incorporated in Western Australia and listed in 1980.
Since 2005, the Company has also listed on both the AIM and JSE
markets, allowing further growth in the Company`s coal assets.
Resource Estimation:
Resource estimations have been compiled by Mr John Sparrow (Member of
the South African Council of Natural Science Professions SACNASP)
400109/03, an independent geological and technical consultant with 26
years experience in the Southern African and Australian regions. Mr
Sparrow has sufficient experience relevant to the assessment of this
style of mineralization to qualify as a Competent Person as defined in
the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves - the JORC Code - and has compiled a number
of Competent Person`s reports for various organizations for the JSE,
ASX and TSE. Mr Sparrow consents to the inclusion of the information
in this report in the form and context in which it appears.
Glossary of terms:
Resource Categories
* Measured Resource: can be estimated with a high level of confidence
with the sample locations spaced closely enough to confirm geological
and grade continuity.
* Indicated Resource: can be estimated with a reasonable level of
confidence, with the sample locations spaced too widely apart to
confirm geological and/or grade continuity but are spaced closely
enough for continuity to be assumed.
* Inferred Resource: can be estimated with a low level of confidence,
being inferred from geological evidence and assumed but nor verified
geological and grade continuity.
* Reconnaissance Resource: is quantified as a minimum one cored
borehole with coal quality data per 400 ha (approximately 2km spacing)
for multiple seam deposit types, while for thick interbedded seam
deposit types a reconnaissance coal deposit is quantified by a minimum
one cored borehole with coal quality data per 1,600 ha (approximately
4km spacing) (as defined in SAMREC (SANS10320 ed 1) at 6.3.3.1)
www.coalofafrica.com
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 30/09/2008 09:51:45 Produced by the JSE SENS Department.
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