| Tue 27 Mar 2012, 10:03 | | RSG - Resgen - Resource Generation acquires additional properties and potential |
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RSG
RSG
RSG - Resgen - Resource Generation acquires additional properties and potential
new coal tenements
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
Share code on the JSE Limited: RSG
Share code on the Australian Stock Exchange: RES
ISIN Code: AU000000RES1
("Resgen" or "the Company")
27 March 2012
ASX Release
Resource Generation acquires additional properties and
potential new coal tenements
Resource Generation Limited, which is developing one of South Africa`s largest
remaining coal deposits, has signed an agreement to acquire land adjacent to the
company`s Boikarabelo mine and agreed to a put option under which it can acquire
further coal tenements.
The properties being acquired are Swelpan and Kleinpan, highlighted in black and
grey stripes on the map below. The properties cover 2,096 hectares at a cost of
approximately A$4 million. Swelpan contains significant coal resources and is
contiguous to Ledjadja`s Boikarabelo coal tenements. The bulk of the Kleinpan
property contains no defined coal resources but it provides an ideal location
for the 2x660MW power station that CESC Limited proposes to build. As
previously announced, this proposed power station would enable the Boikarabelo
mine to commence its stage 2 expansion earlier than originally planned.
Exxaro Resources owns the coal tenements on four properties, which are
highlighted in red on the map, including Swelpan and Kleinpan. Shareholders are
referred to the company`s website where this announcement, containing the map,
has been published. Ledjadja, Resource Generation`s BEE subsidiary, has granted
a put option to Exxaro under which Exxaro can sell the prospecting rights over
the four properties to Ledjadja. Any such transfer would be subject to approval
by the Department of Mineral Resources (DMR) under Section 11 of the Mineral and
Petroleum Resources Development Act, 2002. The coal tenements contain an
indicated resource of 974.5 million tonnes*, excluding shale content. Coal
qualities are consistent with the rest of the Boikarabelo tenements.
Should Exxaro exercise the put option and the DMR approve the transfer, the
Boikarabelo mine will have the following resources and reserves, excluding shale
content; ie an increase in total resources of 31%:
Measured Indicated Inferred Total Probable
Resource Resource Resource Resource Reserve
(Mt) (Mt) (Mt) (Mt) (Mt)
1,090.5 1,526.2 1,479.6 4,096.3 744.8
Paul Jury, managing director of Resource Generation, said: `These transactions
provide two significant enhancements to shareholder value. The acquisition of
the land enhances our ability to expand to stage 2, while the additional coal
tenements would deliver ideal mining synergy enabling a continuation of the
mine`s strike length in an easterly direction, enhancing efficient mining.`
*Information in this release that relates to exploration results, mineral
resources or ore reserves is based on information compiled by Mr Dawie Van Wyk
who is a consultant to the Company and is a member of a Recognised Overseas
Professional Organisation. Mr Van Wyk has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the `Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves`. Mr Van Wyk has given
and has not withdrawn his consent to the inclusion in the release of the matters
based on his information in the form and context in which it appears.
Contacts
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000
Media enquiries
Anthony Tregoning (02) 8264 1000
JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited
Resource Generation is developing the Boikarabelo coal mine in the Waterberg
region of South Africa where there are probable reserves of 744.8 million tonnes
of coal on 35% of the tenements under its control. Stage 1 of the mine
development targets saleable coal production of 6 million tonnes per annum.
Date: 27/03/2012 10:03:01 Produced by the JSE SENS Department.
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