| Thu 31 May 2012, 14:42 | | MMH - Miranda Mineral Holdings Limited - Miranda granted mining right for |
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MMH
MMH
MMH - Miranda Mineral Holdings Limited - Miranda granted mining right for
Burnside coal project
Miranda Mineral Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1998/001940/06)
Share code: MMH & ISIN: ZAE000074019
("Miranda" or "the group")
Miranda granted mining right for Burnside coal project
Miranda Mineral Holdings (JSE:MMH) today announces that its subsidiary (Street
Spirit Trading 54 (Pty) Limited), has been granted a mining right in terms of
section 29(a) of the Minerals and Petroleum Resources Development Act (Act 28 of
2002) for the Burnside coal project ("Burnside") near Dundee in KwaZulu-Natal.
The Burnside Mining Right has been granted over four farms, namely; portions of
Burnside 3287, Izemfene A 9146, Izemfene B 8802 and portions of Davelsberg 3286
covering approximately 4540 hectares.
With the mining right granted, Miranda plans to complete all the necessary steps
to ensure its execution. Following the execution of the mining right, the
Company will move rapidly to ensure that mining of the open-pittable portion of
the resource can be commenced within the near future.
Mining of the underground portion of the Burnside resource requires some
additional mine design work, for which a consultant is due to be appointed
shortly. The Company hopes to have the underground portion of Burnside ready for
production by the end of 2013.
This will add further momentum to Miranda`s strategic shift from mineral
resource holding company to coal explorer/miner. First coal production for the
re-aligned company is expected to flow from its Sesikhona project, also in the
Dundee area, before the end of 2012.
Street Spirit Trading 54 (Pty) Ltd
This subsidiary is owned by; Miranda Coal (Pty) Ltd (77%) and Bespaar Trust
(23%).
Burnside project
As per Miranda`s most recent integrated report available on the Company`s
website, Burnside is estimated to contain at least 23.3 million tons of coal in
the indicated category. Caracle Creek International Consulting (Pty) Ltd (CCIC)
has been mandated to update the geological reports for the Burnside project
using all available data and this work is due to be completed shortly.
Burnside contains a high-grade bituminous coal, suitable for coking, as well as
a middlings product suitable for sale as a "low-spec coal", for which a market
is readily available. Miranda is also considering the construction of a coal
processing plant on site to take full advantage of the high-grade nature of
Burnside`s coal resource, and this decision will be made in the light of results
of studies that are currently underway.
Background
Burnside Colliery began operating in 1909. It became a section of what was then
Trans Natal Coal`s Northfield Colliery (now BHP Billiton`s) in 1956, and was a
supplier of coking coal to Iscor`s Newcastle works. Following final closure in
1986, a number of mining blocks remained un-mined and it is these resources that
Miranda aims to exploit.
Disclaimer
All statements in this media release, other than historical facts, that address
exploration activities and mining potential are forward-looking statements.
Although Miranda believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements should not in
any way be construed as guarantees of future performance. Factors that could
cause developments to differ materially from those expressed include exploration
results, technical analysis and lack of availability to the company of necessary
capital to progress its projects. The company is subject to specific risks
inherent in the exploration and mining business and general economic and
business conditions.
Centurion
31 May 2012
Sponsor: PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 31/05/2012 14:42:01 Produced by the JSE SENS Department.
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