274% Increase In Extractable Coal Reserves
Thursday 14th February, 2008
Category :
Regulator News Service
On the 10th October 2007, SNR reported extractable run-of-mine (’ROM’) reserves of 5.5 million tonnes on which its subsidiary, Elitheni Coal (Pty) Ltd (’Elitheni’), based its mining rights application.
SNR is pleased to report a 274% increase of its ROM reserve to an estimated 15.05 million tonnes as confirmed by Golder Associates Africa (Pty) Ltd whose update to the current resource and reserve estimates was received on the 12th of February 2008. The update is based on additional data supplied by Elitheni.
To date only 1,100 hectares of the 9,283 hectares of the Phase 1 & 2 prospecting area has been drilled, the remaining area will continue to be drilled through 2008. Drilling of the Phase 3 area, which covers some 27,000 hectares, will commence in late February 2008.
SNR has informed IPSA Group PLC, the AIM- and AltX-quoted independent power company with whom it has entered into a framework coal supply agreement, that it now has sufficient ROM reserves to enter into a fuel supply agreement for the first 250 MW unit. IPSA has informed the Company that a 250 MW coal-fired unit requires 1 million tonnes of coal from Elitheni per annum for the project to be financed, since project debt should be repaid well-within the life of the coal supply contract.
The information regarding Elitheni’s coal reserves in this announcement has been reviewed and approved by Willem van der Schyff BSc (Hons), Senior Resource Geologist and full time employee of Golder, the Company’s consultant geologists. Mr van der Schyff has 17 years industry experience in resource estimation and classification on coal, base metals, iron ore, heavy minerals and industrial minerals and is a Member of the Geological Society of South Africa (GSSA) and the South African Council for Natural Scientific Professions (Pr Sci Nat).
For further information please contact:
The Company:
Jeremy P. Metcalfe, Chief Executive
Strategic Natural Resources plc
Tel: +44 1303 874 798
Nominated Adviser:
Rod Venables / Cecil Jordaan
HB Corporate
Tel: +44 20 7510 8600
Broker:
Martin Lampshire/Sean Lunn
Hichens, Harrison plc London/South Africa
Tel: +44 20 7382 4450/+27 21 950 2711
PR:
Allan Piper
First City Financial Public Relations
Tel: +44 20 7242 2666
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