African Energy Resources defines Sese thermal coal Measured Resource, at odds with valuation
15 August 2012
Proactive Investors Australia
African Energy Resources (ASX: AFR) has defined an initial Measured Resource for its Sese Thermal Coal Project in Botswana of 651 million tonnes following resource modelling by the company’s consultants.
Importantly, this means around 94% of the Sese Project’s total 2,517 million tonne Resource is now in the higher confidence Measured and Indicated categories.
The Measured Resource is contained in two blocks – Block-B and Block-C.
Coal in the Block‐B Measured Resource is of interest for the Sese Export Project due to its potential for low strip ratio, higher in‐situ calorific value and higher washing yields than other parts of the deposit.
Block-C coal is favoured as the source of fuel for the Sese Integrated Power Project due to its proximity to existing infrastructure and proximity to solid basement for the power station footings.
This coal can be used as a raw coal feedstock for a power station, or can be washed to produce an export product and a middling for use in power stations.