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Additional Information

Market:	ASX
Sector:	Coal
EPIC:	RES
Latest Price:	0.44 (3.57% )
52-week High:	1.01
52-week Low:	0.34
Market Cap:	109.05M

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Resource Generation Full Resource Generation profile here

Resource Generation (ASX: RES) is developing one of South Africa’s largest remaining coal deposits, with the company's focos on the Boikarabelo tenements, in the Waterberg region of South Africa.

The strategy for the company is to develop high grade “energy” related resources into viable and competitive mining operations. Accelerated shareholder value will be delivered through the delivery of physical mining activity.

Resource Generation generates more excitement at Waterberg-adjacent coal tenements in South Africa

Tuesday, June 02, 2009

Resource Generation (ASX: RES) has taken another king-size step forward at its Waterberg Coal Project in South Africa by securing access to the three Ledjadja JV properties (combined 4,042 ha) adjacent to the Waterberg #1 Coal Project. Currently, RES owns a 49% joint venture interest in the Ledjadja JV properties coal exploration permit, which covers seven properties adjacent to the south and west of the Waterberg #1 tenement.

What is likely to generate excitement is that preliminary results indicate that in terms of coal seam thickness and overburden depth, the resource appears to be similar to that in the Waterberg #1 deposit across the first two tenements and up to a known fault, which has been confirmed mid way through the third property.

The Waterberg #1 Coal Project recently reported a JORC compliant inferred resource of 2.0 billion tonnes.

Initial exploration at Ledjadja JV properties, comprising 24 open holes was completed in the last week of May 2009. The drilling at Ledjadja is expected to delineate the resource boundaries and assist in determining the optimal location for mine, coal handling and preparation plant and stockpile infrastructure. Once the drill results have been analysed, the company believes that it will be able to define a JORC-compliant coal resource over this portion of the Ledjadja tenements.

Importantly for RES shareholders, RES can increase its rights in the Ledjadja JV properties from 49% to 65%, with a further entitlement to increase to 74%, with expenditure of ZAR20 million (currently approximately A$3 million) on exploration and development activities at the Ledjadja JV properties.

Of note, RES can achieve mining and infrastructure synergies through amalgamation of the Waterberg Coal and Ledjadja Coal areas.

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