Resource Generation
Resource Generation Limited (ASX: RES) is developing one of South Africa’s largest remaining coal deposits. The Boikarabelo tenements, in the Waterberg region of South Africa have probable saleable reserves of 603 million tonnes, an indicated resource of 570 million tonnes and an inferred resource of 1.7 billion tonnes, which are expected to increase following further drilling. Production is forecast to commence in January 2013.
Resource Generation generates more excitement at Waterberg-adjacent coal tenements in South Africa
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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Other Resource Generation articles
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19/02/10 Resource Generation on-track developing a massive coal mine in South Africa
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04/02/10 Resource Generation to lodge mining rights application for Boikarabelo Project
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01/10/08 Resource Generation Limited is developing energy for power-strapped South Africa
Other Resource Generation news
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25/02/10 Resource Generation land acquisition update
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15/02/10 Resource Generation acquires more land in Waterberg
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11/02/10 Resource Generation lodges South African mining rights application
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22/01/10 Resource Generation announces increase in resources and reserves
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24/06/09 Resource Generation to raise $31 million for Waterberg coal project development in South Africa
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27/04/09 Resource Generation upgrades Waterberg #1 coal resource to 1 billion tonnes
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19/11/08 Resource Generation director buys 69.5k shares