Midwinter Resources (ASX : MWN) is an exploration company aiming to identify, acquire, explore and develop substantial mineral projects that possess the potential for significant cashflow or exploration upside.
Midwinter Resources eyes metallurgical coal acquisition to grow ferrous metals holdings
Midwinter Resources (ASX: MWN) is looking to expand its interests in the ferrous metals industry, with a potential acquisition of a high quality metallurgical coal project in Swaziland.
The company has signed an agreement to acquire 100% of Teeman, a Swaziland-based company whose principal asset is the prospecting right application covering 16 square kilometres including the Mpaka Colliery.
Teeman has also applied for the Mpaka Prospecting Licence Application, which covers 20.5 square kilometres over the sedimentary Middle Ecca Series of the Karro Group.
This application area contains the high quality anthracite seams of the Lower Coal Zone. The prime focus within this zone is the Main Coal Seam, with average thickness of 3.7 metres in the Mpaka area.
Significantly, the prospecting licence application is located immediately south of the main highway that joins the capital of Mbabne and the large town of Manzini to the west with the provincial capital of Siteki and the Mozambique port of Muputo to the east.
The Mpaka Colliery was operated by Gencor between 1964 and 1992, and produced at a rate of about 210,000 tonnes per annum in 1986.
Exploration target
In June 2006 the Swaziland Geological Survey and Mines Department published a document called “The Mineral Resources of Swaziland”, which reported that the Mpaka Mine area contained established in-situ reserves of 55.2 million tonnes of coal, including 41.2 million tonnes of reserves of mineable coal.
This report said coal had a yield of 75%.
An exploration target for semi-anthracite coal within the Main Seam at Mpaka has been defined by consultant Continental Resource Management in the range of 55 million tonnes to 85 million tonnes at a yield of 70-80%.
Iron ore exploration
Midwinter already owns the Northern Lights Magnetite Iron Ore Project in the Limpopo District in South Africa, not far from the border of Swaziland.
The company is looking for a significant magnetite resource hosted in metamorphosed banded iron formations to produce coarse, high quality iron concentrates using straightforward beneficiation techniques.
Northern Lights is located within 50 kilometres of Ferrum Crescent’s (ASX: FCR) Moonlight Project, which hosts a JORC Resource of 310 million tonnes at 29% iron.
