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Market:	AIM ASX JSE
Sector:	Coal
EPIC:	CZA
Latest Price:	69.00 (0.36% )
52-week High:	96.00
52-week Low:	43.75
Market Cap:	457.11M

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Coal of Africa

Coal of Africa (ASX: CZA) formerly GVM Metals Ltd, is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company’s key projects, along with their leading metals processing company Nimag Group (Pty) Ltd are in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company’s coal assets.

Coal of Africa receives approval to take bulk sample from Makhado Project

Thursday, March 11, 2010

Coal of Africa (ASX: CZA) has received approval from the South African Department of Mineral Resources for its application to take a bulk sample from its Makhado coking coal project.

The Makhado Project, in which CoAL holds a 100% interest, is located in Soutpansberg, 60 kilometres from Musina in the Limpopo Province, close to Rio Tinto’s Chapudi project and covers an area of more than 23,000 hectares.

The Makhado Project will comprise an opencast mine, planned to deliver 5 million tonnes of hard coking coal product per annum at full output.

The Company will now commence the sampling process, which will involve excavating an opencast pit on the Farm Tanga. Approximately 411 000 bank cubic metres of overburden will be removed to expose 19,100 tonnes of run-of-mine coal.

This coal will be transported to Tshikondeni Colliery where it will be beneficiated to a 12% ash coking coal. This is expected to provide 4,400 tonnes of product which will be sampled and analysed at CoAL's laboratory in Polokwane.

Following the processing and laboratory analysis of the bulk sample, the coal will be provided to ArcelorMittal SA to test in their coking ovens at Vanderbiljpark for "value in use" analysis.

This testing is necessary in order to finalise certain terms and conditions of the proposed off-take agreement between CoAL and ArcelorMittal SA, including terms and conditions relating to pricing and volumes.

CoAL continues to liaise with the South African Department of Mineral Resources in relation to effecting the Exchange of Prospecting Rights Agreement entered into with joint venture companies held by the Rio Tinto Group and Kwezi Group of South Africa (“Farm Swap”), as announced on 29 October 2009.

While the Company continues to prepare the New Order Mining Right (“NOMR”) application for Makhado, which is progressing well, CoAL is legally restricted from lodging the NOMR application until the required regulatory approval for the Farm Swap is received. The Company will advise of any updates in this regard in due course.

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