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African Energy to update Mmamabula West pre-feasibility study with new resource

African Energy Resources Ltd. plans to update its May 2014 pre-feasibility study for its Mmamabula West coal project in Botswana to include an update resource estimate.

The company outlined an updated estimate for Mmamabula West of 2.94 billion tonnes at an average calorific value of 20.3 megajoules per kilogram, or MJ/kilogram.

The resource contains a measured resource of 17 million tonnes at 22.2 MJ/kg, an indicated resource of 1.06 Bt at 20.4 MJ/kg, and an inferred resource of 1.86 Bt at 20.3 MJ/kg.

African Energy said Oct. 10 that it will update the pre-feasibility study to include the measured resource and the updated indicated resource for the study area.

The new estimate at Mmamabula West is based on data collected from 179 vertical diamond drill holes.

The May 2014 study found that the mine could not be profitable at coal prices and transport costs at that time.