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  • A-Cap Resources Receives Positive Study For Bolau Coal Project 0 comments
    May 14, 2014 7:02 PM

    A-Cap Resources (ASX: ACB) has received a positive study on its Bolau Coal Project in Botswana from Sedgman(ASX: SDG), which recommended further drilling and test work to estimate an Inferred Resource.

    Notably, the project encircles tenements held by African Energy Resources (ASX: AFR) that hosts the 2.5 billion tonne Sese Coal Project.

    The company had discovered coal horizons that appear to be on the up dip and down dip extensions of Sese.

    "From our initial drilling results we knew the Bolau Coal Project had distinct advantages because the depth and size of the deposit," chief executive officer Paul Thomson said.

    "While we remain focused on continuing the development of our Letlhakane Uranium Deposit the new coal discoveries on Bolau and the higher quality coal defined at Mea, gives A-Cap options to develop these and add significant potential value to the company.

    "In parallel we are seeing new short to medium rail infrastructure options being put in place between the governments of Botswana and South Africa which will open up new market opportunities for us."

    Bolau Coal Project

    The Bolau Project is located on two tenements PLs Foley PL125/2009 and Bolau PL138/2005.

    A-Cap commissioned Sedgman to assess the potential for its development that covers geological, engineering and marketing.

    It follows the positive outcome on the Mea Coal Project, which Sedgman indicated is robust and should be progressed to definitive feasibility stage.

    To date, A-Cap has completed six RC holes and seven diamond holes at Bolau that intersected coal horizons.

    These returned an average coal thickness of 20 metres in two seams, the upper at about 4 metres and lower of 16 metres..

    In the discovery areas, the stratigraphic package dips shallowly towards the southwest at around 10 degrees. The shallowest intersections in the north of PL125/2009 are on holes F0006, F0007 and F0010 which intersect the basal coal seam at between 20 and 35 metres.

    Based on the logged geology and the continuity of the coal horizons in the adjacent Sese Project, the coal is interpreted to be sub- bituminous thermal coal with potential to produce both domestic and export quality coal.

    Analysis

    While A-Cap's focus is primarily on the Letlhakane Uranium Deposit and higher quality coal at Mea, Sedgman's study highlights the potential for Bolau to add further value.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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