ZYL Limited (ASX:ZYL) has increased the measured and indicated anthracite resources at Mbila project in South Africa by 28 million tonnes, providing upside potential for proven and probable reserves conversion.
The total JORC compliant anthracite resources for the Mbila project now stands at 125 million tonnes, with the measured and indicated resources now comprising 69.9% of the total resources.
The current data set is considered the most accurate one with an independent competent persons report issued by PC Meyer Consulting.
The improvement in the measured and indicated resources of 28 million tonnes is very significant for both absolute tonnes and their related confidence levels.
Significantly, the Beaufort group anthracite that occurs at Msebe has open cast potential due to favourable stripping ratios.
Mbila project potential
The Mbila project in the KwaZulu Natal province in South Africa consists of the Mbila Mining Right, covering 19,180 hectares and the Msebe Prospecting Right spread over 52,946 hectares.
The increase in measured and indicated resources comes after the use of additional quality information for some of the historical boreholes and re-survey of the borehole collars at Msebe.
A database consisting of 645 boreholes, both percussion and diamond core was compiled with a full and comprehensive database audit of Mbila and Msebe done by PC Meyer Consulting.
The total resource combines both the Mbila Mining Right and Msebe Prospecting Right areas has been reported differentiating between Ecca and Beaufort quality anthracite. The Ecca resources total 14 million tonnes, while Beaufort resources total 110.9 million tonnes.
With the most recent resurvey and modeling of historical bores and increased confidence in the data, there are now 17.7 million tonnes of measured resources and 10.4 million tonnes of indicated resources.
The resource upgrade confirms the development path for Mbila and anthracite production for ZYL, with reaffirmation of the potential of its South African anthracite project.
The latest iteration of the total JORC compliant resource at Mbila project comes after resurveying of historical bores and adds significant confidence to the project.
The increase in the measured and indicated resources of 28 million tonnes, which makes the total measured and indicated category as 69.9% of the total resources, also holds further upside potential and can be easily converted into proven and probable reserves.
In addition, the Beaufort Group anthracite also has open cast potential due to favorable stripping ratios.
ZYL is well placed to serve an increasing anthracite demand, with the estimated global shortfall likely to be around 21.7 million tonnes by 2015.
ZYL is also well capitalised for any future work at Mbila, having recently raised $1.4 million via the placement of 68 million shares to Prestige Glory Limited undertaken at $0.02 per share.
It also planned an issue of 60 convertible notes at a face value of at least $100,000 to raise $6 million.
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