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Mozambi Coal in for busy first half of 2012 with a ramp up in coal exploration in Mozambique

Mozambi Coal (ASX: MOZ) is certainly not resting on its laurels with the company assigning itself a long list of exploration tasks for 2012 covering its Songo, Tete West and Muturara projects in the Zambeze Coal Basin, a region frequented by mining giants Rio Tinto and Vale.

Among the tasks are a revised model and the identification of additional targets for drilling for the Songo Project, the interpretation of assays from the Tete West drilling program and the start of first pass drilling at the Muturara Project.

Managing director Shiv Madan said the first half of 2012 was going to be a busy period for the company.

“With the review and interpretation of data underway, and ongoing drill programs scheduled to commence after the wet season, we intend reporting back to shareholders on a wide range of activities during the first quarters in 2012,” he said.

“Whilst it is still early in our exploration program, we are confident that the work program we have underway will allow us to get a better understanding of the prospectivity of our holdings in the Zambeze Coal Basin”.

Mozambi Coal has a significant exploration position within the country, with three projects covering more than 600 square kilometres and a combined Target Mineralisation of 4.96-6.19 billion tonnes of coking and thermal coal.


Songo

Scout diamond drilling began in October and 1,310 metres were completed successfully prior to the onset of the wet season, which normally runs from December to March.

The first two holes reached depths of 474.65 metres and 527.49 metres respectively, and a third hole was drilled to 308.44 metres before drilling activities had to stop.

All three drill holes intersected Upper Karoo sediments, which overlie the targeted Lower Karoo sediment package that hosts the main Productive Series of the Zambeze Basin coal deposits.

Mozambi is still in the early stages of its Songo exploration program and results to date indicate that the licence appears to be structurally complex.

Over the wet season the airborne magnetic and radiometric geophysical survey data along with drilling data will be reviewed and interpreted. A revised model for the area will be produced and used to determine additional target areas for drilling in 2012.


Tete West

Assays from first pass stratigraphic diamond drilling of the northeast corner of the Tete West licence are expected in the coming months.

Five diamond drill holes were completed for a total of 1,364.95 metres with the successful intersection of some Karoo Coal Seams.

The remaining 17 samples have been delivered to ALS Witlab in South Africa, and Mozambi expects to be able to report on the results in the first quarter of 2012.

Depending on the results of recent airborne geophysical surveys and assays, the company may conduct further drilling on Tete West in the first half of 2012.


Muturara

Mozambi is planning to begin first pass drilling on its Muturara Project during the first half of 2012. The company will focus on a 40 square kilometre area of Upper Karoo Formation sediments and volcanics that potentially overlie the Matinde Formation and Productive Coal Series of the Lower Karoo in the northern part of the licence.


Zambeze Coal Basin – home of giants

Riversdale Mining, since being acquired by Rio Tinto (ASX: RIO), has already identified 13 billion tonnes of coal in the basin.

The company's projects include Zambeze, where 9 billion tonnes of coal has been identified over 22 coal seams, with an agreement in place for Wuhan Iron & Steel to acquire 40% of project for US$800 million.

At Benga, 4 billion tonnes have been identified with a mining contract granted by the Mozambique Government for a 20 million tonnes a year operation.

Vale (NYSE: VALE) owns the Moatize Project, with a resource of 1.4 billion tonnes, and is set to commence production this year at a rate of 11 million tonnes per year of coking and thermal coal.