African Energy Resources' (ASX: AFR) shares went against the ASX trend today, gaining 15% to $A0.46, with nearly 4.3 million shares changing hands as of 3.33pm (AEDT).
The company has been on an upwards share trajectory since mid-December last year as it moves from exploration to pre-development at its Sese Thermal Coal Project in Botswana.
Last week African Energy Resources upgraded the Sese resource to over 2.5 billion tonnes of coal in the Indicated category, after more than 95% of the in-situ resource was classified.
Part of the resource is now targeted to be moved into the higher confidence Measured category in the June 2012 quarter, which will be from Blocks B and C.
African Energy is currently focused on completing a Bankable Feasibility study by the end of 2012, along with mining licence approvals and financing negotiations, ahead of first coal sales from stage one in mid-2013.
The defining factor for Sese is that the entire deposit is amenable to open-cut strip mining, with low risk and low costs, and mining blocks are around 500 metres by 200 metres.