Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ZYL Limited On Track To Produce High-Grade Anthracite At Kangwane Central

Emerging anthracite producer ZYL Limited (ASX: ZYL) has delivered a major increase in Measured Resources at the Kangwane Central Project in South Africa.

The Measured Resource increased to 200 million tonnes from 47.7 million tonnes. Project permitting at Kangwane Central is progressing well and is ahead of schedule.

Adding to the size of the project, pit optimisation results at the Kangwane Central - Southern Open Pit has been extended by 700 metres to 3000 metres - which provides for a larger scale and shallower open pit.

Another plus is that the pre-strip for initial production has been reduced which lowers costs, with the coal sub-outcrop now occurring at 30 metres.

Where the story gets even more interesting for ZYL is that chemical analysis of phases three drill cores indicate low phosphorus and sulphur levels.

The outcome of these low levels is an increase in potential end users, both in the domestic and international markets - as the product is suitable for use as a metallurgical coke replacement.

Ian Benning, chief executive officer, commented on the recent laboratory analysis: "The results from Kangwane Central are highly encouraging. Some of the seams have a phosphorus level as low as 0.005% which is an ultra-low phosphorus content.

"This type of ultra-low phosphorus and low sulphur product opens up the possibility of providing Kangwane Central product to a wider suite of end users."

Based on these results, ZYL can now plan to produce high-grade anthracite at Kangwane Central which will fetch a premium price compared to standard grade - as the product can be used a coke or metallurgical coal substitute in various metallurgical applications, such as sintering, Pulverised Coal Injection, direct blast furnace charge and pelletizing.

Benning added, "It plays an important role in cost reduction in the steel making process and is used in the production of ferroalloys, silicon-manganese, calcium-carbide and silicon-carbide."

About anthracite

Anthracite is categorised as standard grade - which is used mainly in power generation, and high grade / ultra-high grade - which are used in the metallurgical coal sector.

In determining the grade of anthracite, one of the most critical chemical analyses is the level of phosphorus present, which has been found to be as low as 0.005% in some areas. Phosphorus in coal is a highly deleterious element and in high concentrations it can cause steel to become brittle.

Comment

The increase in Measured Resources to 200 million tonnes at Kangwane Central delivers a significantly greater confidence in the resource, with the laboratory analysis identifying a low sulphur product which is attractive to end users both domestically and internationally - widening the appeal of a Kangwane anthracite product.

Today's news comes just over a week since ZYL announced Probable Ore Reserves of 26.7 million tonnes for the Southern Open Pit at Kangwane Central Project - highlighting how quickly the company is advancing the project.

ZYL is working towards completion of its Bankable Feasibility Study at Kangwane Central - with the study to incorporate the results from the phase three drilling program, within the associated Competent Persons Report (CPR).

Importantly for ZYL - further improvements to the resource tonnes, economics and product specifications are expected as additional geological data from the drilling program are incorporated into the final CPR - which is expected to be received in August.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.