African Energy Resources (ASX: AFR) has initiated an extensive exploration program at the Sese thermal coal project in Botswana, targeted at boosting the confidence categories of the existing JORC 2.73 billion tonne coal resource.
Currently the resource breaks down as 0.5 billion tonnes Indicated and 2.23 billion tonnes Inferred.
Highlighting how quickly Africa Energy is moving the project forward, currently five drill rigs are infill drilling at Sese.
The company is targeting a Measured Resource in the northern half of Block‐B and part of Block‐C, which are the two areas with the lowest stripping ratios.
The program will comprise 98 core holes on a 500 metres by 500 metre grid, with six large diameter core holes to collect samples for additional test work, along with a minimum of eight reverse circulation percussion holes to provide structural information in key areas.
The Measured resource is forecast to be delivered in the June quarter of 2012.
The Indicated Resource delineation drilling at Sese was completed last month, with Africa Energy expecting to announce an upgrade for the deposit to an Indicated Resource in the December quarter of 2011.
The Sese Project development plan
Africa Energy has already outlined the development of Sese, which has areas with very low strip-ratios of <2:1, which is amenable to open cut mining.
Importantly, the coal has the potential to produce large tonnages of power station feed, along with potential to wash to export quality.
The development plan includes a trial pit of a 10,000 tonne bulk sample for market tests.
More pending milestones
The news flow for Africa Energy comprises more than the pending confidence category upgrades.
The company is also set to commence a Definitive Feasibility Study in the September quarter of 2011, with a decision on an initial 1 million tonne per annum development by early 2013.
Africa Energy has then outlined the potential to ramp-up to 5 million tonnes annually over a short time frame, with a conceptual target of 20-30 million tonnes per year through to the export market.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19459/african-energy-resources-to-boost-thermal-coal-confidence-categories-at-27bt-sese-19459.html
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