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Project update from Mozambi Coal’s Zambezi coal basin projects

World Coal,

Mozambi Coal Ltd, an Australian coal exploration company, has provided an update on the activities at the company’s exploration licences in the Zambezi coal basin, Mozambique.

  • Drilling has now commenced at the Songo project, with a total of 1310 m completed before the onset of the wet season.
  • Export approval has been granted for the remaining 17 assays from Tete West drilling programme.
  • An airborne geophysical survey has been completed over all concessions.

Songo project

Scout diamond drilling commenced inn October and 1310 m were completed successfully before the onset of the wet season, which normally runs from December to March. The first two drill holes (BH-1 & BH-2) reached depths of 474.65 m and 527.49 m respectively, and a third drill hole (BH-3) was drilled to 308.44 m before drilling activities had to cease.

All three drill holes intersected Upper Karoo sediments. These overlie the targeted Lower Karoo sediment package that hosts the main productive series of the Zambeze basin coal deposits. Down hole geophysics was conducted to acquire stratigraphic information, after which all holes were suspended pending a review with the intention to “re-enter” these holes next field season. No coal samples have been collected in relation to the drilling completed to date.

The company is still in the early stages of the Songo exploration programme 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 (including down hole logs), will be reviewed and interpreted. A revised model for the area will be produced and used to determine additional target areas for drilling next year.

Tete West project

In addition to the review and interpretation of data at Songo, assay results are also expected in the coming months for Tete West, as reported in the most recent quarterly report.  The remaining 17 samples from the Tete West drilling programme have been delivered to ALS Witlab (Pty) Ltd in South Africa, and the company expects to be able to report back to shareholders in 1Q 2012.

Muturara project

In addition to resuming drilling at the Songo project following the end of the wet season in the Q2 2012, the company also expects to commence first pass drilling on its Muturara project during the H1 2012.

Depending on the results of recent airborne geophysical surveys and assays, the company may also conduct further drilling on Tete West in the H1 2012.

A busy 2012 ahead

Mozambi Coal managing director, Shiv Madan, said that H1 2012 was going to be a busy period for the Company: “With the review and interpretation of data underway, and ongoing drill programmes 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. Whilst it is still early in our exploration programme, we are confident that the work programme we have underway will allow us to get a better understanding of the prospectivity of our holdings in the Zambeze coal basin”.

The Zambeze coal basin is an emerging coal region that is within economic reach of the East African coast. Globally significant resources companies including Rio Tinto, Vale, Jindal Steel and ENRC have undertaken coal exploration and development projects in the basin.

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