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Continental Coal receives approval for exploration project

World Coal,

The South African thermal coal production, development and exploration company, Continental Coal Limited, has been granted consent to commence its Vaalbank coal exploration project.

Continental Coal announced it has received approval from the South African Department of Mineral Resources (DMR) for the transfer of the prospecting right required to commence the project. The Vaalbank coal exploration project is located next to Total Coal’s Forzando Colliery. The venture consists of a joint exploration program with Forzando Coal, 74% owned by Total Coal South Africa.

Under the terms of the project, Continental Coal and Forzando Coal will commence a two phase exploration program comprising of 20 exploration holes.

Continental Coal CEO Don Turvey said securing the consent to transfer the prospecting right will enable the companies to start with the detail planning and scheduling of the exploration program.

"Initial review studies indicated the potential for an economic mineable resource and we believe the proposed exploration program will not only support this but also provide the initial data required to commence with a pre-feasibility study," Turvey added.

Continental Coal has a number of projects situated in South Africa's major coal fields including three operating mines, the Vlakvarkfontein, Ferreira and Penumbra Coal mines.


Adapted from press release by Katie Woodward

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