Wrap Text
Substantial Jorc resource expansion highlights world class coal project
The Waterberg Coal Company
(formerly ‘Range River Gold Limited’)
(Incorporated in Australia)
(ABN 64 065 480 453)
ASX: WCC (previously, RNG)
JSE: WCC • ISIN: AU000000RNG7
SUBSTANTIAL JORC RESOURCE
EXPANSION HIGHLIGHTS WORLD
CLASS COAL PROJECT
ASX Release
The Waterberg Coal Company is extremely pleased to report the results of the
24 October 2013 updated resource statement for the Waterberg Coal Project. This
demonstrates a world class premium thermal coal resource of 3.88 Billion
tonnes. The resource statement has been prepared on behalf of the Waterberg
Coal Project Joint Venture Partners by Gemecs (Pty) Limited1 in their capacity
THE WATERBERG COAL
as Independent Competent Persons.
COMPANY LIMITED
ABN 64 065 480 453 The updated Resource Statement reflects the considerably increased borehole
database following the completion of the highly successful 2013 drilling
programme and associated sample analysis on the Waterberg Coal Project
Level 1 Properties.
330 Churchill Avenue
Subiaco WA Highlights
Australia
* 3.88 Billion tonnes in JORC Resources.
* 2.07 Billion tonnes in the JORC Measured Resource
Tel:+61 8 9200 4243
Fax: +61 8 9200 4469 Category.
* Mining rights granted over 2.05 Billion Tonnes.
Contact: * One of the largest undeveloped premium thermal coal
Mr Brian McMaster deposits in Africa.
Executive Chairman
* Premium South African domestic and export coal.
* Strategic importance to the South African power sector.
E-mail:
info@waterbergcoal.com.au * Substantial further expansion to Resources possible with
further drilling.
* Bankable study, currently under final review will
Directors: demonstrate a financially robust project with production
Brian McMaster scheduled for 2015.
Stephen Miller
Jonathan Hart The updated Resource Statement represents a substantial increase in the coal
Daniel Crennan
resource of the Waterberg Coal Project Properties. SRK Consulting (Pty)
Limited (December 2012) declared a Coal Resource of 1.183 billion tonnes on
Scott Funston
the two farms Smitspan and Massenberg, of which 1.004 billion tonnes was in
the Measured category. The doubling of the Measured Resource to 2.0 billion
ASX Symbol: tonnes gives the project technical team the flexibility to optimise the draft
WCC SRK Bankable Feasibility Study mine plan, currently set up to supply 10
million tonnes of coal product per annum to Eskom. Optimisation of the mine
plan will have a favourable impact on yields, operating costs, and annual
tonnes mined.
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The Resource Statement covers the properties of four farms under Mining Rights in the Waterberg
(Smitspan, Massenberg, Hooikraal and Minnasvlakte), and the two farms held under Prospecting
Permit (Vetleegte and Swanepoelpan). The Coal Resource for the four farms held under the Mining
Right is 3.149 billion tonnes, of which 2.053 billion tonnes is a Measured Resource, 575.6 million
tonnes is Indicated, and 519.5 million tonnes is Inferred (Table 1).
Table 1 – Coal Resource (Under Mining Right)
Coal Ash IM % Vol % CV TS %
Resource
Resource¹ % (ad) (ad) (Mj/kg) (ad)
Classification
(Mt) (ad) (ad)
Measured 2053.9 57.92.2 17.6 10.49 0.96
Indicated 575.6 58.02.2 17.5 10.56 0.99
Inferred 519.5 58.81.9 17.6 10.51 1.03
Total
3149.0 58.1 2.2 17.6 10.51 0.98
Resources
Coal Resource ¹ based on minimum thickness cut-off of 0,5m
The coal qualities, reflected in the Resource Statement, are those for Raw Coal and do not represent
washed coal qualities.
Indicative washed qualities for the coal using a float of 2.0 gm/cm2 are shown in Table 2 below.
Table 2 – Typical air-dried washed quality values for Coal Resource on the Waterberg Coal
Project Properties held under Mining Right
Ash % (ad) IM % (ad) Vol % (ad) CV (Mj/kg) (ad) TS % (ad)
35.3 2.6 23.9 19.12 0.87
Values based on Primary Product at Wash density of 2.0 gm/cm2
The Coal Resource for the two farms held under the Prospecting Permit is 734 million tonnes, of which
16.4 million tonnes is a Measured Resource, 280.7 million tonnes is Indicated, and 437.2 million
tonnes is Inferred (Table 3).
Table 3 – Coal Resource (under Prospecting Permit)
Coal Ash IM Vol CV
Resource Classification Resource ¹ TS %
% % % (Mj/kg)
(Mt)
Measured 16.4 53.23 1.63 19.18 12.38 1.18
Indicated 280.7 62.16 2.52 16.75 8.74 1.02
Inferred 437.2 58.97 2.46 17.32 9.96 1.03
Total Resources 734.3 60.1 2.5 17.1 9.55 1.03
Coal Resource ¹ based on minimum thickness cut-off of 0.5m
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The total Coal Resource on all six of the properties held under both the Mining Right and Prospecting
Permit, is 3.883 billion tonnes, of which 2.070 billion tonnes is a Measured Resource (Table 4).
Table 4 – Coal Resource on all six Waterberg Coal Project Properties under both Prospecting
Permit and Mining Right
Coal Vol CV
Resource ¹ Ash % IM % TS %
Resource Classification % (Mj/kg)
(ad) (ad) (ad)
(Mt) (ad) (ad)
Measured 2,070.3 57.9 2.2 17.6 10.51 0.96
Indicated 8,56.3 59.4 2.3 17.2 9.96 1.00
Inferred 956.7 58.9 2.2 17.5 10.26 1.03
Total Resources 3,883.3 58.5 2.2 17.5 10.33 0.99
Coal Resource ¹ based on minimum thickness cut-off of 0.5m
Expansion Programme
The joint venture partners have advised that there is an intention to complete additional drilling on
the properties to further increase the resource base. This will provide the project partners with
additional flexibility in the planning for the proposed commencement of development and mining.
Coal Supply Agreement
The Waterberg joint venture partners (through Sekoko Coal) have executed an MOU with Eskom for
the supply of 10 million tonnes of coal product per annum; commencing in mid-2015. The joint
venture partners are currently in the process of formalising a Coal Supply Agreement (CSA) to reflect
the salient terms and conditions for the supply of the coal.
Bankable Feasibility Study
The project partners in the Waterberg Coal Project advise that the technical work on the Bankable
Feasibility Study (BFS) has now been completed and is under final review. The project partners expect
to publish the findings to the market in the coming month, following compilation of the final
outstanding reports.
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Corporate
On 9 April 2013, The Waterberg Coal Company Limited (ASX: WCC) advised the market it had
completed a series of transactions whereby it has acquired an effective economic interest of 37.5% in
the Waterberg Coal Project in the Limpopo Province of South Africa. In June 2012, The Joint Venture
partners had commissioned a definitive feasibility study (DFS) for the development of The Waterberg
Coal Project predicated on the prevailing insitu resource and the Memorandum of Understanding
(MOU) entered into with Eskom for an off-take of 10 million tonnes per annum (mtpa).
The other joint venture interests are held by Sekoko Coal (Pty) Ltd (in which WCC holds a 25%
shareholding); and Firestone Energy Limited (in which WCC has a 45.88% shareholding).
This is a fabulous result for the stakeholders and shareholders of the Waterberg Coal Project and is the
beginning of an active work programme that will see the development of a truly world class coal
project in South Africa.
Stephen Miller
Director
The Waterberg Coal Company Limited
Note 1: Competent Person Statement
Gemecs (Pty) Limited was commissioned by the Waterberg Coal Company "WCC", to undertake an Updated Independent
Persons Geological Report for the Sekoko Waterberg Coal Project.
The Coal Resources were estimated in accordance with the South African code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (“SAMREC Code”), Australasian Code for Reporting of Exploration Results. Mineral
Resources and Ore Reserves (“the JORC Code”) and South African National Standard (SANS 10320:2004) guidelines.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Coenraad D van Niekerk, Pr.Sci.Nat (Reg. No 400066/98), M.Sc Hons (Geology), MDP, an
employee of Gemecs (Pty) Limited, who is a Fellow of the Geological Society of South Africa. Mr Niekerk is a mining geologist
with 38 years’ experience in the mining industry, sufficient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Niekerk
consents to the inclusion in the announcement of the matters based on this information in the form and context in which it
appears.
Sponsor
Bravura Equity Services (Pty) Ltd
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Date: 24/10/2013 05:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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