Wrap Text
September 2013 Quarterlly Activities Report
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
SEPTEMBER 2013 QUARTERLLY
ACTIVITIES REPORT
Highlights
- 3.88 Billion tonnes in JORC Resources including 2.07 Billion
ASX Release tonnes in the JORC Measured Resource category.
- Mining rights granted over 2.05 Billion Tonnes.
31 October 2013
- One of the largest undeveloped premium thermal coal
deposits in Africa.
THE WATERBERG COAL - Premium South African domestic and export coal.
COMPANY LIMITED
ABN 64 065 480 453 - Strategic importance to the South African power sector.
- Definitive feasibility study, currently under final review
Level 1
- Completed a secondary listing on the Alternate Exchange
330 Churchill Avenue (AltX) division of JSE Limited (JSE).
Subiaco WA - Compiling all historical geological, geochemical and drilling
Australia
data from its South Australian Tenements.
Tel:+61 8 9200 4243
Fax: +61 8 9200 4469 The Waterberg Coal Project: The Definitive Feasibility Study
Contact: As previously advised to the market, SRK Consulting of Johannesburg,
Mr Brian McMaster South Africa were commissioned by the Waterberg Joint Venture Partners
Executive Chairman to undertake a Definitive Feasibility Study (“DFS”) on a proposed
development of an opencast mining operation to produce 10 Million tonnes
of coal (product) per annum to Eskom for an initial term of 30 years
E-mail:
pursuant to the Memorandum of Understanding (“MOU”) that the joint
info@waterbergcoal.com.au venture entered into with Eskom (the South African parastatal power utility)
in March 2012. During the quarter, the requisite technical work for the DFS
was completed.
Directors:
Brian McMaster
The project partners expect to publish the findings of the DFS to the market
Stephen Miller
within the month of November 2013 following compilation of the final
Jonathan Hart
outstanding reports.
Daniel Crennan
Scott Funston
Dr Mathews Phosa During the quarter, the Project Partners technical team continued to
engage (on a regular basis) with strategic stakeholders, including inter-alia,
ASX Symbol: Eskom, the Department of Water Affairs, and Transnet Freight Rail for the
WCC timely delivery of services to the project. These discussions regarding
proposed arrangements for the delivery of service are progressing well.
Based on current discussions and arrangements, and subject to
confirmation of funding arrangements, project start-up and pre-production
works is expected to commence in April 2014. Based on this timetable,
coal production is expected to commence in the third quarter of 2015.
Updated Resource Statement
In the June quarter, the joint venture partners reported that a drilling programme had been
completed and an updated geological model was in the process of being completed. This exercise
has now been completed. Accruing from this geological modelling, an updated resource statement
was advised to the market on 24th October 20131.
The updated Independent Competent Persons Resource Statement reflects the increased
borehole database following the completion of the 2013 drilling program on the four farms covered
by the Mining Right (Smitspan, Massenberg, Hooikraal and Minnasvlakte), and the two farms held
under Prospecting Rights (Vetleegte and Swanepoelpan).
The total GTIS Coal Resource on all six of the properties is 3.883 billion tonnes; of which 2.070
billion tonnes is a Measured Resource (Table 1).
Table 1 – 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
The updated Resource Statement represents a significant increase in the coal resource of the
Waterberg Coal Project over the previously disclosed resource statement. SRK Consulting (Pty)
Limited (December 2012) declared a GTIS resource of 1.183 billion tonnes on the two farms
Smitspan and Massenberg, of which 1.005 billion tonnes was in the Measured category.
A further drilling programme comprising 55 boreholes is planned in order to upgrade the geological
confidence from inferred to indicated levels on the remaining farms. 30 of the holes are scheduled
to be drilled on Hooikraal, and the remainder on Massenberg, Swanepoelpan and Vetleegte.
Surface rights
During the quarter, arrangements were concluded for the purchase of the surface rights of the
farms of Massenberg and Swanepoelpan. As at the current date, the Joint Venture Partners have
now either purchased, or completed arrangements to purchase the surface rights of Smitspan,
Massenberg, Hooikraal, and Swanepoelpan.
South Australian Tenements
Also, throughout the quarter, the Company continued with the process of compiling all historical
geological, geochemical and drilling data from its tenements in South Australia. It is anticipated
that the data compilation will be completed shortly, allowing the Company to undertake a target
generation exercise and critically evaluate the potential of the tenements.
JSE Listing
On 30 September 2013, WCC completed its secondary listing on the Alternate Exchange (AltX)
division of JSE Limited (“JSE”).
Corporate Activities
During the quarter WCC advised the market that it had entered into a loan agreement with
Firestone Energy Limited (“FSE”) whereby WCC would advance up to A$3 million to be used for
FSE’s project finance obligations in relation to the Waterberg Coal Project. The loan is unsecured
and non-interest bearing. During the quarter, FSE drew down on the WCC loan facility.
Subsequent to the end of the quarter (10 October 2013); the Company informed the market that its
off-market takeover bid for all the ordinary shares in FSE had closed. At the conclusion of the
offer, WCC’s shareholding in FSE was 45.88%.
On 28 October 2013, Dr Mathews Phosa joined the WCC Board as a Non-Executive Director.
Brian McMaster
Executive Chairman
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.
South African Sponsor
Bravura Equity Services (Pty) Ltd
Date: 31/10/2013 09:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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