[miningmx.com] — CONTINENTAL Coal, the thermal coal production and
development company, said on Tuesday it has done another deal to extend the life of
its Ferreira coal mine.
In addition, the company has entered into an agreement with Forzando coal mines to
complete further exploration, drilling and geological modelling at Continental Coal’s
Vaalbank coal project. Forzando operates four underground and opencast mines
immediately north west and contiguous to Vaalbank.
As for Ferreira, Continental has acquired the right to develop a prospecting right
immediately adjacent to the current open cast mine. This is over and above the
acquisition of Misty Sea’s prospecting right announced on April 30, which is also
adjacent to Ferreira.
“The right has been acquired … for a market related monthly royalty payment on each
tonne of run-of-mine coal mined,’ read a company statement.
Mine planning work has now commenced on the prospecting right to incorporate it into
Ferreira’s new and extended mine plan. The company has already lodged a Section
102 application with the Department of Minerals and Resources to allow it to conduct
open cast mining activities, and would commence development once approval is
obtained, it said.
“Mining of an additional 250,000 to 300,000 ROM tonnes over a six to eight-month
period is forecast from the new prospecting right … and is in addition to the 350,000
to 400,000 ROM tonnes from the acquisition from Misty Sea,’ read a statement.
Said CEO Don Turvey: “The recently completed acquisitions of prospecting rights
contiguous to our Ferreira coal mine will materially extend the mine life and its
production of a high-quality export thermal coal.’
As for Vaalbank, the programme has an initial budget of R3m to be funded on a joint
basis and is scheduled to commence this quarter.
