Hodges Resources Ltd has announced the updated resource statement for the Morupule South project in Botswana. Hodges is currently earning 75% in the project and has the right to earn 99%.
According to the company, a new Measured Resource of 110 million tonnes (Mt) and Indicated Resources of 173Mt were estimated within the central block of the Morupule South project.
This resource upgrade represents the results from the infill drilling completed mid year. Hodges Managing Director Mark Major says the upgrade in the resource estimate brings the project into a new era by advancing the project towards mining in the near-term.
“We have now confirmed that significant shallow, thick coal seams with some of the best raw coal qualities in Botswana, are present at the Morupule South project, thus supporting the move to take the project into the next stage of development. We are expecting the mine scoping studies to be completed on project within the next month or so, which will provide the Board with the technical and financial viability of the project,” Major explains.
“A measured resource of 110Mt is more than enough coal to get this project started. That’s enough feed to run a 900MW power station for 25 years and we still have a billion tonnes of open pit upside in inferred resources. Our strategy is to create shareholder wealth by defining only what we need to keep advancing the project without unnecessary expenditure whilst still moving towards production”.
The Morupule South coal project is located directly to the south of the operational Morupule Colliery in central east Botswana. The project consists of one prospecting licence (PL121/2010), which covers a total of 264.4km2. Hodges is completing a JV earn in for 75% and up to 99% with SDNP Manufacture Mining and Construction Services (Pty) Ltd.
GEMECS (Pty) Ltd from South Africa was commissioned to complete the upgraded resource estimation following the same parameters as previously announced in the HDG ASX release dated 25 June 2012. The upgraded resource included an additional 24 holes drilled within the Central block during the June 2012 quarter.
The last campaign of resource drilling was undertaken on a 500m x 500m grid in the Central block area with the goal of delineating measured resources. A small portion of this area was drilled on a 250m x 500m grid with the goal to increase our resource knowledge for future development.
Hodges is currently undertaking scoping level mining and economic studies as well as conceptual integrated power development studies. Results of these studies are expected shortly.
“Now that we have a sufficient sized measured resource we are looking forward to seeing the results of our mining and integrated power studies before the year is out. We do intend to complete the partially finished coal characteristic laboratory work on the Central and Eastern blocks which will help confirm the viability of the coal beneficiation as well as aid us with advancing the project into the feasibility phase,” Major says.
Major explains “the open cut potential of the coal seams remains an important consideration for any future commercial mining operations and the recent results continue to support this case. We have sufficient coal in measured to continue the development of the project with the aim of moving into production as soon as possible.”
