Edenville Energy PLC Bulk Sampling Results (1831P)
15 November 2016 - 6:01PM
UK Regulatory
TIDMEDL
RNS Number : 1831P
Edenville Energy PLC
15 November 2016
15 November 2016
EDENVILLE ENERGY PLC
("Edenville" or the "Company")
Bulk Sampling Results
Edenville Energy plc (AIM:EDL), the Company developing an
integrated coal to power project in western Tanzania, is pleased to
announce the first set of results the Company has received from SGS
Laboratories in relation to the recent bulk sampling programme
carried out on the Mkomolo and Namwele deposits and detailed in the
Company's announcement on 27 September 2016.
Key Points
-- Results from seam MK2 confirm coal as suitable for the provision of power plant feed;
-- Only moderate, or in certain cases, no washing, will be
required for Rukwa coal to be used in the combustion process in a
coal fired thermal power plant;
-- Where washing is required, high yields of approximately 75%
are confirmed as achievable to produce a power plant feed
product;
-- The results from the sampling and wash tests both support and
validate the recently constructed financial model and resource
technical assessment;
-- Applying a greater level of washing to this seam, produces a
product above 20MJ/kg which offers scope for supply into the local
and regional markets; and
-- Further test results on the other Mkomolo near surface coal seam are expected shortly.
The results from seam MK2 confirm the coal is well suited for
use in thermal power generation and this data will form a crucial
part of the process going forward to design and construct a coal
fired power plant at the Rukwa project site.
Both raw and washed values indicate the coal is suitable for
power generation purposes and any washing of the coal will
primarily be to optimise and maximise the technical and economic
parameters. Moderate treatment of the coal will produce a fuel that
is optimum for the combustion process and maximise the tonnage
available.
This coal is accessible at surface which will result in both low
mining costs and the deposit being able to be opened up in a short
timeframe.
Additionally, the results are consistent with our recently
completed resource technical assessment as announced on 1 November
2016, to determine the available coal resources for an expanded
project greater than 120MW. Subsequent to the wash results, the
Company can now confirm the suitability of this coal to provide a
sustained and reliable fuel supply to a power plant project.
Combined with the recent analysis carried out on available coal
resources, we can now provide a high degree of validation around
the coal deposit at Rukwa.
Technical Details
The bulk sample behaved in a way our previous modelling had
predicted and produced results which indicate only moderate or in
certain circumstances no washing would be needed to result in a
product suitable for use in the power generation process. These
bulk sampling and wash results now underpin the power plant design
process and will provide validity to the project in order to
progress through both technical and financial requirements.
Sample MK2 which lies in the southern end of the Mkomolo deposit
produced raw unwashed values as shown in Table 1.
Table 1 Raw Coal
Inherent Volatile Fixed Calorific Total
Moisture Ash Matter Carbon Value Sulphur
---------- ----- --------- -------- ---------- ---------
% % % % MJ/kg %
---------- ----- --------- -------- ---------- ---------
3.5 50.6 17.2 28.7 13.5 1.4
---------- ----- --------- -------- ---------- ---------
Applying a moderate or partial wash to the raw coal based on a
density of 2.1 the following product was obtained as shown in Table
2. The yield from this wash or "de-stoning" was high at 74%.
Table 2 Washed Coal
Inherent Volatile Fixed Calorific Total
Moisture Ash Matter Carbon Value Sulphur
---------- ----- --------- -------- ---------- ---------
% % % % MJ/kg %
---------- ----- --------- -------- ---------- ---------
4.0 42.6 20.1 33.3 15.7 1.4
---------- ----- --------- -------- ---------- ---------
The resultant product is considered suitable for the combustion
process and typical of many coals used in power generation
worldwide.
All values have been calculated on an air dried basis.
Additional washing of this seam by applying a slightly greater
wash based around a density of 1.7 produces a product above 20MJ/kg
which offers scope for supply into the local and regional markets.
The additional wash results from the other seam sampled at Mkomolo
will give a more complete representation of the possible
opportunities for short term supply to the local markets.
Rufus Short, CEO of Edenville, commented: "We are extremely
pleased and encouraged with the test results to date. The results
show and confirm suitable coal quality and very high yields will be
available for the Rukwa Coal to Power Project and give us great
confidence in the economic viability of our coal deposit to produce
power for Tanzania. Importantly, the results indicate we can
maximise the value of the insitu coal and there will only be
moderate treatment costs incurred to prepare the coal for use in
the power generation process. This is likely to have a positive
flow through impact on all areas of the mining operation, enabling
the project to maximise its economic potential and minimise both
capital and operating costs for the mine.
"Edenville is primarily a mining and resources focused group and
we are working alongside organisations whose speciality is power
development and generation to take this opportunity towards its
full potential. We look forward to further updating our
shareholders in the near future, particularly with regard to the
further test results and the potential suitability of our coal for
near term sale to the local market."
Qualified Person Review
Mark J. Pryor, Pr.Sc.Nat. has reviewed and approved the
technical information contained within this announcement in his
capacity as a Qualified Person, as defined by the AIM Rules and
National Instrument 43-101 Standards of Disclosure for Mineral
Projects.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Edenville Energy Plc
Jeff Malaihollo - Chairman +44 (0) 20 7652
Rufus Short - CEO 9788
Northland Capital Partners Limited
(Nominated Adviser)
Gerry Beaney +44 (0) 20 3861
David Hignell 6625
Optiva Securities Limited
(Broker)
Jeremy King +44 (0) 20 3137
Graeme Dickson 1902
IFC Advisory
(Financial PR and IR)
Tim Metcalfe
Graham Herring
Heather Armstrong +44 (0) 20 3053
Miles Nolan 8671
This information is provided by RNS
The company news service from the London Stock Exchange
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