20 May 2010 07:00
Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources
20 May 2010
Sable Mining Africa Limited ('Sable Mining' or 'the Company')
Update on the Rietkuil Coal Project
Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce that Delta Mining Consolidated Ltd ('DMC') has commissioned a Bankable Feasibility Study ('BFS') for the Rietkuil Coal Project ('the Project') in South Africa.
The Project, which is adjacent to Exxaro Resources Limited's Leeuwpan Colliery and Kuyasa Mining (Pty) Limited's Delmas Colliery situated in the Mpumalanga Province, has an in situ metallurgical and thermal coal resource estimate of 199.9 million tonnes, of which 156.9 million tonnes is in the Measured category and 42 million tonnes in the Indicated category. These figures are based on 237 boreholes drilled over the 2,720 hectare property, with the resource figures calculated to SAMREC guidelines by DMC and audited by The Mineral Corporation, an independent mineral industry consultancy.
The BFS is expected to be completed by November 2010 and will be based on the Feasibility Study finalised by DMC in September 2009, which was completed to a +20% -20% accuracy for a 3 million tonne per annum Run of Mine operation. Once completed, it is anticipated that the Project will be fast tracked to production. The specialist engineering consultancies selected for the BFS study are VBKom Consulting Engineers (Pty) Ltd, Petroleum & Environmental Services Company, JLT Mining Services & Supplies (Pty), Sedgman Limited, Greene, JacPet cc and Shangoni Management Services (Pty) Ltd.
DMC is also currently in discussions with financial institutions on debt funding for the Project. Once finalised, DMC and the mandated financial institutions will appoint a mining consultancy to be involved as an independent auditor during the BFS study.
Sable Mining CEO Andrew Groves said, "Our aim is to ensure that DMC rapidly develops the Rietkuil Coal Project into production, and the commissioning of the BFS is the next step toward achieving this objective. The Project has high quality thermal and metallurgical coal and is located in an established producing area with excellent infrastructure which will be beneficial both to the construction of the mine and the delivery of product to market. We have a strong balance sheet with circa US$160 million in cash, which we will utilise to assist DMC's project development as well as identify further opportunities across Africa, focussing primarily on coal and iron ore."
Additionally and in connection with the Company's announcements made on 1 April and 23 April 2010 regarding the acquisition of the balance of DMC's issued share capital not already owned by Sable Mining, the Company is pleased to announce that DMC has submitted requisite applications to the South African Department of Mineral Resources for ministerial consent to the change of ownership of DMC as required under section 11 of the South African Mineral and Petroleum Resources Development Act. Sable Mining hopes for a timely approval of such applications.
The above information has been reviewed and verified by Roman Szczenia, Chief Geologist Coal, for DMC for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Roman Szczenia Pr. Sci. Nat. (Reg. No. 400179/07) is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
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For further information please visit www.sablemining.com or contact:
| Andrew Groves | Sable Mining Africa Ltd | Tel: 020 7408 9200 |
| Jonathan Wright | Seymour Pierce Ltd | Tel: 020 7107 8000 |
| Stephen Mischler | Matrix Corporate Capital | Tel: 020 3206 7000 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |