Johannesburg, South Africa — 04 May 2012 – Coal mining investment and production company Continental Coal has revealed that its South African subsidiary, Mashala Resources, has entered into agreements that will allow the company to extend the operating mine life at its Ferreira Coal Mine and its production of high quality thermal coal through the acquisition and development of the adjacent and adjoining prospecting right.
“The prospecting right has been acquired from Misty Sea Trading in return for a market-related monthly royalty payment on each tonne of run-of-mine coal mined from the C-lower, C-upper and B-lower coal seams,” says a company statement issued here.
Continental Coal says it has already commenced mine planning work on the prospecting right to incorporate the adjacent block into Ferreira coal mine’s existing mine plan. A 15-hole exploration and resource confirmation drill programme has been finalised and drilling has commenced. The company is proposing to commence development of the prospecting right once relevant approvals have been obtained.
Mining activities at the Ferreira coal mine will extend from the current open cast operations across and into the new prospecting right. Mining on the prospecting right of between 350,000 to 400,000 ROM tonnes is forecast to be completed in approximately eight months.
“Continental Coal is pleased to also confirm that it is in negotiations with additional parties to acquire further prospecting rights that are both contiguous to, and in close proximity to, the Ferreira coal mine on similar terms, and will advise the market once these negotiations have been finalised,” the statement read.
Source: Continental Coal. For more information, click here.