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Kangwane anthracite project prepares for BFS

Australian company ZYL Limited is progressing due diligence of the Kangwane anthracite project in the Mpumalanga province of South Africa, with the formation of a bankable feasibility study committee and exploration planning. This follows the company’s plans to acquire a 50.12% interest in Kangwane via a farm-in and joint venture with BEE group Siyanda Resources.

The Kangwane project has the potential to host economic resources of high quality anthracite, from which a low ash and low impurity washed product could be produced for the export markets and a medium ash washed anthracite product produced for local markets. The bankable feasibility study for Kangwane will include the completion of an additional 7,000 m of drilling, this being a combination of confirmatory and step-out drilling.

Initially the study will focus on the target areas of the south and north pits where the company has JORC-compliant resources of about 16.3 million tonnes of measured and indicated resources. Overall the project has a total JORC compliant resource of 114 million tonnes of anthracite coal including a measured resource of 21 million tonnes and an indicated resource of 25 million tonnes. Based on previous geological work an exploration target of between 400 million tonnes and 450 million tonnes at an expected calorific value range of 6,635 kcal to 7,200 kcal has been independently determined by consultant geologists.

The project is located within 100 km by rail of the Matola coal terminal at Maputo. An existing rail siding is located on the southern end of the anthracite project with loading capacity of 100,000 tonnes a month.

A comprehensive drilling database of 149 diamond drill holes with a combined depth of 18,567 metres over a strike length of 33 km was completed by Mining Corporation Limited (MCL) in the 1980s. An existing box-cut on the property provides the opportunity to remove a bulk sample for metallurgical testing.