Johannesburg, South Africa — MININGREVIEW.COM — 15 February, 2008 – South African mineral exploration company Miranda Mineral Holdings Limited has been granted another two prospecting rights for coal in the KwaZulu-Natal province of South Africa. The two additional rights mean that Miranda is now in the possession of six prospecting rights in the province.
A company announcement here today revealed that the further prospecting rights for coal had been granted to the group by the Department of Minerals and Energy (DME). They have been granted over three contiguous farms – namely Bosch Hoek 1312 and Bosch Kloof 1073 (Applewood), as well as Wasbank (Nungu) – covering an area of 6 609 hectares.
The project area is situated 10 km southwest of Glencoe, and borders the farms Uithoek and Burnside, on which the group holds existing prospecting permits.
“Top and bottom seams occur in the area as economic seams and are reported on in the preliminary resource calculations,” the announcement adds. “Both seams have soft and hard coking coal properties, with some selected areas recording high swell indexes which may yield high grade coking coal properties,” it continues. “The current borehole data is of sufficient density to be classified as an “indicated” resource.
Analysis of the borehole data on Bosch Hoek and Bosch Kloof, demonstrates an in-situ resource of 52.2 million tonnes. Management is currently reviewing the borehole data on the farm Wasbank to determine the size of that resource.
Miranda is a mineral exploration company that enters into joint venture agreements with potential mining partners to conduct exploration and feasibility on a particular resource (over which Miranda typically will hold a prospecting permit), with a view to upgrading its mineral status to that of either a measured, probable or proved reserve.
“On completion of the exploration programme, the JV partner concerned will have the exclusive right to mine the project,” the announcement explains, “and Miranda will earn a ‘JV fee’ based on an ongoing turnover/ profit percentage or rand amount per ton mined by the JV mining partner.”