London, England — MININGREVIEW.COM — 02 June 2010 – Sable Mining Africa “’ an AIM-listed resource company focused on mining assets in sub-Saharan Africa “’ says it has secured an 80% interest in Monaf Investments, which holds the Lubu Coal concession in the Bulawayo mining district of Zimbabwe.
The company announced in a regulatory statement here that it would pay US$3 million (R22.5 million) in cash and a further US$3 million (R22.5 million) in shares at 28 pence per share, subject to the satisfaction of certain conditions precedent.
Sable Mining said the transaction was part of the company’s strategy to identify and invest in coal and iron ore assets that the board believed could be rapidly developed to production.
The Lubu coal concession “’ which covers 19 236 hectares of the prospective Karro Mid-Zambezi coal basin in Zimbabwe “’ is located in the established Hwange mining district, and lies about 120km north-east of the Hwange Colliery.
“Lubu is a major undeveloped coal resource. The immediate objective will for Monaf to initiate a drilling programme to better define the geology of the coal basin. The intention is to confirm the initial 330 million tonnes to SAMREC compliant status, and in turn to generate significant value uplift for our shareholders,” said Sable Mining CEO Andrew Groves.
“Once this is achieved, Monaf would commission a bankable feasibility study and then move towards developing the asset to production,” he added. “This investment complements our current coal interests in South Africa and Botswana, which we hold through Delta Mining Consolidated Limited” said Groves.
The portion of Lubu for which the resources have been calculated holds the potential for open cast mining. Considering likely extensions, it has been estimated by independent consultants Behre Dolbear & Company that, with further exploration and drilling, there is potential to increase the coal resource at Lubu to 515 million tonnes. No SAMREC compliant resources estimates currently exist for Lubu.