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Significant coal discovery in Mozambique

Aerial view of
CAMEC’s Luita copper
and cobalt processing
facility in the DRC
Johannesburg, South Africa — MININGREVIEW.COM — 30 April 2008 – London-based Central African Mining and Exploration Company (CAMEC) – better known as a producer of cobalt and copper in the Democratic Republic of Congo (DRC) – claims to have identified a significant coal resource in Mozambique.

An exploration update released here yesterday revealed that geological mapping on the L871 licence area has identified eight new coal zones partially exposed in surface outcrop, and confirmed by drilling over a strike distance in excess of six kilometres. “The outcropping coal horizons dip at approximately 12 degrees north, and this shallow dip makes these horizons amenable to large scale open cast mining,” the update said.

CAMEC’s geologists have estimated that these horizons could contain up to 868Mt of potentially mineable in situ coal – 680Mt measured and indicated, plus 188Mt inferred, for a total of 868Mt.

They added that further drilling along strike was expected to increase this resource substantially.

The exploration update revealed that a further large outcropping coal deposit had been identified on L871, and resource drilling was underway to establish a SAMREC-compliant resource on this property. SRK Consulting (South Africa) (Pty) Ltd, a subsidiary of SRK Global Limited, had been appointed to oversee the exploration programme, and to sign off on a formal resource estimate which will comply with the SAMREC Code.  The Company expects to be in a position to announce a SAMREC compliant resource estimate for licence L871 in the fourth quarter of 2008.

CAMEC chief executive Andrew Groves commented: “We are greatly encouraged by the initial results of the exploration programme. With China’s demand for imported coal alone having tripled since 2003, the growing global demand for coal represents a significant opportunity for CAMEC, given these initial results and our other coal assets in South Africa. As more data become available, the geological modelling will commence in earnest and allow for a better understanding of the deposit to be developed.”