ASX-listed African Energy Resources has calculated an initial measured coal resource at its 100%-owned Sese Coal and Power Project in eastern Botswana of 651 million tonnes(MT) after three drilling campaigns over two years, it said Wednesday.
The project has a total gross in-situ resource of 2.517 billion tonnes(BT), including 152 MT inferred, 1.714 BT indicated and 651 MT measured. The measured resources consist of 318 MT of 3,820 kcal/kg coal with 34.8% ash and 1.7% sulfur from the project's Block B, and 333 MT of 4.200 kcal/kg coal with 30.2% ash and 2.1% sulfur from Block C.
AER said in a statement that Block C's measured resource is an "ideal source of raw coal to fuel the Sese Integrated Power Project and future expansions," due to its proximity to existing infrastructure. It added that the block also has the potential to be washed to produce an export product.
Block B's resource contains higher washing yields, higher in-situ calorific value and low strip ratio that make it favorable for export products and regional sales, it said. The company added that washing yields for export products at the block are up to 65% in the 5,000-5,500 kcal/kg range.
AER said it is continuing feasibility studies and environmental and social impact assessments for the power project, which includes a 300 MW power station and 1.5 million tonnes/year coal mine.
The company said it is also progressing marketing, and rail and port studies at its Sese Export project, which is expected to export coal to regional markets and to Asia.
Sese, which AER discovered in June 2010, is located 50 km to the south of Francistown, immediately west of the existing rail, road and power corridor which runs the length of eastern Botswana and connects into neighboring countries Zimbabwe and South Africa and on into Zambia and Mozambique