ASX AND MEDIA
ANNOUNCEMENT
7 February 2008
ELS 57 2008
Integrated energy company
Aviva Corporation Limited (ASX:AVA), today announces an initial resource estimate
of 1.287 billion tonnes of coal at the Mmamantswe Coal Project in Botswana.
The result is a major
resource boost for Aviva, and is more than double the 600Mt target proposed in
April 2007 when the prospecting licences were granted.
Aviva CEO, Mr Lindsay Reed, said the initial resource estimate
highlighted the potential of the project, where Aviva has been investigating
the merit of a 1,500MW
power station.
“The resource
estimate affirms the Mmamantswe Project as very low strip ratio open pit
thermal coal deposit, with the potential to supply the six million tonnes per
annum required to support the 1,500MW power project,” Mr Reed said.
“The in situ
tonnage of 1.3 billion tonnes significantly exceeds the 600 million target set
by the company, and is a major milestone in the development of the
project,” he said.
Coal quality is in line
with expectations, and testwork confirms that around half the ash is removed at
high relative densities of 1.8-1.9.
The average overburden
cover in the resource area suggests a stripping ratio of around 1 bcm/tonne of
in-situ coal.
Drilling revealed that
the volume of the coal basin was larger than targeted because the thickness of
the carbonaceous sequence persisted further to the west than anticipated. Coal
quality test work results received to date confirm the coal content of the
carbonaceous sequence also persists to the west.
RESOURCE ESTIMATE
|
|
TOTAL
|
RD 1.90
|
RD 1.80
|
Volume
|
Mm3
|
658.4
|
658.4
|
658.4
|
Ash
|
% ad
|
57.7
|
30.5
|
25.2
|
Calorific Value
|
GJ/t ad
|
9.2
|
18.2
|
20.1
|
Fixed Carbon
|
% ad
|
21.3
|
40.2
|
43.6
|
Inherent Moisture
|
% ad
|
3.3
|
5.0
|
5.3
|
Relative Density
|
|
2.0
|
|
|
Sulfur
|
% ad
|
0.8
|
0.4
|
0.4
|
Volatiles
|
% ad
|
17.6
|
24.4
|
25.9
|
Cumulative Yield
|
%
|
|
51.8
|
41.2
|
Thickness
|
m
|
43.7
|
43.7
|
43.7
|
Tonnes
|
Mt
|
1,287.9
|
648.3
|
487.9
|
The coal quality test work
confirms Aviva’s expectation that the coal would be amenable to
beneficiation at a relatively high cut point. Cumulative floats in the 1.8 to
1.9 relative density range show 50% reduction in ash at a 40-50% yield. The
calorific value of the coal in these cumulative floats ranged from 18-20
GJ/tonne which is at the high end of the company’s expectation. Particularly
pleasing is the sulphur content of 0.84% which is reduced to less than 0.5% in
the cumulative floats.
The resource estimate is
based on a 32 hole 3500m drill program. Of these holes 23 intersected coal and
have been utilised in the resource volume calculation. Coal quality test work
results for 13 of these holes were used to model the coal quality parameters. Coal
quality results from another nine holes are now available and will be
incorporated in the resource model. It is expected that these results will
upgrade some of the resource from the Inferred to Indicated category. A drill
hole location map, table of drill holes, description of coal zoning
and break down of the resource estimate by zone is appended to this release.
A new drilling program to
upgrade the deposit to reserve is currently being planned to commence in late
March. The program will comprise 150-250 holes and will be designed to upgrade
the resource to reserve status. The drill program will increase the density of
coal quality information across the deposit, enable coal preparation test work
and design to be completed and provide a composite sample of a representative
washed product for combustion test work to enable boiler design.
For further
information, please call:
Lindsay Reed Robert Kirtlan
Aviva Aviva
Chief Executive Officer Director
Tel: +61 (0) 8 9367 2344 Tel:
+61 (0) 8 9367 2344
Issued by:
Warrick Hazeldene Purple Communications Tel: +61 (0) 8 9485 1254
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