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Miranda advances application process to extract coal at Kliprand Colliery |
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Written by JSE SENS Department
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Tuesday, 05 February 2008 |
Sesikhona, a subsidiary of Miranda today announces that its application to convert the prospecting permit to a mining right was accepted by the Department of Minerals and Energy (“DME”). This award, if granted, will enable its joint venture partner, Ihlosi Mining to mine the coal and anthracite deposits on the colliery.
Miranda holds an 88% interest in Sesikhona. The remaining 12% is held by the local Kliprand community, who are actively involved in the project and are represented on the board of Sesikhona. The colliery, situated near Dannhauser, Kwa Zulu Natal, consists of four contiguous farms and covers 884 hectares.
In terms of the JV agreement with Sesikhona, Ihlosi have paid an initial fee of R1miilion and will pay an additional R5m on commencement of mining operations.
Sesikhona will thereafter earn R50 per ton of coal mined over the 20 year life-time of the project. Ihlosi have warranted a minimum of 30 000 tons per month, building up to an average of 50 000 tons per month.
Alan Thompson commented,” We are very excited with the acceptance of this permit as it stands to generate about 22 million tonnes of high grade coal and anthracite of which at least 40% can be mined using open cast mining. The mines’ life-time is estimated to be about 20 years which equates to about R2.5 million per month in net annuity income for Miranda.
This acceptance is an encouraging step in the mining right application and we are confident that mining operations will commence towards the end of the second quarter”
Preliminary drilling results revealed the occurrence of two seams, the top and bottom, with an average depth of 20m and 29m respectively. The top seam has an average thickness of 1.83m and the bottom seam 0.98m.
The Scoping Report, which represents the first phase of the conversion to a mining right, has also been submitted and accepted by the DME. The company has engaged the services of DG Environmental Consultants, environmental specialists based in Dundee, to prepare the Environmental Impact Assessment (“EIA”) as required by the MPRDA (Minerals and Petroleum Resources Development Act). Progress on the EIA is advanced and will be submitted to the DME and other Interested and Affected Parties within the prescribed time limit of 90 days.
ENDS
ISSUED BY: FDBeachhead
Senzi Dlamini
(011) 214 2420/ 073 494 0030
Louise Brugman
(011) 214 2415/ 083 504 1186/
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ON BEHALF OF: Miranda Minerals
Financial Director: Wayne Ison
Corporate Advisor: Qinisele Resources
Dennis Tucker
082 492 4957
Notes to editors
Miranda is a mineral exploration company that enters in to a JV agreement with a potential mining partner 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 resource, or a probable or proved reserve. On completion of the exploration program, the JV partner will have the exclusive right to mine the project 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. |
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Last Updated ( Monday, 05 May 2008 )
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