Ncondezi Project

Key facts

• Located in the Tete Province, one of the largest undeveloped coal regions in the world
• Licence area of 38,700ha
• JORC resource of 1.8 Bt at less than 200m depth
• Scoping study confirms 10 Mtpa thermal open cast mine
• 10kms from local railway infrastructure that connects to the Port of Beira
• Potential for coking coal identified
• Banakable feasibility study completion targeted for second half of 2012

The Ncondezi Project is the Ncondezi Group’s flagship asset and covers a total area of 38,700 ha (equivalent to 35km by 11km) in the coal bearing Zambezi Basin in Mozambique. The Ncondezi Project comprises licences 804L and 805L, where a total 122 boreholes or 16,737 metres have been drilled and a 1.8 billion tonne JORC resource identified. A scoping study has been completed by SRK that confirms the economic potential for an open pittable 10 million tonne per annum export thermal coal operation.

Good potential exists to increase the resources within the Ncondezi Project where there is also considered to be potential for coking coal, but this requires more work to confirm. The Ncondezi Group is now focused on the completion of a fast-track bankable feasibility study at the Ncondezi Project, which is scheduled to begin in the second half of 2010 and be completed in the second half of 2012.