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PRAIRIE LITHIUM LIMITED — Capital/Financing Update 2012
May 23, 2012
65572_rns_2012-05-23_39affc25-97d1-4ab9-9fe3-0bde92b99dd3.pdf
Capital/Financing Update
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ASX RELEASE 24 May 2012
KANGWANE RESOURCE INCREASE & SECTION 11 APPROVED AT MBILA
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30% increase in Kangwane Central Project total Resource to 177.7 million gross in situ tonnes
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South African Department of Mineral Resources awards new order mining right for Mbila Project
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ZYL to remain in suspension pending imminent announcements concerning company events
ZYL Limited (ZYL; ASX: ZYL) , the Perth-based metallurgical coal exploration and development company with two advanced anthracite projects in South Africa, is pleased to provide the following market update:
Kangwane Central Project Resource Increase
ZYL is pleased to announce a 30% increase in the total Resource for its Kangwane Central Project in South Africa’s Mpumalanga province.
ZYL CEO, Ian Benning said the increase to 177.7 million gross in situ tonnes (GIST) follows analysis of results from Phase 2 of a drilling programme recently completed over the Kangwane Central Project area.
“The Phase 2 drilling at Kangwane has improved the Project Resource in both size and confidence, with more than 47 million tonnes now in the Measured category,” Mr Benning said.
“The third phase of drilling at Kangwane Central is underway with a 25-borehole programme totalling 5,000 metres and comprising exploration, verification and geotechnical drilling.”
The full Phase 3 drilling programme, analysis and subsequent geological modelling will be completed in Q3.
Corporate Office:
Level 8, 225 St Georges Terrace, Perth 6000,Western Australia Tel: +61 8 9486 4036 Email: [email protected] PO Box 7653, Cloisters Square, Perth 6850, Western Australia Fax: +61 8 9486 4799 Web: www.zyllimited.com.au
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| Kangwane Central: JORC Compliant Resource Estimate – Gross in situ tonnes (GIST) Mt | Kangwane Central: JORC Compliant Resource Estimate – Gross in situ tonnes (GIST) Mt | Kangwane Central: JORC Compliant Resource Estimate – Gross in situ tonnes (GIST) Mt | Kangwane Central: JORC Compliant Resource Estimate – Gross in situ tonnes (GIST) Mt |
|---|---|---|---|
| Previous GIST Mt | Current GIST Mt |
GIST Mt change |
|
| Total measured coal resource | - | 47.7 | 47.7 |
| Total indicated coal resource | 54.4 | 107.3 | 52.9 |
| Total inferred coal resource | 81.8 | 22.7 | -59.1 |
| Total JORC-compliant coal resource | 136.3 | 177.7 | 41.4 |
| Kangwane Central – Southern | Kangwane Central – Southern | Kangwane Central – Southern | portion | ||||
|---|---|---|---|---|---|---|---|
| Product Quality per seam: Coal washed for 16% ash | content | ||||||
| Float | Wash yield | Calorific |
Moisture | Ash | Volatile | Carbon | |
| Seam | density | (%) | value | content | content | content | content |
| (t/m3) | (MJ/kg) | (%) | (%) | (%) | (%) | ||
| S5 | 1.60 | 26.73 | 28.80 | 1.39 | 16.00 | 7.07 | 75.54 |
| S4U | 1.99 | 88.70 | 28.90 | 1.08 | 15.92 | 6.85 | 76.15 |
| S4L | 1.51 | 20.32 | 28.48 | 1.22 | 16.00 | 6.80 | 75.98 |
| S3 | 1.90 | 60.33 | 28.37 | 1.77 | 15.48 | 6.00 | 76.75 |
| S2 | 1.95 | 70.00 | 27.89 | 1.66 | 15.89 | 6.96 | 75.49 |
| S1 | 2.19 | 87.53 | 28.63 | 1.51 | 15.76 | 6.96 | 75.77 |
New Order Mining Right for Mbila
ZYL is also pleased to announce the final approval of a new order mining right at its Mbila project from the South African Department of Mineral Resources (DMR).
The mining right has been granted in terms of Section 11 of the Mineral and Petroleum Resources Development Act, 202 (Act 28 of 2002).
Suspension Update
ZYL shares will remain in suspension pending an imminent announcement regarding corporate events. The Board is endeavouring to expedite the process in the best interests of the Company’s shareholders, and expects to be in a position to update the market in coming days.
ENDS
Contact:
Ian Benning, CEO, ZYL LIMITED
- T: +27 (0) 87 350 2751 M: +27 (0) 83 702 8221 E: [email protected]
Phillipe Lalieu, Commercial Director, ZYL Limited T: +27 (0) 11 245 9800 M: +61 (0) 83 455 6867 E: [email protected]
Media - South Africa
James Duncan, Russell and Associates T: +27 (0) 11 880 3924 M: +28 (0) 82 892 8052 E: [email protected]
Media - Australia
Annette Ellis, Purple Communications
T: +61 (0) 8 6314 6300 M: +61 (0) 458 200 039 E: [email protected]
About ZYL Limited
ZYL Limited is listed on the Australian Securities Exchange (ASX) and aims to become one of the world’s leading metallurgical coal producers. The mission of ZYL is to develop high-margin metallurgical coal deposits for domestic and export markets. Flagship projects are the Mbila and Kangwane projects in South Africa, located close to rail, port, power and water infrastructure.
Important information
The information in this announcement is an overview and does not contain all information necessary to make an investment decision. To the extent permitted by law, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this announcement, any of which may change without notice. This document is not a prospectus, disclosure document or offering document under Australian law or under any other law. It does not constitute an offer or invitation to apply for securities. It is for information purposes only. This announcement is not an offer of securities for subscription or sale in the United States or any other jurisdiction in which such an offer or solicitation is not authorised or to any other person to whom it is unlawful to make such an offer or solicitation. Some of the information contained in this announcement constitutes forward-looking statements that are subject to various risks and uncertainties, not all of which may be disclosed. These statements discuss future objectives or expectations concerning results of operations or financial condition or provide other forward-looking information.
Prospective investors should make their own independent evaluation of an investment in the securities. The material contained in this document does not take into account the investment objectives, financial situation or particular needs of any particular investor. No recommendation to investors regarding the suitability of the securities has been made and the recipient must make its own assessment and/or seek independent advice on financial, legal, tax and other matters, including the merits and risk involved. This announcement and its contents have been distributed to you, in confidence, solely for your information and may not be retransmitted or otherwise reproduced or disclosed to third parties or made public in any way, in whole or in part, for any purpose without written permission.
Competent person statement
Information in this announcement that relates to exploration results, minerals resources or ore reserves is based on information compiled by Mr Petrus Meyer, who is a consultant to the company. Mr Meyer, a member of the Geological Society of South Africa, has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code of Reporting of Exploration, Mineral Resources and Ore Reserves’. Mr Meyer consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.