Lemur Resources could potentially produce 70% export grade thermal coal from its Imaloto Coal Project in Madagascar with consolidated results of a phase three drilling program suggesting beneficiation of the coal within the Main Seam will yield qualities suitable for the seaborne market.

The company had USD 20.4 million of cash at June 30. Importantly, the latest results represent a further improvement in the overall yield and therefore a likely improvement in the economics of the project.

Further strengthening the potential project economics, the main seam secondary product, assuming a single stage wash has again been confirmed as suitable feedstock for a domestic coal fired power station, delivering a theoretical yield of 100% for the entire Main Seam.

Wash table analyses of the Upper and Top seams indicate both seams have the potential to generate a product suitable for power station feedstock with yields of 75.3% and 81.3% respectively.

The Imaloto Coal Project which covers 81.5 square kilometers over five permits is located in the Imaloto Coal Basin, the northern-most coal field in the greater Sakoa Basin of South West Madagascar. It is located around 30 kilometers northwest of the Sakoa Basin, where coal mining has previously been carried out.

The project hosts an Inferred JORC Resource of 176 million tonnes of coal with the phase three drilling program targeting an upgrade to the high confidence Measured category. The geology in the region is similar to that of the Witbank coal field in South Africa and the Gondwana coal fields of India.

Outcropping coal measures extend for a distance of around 15 kilometres, immediately west of the north to south flowing Imaloto River.

Imaloto is favourably located near the existing port of Tulear and adjacent to the proposed Soalara Port, where infrastructure planning is underway to provide a mineral bulk handling export facility.

Source - Proactive Investors

(www.coalguru.com)