Proactive Investors reported that Uranex is in discussions with a number of potential joint venture partners for its Songea Coal Project in Tanzania, a strategic move which could unlock the potential of the coalfield.

The company confirmed that it has received a number of unsolicited proposals from potential joint venture partners to participate in the 2012 exploration program at Songea.

Bringing a joint venture partner into the project will also allow Uranex to maintain focus during 2012 on its Mkuju Uranium Project.

The Songea Coal project covers a total area of 2,606 square kilometres in the Ruhuhu Basin that contains 11 recognised coalfields. The three largest coalfields, known as Ketewaka, Mchuchuma and Ngaka, occur in a similar geological setting and lie within 50 kilometres of the Lumecha Coalfield.

A recent USD 3 billion agreement between the Tanzanian Government and China’s Sichuan Hongda will see the development and mining of the adjacent Mchuchuma Coalfield, representing the single largest investment in Tanzania.

The coalfields are adjacent to a planned infrastructure project including rail, road, power and port for domestic and export markets.

Uranex is currently undertaking geophysical down hole logging of the five drill holes completed in 2011 where coal intersections were identified A review of the basin by consultants to target areas most likely to host near surface coal is also in progress.

Source - Proactive Investors

(www.coalguru.com)