Universal Coal has completed a Concept Study for its Berenice-Cygnus coking coal project in South Africa which shows potential for a sustainable 10 million tonne per annum open cast operation.

The mine will produce both primary soft coking and secondary thermal coal products over a mine life of in excess of 25 years.

Importantly, the Concept Study confirms the Berenice-Cygnus project is viable at this stage of its development.

Berenice-Cygnus, in the emerging Soutpansberg Coalfield near the Mozambique and Zimbabwe borders, is located 30 kilometres from a railway siding linked to both Maputo and Richards Bay ports.

The project has a gross in situ resource of 1.3 billion tonnes from the first phase of drilling.

Mr Tony Weber CEO said that “We are very pleased to be advancing the Berenice-Cygnus project with clarity now over its sustainable viability. This project is strategically important to Universal given its position within the emerging Soutpansberg coking coalfield and the quantum of available resource.”

“The company is now working on further mine planning and logistical supply chain strategies ex-mine including rail and port, in addition to commencing preliminary identification of potential markets for the coal both domestic and for export.”

Universal has begun the second phase of drilling at Berenice-Cygnus with 12 holes completed to date.

The company aims to upgrade the Inferred and Indicated Resources within the open pit areas to the Measured Category.

The program comprises 95 slim diameter and a further 29 large diameter holes, to be completed over two phases.

Source - Proactive Investors

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