Friday, April 24, 2009

Riversdale Mining [ASX: RIV] - Coal resources increase 90% to 4.0 billion tonnes in Mozambique

Riversdale Mining Limited (ASX: RIV) has today announced an updated Resource and Reserve statement for the Benga Coal Project (EL 881L) in the District of Moatize, Province of Tete, Mozambique. The Benga Project is held in a joint venture between Riversdale Mining Limited (65%) and Tata Steel Limited (35%). Based on the data collected from recent drilling activities, a Coal Resource of 4.0 billion tonnes has been estimated. 

Of this amount, 1,033.9 million tonnes (Mt) is the combined total for Measured and Indicated Resources and 893.4 Mt of these are at a depth of less than 500m. This Coal Resource represents an increase of 90% over the previous Resource announced in September 2008.

The Company also announced that an initial Coal Reserve of 273.3 million tonnes has been estimated. Of this, 181.3 Mt are Proved Coal Reserves and 92.0 Mt are Probable Coal Reserves. These Reserves have been estimated in accordance with a review that anticipates an initial Run of Mine (ROM) development of 5.3 Mtpa, increasing subsequently to 10 Mtpa and ultimately 20 Mtpa as transport infrastructure becomes available.

The increased Resource and initial Reserve estimates represent a material development for the project and will impact positively on the overall scope of the mine and its potential to develop into a project of global significance.

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