AMN - SOUTH AFRICA: Riversdale estimate precedes PFS

An updated JORC 2012-compliant resource estimate for Acacia Coal’s newly acquired Riversdale Anthracite Colliery (RAC) project in South Africa paves the way for release of the findings of a pre-feasibility study (PFS). The project contains almost 10 million tonnes of anthracite in the Gus Seam with 86% in the measured and indicated categories.

The Alfred Seam, which was previously excluded from the resource estimate, has been drilled and earmarked for eventual infill drilling at a later date.

The PFS for RAC, which is in KwaZulu-Natal Province, is on track for completion by mid-May and will include a maiden reserve estimate. Acacia has a 74% interest in the project.

The independently calculated RAC resource now comprises total measured, indicated and inferred resources of 9.521 million tonnes of high quality, low sulphur and low phosphorus anthracite with 8.21 million tonnes in the higher confidence categories and available for conversion to ore reserves.

Acacia says the imminent PFS will signal the first key milestone in its aggressive development strategy for RAC, which it secured late last year under an agreement with Rio Tinto. It aims to complete all feasibility work this year and advance the project rapidly through permitting and financing towards development.

The remaining regulatory hurdle is the Integrated Water Use Licence, which will be applied for this month.

Acacia’s managing director Hugh Callaghan said the updated resource statement provided further evidence of the high quality and strategic value of the RAC project, which was ideally placed to supply a domestic market facing significant supply shortages.

“While the RAC project has been extensively drilled and studied historically, we have now upgraded the Gus Seam resource to JORC 2012 compliance and, as a result of this latest upgrade, established 86% in the high confidence measured and indicated categories.

“With a maiden ore reserve and pre-feasibility study now imminent, we are on the cusp of being able to demonstrate to investors the significant value of the high quality metallurgical coal asset and outline our plan to unlock this value by bringing it into production in the near future.” 

www.acaciacoal.com.au