A-Cap earmarks $4 million rights issue for new coal mining

Australian-based and publicly listed (ASX) mining group A-Cap Resources Limited intends to raise (Aus) $4 million by way of a fully underwritten non renounceable rights issue to undertake new coal mining optimisation programmes in Botswana says the Chief Executive Officer (CEO) Paul Thomson.
In the March 2015 A-Cap quarterly report, Thomson announced that in order to raise the equity, the group had offered 100,001,842 new shares at $3.75 to shareholders. At quarter end, the Company held cash and marketable securities totalling $1.36 million.
According to the CEO, the MCP comprehensive study on PL134/2005 completed by independent coal specialists Sedgman South Africa in February 2014 contains multiple coal seams within a thicker carbonaceous unit that extends to over 100m true thickness. Initial results are very promising with Raw Coal Quality (RQC) at MCP potentially higher than the typical coal found elsewhere in Botswana.
The MCP phases addressed in sequence included the review of geological data, resource modelling, and mining suitability referencing of other existing operations. Conceptual mine design and block sequencing, high level mining costing, washability analysis and product selection, design of suitable coal handling and washing plant, capital cost definition, operating costs, high level financial model, marketing assessment and recommendations for future development, formed part of the phasing processes.
“The MCP deposit located approximately 120km west of Francistown is situated 5km north of the A30 highway linking Francistown to Orapa with all-weather roads and grid power lines passing through the prospect area.
“During the quarter, A-Cap received confirmation that the Botswana Department of Mines (BDM) had approved our second extension application for the Mea prospecting licence (PL134/2005), and expires in December 2016”, said Tomson.
Thomson said A-Cap also discovered coal at the BCP comprising two PLs Foley PL125/2009 and Bolau PL138/2005 during its ongoing regional uranium exploration programme. BCP constitutes the up and down dip extension of African Energy’s Sese Coal Project (AESCP) extending into A-Cap’s PL138/2005 and PL125/2009. The adjacent Sese thermal coal deposit contains a JORC compliant Mineral Resource of over 2.5 billion tonnes, comprising a Measured Resource of over 650 Mt coal, with an additional estimated 1,850 Mt in Indicated and Inferred.
A BCP Sedgman scoping study was designed to determine the economic viability including the maiden resource announcement in December 2014. Options of coal for export and power generation are currently being considered. The deposit is near to surface and can be extracted at a low stripping ratio.
Likewise, BDM approved both the Bolau prospecting licence (PL138/2005) and renewal for the Foley prospecting licence (PL125/2009) for a further period of two years. In Situ Coal Tonnes at Foley total 148 million tonnes, of which 71 million tonnes is classified as Indicated. The resource drilling covers a small percentage of the tenement area allowing for potential upside to the current declared resource tonnage.
With the near finalisation of the MCP and MCP coal evaluation scoping studies by Sedgman, the results will be announced in the next 2015 H1
based on the A-Cap report, “Once beneficiated, the quality of the coal improves to a potential export product, with increased Calorific Value (CV), lower Total Sulphur (‘TS’) and a promising yield.
“The Foley JORC indicated resource announced in December 2014 brings this project to the stage where mining studies can rapidly define the economic potential. The resource of close to 30 million tonnes in the SS seam allows for a substantial mine life for export for power generation options.”
Botswana has been proactive in future infrastructure upgrades in the short term to Richards Bay and has recently signed the Trans Kalahari Railway (TKR) agreement with Namibia to deliver a dedicated high volume rail to Walvis Bay, with feasibility studies currently underway. The government and industry are also proactively engaging the Mozambique and South Africa rail entities regarding further increases in capacity.
The Environmental and Social Impact Assessment (ESIA) is on track for completion. As the metallurgical and process design work has been completed, final mining data and process costs are available for use in a new mining optimisation schedule.