Aviva Corporation Ltd said this week the Mmamantswe Coal Prospecting Licenses in Botswana have been renewed for a further 2 years.
According to the company, this second renewal required a 50 percent reduction in the first renewal area and the two Prospecting Licenses (PL070 and PL069) have now been consolidated into a single license PL069 covering 453.7 square kilometres.
The new Prospecting Licence encompasses more than 12 times the area of the Mmamantswe deposit and retains access to Botswana’s main infrastructure corridor 40km to the west.
A probable reserve of 895 million tons was estimated for Mmamantswe by SRK Consulting in 2010 and studies have demonstrated the project could yield 200 million tons of export grade thermal coal and an additional 100-150 million tonnes of domestic power station coal.
Aviva’s consultant Earthtec has completed the Environmental Impact Assessment (EIA) report for Mmamantswe. The Earthtec report does not identify any major environmental impediments and formal meetings with government stakeholders are scheduled in late May 2012 to finalise the EIA report.
Aviva’s Chief Executive Officer, Lindsay Reed, said the renewal of the Prospecting Licenses is further good news for Mmamantswe following on the very positive outcome of the Coal Road Map Review.
“Mmamantswe is the only coal development project in Botswana with a JORC reserve estimate,” Reed said.
“It has a very low strip ratio, a defined 8Glpa water resource, and close proximity to both transmission (under construction) for domestic and export power markets, and to the proposed spur to the Trans Kalahari railway. Aviva is considering options to add to its coal portfolio in Botswana,” he added.
Aviva Corporation Limited is a resource development company listed on the Australian Securities Exchange and the Botswana Stock Exchange, with its head office in Perth.
The company is well funded, and has a clear strategy to identify and develop early resource opportunities which are well located to demand and infrastructure.
The Aviva management team has strong resource and capital market expertise, with proven expertise in the delivery, generation, exploration, approval and development of resource projects.
In Africa, the company is exploring for gold and base metals at its West Kenyan joint venture project with AfriOre International Ltd, a subsidiary of Lonmin Plc.
Aviva also has an interest in two coal based energy assets ÔÇô the Mmamantswe project in Botswana, and the Coolimba project in Western Australia.