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African Energy Resources (AER) has calculated an initial measured coal resource of 651mn tonnes at its coal and power project in
The project has a total gross in-situ resource of 2.517bn tonnes, including 152mn tonnes inferred, 1.714bn tonnes indicated and 651mn tonnes measured.
Following three drilling campaigns over two years, the measured resources consist of 318mn tonnes of 3,820 kcal/kg coal, with 34.8 per cent ash and 1.7 per cent sulphur from Block B, and 333mn tonnes of 4,200 kcal/kg coal with 30.2 per cent ash and 2.1 per cent sulphur from Block C.
Due to its proximity to existing infrastructure, AER said that Block C's measured resource was an “ideal source of raw coal to fuel the Sese Integrated Power Project and future expansions”.
It added that the block also has the potential to be washed to produce an export product.
Block B's resource contains higher washing yields along with higher in-situ calorific value and low strip ratio, making it favourable for export products and regional sales, the ASX-listed company said.
It added that washing yields for export products at the block are up to 65 per cent in the 5,000-5,500 kcal/kg range.
Feasibility studies and environmental and social impact assessments are ongoing for the power project, which includes a 300MW power station and a 1.5mn tonnes per year coal mine.
The company said it was also developing its marketing strategy and rail and port studies for the export project, which plans to export coal to regional markets and
Sese, which AER discovered in June 2010, is located 50km to the south of