Ngwabe Block
Exploration success at ZAC has resulted in an increase in the Coal Reserves to 11.41 million tonnes at 30 June 2007 (30 June 2006: 8.01 million tonnes). A significant potential resource has been identified in the form of the Ngwabe Block. A portion of this block is within the current mining lease area and the remainder is within the ZAC prospecting rights area that has been approved by the Department of Minerals and Energy (DME).
The interpretations of geological structures and airborne surveys have identified characteristics synonymous with that for hosting the main seam across an area with a strike length of 6.5 kilometres and width of 800 – 1000 meters. Exploration drilling is being undertaken in the Ngwabe Block and the main seam has been broadly delineated at depths ranging from 200 to 450 meters.
These developments are highly promising and suggest that a considerably larger mine can be established at ZAC over a 3-5 year period, with a substantially longer mine life, that will fully utilise the current unutilised washing plant capacity.
Geology and Setting
The Ngwabe potential resource area is located between the Kwa-Sheleza and Mngeni reserve areas in a perceived down faulted graben structure.
The extent of the potential area as indicated on plan (see diagrams below) is based on surface mapping of geological formations, in this case shale of the "Volksrust Formation", known to be younger than the coal bearing beds. This area happens to be the only place where the "Volksrust Formation" is still preserved above the "Vryheid Formation" (coal bearing beds) and therefore the greater than normal depths at which the coal seam is expected.
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