Mozambique

CAMEC is the largest single holder of coal licences in the country, the 368,580 hectare licences being in Lower Karoo coal bearing sequences in the Moatise and the Mucanha-Vusi sub-basins in the prospective Zambezi Coal Basin in the Tete Province. Following the initiation of an exploration and drilling programme on these licences, numerous coal horizons have been identified hosting a succession of alternating coal and carbonaceous shale seams. From early results and from basic extrapolation, our geologists are estimating a deposit containing in the region of 3.4 billion tonnes. Whilst these are not yet JORC compliant estimates, they provide us with a strong indication of the potential for production.

A high resolution airborne magnetic survey has been completed over the licence areas and geological drilling and evaluation of these various sub-basins are currently underway. The aim is to identify coal resources of sufficient quality and quantity to allow production to commence within the next five years. Results to date have proved extremely encouraging, and extensive strike lengths have been identified - L876: 6 km strike up to 20m thick and L877: 15 km strike. It is CAMEC's intention to systematically evaluate all licences with a view to prioritising the most prospective for resource drilling and development.