LONDON (Alliance News) - Edenville Energy PLC Thursday said the Mkomolo coal basin, part of its Rukwa coal project in Tanzania, may host further coal deposits to the west as it continues conducting exploration work.
The company is currently exploring the coal-bearing basins at the Namwele and Mkomolo coal basins and investigating the Mwerang'anda and Wankulwe areas, all part of the wider Rukwa coal project.
On Thursday, Edenville said it has identified "marker units" in each of the coal basins, which "give a better understanding of the form, distribution and extent" of the coal-bearing horizons at the margins of the Mkomolo and Namwele deposits.
Marker units are bands within the sedimentary layers that are significantly different to the rest of the sediments which generate a different geophysical signal and/or response to the surrounding rocks.
The identification of marker units at Mkomolo will allow the company to test the depth of coal-bearing horizons without having to conduct another drilling programme, but the company said this is not a priority.
The Mkomolo basin has also shown the potential to host additional coal in the west area, but further testing will be required to better define any additional coal structures.
Edenville has also clarified that the area between Namwele and Mkomolo does not host suitable resources, and therefore will be used for site development.
Going forward, the company will continue to collect geophysical data from its exploration programme until the end of the dry season in December.
"Once the magnetic survey field work in the Mkomolo area is complete at year end we will be in a position to analyse the data using a specialist consultant. This interpretation will allow the company to make an informed decision as to the presence and viability of any coal measures indicated on the western margin of Mkomolo," said Chief Executive Rufus Short.
The Rukwa coal project is being built to supply an integrated power plant that will have the capacity to generate 120 megawatts of electricity. The company stressed that this exploration work is a "bonus" and is not required to provide coal to the power plant.
Edenville shares were down 4.2% to 0.0599 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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