03 Nov 2013

A-Cap Resources has two years to develop an uranium mine in Letlhakane following an extension of their prospecting license. 

The company’s chief executive officer, Mr Paul Thomson, said in a statement recently that the company had adequate time to complete all feasibility and environmental work necessary to enable the submission of a mining licence for the Letlhakane Uranium Project (LUP).

“This extension reflects the government of Botswana’s recognition of A-Cap’s commitment to the development of the LUP, the high quality of work undertaken on the project and importantly, A-Cap’s high standing with the communities in which it operates and all stakeholders in general,” he said.

Mr Thomson noted that the project has significant comparative advantages in cost of mining and processing, is within proximity of all major infrastructure and is located in a very secure investment jurisdiction. 

“The Letlhakane Uranium Project lies adjacent to Botswana’s main North-South infrastructure corridor that includes a sealed all weather highway, railway line and the national power grid, all of which make significant contributions to keeping the capital cost of future developments low,” he said.

In addition to the positive uranium resource upgrade, A-Cap has defined a 107 million tonne JORC compliant coal resource within the sediments that host the Letlhakane uranium deposit. 

He also said they have discovered two new coal projects in Mea and Bolau. Mea is considered a ‘greenfields’ thermal coal discovery that contains multiple coal seams within a thicker carbonaceous unit that extends to over 100m true thickness. 

Earlier this year, they defined a JORC compliant inferred resource of 335 million tonnes of coal and possibly low ash Pulverised Coal Injection, he explained, adding that the project has been the focus of a detailed engineering and market study, the results of which will guide the next steps for the deposit. 

Bolau appears to be an extension of the Sese Coal Project discovered by African Energy Resources which contains over 2.5 billion tonnes of thermal coal and A-Cap has been given coal rights within Bolau tenements.  

“The discovery of these coal projects has opened up a whole direction for the company and offers our shareholders further risk diversification by multi-commodity exposure,” Mr Thomson said. Ends