GLENEAGLE GOLD LIMITED - ASX: GLN

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Description

Gleneagle is an exploration company with a focus on Southern African mineral and coal opportunities which have defined programmes of work in place to develop into operating mines supporting major energy generating services.

Gleneagle recently signed agreements to conditionally acquire up to a 70% interest in two Prospecting Rights for coal, over the farms Verloren Valey, Kleinberg, Duikerpan and Houwhoek, located in the Waterberg region of South Africa, the key highlights of which are:

* JORC compliant Coal Resource Estimate (Indicated) at Verloren Valey: 1.29 Billion Tonnes
* Historic drilling on Duikerpan and Kleinberg intersected significant thicknesses of coal.
* Coal resources contain coking coal for the local and export markets, and a middling product for local power generation (Eskom).
* Shallow overburden at Verloren Valey provides large areas amenable to open cast mining operations.
* Prospecting Rights located close to infrastructure and existing power stations. Community Investment Holdings (Pty) Ltd provides Black Economic Empowerment ("BEE") ownership and control of the Projects in excess of South Africa's mining charter's minimum requirement.
* The Waterberg coalfield is estimated to contain 50% of the total remaining coal reserves in South Africa.

The acquisition is conditional on, amongst other things, the completion of due diligence and the obtaining of shareholder approval and all necessary regulatory approvals.

Mine For

gold, coal, iron ore, uranium

Location of operation(s)

Western Australia, Mozambique

Address

Level 1, 34 Bagot Road
SUBIACO, WA, AUSTRALIA

Phone

08 9380 3400

Email

Website

http://www.gleneaglegold.com.au

Last Updated

3/11/2008