RESOURCE GENERATION LIMITED - ASX: RES

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Description

Resource Generation has a geographically diverse portfolio of high grade resource deposits with a defined program of work in place to develop these into operating mines.

South Africa

Coal is the major source of energy in South Africa. Production from existing mines is limited and there is expected to be an imbalance between supply and demand over the next ten years. The Waterberg coal field contains approximately 40% of South Africa’s remaining coal resource and is considered to be the main source of coal in the future.

We were attracted to the Waterberg region because of the accessibility and quality of its coal. The Boikarabelo coal seam is between 20 and 30 metres below the surface, enabling low-cost, open-cut mining. The seam is between 120 and 130 metres thick, with zones of varying quality thermal and soft coking coal. We are already well advanced with planning the mine and have designed the coal handling and preparation plant. The shallow overburden means that a small fleet of equipment can produce a lot of coal. Costs will be relatively low, and multiple mining benches will provide the flexibility to extract the coal quality required.

Tasmania

Acquisition of the Tasmanian tenements occurred in October 2008. The areas had undergone varying degrees of historical exploration and work has focused on the Woodbury and Jericho tenements to identify and retrieve what information remained from that previous work.

The bulk of the useful information related to the Woodbury deposit and this has been reloaded into a geological model to assist in evaluating the potential for the area. Information relating to the Jericho area was also loaded and together with Woodbury an exploration program has been established for both areas. Land access was finalised in mid 2010 and a new exploration drill program has been commenced.

Cameroon

Desktop studies of historical information indicate that the tenements may be prospective for sandstone-style uranium deposits. Historically the data shows that the areas comprise radiometric geophysical anomalies, and geochemical uranium anomalism in either soil samples, stream sediment samples or rock chip samples.

Tenders for aeromagnetic surveys are being considered however given the difficult regional location a number of factors surrounding access have to be considered if the work was to proceed. It is envisaged that these surveys or failing them some further regional work may be undertaken to assist in evaluating future potential.

Mine For

coal, uranium

Location of operation(s)

South Africa, Cameroon, Tasmania

Address

Level 12 , Chifley Tower , 2 Chifley Square
Sydney, NSW, AUSTRALIA

Phone

(02) 9376 9000

Email

Website

http://www.resgen.com.au/

Last Updated

10/02/2011