LONDON (ShareCast) - AIM-listed Edenville Energy has commenced a scoping study at the Namwele coal deposit in South West Tanzania.

In an update issued on Monday, the coal-focused African energy exploration and development company provided details of its operations at the Rukwa Coalfield.

It said that a revised Environmental Impact Assessment (EIA) had been submitted to Tanzania's National Environment Management Council (NEMC) and that £106,895 had been raised under its Equity Financing Facility for working capital purposes

The company further reported that Sound Mining Solutions (SMS) of South Africa, had been contracted to undertake a first-pass scoping study at Namwele, located 4.0km to the south of Mkomolo, with the purpose of exploring the viability of a small open pit mining operation.

The study, due for completion in third quarter of this year, will assess the potential of producing up to 25,000 tonnes of saleable product per month for transport to local and regional customers.

Following the completion of the scoping study, the company said that it would review the options available to develop a Phase I mining operation to supply coal into the local market.

Sally Schofield, Chairman of Edenville, commented: "The commencement of the scoping study is a step closer to our stated ambition of generating near-term revenues and becoming an established coal producer."

She added: "We are pleased to be working alongside SMS who are very familiar with the project following the work done on the upgraded resource. We are also working closely with the NEMC to further the EIA to completion and alongside the scoping study it will form a key function in progressing the project at Namwele."

MF

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