LONDON (ShareCast) - (Sharecast News) - Edenville Energy announced the start of mining at the new northern mining area of its flagship Rukwa Coal Project in Tanzania on Thursday, along with other recent developments.
The AIM-traded firm said the access and haul road to the northern area, two kilometres north of the current pit, was completed ahead of schedule, with overburden stripping and exposing of coal now having started there.

It said the northern area had thicker seams, in areas up to 40 metres thick starting about two meters from surface, than those previously mined.

The wash plant had started batch processing of fine coal stockpiles through the pre-screen, enabling around 40% of the fine coal stockpiles to be reclassified as sized coal product, available for washing or direct sale.

Analysis of that screened but unwashed coal was returning values of approximately 5,000 kilocalories per kilogram.

"We are delighted to have commenced mining at the Northern Area following the receipt of proceeds from the recent placing," said Edenville Energy chief executive officer Rufus Short.

"We will continue to push forward with the northern area which, coupled with the recent plant improvements we have made, should enable us to increase production."

Short said the company believed it was on track to become cashflow positive within the next 10 months, targeting an initial washed coal production of 6,000 tonnes per month, which the board considered to be a breakeven level, increasing to at least 10,000 tonnes per month thereafter.

"I look forward to providing further updates regarding progress at the project."

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