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Morupule South coal project, Botswana

8th March 2013

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Morupule South coal project, Botswana.

Client
Hodges Resources.

Project Description
The Morupule South project has a current Joint Ore Reserves Committee-compliant resource estimate (gross in situ) of 2.45-billion tons, of which 110-million tons are in the measured category, 173-million tons in the indicated category and 2.167-million tons are inferred.

A scoping study on the Morupule project has proved the economic viability of the project. The study concludes that the project can be developed through a staged process, with the initial stage supporting an operation for the domestic/regional coal markets and a run-of-mine (RoM) ranging from 1.5-million tons to 3-million tons a year.

Value
Capital cost estimates for developing a 1.5-million-ton-a-year operation is A$55.76-million for a contractor-operator model and A$111.1-million for an owner-operator model, which includes contingencies estimated at 30% and engineering, procurement and construction management estimated at 12%.

Duration
Not stated.

Latest Developments
After evaluating all the independent studies, Hodges has approved the start of feasibility studies to refine the operational and cost estimates associated with a staged development up to 10-million tons a year of RoM coal operation.

Geotechnical, infill and bulk-sampling drilling will be undertaken on the eastern and central blocks and are expected to begin within the a few months.

A detailed coal characteristic and coal processing and handling optimisation study will start immediately. Additional studies will be undertaken in due course and further details will be provided in due course.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Hodge Resources MD Mark Major, tel +61 8 9322 6412 or email info@hodgeresources.com.au.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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