ZYL Ltd (ASX: ZYL) – Mbila Anthracite Resource Updated
Earlier this week ZYL announced an update to the Mbila resource. Total JORC-compliant Resources at Mbila now stand at 125 million tonnes of anthracite. The main advance since the last resource statement, in November 2012, is that Measured and Indicated Resources have increased from 39% to 70% of the total resource. However, a consequence of the increase in confidence is that the total resource has been reduced.
This increase in confidence is very important as Indicated and Measured Resources can be converted to Probable and Proven Reserves, respectively, subject to modifying factors. Modifying factors are considerations such as mining , processing and metallurgical characteristics.
In addition to a 74% holding in the Mbila project, the company also holds interests in three other South African anthracite projects: 50.1% of Kangwane Central 70% of Kangwane South and 50.1% of Kangwane North. Please note that these projects are subject to a Settlement Agreement, please refer to the ASX Announcement dated 2 April 2013 for further details.
Kangwane Central is ZYL’s most advanced anthracite project. It has JORC-compliant resources of 200 million tonnes and total Reserves of 19 million tonnes. A Bankable Feasibility Study completed in November 2012 showed a net present value of USD148 million.
The next step at Mbila will be the conversion of Resources to Reserves in preparation for mine development.