The Limpopo Coal Project in the Limpopo Province of South Africa consists of three contiguous blocks, South, Riedel and North, which cover 7,500 hectares.  The project is adjacent to the Vele Project of London quoted Coal of Africa plc, which has been granted a mining licence by the Department of Minerals & Energy in South Africa. 

The 53 hole first phase drilling programme on the 3,445 hectare Southern block has completed and an indicated coal resource of 136 million gross tonnes in situ has been estimated on the licence prepared in accordance with the requirements of the SAMREC Code.  DMC has a resource target of 400 million tonnes of metallurgical and thermal coal.

The first phase exploration programme comprised of 9,628.59m drilled.  Coal seams were encountered at depths varying from 65m up to 287m, with seam thickness varying from 5.2m to 0.5m.  Coal seams encountered included the top, middle upper, middle lower and bottom seams.  Importantly, the initial tests indicated a free swelling index of above 5, serving as an indicator of a soft coking coal product. 

The currently unexplored Northern Block which is contiguous to the Vele coal project is not currently being drilled as part of DMC’s exploration programme.