The Company holds a 49% interest in the 16,545 hectare Lubimbi Coal Project (Special Grant 4977) in the Gwaai area of the Kariba Coal Basin in Zimbabwe.

Drilling was carried out at the project in the 1980s by the Industrial Development Corporation, and more recently by Liberation Mining (Pvt) Ltd. In the recent drilling programme, 45 holes totalling 4,500m were drilled in the north eastern corner of the project area, highlighting a typical Main Seam sequence as expected in that part of the Kariba Coal Basin. This coal zone is between 20m and 45m in thickness, outcropping on the north western border and dipping gently to the east at about 2 degrees. These results indicate the viability of tonnage in excess of 1 billion tonnes of in-situ coal, and the analytical work done suggests that a high grade thermal coal and a soft or blend coking coal fraction could be produced.

A 10,000m Phase 1 drilling programme is underway, designed to confirm these tonnages and investigate the potential mix of coking, metallurgical and thermal coal products. This will cover the area at an initial drill spacing of 1km, following which this grid will be closed down to 500m in the areas where the best results are obtained. Two core rigs will be employed with the programme estimated to take 10-12 months to complete. A base camp is being established on site to house the exploration geologists and contain the logistical support for the programme including fuel storage, core storage and communications links. Lubimbi benefits from good infrastructure, being 35km from the Dete railway siding.