The Company currently holds major interests in Delta Mining Consolidated Ltd (‘DMC’), a South African based coal company, Monaf Investments (Private) Ltd (‘Monaf’), which owns the Lubu Coal concession (‘Lubu’) in the Bulawayo Mining District of Zimbabwe and 61% of two entities that control the Gulukwane iron ore project in the Limpopo Province of South Africa.

DMC controls four major coal interests in South Africa and Botswana in established coal producing regions, all with active development programmes in place to raise their current resource base.  In South Africa these include the Rietkuil coal deposit, which has short term production potential utilising the current metallurgical and thermal coal resource of 200 million tonnes; the Springbok Flats project, which has in-situ gross tonnages currently modelled at over 2 billion tonnes of metallurgical and thermal coal; and the Limpopo coal project, which has a current provisional gross in-situ tonnage estimate in excess of 135 million tonnes and a resource target of 400 million tonnes of metallurgical and thermal coal.  In Botswana DMC has 12 greenfield concession blocks covering 8,682 sq km and straddling known coal bearing sediments in eastern Botswana.

The Lubu coal concession, which covers 19,236 hectares of the highly prospective Karro Mid-Zambezi coal basin in Zimbabwe, is located in the established Hwange (Wankie) mining district, which is served with road, rail and electricity networks.  It is approximately 120km north-east of the Hwange Colliery and the Bulawayo rail line runs 100km to the south west.  On the basis of 13 drill holes totalling 1,398 metres, spaced from 1km to 1.5km, the area is estimated to have an inferred resource of 334 million tonnes of low-sulphur coal, with a calorific value of 24 MJ/kg.  This resource is principally located in the 14-18m thick main seam, which is also believed to contain coking coal in its lower section.  The portion of Lubu for which the resources have been calculated hold the potential for open cast mining.  Considering likely extensions to the coal seams below the overlying Karoo sandstone, it has been estimated by independent consultants Behre Dolbear & Company that, with further exploration and drilling, there is potential to increase the coal resource at Lubu to 515 million tonnes. The BFS is due to be finished by the end of 2010, with production following a year later.

The Gulukwane iron ore project (‘Gulukwane’) comprises approximately 25,000 hectares in the highly prospective Thabazimbi area in the Limpopo Province of South Africa. 

Gulukwane is situated 15km north of the town of Thabazimbi, home to the large Thabazimbi Iron Ore Mine owned by Kumba Iron Ore Ltd.  It is underlain by the Penge Formation, and dips at approximately 24 degrees towards the east, away from the Makopa Dome which lies to the north-west.  The initial target zone within the area covered by the Prospecting Rights is immediately north and adjacent to the area held by Aquila Resources Ltd (‘Aquila’), and the Board believes that the mineralised zone being targeted by Aquila extends through the centre of the Gulukwane project area.  

Haematite ore is the main target and occurs as large, tabular, stratabound bodies within the basal and lower part of the Penge Iron Formation.  The deposits generally occur as stratabound bodies of variable size and typically contain 15% to 35% Fe, although parts of this formation were partially transformed to deposits containing more than 60% Fe.