The drilling program was undertaken on the company’s Bankfontein project, located in the Ermelo coalfield, South Africa.

The report outlined that the JORC compliant in-situ resources on the project totalled 19.76 million tonnes and 15.84Mt of this were reported as having potential economic interest. Those tonnes are contained within the high-yielding, high-quality B Lower and C Lower seams of the Ermelo coalfield.

Geological consultant Gemecs reported the indicated and inferred resources contained within the B Lower seam totalled 11.63Mt, with an average seam thickness of 2.13 metres.

The indicated and inferred resources contained within the C Lower seam total 4.21Mt and have an average seam thickness of 0.85m.

The coal, if mined, would be extracted primarily through underground mining means although there is the potential to access it from an initial open cut operation, enabling low cost access.

Washability test work indicated primary yields to produce an export quality coal product average 66% in the B Lower seam and 95% in regards to the C Lower seam.

Xceed said the objectives of the initial drilling program had been satisfied and follow up work would proceed.

Following news of the success in the initial Bankfontein drilling program, Xceed has also updated the market on the financial development of its Moabsvelden project.

The thermal coal project, located in the Witbank coalfield, South Africa, has received indicative non-binding offers of project finance from local South African banks.

Badger Mining and Consulting has been appointed to undertake an independent technical review of the Moabsvelden bankable feasibility study, with completion expected in the coming weeks.

Based on the results from Badger’s review, the company will start to finalise the process of obtaining finance for the continued development of the Moabsvelden project.

Xceed has entered into a memorandum of understanding with Thebe Mining Resources, proposing that Thebe will invest 90 million rand ($US10.9 million) in the project.

The Thebe investment committee approved an initial investment of 65 million rand and is working through a process with Xceed in regards to when the balance of the 90 million rand funding will be introduced.

The proposed funding remains dependent upon several conditions being satisfied, including Xceed obtaining a credit approved offer of development finance from a bank.