“The upgrade of the resource to the indicated category allows the company to move ahead with mining studies designed to upgrade the resource to a reserve over the next 12 months,” Aviva CEO Lindsay Reed said.
Reed said the project was a low strip ratio openpit thermal coal deposit capable of supporting a 6 million tonne per annum power station and a similar external sale quantity if required.
The project is within 55 miles of a coal link rail network that will connect new power developments proposed by South African power supplier Eskom.
The company said it believed its Mmamantswe resource was a "credible" supply option for Eskom under its future plans.
