Continental Coal has entered into agreements that will allow it to extend the operating mine life of the Ferreira Coal Mine and its production of thermal coal in South Africa.
The company, through its South African subsidiary Mashala Resources, has a executed sale and purchase agreement with Misty Sea Trading, and has acquired the right to develop the Prospecting Right located adjacent to the mine.
Continental Coal chief executive officer Don Turvey said, "I am very pleased to announce today's update on our Ferreira Coal Mine, which I am sure will contribute to our future development and mining activities in the Ermelo area, adding further value to our shareholder offering at a time when we are also bringing our third mine at Penumbra into production."
Mine planning work on the Prospecting Right and a 15 hole exploration and resource confirmation drill programme has now commenced, and mining of between 350,000t to 400,000t is forecast to be completed in approximately eight months.
Image: The acquisition of adjoining prospecting right will extend the operating mine life of the Ferreira Coal Mine in South Africa. Photo: Continental Coal.