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Keaton Energy announces fourth coal mining project

Wednesday, May 6th, 2009

Keaton Energy has announced its intention to proceed with its fourth coal mining project, Leeuwfontein, 35 kilometres south of Middelburg in South Africa’s Mpumalanga Province.
Amalahle Exploration (Pty) Limited, a 74%-held subsidiary of Keaton Energy, was awarded four prospecting rights over six discrete properties totalling 1 597 hectares in the Ermelo coal field in April 2008.
Keaton Energy Managing Director Paul Miller said: “Following completion of a 69-hole drilling programme on the properties in November 2008 a SAMREC-compliant coal resource has now been declared for the Leeuwfontein Project.
Leeuwfontein is relatively small, covering some nine hectares, and contains a coal resource of 922 000 mineable in situ tonnes in the measured category.
It will become the second of Keaton Energy’s two smaller, short-life projects, after our Klip Colliery.
Work has begun on an application for a mining right over Leeuwfontein, with a view to receiving regulatory approvals for open pit mining in the second half of 2010,” Miller said.
For further information visit: www.keatonenergy.co.za

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