Intra Energy acquires further exploration licences for coal prospecting in Malawi

Opening of the Malcoal Nkachira Mine Pit (Courtesy of Intra Energy)

Intra Energy Corporation, an Australian-based mining and energy company with major thermal coal assets in Tanzania, announced today that it has acquired further exploration licences for coal in Malawi and it has signed a Memorandum of Understanding with the Malawian Government for the construction and operation of a coal fired power plant. The company with its Malawian subsidiary Malcoal holds three other exclusive prospecting licences and one mining licence.

According to an announcement made today by the company,

IEC’s Malawi subsidiary, Intra Energy Trading Limited (IETL), was granted the North Rukuru EPL0376/2013 covering 318km² immediately south of Malcoal’s existing ML0143/2005, and IEC’s Malawi subsidiary, Malcoal Mining Limited (Malcoal) was granted the Ngana EPL0377/2013 covering 231km²just south of the Tanzanian border (refer to image below).

IEC holds a 100% interest in IETL. IEC holds a 90% interest in Malcoal with partner Consolidated Mining Limited holding a 10% free carried interest. IEC has all management and operating rightsunder the joint venture agreement

North Rukuru and Ngana tenements (Courtesy of Intra Energy)

The geology of the two sites is describe in brief below, taken from Intra Energy’s announcement,

North Rukuru

• North Rukuru lease EPL0376/2013 extends over 318km²
• Contains Karoo sediments that unconformably overlie Precambrian basement rocks in a series of half-grabens. The main coalbearing sediments occur within the Karoo K2-K3 formation and yield sub-bituminous to bituminous coals with a Calorific Value of 5,500 to 6,500 kcals/kg, an Ash content between 18 and 26% and a low Sulphur content of 0.3% (all air dried basis)
• The extent of the Karoo formation in the area is controlled by the gneissic basement in the west and a major fault in the east (Eastern Boundary Fault), with regional dips ranging between 10° and 18° to the east.
• Historic exploration by the Malawian Government consisted of detailed geological mapping and trenching programmes.
• Recent geological mapping conducted by IEC within the North Rukuru lease confirms the presence of numerous coal seams with good quality thermal properties.

Ngana

• Ngana lease EPL0377/2013 covers a significant part of the Ngana Coalfield which is a southern extension of the Songwe-Kiwira Coalfield that extends across the border to the north into Tanzania.
• The Ngana Karoo Basin is divided into two zones separated by the Makeye fault that strikes northeast-southwest. West of the Makeye fault the coal outcrop strikes north-south and dips to the east. To the east of the fault coal outcrops strike east-west and dip to the south.
• Historic exploration in the Ngana deposit has included detailed geological mapping and several drilling campaigns.
• Coal is hosted within a 12m to 20m thick sedimentary sequence.
• Cumulative coal thickness from drill holes are generally around 4m with several holes reporting cumulative thicknesses of 6m and 9m respectively.
• Coals in Ngana are typically sub-bituminous to bituminous with a Calorific Value of 5,500 to 5,950 kcals/kg and an Ash content between 23 and 27%.