3 Feb 2014, 10:13 The Waterberg Coal Company Ltd - December 2013 Quarterly Activities Report WCC 201402030018A December 2013 quarterly activities report The Waterberg Coal Company Limited (formerly Range River Gold Limited) (Incorporated in Australia) (Registration number ABN 64 065 480 453) ASX: WCC | JSE: WCC | ISIN: AU000000WCC9 (“WCC” or “the Company”) DECEMBER 2013 QUARTERLY ACTIVITIES REPORT During the quarter, The Waterberg Coal Company Limited (WCC or The ASX Release Company), a party to the Waterberg Coal Project Joint Venture, continued to progress matters relating to the proposed development of an opencast mining 31 January 2014 operation to produce 10 million tonnes per annum of coal (product) to Eskom, the South African parastatal power utility. THE WATERBERG COAL The material matters attended to during the quarter include as follows: COMPANY LIMITED ABN 64 065 480 453 Updated Resource Statement An updated Independent Competent Persons Resource Statement was Level 1 released which reflect the increased borehole database following the completion 330 Churchill Avenue of the 2013 drilling programme and associated sample analysis on the Subiaco W A Waterberg Coal Project Properties. The Resource Statement was prepared on Australia behalf of the Waterberg Coal Joint Venture Parties (WCJVP) by Gemecs (Pty) Limited in their capacity as Independent Competent Persons. For more detailed Tel:+61 8 9200 4243 information on the Independent Competent Persons Resource Statement Fax: +61 8 9200 4469 please refer to the ASX announcement dated 24 October 2013. The resource statement for the Waterberg Coal Project now stands at 3.88 Contact: billion tonnes of coal with coal in the measured category of 2.07 billion tonnes Mr Brian McMaster Executive Chairman (Table 1)1. This represents a substantial increase in the coal resource for the Project. Previously, SRK Consulting (December 2012) declared a Coal Resource of 1.183 billion tonnes on the two farms Smitspan and Massenberg, E-mail: of which 1.004 billion tonnes was in the Measured category. [email protected] Table 1 – Coal Resource on all six Waterberg Coal Project Properties under both Prospecting Permit and Mining Right Directors: Brian McMaster Coal Resource 2 Ash Vol % CV (Mj/kg) TS % Stephen Miller Resource Classification % (ad) IM % (ad) (ad) (ad) (ad) Mathews Phosa (Mt) Jonathan Hart Measured 2,070.3 57.9 2.2 17.6 10.51 0.96 Daniel Crennan Indicated 8,56.3 59.4 2.3 17.2 9.96 1.00 Scott Funston Inferred 956.7 58.9 2.2 17.5 10.26 1.03 ASX / JSE Symbol: Total Resources 3,883.3 58.5 2.2 17.5 10.33 0.99 WCC Coal Resource 2 based on minimum thickness cut-off of 0.5m -1- Interaction with Lenders WCJVP mandated The Standard Bank of South Africa Limited (SBSA), to arrange project finance for the Project. Accruing from this mandate, SBSA has now appointed Independent Technical Consultants to review all technical matters on behalf of the project financiers. Plant EPC and Mining Contractor contracts During the quarter, the project team commenced discussions with local and international process engineering firms for the design, manufacture, supply, delivery, assembly, installation and commissioning of a 22mtpa CHPP project in a phased approach within an EPC framework. The successful EPC bid is expected to be announced during Q1, 2014. The project team is also examining tender prices from mining contractors to load and haul between 40 million and 60 million cubic metres of material per annum, an exercise which will require a fleet of 40 x 240 tonne trucks. Water Use License (IWULA) The Environmental work for the IWULA submission was completed during the quarter. Consultants and the submission is ready to submit to the Department of Water Affairs Stakeholder engagement Generally, throughout the quarter, regular and productive engagement by the Project technical team with project strategic stakeholders is ongoing. These discussions include, inter-alia, Eskom, the Department of Water Affairs, and Transnet Freight Rail for the timely delivery of services to the project. These discussions for proposed arrangements for the delivery of service are progressing well. South Australian Tenements The Company continues to hold 3 exploration tenements in the Gawler Craton of South Australia which are highly prospective for gold and copper-gold mineralisation. The Gawler Craton is host to large copper- gold deposits such as Olympic Dam and Prominent Hill to the east, and gold deposits such as Challenger, Tarcoola and Tunkillia in the west. During the quarter the Company compiled and validated exploration data relating to the tenements and is assessing the prospectivity of targets within the license holdings. The Company has designed work programmes to test these targets however these work programmes have not been carried out to date. The Company is considering its strategy with regards to these tenements. Corporate Activities On 10 October 2013, the Company informed the market that its off-market takeover bid for all the ordinary shares in FSE had closed. At the conclusion of the offer, WCC’s shareholding in FSE was 45.88%. On 28 October 2013, Dr Mathews Phosa joined the WCC Board as a Non-Executive Director. -2- On 28 November 2013, the Company held its annual general meeting and all resolutions, the subject of the notice were passed. On 3 December 2013, the Company transferred from the Alternative Exchange (Alt X) of the Johannesburg Stock Exchange (JSE) to the main board, under the coal sector. On 4 December 2013, The Standard Bank of South Africa Limited was appointed as JSE Sponsor. On 18 December 2013, the Company using its placement capacity raised A$2 million for working capital purposes. Stephen Miller Director The Waterberg Coal Company Limited Note 1: Please note that this information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Note 2: Competent Person Statement Gemecs (Pty) Limited was commissioned by the Waterberg Coal Company WCC, to undertake an Updated Independent Persons Geological Report for the Sekoko Waterberg Coal Project. The Coal Resources were estimated in accordance with the South African code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (“SAMREC Code”), Australasian Code for Reporting of Exploration Results. Mineral Resources and Ore Reserves (“the JORC Code”) and South African National Standard (SANS 10320:2004) guidelines. The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Coenraad D van Niekerk, Pr.Sci.Nat (Reg. No 400066/98), M.Sc Hons (Geology), MDP, an employee of Gemecs (Pty) Limited, who is a Fellow of the Geological Society of South Africa. Mr Niekerk is a mining geologist with 38 years’ experience in the mining industry, sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Niekerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. -3- Appendix 1 – Interests in mining tenements held Tenement table The Group has an interest in the following Exploration and Mining Licences. Licences are located in South Australia: Interest at Change in Beginning Quarter Property Name Tenement and End of Quarter Subsequent Exploration Lyons EL 5221 100% Licence granted. Subsequent Exploration Glenloth EL 4197 100% Licence application lodged Claypan Dam EL 4445 100% - The Company’s interest in the Waterberg Coal Project, located in South Africa: Properties Right under Relevant Holder Interest at Issue Date Expiry Date which the Joint Venture Beginning properties are and End of held Quarter Vetleegte Vetleegte First Joint Uzalile 37.39% Granted Renewal lodged 19 Prospecting Venture Joint New Order September 2011 and Right Venture Prospecting prior to the expiry date. (Sekoko Right No. Resources 651/2006, Section 18(5) of the and on 19/10/06 MPRDA provides that Uzalile) prospecting right in respect of which an application for renewal has been lodged will remain in force until such time as the renewal application has been granted or refused. Olieboomsfontein Duikerfontein First Joint Sekoko 37.39% Granted 3 July 2016 Prospecting Venture Coal New Order Right Prospecting Right No. 681/2007, on 13/10/05. Renewal on 3 July 2013 Duikerfontein Duikerfontein First Joint Sekoko 37.39% Granted 3 July 2016 Prospecting Venture Coal New Order Right Prospecting Right No. 681/2007, on 13/10/05. -4- Renewal on 3 July 2013 Swanepoelpan Duikerfontein First Joint Sekoko 37.39% Granted 3 July 2016 Prospecting Venture Coal New Order Right Prospecting Right No. 681/2007, on 13/10/05 Smitspan Mining Right Second Sekoko 37.39% Granted 16/09/2041 Joint Venture Coal New Order Mining Right No. 22/2011, on 17/09/11 Massenberg Mining Right Second Sekoko 37.39% Granted 16/09/2041 Joint Venture Coal New Order Mining Right No. 22/2011, on 17/09/11 Minnasvlakte Mining Right Second Sekoko 37.39% Granted 16/09/2041 Joint Venture Coal New Order Mining Right No. 22/2011, on 17/09/11 Hooikraal Mining Right Second Sekoko 37.39% Granted 16/09/2041 Joint Venture Coal New Order Mining Right No. 22/2011, on 17/09/11 Summary of Expenditure Incurred per Project Project Quarter Cash Spend $A’000 Lyons (EL5221) 3 Glenloth (EL4197) - Claypan Dam (EL4445) - The Waterberg Coal Project -* Total 3 *The 2.796 million advanced to related entities as set out in the Appendix 5B relates to project expenditure. 03 February 2014 JSE Sponsor The Standard Bank of South Africa Limited -5- Date: 03/02/2014 10:13:00 Produced by the JSE SENS Department. 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Posted on: Mon, 03 Feb 2014 08:19:46 +0000
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