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Lemur Resources: Results show consistent Coal Quality

Contributed by Fox-Davies Capital

Lemur has announced the 5th batch of laboratory results for a further 23 core samples taken as part of the recently completed Western Drilling Programme at its Imaloto Coal Project in Madagascar. A final 7 samples remain outstanding in the laboratory.

The results from a further 23 core samples confirm the consistency of coal quality across the basin. The average yield to produce an export quality thermal coal (gross CV 6,032 kcal.kg, 0.96% Sulphur and 17% ash) from the Main seam is 67.1% from a single stage wash. This would also produce a secondary product suitable for use as power station feedstock, giving a theoretical yield of 100% for the main entire Main seam.

The results for the Top and Upper seams are consistent with previous results. Although they could produce an export product, the yields are too low to be economic. However a F1.8 wash could produce a power station feedstock with yields of 80.9% and 74.3% respectively. Interestingly, the results included intersections of the Lower seam, which is a split from the Main seam, although there has been insufficient analysis completed for it to be quantified.

Seven samples from the Western drilling programme remain outstanding in the laboratory. Once these are released in the next week or so, the Company expects to produce the updated resource statement a couple of weeks later. This is expected to improve the resource classification rather than the size of the resource base.

The updated resource will then be incorporated into the mining scoping study, which along with the already completed port and infrastructure scoping studies will be released approximately 4 weeks after the resource update.