Ikwezi Mining Limited (incorporated in Bermuda with registered company number 45349) ARBN 151 258 221 Clarendon House 2 Church Street Hamilton HMCX Bermuda ASX Code: IKW 25 October 2012 Company Announcements Office Australian Securities Exchange Level 4 Exchange Centre 20 Bridge Street Sydney NSW 2000 IKWEZI GRANTED ADDITIONAL PROSPECTING RIGHT • Prospecting Right covers four farms and 3,998 hectares in the Ermelo coal field in Mpumulanga • Project is expected to yield coal for both the export and local markets • An exploration target of approximately 150 million tonnes has been identified * Ikwezi Mining Limited (ASX: IKW, the Company or Ikwezi), the South Africafocused coal exploration and development company, is pleased to announce the granting of a coal prospecting right covering some 3,998 ha in the Ermelo coal field in Mpumalanga province, South Africa (Assegai Project). The Prospecting Right has been granted to Ikwezi’s 60%owned subsidiary, Bokamoso Resources by the Department of Mineral Resources. Based on management’s knowledge of the area, together with historic borehole information, an exploration target of between 150 million tonnes is anticipated * * This target is conceptual in nature. There has been insufficient exploration to define a mineral resource under JORC guidelines and it is uncertain whether further exploration will result in the determination of a mineral resource. This conceptual target may or may not be outlined with future work, whether in whole or in part. For personal use only
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Ikwezi Mining Limited (incorporated in Bermuda with registered company number 45349) ARBN 151 258 221 Clarendon House 2 Church Street Hamilton HMCX Bermuda
ASX Code: IKW
25 October 2012
Company Announcements Office Australian Securities Exchange Level 4 Exchange Centre 20 Bridge Street Sydney NSW 2000
IKWEZI GRANTED ADDITIONAL PROSPECTING RIGHT • Prospecting Right covers four farms and 3,998 hectares in the Ermelo coal field in Mpumulanga • Project is expected to yield coal for both the export and local markets
• An exploration target of approximately 150 million tonnes has been identified * Ikwezi Mining Limited (ASX: IKW, the Company or Ikwezi), the South Africa-‐focused coal exploration and development company, is pleased to announce the granting of a coal prospecting right covering some 3,998 ha in the Ermelo coal field in Mpumalanga province, South Africa (Assegai Project). The Prospecting Right has been granted to Ikwezi’s 60%-‐owned subsidiary, Bokamoso Resources by the Department of Mineral Resources.
Based on management’s knowledge of the area, together with historic borehole information, an exploration target of between 150 million tonnes is anticipated *
* This target is conceptual in nature. There has been insufficient exploration to define a mineral resource under JORC guidelines and it is uncertain whether further exploration will result in the determination of a mineral resource. This conceptual target may or may not be outlined with future work, whether in whole or in part.
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The Company intends to commence exploration work in the third quarter of 2013 to actively develop the project with the target of achieving a JORC-‐compliant resource.
Commenting on the acquisition, Ikwezi Managing Director David Pile said:
“The acquisition of the prospecting right for the Assegai Project is consistent with our objective of growing through the discovery and acquisition of additional coal resources in South Africa. We expect coal production in the Ermelo region to increase in the near future and, in time, expect drilling results to add substantially to Ikwezi’s resource position. The granting of this prospecting right, in combination with the development of the Ntendeka Colliery and continued exploration of the Dundee, Waterberg and Acorn Projects, point to an exciting future for the Ikwezi and its shareholders.
The main focus of the Company remains bringing the Ntendeka colliery into production in early to mid-‐2013.” THE ASSEGAI PROJECT Project Area The Assegai Project is located in the Mpumalanga province of South Africa.
The coal fields in the Mpumalanga province of South Africa are split into the Witbank, Highveld and Ermelo coal fields
The Assegai Project is located in the Ermelo coal field and consists of a Prospecting Right covering 3,998 hectares, as shown in Figure 1 below.
Geological Setting and Coal Seam Descriptions
There are five coal seams developed in the coal field with only two currently being considered economically viable to mine. These two seams vary in thickness but have an average thickness of 1.7m. The Ermelo coalfield contains predominately thermal coal although in certain areas of the field, there is also an anthracite fraction. Mining is usually by means of underground methods, with opencast mining potential near the coal outcrops. The coal qualities lend themselves to the export market or can be used for local power generation.
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Figure 1: Location map of the Assegaai Project in the Ermelo coal field in South Africa
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ABOUT IKWEZI
Ikwezi Mining Ltd is focused on the exploration and development of coal projects in South Africa. Ikwezi has a 70% in the Ntendeka Colliery; a 70% share in the Waterberg Project subject to certain conditions precedent including a S11 approval being fulfilled; and a 60% interest in the Dundee Project and Acorn projects. The Ntendeka Colliery (previously named the Newcastle project), is located in the KwaZulu Natal coal fields, has an existing JORC compliant resource of approximately 221 Mt and is in close proximity to rail and port infrastructure.
Competent Persons Statement:
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Petrus Cornelius Meyer, a consultant to the Company. He has more than 20 years experience in the South African coal industry and holds a B.Sc. Hons. (Geology) and M.Sc. (Earth Science Practice and Management) degree from the University of Pretoria. He is an active member of the Geological Society of South Africa and Fossil Fuel Foundation of South Africa. The Geological Society of South Africa is a “Recognised Overseas Professional Organisation” (ROPO) and is included in the list of ROPOs promulgated by the ASX.
PC Meyer has sufficient experience which is 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 by the JORC code. PC Meyer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
