(MENAFN - ProactiveInvestors - Australia) Cap Resources (ASX:ACB) has secured coal rights within its Bolau tenements in Botswana, which could potentially make it a formidable coal player in the country.
The coal licences at Bolau follows the approval by the Botswana government of the renewal of the Bolau discovery licences PL138/2005 and PL125/2009 and the amendments of those tenements to include coal rights as well as uranium already held by the company.
The thermal coal horizons within A-Cap's Bolau tenements are interpreted to be the up and down dip extension of the adjacent Sese Coal project owned by African Energy Resources, which contains over 2.5 billion tonnes of thermal coal.
Initial drilling by A-Cap has discovered coal in seams of comparable thickness and quality of the Sese coal deposit.
Coal was discovered at Bolau through A-Cap's ongoing uranium exploration program and to date six reverse circulation holes and seven diamond drill holes have intersected coal horizons.
In addition to the ongoing exploration of these tenements, A-Cap is currently assessing the potential economic synergies of mining and processing its coal and uranium concurrently.
With the granting of the coal rights, A-Cap now has another major coal project next to its Letlhakane uranium project. This together with the Mea coal discovery, made to the north east of Letlhakane makes A-Cap a major player in the coal business in Botswana.