The generalised geology and approximate concession locations are shown in Figure 1.
Ngaka Thermal Coal Project
Key Facts
- Potential target tonnage of over 200 Million tonnes
- Extensive historical work
- High demand in country for thermal coals as well as potential export opportunities
The Ngaka Thermal Coal Project is Atomic Resources’ most advanced and exciting development project. The Ngaka coalfields are situated in the resource-rich western minerals province of Tanzania, approximately 600 kilometres from the major port city of Dar Es Salaam. Figure 1b illustrates the location of the Ngaka coal project.
Atomic, through its 100% owned subsidiary Pacific Corporation East Africa (“PCEA”) has entered into a joint venture with the Tanzanian Government (Tancoal - PCEA 70% / Tanzanian Govt. 30%) to conduct a Bankable Feasibility Study (BFS) into the development of a thermal coal mining operation at Ngaka and the development of a 400 megawatt power station, utilizing proven clean coal gasification technology, at the Ngaka mine site.
The electricity produced by the proposed power station at Ngaka will increase Tanzania’s national power supply by approximately 40% and is considered to be a vitally important “nation building project” by the Tanzanian Government.
Ngaka has a JORC-compliant resource of 179 million tonnes of thermal coal. Additional coal resources may be identified in the future through further exploration at Ngaka and at the recently granted concessions in the nearby Mbuyura and Mkapa coal fields.
Initial coal production of 1 million tonnes per annum (Mtpa) for the first 2-3 years will increase to 2 Mtpa once the power station becomes operational. Coal that is not sold to the power station will be available for sale to other customers in Tanzania and for export to markets in Africa and Asia. Mining at Ngaka is expected to commence within 12 months of the completion of the BFS.
The BFS commenced in May 2009 and is expected to be completed in 2010. It will focus on three strategic components:
- Mining of thermal coal for on-site power generation and export;
- Development and project financing for a coal gasification plant and 400Mw power station utilizing coal gasification technology; and
- Development of a private public partnership with TANESCO (the Tanzanian Governments electrical authority) for the construction of power transmission lines to connect the Ngaka project to the Tanzanian power grid.
Bahi
Key Facts
- Granted concessions within well recognised geological province
- Identifi cation of a high order radiometric anomaly at Handa
- Company has an existing point of presence within Tanzania
There are three concessions comprising the Bahi Project Bahi, Bahi north and Handa. The project is located within the Bahi region of northern Tanzania 180 kilometres northwest of the capital Dodoma.
The Handa concession in particular is centred on a single radiometric anomaly determined by Uranerz during their country wide survey in the late 1970s. The anomaly is yet to be tested on the ground and provides the Company with a well defined focus for the initial exploration within the region.
Tunduru
Key Facts
- Concession and application are in close proximity to recently reported exploration successes
- Well documented uranium host rock Karoo Sandstone
The concession and application cover part of the Karro System and the underlying geology is considered to be prospective for uranium. The region is underexplored in regards to the uranium potential.
The rocks of the region are shown to be largely underlain by formations of the Phanerozoic Karoo Supergroup and Proterozoic Usangaran metamorphic formations to the east.
Previous exploration activity for Uranium in the Karoo Basin in 1976-1977 by Geosurvey International included a countrywide airborne geophysical survey comprising magnetics, electromagnetics and radiometrics.
The Karroo formations occur throughout Southern Africa and have drawn much attention form previous explorers. Uranium mineralisation is thought to be associated with the sandstone beds as roll fronts. The region is currently actively explored by close neighbours, Mantra Resources Limited and Paladin NL (both Australian listed companies).