scoping study results

ABN 89 119 670 370
Tel: +61 8 9426 0500
Fax: +61 8 9381 4206
PO Box 263, West Perth WA 6872
2/94 Hay Street, Subiaco WA 6008
www.nimrodel.com.au
Scoping Study Results 1
ASX ANNOUNCEMENT
12 April 2012
Scoping Study Results
Perth, Western Australia: Mineral exploration company Nimrodel Resources Limited (ASX:
NMR) is pleased to advise that Nightingale Africa Partnership has completed a Scoping
Study at PL035/2007, the Takatokwane project, in Botswana. The Scoping Study was
intended to assist Management in planning the next stages of exploration and evaluation of
the Takatokwane coal deposit.
Highlights
? The Takatokwane resource has the potential to support a large
scale open pit mining operation for 20+ years
? Washed coal quality potentially suitable for export markets
? Raw coal quality suitable for domestic power generation, coal to
liquids (CTL) and by-product processes
? Each scenario modelled proved cash flow positive
Summary
Management is extremely pleased with the results of the Scoping Study Report which
confirms that the Takatokwane Project hosts a thermal coal resource able to sustain a large
scale, long life mining operation.
Most importantly, each of the scenarios modelled in the report proved to be cash flow
positive. This outcome provides management with the confidence to pursue their major
objectives for the Takatokwane Project by:
1. Proving up an export quality resource to a prefeasibility stage from where it can be
rapidly accelerated on definitive news regarding infrastructure of railway and deep water
port development; and
2. To continue discussions with interested parties to supply feedstock for power generation
and CTL processing.
ABN 89 119 670 370
Tel: +61 8 9426 0500
Fax: +61 8 9381 4206
PO Box 263, West Perth WA 6872
2/94 Hay Street, Subiaco WA 6008
www.nimrodel.com.au
Scoping Study Results 2
Scoping Study
Nimrodel Resources engaged the services of Nightingale Africa Partnership to complete a
Scoping Study at the Takatokwane project, PL035/2007, in Botswana.
Wardell Armstrong International, a UK based consultancy with significant experience in
southern Africa produced the report covering Geology and Mine Planning. The report
identified an area in the south east of PL 035/2007 for the proposed mining operation where
two scenarios have been considered:
1. A large opencast operation producing some 20Mtpa saleable coal, supplying a variety
of markets; and
2. A smaller underground operation producing some 5Mtpa RoM coal, supplying local
power and CTL markets
Based on the regional industry standards and their professional experience Wardell
Armstrong International assess that, at this stage of the project, the indicative costs sit
midway along a coal mining industry cost curve.
Markets for Value Added Products
POWER
The power demand-supply outlook for Botswana and the broader Southern African Power
Pool (SAPP) is in deficit and very close to balance in the Short to medium term. For
Botswana alone, there is a need for a 300 MW power plant to be in operation by 2015 and
further expansion needed by 2018. The SAPP presents a much larger potential market for
power; current peak demand is some 50,000MW to 60,000MW.
The Botswana Electricity Supply Industry (ESI) has already approved legislation to allow
participation of the private sector or independent power producers (IPP’s) in power
generation and supply.
The study identified that the Takatokwane coal is suitable for domestic and regional power
generation.
LIQUID FUEL
Botswana currently imports 100% of transportation fuels from South Africa, 1 billion litres per
year. A further 700,000 million litres of transportation fuel crosses the South African border in
to the neighbouring SADC countries (Zimbabwe, Zambia, Mozambique). This presents an
opportunity for a 40,000 barrel per day coal to liquid fuel facility.
The study identified that the Takatokwane coal is suitable for CTL processes.
ABN 89 119 670 370
Tel: +61 8 9426 0500
Fax: +61 8 9381 4206
PO Box 263, West Perth WA 6872
2/94 Hay Street, Subiaco WA 6008
www.nimrodel.com.au
Scoping Study Results 3
Current Activity
Whilst acknowledging the preliminary nature of the Scoping Study the report has assisted
management in planning and scheduling the ongoing programmes to further advance the
project.
The report identified an area in the south east of the tenement block most amenable for a
potential mining operation. Drilling is currently underway over the previously indicated area
that hosts a shallow, thick seam of potential export quality coal within the Takatokwane and
Takatokwane South projects. It is expected that the results from this programme may allow
an upgrade to a portion of the existing Inferred Resource to Indicated status.
As part of this Phase 2 programme there are 3 larger diameter PQ holes planned for
additional metallurgical test work.
Management will continue discussions with interested parties and potential partners to
supply thermal coal feedstock for power generation and CTL processing.
Regional News
For recent news from the region see our website at:
http://www.nimrodel.com.au/investor-information/media-.html
Chris Mason
Managing Director
Nimrodel Resources
08 9426 0500
ABN 89 119 670 370
Tel: +61 8 9426 0500
Fax: +61 8 9381 4206
PO Box 263, West Perth WA 6872
2/94 Hay Street, Subiaco WA 6008
www.nimrodel.com.au
Scoping Study Results 4
About Nimrodel Resources
Perth-based Nimrodel Resources (ASX: NMR) is a mineral exploration company with
exploration projects in Africa and Australia. Nimrodel’s current focus is on two adjacent
thermal coal projects in Botswana, Takatokwane and Takatokwane South, located
approximately 195km west of the capital Gaborone, in Botswana.
The Takatokwane Project, PL 035/2007 consists of 500km² land holding and is 100%
owned by Wizard Investments Pty Ltd. Nimrodel has earned 70% of Wizard through its work
on the ground to date.
In November 2011, the Company announced a maiden resource of 4.2 Bt of thermal coal at
a 57% yield giving a washed resource of 2.4 Bt (1.6 SG, washed coal).
Takatokwane South consists of four tenements: PL157/2009, PL159/2009, PL160/2009
and PL161/2009; and is 100% owned by Triprop Energy Pty Ltd. Nimrodel has a 20%
interest and is earning 65% of Triprop by completing a two-phase drilling program and
scoping study prior to October 2014.
Phase 1 drilling was completed in December 2011 and in 27 January 2011, the Company
released an exploration target of 2.0 to 2.4 Bt. Phase 2 drilling and geological test work
commenced in March 2012.
Nimrodel’s other projects include the Lindi and Makete projects in Tanzania, and three
Australian projects – Specimen Reef and Avoca in Tasmania; and Buckaroo in New South
Wales.
Details of Nimrodel Resources projects are available at the Company’s website,