ASX RELEASE2ndJuly 2012MBILA UPDATEDRILLING AND BFS? Phase one...

ASX RELEASE
2
nd
July 2012
MBILA UPDATE
DRILLING AND BFS
? Phase one of the infill drilling programme has been completed
o identifies a continuation of the coal seams between the known S Block and Msebe
Block deposits
o anticipated to increase the Mbila project’s resource
? Structural and geotechnical drilling programmes have been completed
o provided improved definition of the geotechnical structures and increased
confidence in the resource model
o may allow for a more economical mine design
? 3D modelling of the Mbila resource and its structure is being conducted
o previous resource modelling was 2D (2-dimensional)
o includes a review of all the historical data
? Updated Competent Persons Report (“CPR”) and resource statement is due by end of August
2012
? The BFS is being reviewed to incorporate the results of the drilling programmes and the 3D
modelling which has resulted in a delay to its formal completion until Q3 2012
o all other components of the BFS are continuing as planned
o the overall project development plan remains on schedule
ZYL Limited (“ZYL” or the “Company”) (ASX: ZYL), the Perth-based emerging anthracite producer
with key projects in development in South Africa, is pleased to provide the market with an update
regarding its Mbila project located in Kwa-Zulu Natal province, South Africa.
Phase one of the infill drilling programme and the structural and geotechnical programmes
announced 2 March 2012 have been completed. The infill drilling between the Mbila project’s SBlock and the Msebe Mining Right Application area has identified a continuation of the coal seams
between these two known deposits, whilst the structural and geotechnical drilling programme has
increased the confidence in the Mbila resource. The first of two batches of laboratory analysis have Page | 2
been received and the results are currently being evaluated, the second batch of analysis is
imminent.
ZYL has supplemented the existing 2D resource modelling at the Mbila project by undertaking a 3D
modelling process. This modelling is based on both the data received when ZYL purchased the Mbila
asset and the results of the recent drilling programmes. The process has highlighted some surveying
discrepancies in the historical data which is being resolved in the new resource model. This data is
being reviewed by the Bankable Feasibility Study (“BFS”) manager, RSV Enco, for inclusion in the
BFS.
Infill drilling
Recent infill drilling between the Mbila project’s S-Block and the Msebe Mining Right Application
area has identified a continuation of the coal seams between these two known deposits (see figure 1
below).
Figure 1. Recent infill drilling between S Block and Msebe Block
Phase one of the infill drilling programme comprising of 11 diamond drill holes totalling 1,870
metres, to identify additional resources between Mbila S Block and the adjacent Msebe exploration
permit area (see figure 1 above), was completed in June. The drilling targeted the B3 seam of the
Beaufort group; the first batch of results indicates a yield of 65 – 70% at 15% ash with an average
seam thickness of 3.02 metres. The second batch of results is imminent and the planning of phase
two of the infill drilling programme will begin once all results are received.Page | 3
CEO Ian Benning said, “We are seeking to clarify the exact quantum of the likely Mbila resource
upgrade which has the potential to be material”.