L B  M I N I N G

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LB Mining’s project area is located within the Witbank-
Highveld Coalfields area in the Mpumalanga Province of South
Africa. It is about 5 kilometres north of the town of Leandra
and 40 kilometres south of Delmas. The R50, which is a tarred
National Road, traverses the farm, allowing easy access.
Prospecting rights adjacent to the area are held by two major
mining houses, Shanduka/Glencore and Anglo Coal.

There are two economically-viable coal seams present in the
area, the upper lying No 4 Seam and the lower lying No 2 seam.
The project area has been drilled to a measured resource
category, as defined in the SAMREC Ccode. The total mineable
in-situ resource is calculated at 29.86Mt. The No. 2 and No. 1
seams are is a source of high-grade steam coal suitable for
export and the No.4 seam generally contains the best quality C-
grade coal.

Total Coal South Africa focused on export quality coal, so the
resource statement of 29.86Mt contains the values of
exportable coal. There could be upside potential from the
lower grade coal in the deposit which would be suitable for the
domestic and Eskom markets. The lower grade coal is evident
within the project area and has also been drilled but not
included within the resource statement.