Located adjacent to Total Coal’s Forzando Colliery, the coal project is a 50:50 joint venture (JV) between Continental Coal and Total Coal South Africa subsidiary Forzando Coal.
Under the terms of the joint exploration program, both the companies will begin a two-phase exploration programme, which will feature 20 exploration holes.
Continental Coal chief executive officer Don Turvey said securing the will enable the companies to start with the detail planning and scheduling of the exploration program.
"Initial review studies indicated the potential for an economic mineable resource and we believe the proposed exploration program will not only support this but also provide the initial data required to commence with a pre-feasibility study," Turvey added.
Continental Coal has a portfolio of projects situated in South Africa’s major coal fields including three operating mines, the Vlakvarkfontein, Ferreira and Penumbra Coal mines.
