The second of the new projects is the 609-hectare Braamspruit Project adjacent to Optimum Colliery about 20 kilometres to the south-east of Middelburg. This property is also of economic interest and is significantly larger than Leeuwfontein. However, a SAMREC compliant resource has not yet been declared. A 21-hole drill programme has been completed on the property.
An error was brought to Amalahle’s attention by Optimum Colliery to the effect that a portion of the property was incorrectly included in the prospecting right. Fortunately, no drilling had been conducted on that portion of the property prior to the error being identified. The issue is being amicably resolved with Optimum Colliery and Amalahle is not disputing Optimum Colliery’s position. The validity of the prospecting right over the remaining portion of the property has been challenged by Anglo Coal, a division of Anglo American plc. Amalahle has exchanged information with Anglo Coal and has received legal advice.