Mafla prospects

In July 2008, Mafla Coal (Pty) Limited (Mafla), a 74%-held subsidiary of Keaton Energy, was granted two contiguous prospecting rights over seven adjacent properties totaling 5 166 hectares in the Klip River coal field in KwaZulu-Natal. This was later supplemented by an additional 1 231-hectare prospecting right in the same coal field. A 25-hole drill programme was completed after a detailed study of historical and academic information. Coal was discovered, but it was either insufficiently thick to be of economic value or was of a poor quality.

The prospects proved to be neither commercially viable nor technically feasible and a charge of R1.5 million was raised as at 31 March 2009 to fully impair all capitalised exploration and evaluation costs.

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