Hodges Resources Ltd. (ASX:HDG) announced that following the completion of the first phase of drilling at its Morupule South project, located in Botswana, it now plans to concentrate on economic viability studies.
As quoted in the press release:
The Company aims to complete concept studies and commence prefeasibility studies on various mine and integrated power projects before the end of the year.
Mark Major, managing director at Hodges, commented:
This is another positive step for the Company as it moves towards a production scenario. The key to unlocking Botswana coal is to be able to produce saleable coal for the lowest cost. Given that some beneficiation is required, we need low cost operations and good return yields. On the current work completed we know we can obtain great yields to produce a premium thermal coal product and now need to monetise this by undertaking conceptual economic studies on our mining and product use options.