REG - Contango HoldingsPLC - Positive Results: Lubu Coking Coal & Coke Tests

Contango HoldingsAnnouncement

06/09/2022 07:17

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RNS Number : 3505Y  Contango Holdings PLC  06 September 2022

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

6 September 2022

Contango Holdings Plc

("Contango" or the "Company")

 

Positive Results from Lubu Coking Coal and Coke Tests

 

Contango Holdings Plc, the London listed natural resource company developing
the Lubu Coking Coal Project in Zimbabwe ("Lubu Project") is pleased to
provide an update on its continuing coking coal and coke product tests.

 

Test Results for Coking Coal and Coke

 

In tandem with the ongoing mine construction and development, which remains on
track for completion and first coal sales next quarter, the Company's
technical team has undertaken further testwork on parts of the Lubu coking
coal deposit.

 

Tests were undertaken through a newly installed 1 tonne per hour test plant
located on site, supplied and supervised by OneVision, the company that is
currently installing the larger 100 tonne per hour throughput wash plant. An
initial 60 tonnes have now been processed from the same horizon Lubu is to be
initially mined from.

 

This processing has confirmed that, after passing through the wash plant, the
coking coal product is of excellent quality. The tests yielded the following
results*:

 

        % ASH  % VM  % P    % S
 NUTTS  9.0    26.9  0.035  0.51
 PEAS   9.3    26.3  0.044  0.50
 DUFF   17.2   20.2  0.039  0.89

*these results are provisional as they have been analysed at a laboratory in
Hwange, but they are consistent with the Company's compliant results

 

An additional test was undertaken on 15kg of washed coking coal from both the
NUTTS and PEAS sections. These were processed through a mini-coking test plant
as a first determinant of how the coking coal would react when processed into
coke.

 

These coke tests yielded the following results**:

 

        Moisture  ASH    VM    P       S      FC
 NUTTS  0.3%      12.5%  2.1%  0.052%  0.44%  85.0%
 PEAS   0.4%      14.0%  2.3%  0.043%  0.49%  83.3%

**these results are provisional as they have been analysed at a laboratory in
Hwange

 

The coke results are better than expected, exceeding the Company's pre-test
expectations. Particularly encouraging was the P% being less than 0.06%, the
S% less than 0.5%, the ASH well within acceptable ranges and the Fixed Carbon
above 80%.

 

The Company remains in ongoing discussions with a number of potential coke
offtake partners who have also reacted positively to this data and the
characteristics of Lubu coking coal and coke products.

 

Carl Esprey, CEO of Contango, commented:

 

"The latest set of results from our ongoing coking coal and coke tests have
reaffirmed the attractive characteristics of Lubu. As followers of the Company
will be aware, earlier this year we entered into an offtake with AtoZ
Investments for 10,000t per month of washed coking coal, which we expect to
deliver first revenue to the Company by the end of the calendar year.

 

"Whilst we expect AtoZ's ultimate demand to exceed this level, the Company is
also in dialogue with a number of additional potential buyers of coking coal
and coke, including prominent global industry players and leading commodity
traders.

 

"The latest results should only strengthen our position to complete additional
offtake(s) for both coking coal and coke production and I look forward to
providing additional updates. This is a truly exciting time for the Company as
we look to complete full mine and processing construction ahead of first sales
by year end."

 

**ENDS**

 

For further information, please visit www.contango-holdings-plc.co.uk or
contact:

 

 Contango Holdings plc                   E: contango@stbridespartners.co.uk

 Chief Executive Officer

 Carl Esprey

 Tavira Securities Limited               T: +44 (0)20 7100 5100

 Financial Adviser & Broker

 Jonathan Evans

 St Brides Partners Ltd                  T: +44 (0)20 7236 1177

 Financial PR & Investor Relations

 Susie Geliher / Charlotte Page

 

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