Miranda today announces that an updated independent Competent Person’s Report (‘CPR’) was completed on Burnside in KZN. The results of the second phase drilling program confirmed a total resource of 35.5 mt, of which 8.9 mt is open castable. 

The updated CPR has incorporated the latest information from the 2008 drilling program which consisted of a further 10 in-fill boreholes as well as recently discovered information pertaining to historical mining activities, old mine layouts and plans on Burnside.  The CPR provides specific reference to the technical-economic status of the project.

The total resource area for the Top Seam is 1,175 ha with 37 boreholes covering the area, and 1,243 ha for the Bottom Seam with 59 boreholes covering the area. All of these boreholes have some raw quality data and the 2008 holes in the openpit have washability data.

Given the available data, the most probable scenario is for Miranda to produce an export quality 12%-ash coal with coking properties, and a concomitant 22 Mj/kg local powerstation coal. There is a good coking coal product in the Bottom Seam which can be either exported or sent to local steel producers.

Ron Nel, CEO noted, “We intend to drill a further 6 percussion boreholes and 4 cored boreholes enabling us to increase the resource status to “Measured”. This will also assist to identify specific markets for our coal.”

Further analysis on the mining, processing and economic factors by a SAMREC registered specialist consulting mining engineers will now be initiated.

A SENS announcement and the full version of the CPR can be found on Miranda`s website at www.mirandaminerals.com.

Notes to editors

Miranda Coal’s 62%-held subsidiary, Street Spirit Trading 54 (Pty) Ltd, is the owner of the coal prospecting license on the properties of Burnside 3287, Davelsberg 3286, Izemfene A9146 and Izemfene B8802 in the Glencoe area of the KwaZulu-Natal coal fields. The Burnside project stretches 6 km’s from west to east and 9 km’s from north to south bordering on Uithoek, another of Miranda Coal’s KZN coal projects. Miranda recently announced that its mining right application on Uithoek was accepted by the DME. Coal mining activity dating back to the 1970s is known to have taken place on Burnside.

The average depth and widths of the Top Seam and Bottom Seam in the resource areas are tabulated below:

*Notes:
Area = square meters; Thick = thickness in meters; RD = relative density; GIST = gross in situ tons; GL = geological loss; IST = in situ tons

Assumptions and modifying factors:
1. As explained above, the previously mined areas have been excluded in total. In addition, some of the old pillars are extractable by open pit means but were similarly not included as a resource.
2. Raw RD for the seams in the openpit were laboratory determined and assumed to be closely the same for the underground areas.
3. Quality cut-off parameters for resource calculation was applied as low volatile areas (vols < 5%) were excluded.
4. Areas where the seam thickness is below 0.6m were omitted.
5. Geological and modelling losses of 15% were applied.
6. All tonnages and qualities are quoted air dry.

As detailed underneath, Burnside’s Indicated Resources amount to 18.9 mt and its Inferred Resources to 16.6 mt.

The resource classification is as defined by the current SAMREC classification for multi-seam coal deposits.

Mr. PC Meyer (Pr.Sci.Nat 400025/03) a SAMREC-registered Competent Person prepared the updated Independent Competant Person’s Report. Meyer has more than 18 years experience in the South African coal industry and is a member of the GSSA and Fossil Fuel Foundation. The results of the CPR are summarised below.