CIC Energy revises mineral resource estimates for the Mmamabula Coal Field



    
    TSX:ELC
    BSE:CIC ENERGY
    

    ROAD TOWN, Tortola, British Virgin Islands, Aug. 14 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) today
announced revisions to its global mineral resource estimate for its Mmamabula
Coal Field ("Mmamabula") in Botswana, Africa. The global mineral resource
estimate for Mmamabula now totals approximately 2.63 billion tonnes ("Bt") of
coal in the measured and indicated categories. This is a decrease in the
region of 10% from the previously reported 2.93 Bt. Coal resources in the
inferred category remain essentially unchanged at approximately 35 million
tonnes ("Mt").
    This revision is a result of changes to CIC Energy's mineral rights that
took effect upon the renewal of two prospecting licences covering Mmamabula
South and the Western and Eastern Blocks of Mmamabula East (as described
below). These renewals are for a period of two years, commencing on April 1,
2009 and ending on March 31, 2011 as previously disclosed by CIC Energy in the
Company's Management's Discussion and Analysis ("MD&A) for the quarters ended
February 28, 2009 and May 31, 2009. Under the Botswana Mines and Minerals Act
(the "Act") such a renewal required the relinquishment of 50% of the original
licence area. The Act provides that the licence holder selects the area to be
relinquished, and the Company selected areas generally not considered to have
commercially exploitable coal.
    As part of the licence renewal process, the licence for Mmamabula East
was split into two licences to allow for a separate licence for the area that
is planned to be mined to supply the Mmamabula Energy Project. An application
for a mining licence for this area, the Central Block of Mmamabula East, was
submitted in December 2008, and is currently under review by the Government of
Botswana. This mining licence application is on track for approval before the
completion of the financing for the Mmamabula Energy Project and is
independent of the prospecting licence renewals referred to above.
    In addition, the licences for Mmamabula South and the Western and Eastern
Blocks of Mmamabula East were transferred from Meepong Resources (Proprietary)
Limited ("Meepong Resources") to CIC Resources (Botswana) (Proprietary)
Limited, a separate wholly owned subsidiary of the Company. The licence for
the Central Block is the sole licence that remains in Meepong Resources, for
the reasons discussed above.
    "The splitting of the coal prospecting license is an important step in
putting the necessary structures in place for the project financing of the
Mmamabula Energy Project," said Mr. Greg Kinross, President of CIC Energy.
"Our remaining coal resource is significant, with ample coal for multiple
power stations, as well as for our other planned projects."
    Figure 1 below illustrates CIC Energy's three licences areas in the
Mmamabula Coal Field: Mmamabula South, Mmamabula East (Western and Eastern
Blocks) and Mmamabula East (Central Block). The mineral resource estimate for
these revised blocks is contained in this news release.
    The mineral resource estimate in this news release was prepared by Ms.
Lesley Jeffrey, who is an employee of CIC Energy and a "Qualified Person" as
defined by Canadian Securities Administrators (CSA) National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101"). Ms. Jeffrey has
reviewed and approved the contents of this news release.

    Table 1 - Mmamabula Global Mineral Resource Estimate (D1 + M2 Seams:
Mmamabula East and Mmamabula South)
    (effective date: August 14, 2009)

    
    -------------------------------------------------------------------------
    Category                                                     Tonnage (Mt)
    -------------------------------------------------------------------------
    Measured                                                         2,573.6
    -------------------------------------------------------------------------
    Indicated                                                           57.3
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                     2,630.9
    -------------------------------------------------------------------------
    Inferred                                                            35.6
    -------------------------------------------------------------------------


    Table 2 - Mineral Resource Estimate, Western Block, (Mmamabula East)
    --------------------------------------------------------------------
    (effective date: August 14, 2009)
    Due to rounding errors summation of measured and indicated resources may
not total exactly

    D1 + M2 Seams Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
    Category                                                     Tonnage (Mt)
    -------------------------------------------------------------------------
    Measured                                                           594.1
    -------------------------------------------------------------------------
    Indicated                                                              0
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       594.1
    -------------------------------------------------------------------------
    Inferred                                                               0
    -------------------------------------------------------------------------


    D1 Seam Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                      4150.7      5.58     344.7
    -------------------------------------------------------------------------
    Indicated                                          0         -         0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)          4150.7      5.58     344.7
    -------------------------------------------------------------------------
    Inferred                                           0         -         0
    -------------------------------------------------------------------------


    M2 Seam Mineral Resource Estimate(1)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                      4960.9      3.35     249.4
    -------------------------------------------------------------------------
    Indicated                                          0         -         0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)          4960.9      3.35     249.4
    -------------------------------------------------------------------------
    Inferred                                           0         -         0
    -------------------------------------------------------------------------
    (1) includes a 0% discount for interpreted geological loss due to
        faulting


    Table 3 - Mineral Resource Estimate, Central Block, (Mmamabula East)
    --------------------------------------------------------------------
    (effective date: August 14, 2009)
    Due to rounding errors summation of measured and indicated resources may
not total exactly

    D1 + M2 Seams Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
    Category                                                     Tonnage (Mt)
    -------------------------------------------------------------------------
    Measured                                                           370.8
    -------------------------------------------------------------------------
    Indicated                                                              0
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       370.8
    -------------------------------------------------------------------------
    Inferred                                                               0
    -------------------------------------------------------------------------


    D1 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                      3600.8      4.45     227.3
    -------------------------------------------------------------------------
    Indicated                                          0         -         0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)          3600.8      4.45     227.3
    -------------------------------------------------------------------------
    Inferred                                           0         -         0
    -------------------------------------------------------------------------


    M2 Seam Mineral Resource Estimate(2)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                      2665.8      3.55     143.5
    -------------------------------------------------------------------------
    Indicated                                          0         -         0
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)          2665.8      3.55     143.5
    -------------------------------------------------------------------------
    Inferred                                           0         -         0
    -------------------------------------------------------------------------
    (2) includes a 4% discount for interpreted geological loss due to
        faulting


    Table 4 - Mineral Resource Estimate, Eastern Block, (Mmamabula East)
    --------------------------------------------------------------------
    (effective date: August 14, 2009)
    Due to rounding errors summation of measured and indicated resources may
not total exactly

    D1 + M2 Seams Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
    Category                                                     Tonnage (Mt)
    -------------------------------------------------------------------------
    Measured                                                         1,332.3
    -------------------------------------------------------------------------
    Indicated                                                           22.6
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                     1,354.9
    -------------------------------------------------------------------------
    Inferred                                                            31.9
    -------------------------------------------------------------------------


    D1 Seam Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                    11,088.4      3.29     552.4
    -------------------------------------------------------------------------
    Indicated                                      219.1      4.02      11.3
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)        11,307.5      3.30     563.7
    -------------------------------------------------------------------------
    Inferred                                       347.0      3.27      14.5
    -------------------------------------------------------------------------


    M2 Seam Mineral Resource Estimate(3)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                    16,406.4      3.31     779.9
    -------------------------------------------------------------------------
    Indicated                                      219.4      3.61      11.3
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)        16,625.8      3.31     791.2
    -------------------------------------------------------------------------
    Inferred                                       347.6      3.52      17.4
    -------------------------------------------------------------------------
    (3) includes a 3% discount for interpreted geological loss due to
        faulting


    Table 5 - Mineral Resource Estimate, Mmamabula South
    ----------------------------------------------------
    (effective date: August 14, 2009)
    Due to rounding errors summation of measured and indicated resources may
not total exactly

    D1 + M2 Seams Mineral Resource Estimate(4)

    -------------------------------------------------------------------------
    Category                                                     Tonnage (Mt)
    -------------------------------------------------------------------------
    Measured                                                           276.3
    -------------------------------------------------------------------------
    Indicated                                                           34.7
    -------------------------------------------------------------------------
    Measured + Indicated (total)                                       311.0
    -------------------------------------------------------------------------
    Inferred                                                             3.7
    -------------------------------------------------------------------------


    D1 Seam Mineral Resource Estimate(4)


    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                     2,482.5      6.01     183.2
    -------------------------------------------------------------------------
    Indicated                                      308.0      5.92      22.6
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)         2,790.5      6.00     205.8
    -------------------------------------------------------------------------
    Inferred                                        46.0      5.98       3.4
    -------------------------------------------------------------------------


    M2 Seam Mineral Resource Estimate(4)

    -------------------------------------------------------------------------
                                                           Average
                                                          thickness  Tonnage
    Category                                    Area (ha)    (m)       (Mt)
    -------------------------------------------------------------------------
    Measured                                     2,392.8      3.19      93.1
    -------------------------------------------------------------------------
    Indicated                                      322.8      3.10      12.1
    -------------------------------------------------------------------------
    Measured + Indicated (total/average)         2,715.6      3.18     105.2
    -------------------------------------------------------------------------
    Inferred                                         7.8      3.60       0.3
    -------------------------------------------------------------------------
    (4) includes a 20% discount for interpreted geological loss due to
        faulting
    

    CIC Energy has concluded that coal from all the revised resource estimate
areas within its licence areas in the Mmamabula Coal Field are suitable for
steam-producing thermal power generation, with raw coal calorific values
("CV") of approximately 20.7 megajoules per kilogram ("MJ/kg") for the D1 seam
and 22.8 MJ/kg for the M2 seam.

    Quality Assurance/Quality Control and Methodology

    Coal analyses were conducted by Witlab (Pty) Limited ("Witlab") in
Witbank, South Africa and M & L Inspectorate (Pty) Limited ("M & L") in
Middelburg, South Africa. Witlab and M & L are independent of CIC Energy and
specialize in the sampling and analysis of coal. M & L has accreditation
through the South African National Accreditation System (Facility
Accreditation Number: T0313) and Witlab is in the process of obtaining such
accreditation.
    For information with respect to geology, analytical methodology, Quality
Assurance/Quality Control, and resource estimate methodology, geological model
and resource cut-offs see the Company's technical report dated September 26,
2008 and entitled "CIC Energy Corp.: Mmamabula Energy Complex, Southeastern
Botswana, Project No. J912, National Instrument 43-101 Sixth Technical
Report." Note that whereas the current resource estimate for the Western Block
uses no geological losses, the current resource estimates for the Central
Block, Eastern Block and Mmamabula South use, respectively, 4%, 3% and 20%
interpreted geological loss to account for more pronounced faulting within
these areas.

    About CIC Energy Corp.

    CIC Energy Corp. is engaged in the advancement of the Mmamabula Energy
Complex at the Mmamabula Coal Field in Botswana, Africa. This planned Complex
is expected to comprise the Mmamabula Energy Project, the Export Coal Project
and a potential Coal-to-Hydrocarbons Project. The Mmamabula Energy Project is
a proposed 1,200 MW (net) power station and integrated coal mine.
    CIC Energy has a treasury of approximately C$54 million and has
52,573,969 million shares outstanding and 55,501,469 shares fully diluted. CIC
Energy is listed on the Toronto Stock Exchange (TSX:ELC) and the Botswana
Stock Exchange (BSE:CIC Energy).

    Forward-Looking Statements

    This news release contains certain "forward-looking statements". All
statements, other than statements of historical fact that address activities,
events or developments that CIC Energy believes, expects or anticipates will
or may occur in the future are forward-looking statements. These
forward-looking statements reflect the current expectations or beliefs of CIC
Energy based on information currently available to CIC Energy. Such
forward-looking statements include, among other things, statements relating
to: the Mmamabula Coal Field and the Mmamabula Energy Complex (comprised of
the Mmamabula Energy Project ("MEP") and other planned projects); estimates
and/or assumptions in respect of mineral resources, mineral resource
qualities, targets, future production, goals, objectives, and plans; the
Company's application for a mining licence for the Central Block of Mmamabula
East; and the suitability of the coal at Mmamabula for steam-producing thermal
power generation. Forward-looking statements are subject to significant risks
and uncertainties and other factors that could cause the actual results to
differ materially from those discussed in the forward-looking statements, and
even if such actual results are realized or substantially realized, there can
be no assurance that they will have the expected consequences to, or effects
on, the Company.
    Factors that could cause actual results or events to differ materially
from current expectations include, but are not limited to: the grade, quality
and recovery of coal which is mined varying from estimates; delays or failures
in obtaining regulatory permits and/or licences (and renewals thereof)
respecting mining, power generation and/or power transmission lines and other
transportation and industrial activities; the delay or failure of negotiations
between Eskom Holdings Limited ("Eskom") and the Government of South Africa to
determine a sustainable funding model for the purchase of electricity from an
independent power producer ("IPP"), on favourable terms or at all; the delay
or failure of the Government of South Africa to consider such a funding model
in a timely manner or at all; the delay or failure in receiving a favourable
response from Eskom in respect of the offer submitted by CIC Energy to Eskom
and Botswana Power Corporation ("BPC") in March, 2009; further delays or
failures in entering into power purchase agreements and/or transmission
agreements with Eskom and/or BPC and other requisite agreements for the
development, operation and financing of the MEP and other planned projects, on
favourable terms or at all; the failure of the counterparties to requisite
agreements to comply in all material respects with the terms and conditions of
such agreements; the failure to complete definitive agreements with equity
partners, including an arrangement with an IPP partner on favourable terms or
at all; the ability to raise the required debt or equity financing for the
implementation of the MEP on favourable terms or at all; capital equipment,
infrastructure and operating costs varying significantly from estimates;
delays in the development of the MEP and other planned projects caused by
delays in reaching necessary agreements with relevant counterparties, events
of force majeure or otherwise; the failure to obtain acceptable tariffs and/or
concessions, including tax concessions, from the Government of Botswana;
inability to obtain requisite credit support from the Government of South
Africa and/or the Government of Botswana in relation to the MEP; delays in the
development of the MEP and other planned projects caused by the unavailability
of equipment, labour or supplies, climatic conditions or otherwise; the
existence of undetected or unregistered interests or claims, whether in
contract or tort, over the properties of the Company and its subsidiaries; the
loss of any key executives, employees or consultants; inflation; changes in
exchange rates; Rand liquidity and constraints under applicable South African
law and/or practice on the amount that a single lender is permitted to lend a
single borrower; volatility of and sensitivity to market prices for coal and
prices (market or otherwise) for electricity; changes in anticipated demand
for power in southern Africa; changes in equity markets; environmental and
safety risks, including increased regulatory burdens; insufficient or
sub-optimal transportation and transmission capacity; dispatch risk;
geological and mechanical conditions; availability of water and sorbent;
amendments to the laws of South Africa or Botswana that may be prejudicial to
the development of the MEP or the failure to obtain amendments to any such
laws that may be necessary to implement the MEP; political risks arising from
operating in Africa; lack of markets for the Company's coal resources; or
other factors (including development and operating risks).
    Any forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws, CIC Energy
disclaims any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results or otherwise.
Although CIC Energy believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
    The mineral resource figures disclosed in this news release are estimates
and no assurances can be given that the indicated levels of coal will be
produced. Such estimates are expressions of judgment based on knowledge,
mining experience, analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new information
becomes available. While the Company believes that the resource estimates
disclosed in this news release are well established, by their nature resource
estimates are imprecise and depend, to a certain extent, upon statistical
inferences which may ultimately prove unreliable. If such estimates are
inaccurate or are reduced in the future, this could have a material adverse
impact on the Company.
    Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that mineral resources can be
upgraded to mineral reserves through continued exploration.

    
    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/
    





For further information:

For further information: on CIC Energy and its projects visit the
Company's website at www.cicenergy.com or contact: Erica Belling, CFA, P.Eng.
VP Investor Relations, Tau Capital Corp., Tel: (416) 361-9636 x 243, Email:
ebelling@taucapital.com

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