CBMJVS

Our Coal-Bed Methane (CBM) Joint Venture Operations

GWAYI SAKUNDA

PROJECT DESCRIPTION

ZMDC was granted rights to Special Grant 5754 termed the Gwayi-Lupane in 2015. Pursuant to that, ZMDC went on to conduct international public tenders culminating in the Joint Venture with Sakunda Holdings (Pvt) Ltd.

Project Operational Status

This is a greenfield project which is still at resource quantification stage. There however has been some drilling of wells in the Lower Karoo Basin in areas around SG 5755 and SG5754 that culminated in positive results for CBM.

Location

SG5744 around the Gwayi Area in the western sides of Bulawayo. The claim covers an area of approximately 304705 Ha. It is in the vicinity of the Gwayi River.

Physiography

The altitude of the Gwayi area varies from the lowest 600m to as high as 1500m. The high altitude zone forms the source of most rivers as the catchments. Nkayi, Bubi and Mguza areas range from 900—1500m above sea level, Hwange ranges from 940 to 1000m, Lupane area ranges from 950m—1120m and Binga ranges from 600m—1200 m above sea level.

Local Geology

Being part of the Karoo, the area is mainly comprised of sandstones, siltstones and grits. The gas is found beneath deep seated un-disturbed coal beds. The areas where coal and natural gas are clay rich and in some instances, the coal is found among the clay beds.

The clay beds are a result of compaction of buried flora remains. The pressure and temperature of these buried flora was increased by the deposition of the Kalahari and Karoo sands which comprise the cover rock of the area.

Regional Geology

The area lies in the Lower Karoo of the Mid-Zambezi and Sabi-Limpopo basins of Zimbabwe. The Lower Karoo corresponds to the lower portion of the Karoo Supergroup sequence.

The basal unit comprises glacial tillites, being the Dwyka Formation in the Mid-Zambezi Basin, Basal Beds in the Limpopo basins and Kondo Pools Formation in the Mana Pools and Cabora Bassa Basins.These are overlain in the Mid-Zambezi by the Wankie sandstones, coal and the Madumabisa Mudstone Formation. Six (6) major lithofacies (diamictites, conglomerates, sandstones, siltstones, coal and mudstones) represents Lower Karoo Group sequence.

The Mid Zambezi Basin and the Save Limpopo basin are separated by the Zimbabwean Craton. The Mid Zambezi Basin can be described as a half graben and it was seen to host thick seams.

LUPANE MBUNGU

Project Description

Lupane Mbungu is a Joint Venture operation between Zimbabwe Mining Development Corporation (ZMDC) and Tumagole Mining (Pvt) Ltd. The Mbungu Special Grant 5754 termed the Mbungu-Lupane concession was granted to ZMDC in 2015.

Project Operational Status

This is a greenfield project which is still at resource quantification stage. There however has been some drilling of wells in the Lower Karoo Basin in areas around SG 5755 and SG5754 that culminated in positive results for CBM.

Location

Mbungu Settlement is 127 kilometres from Lupane. From Lupane, head north using the A8 road for 29.3km, turn right for 33.8km, turn right for 54.5 km and turn right again for 9.3km.

The Mbungu Special Grant SG 5755 claim is located in the MBUNGU settlement, about 100km East of Lupane making it part of the Bulawayo-Lupane Mining District. The Mbungu SG No. 5755, measuring 333,160ha, straddles the following districts: Binga, Gokwe, Lupane and Nkayi, and is within 20km of Lupane growth point.

Physiography

The Mbungu area is generally a low-medium relief area with an elevation of around 976-1000m above sea level. The slope gently deeps south-west and the drainage also follows the same route. Soil type and vegetation is generally the savanna type.

Local Geology

The Mbungu area is covered mainly by the Kalahari Aeolian sands which overlie the Karoo sediments unconformably. Being part of the Karoo, the area is mainly comprised of sandstones, siltstones and grits outcrops.

The gas is found beneath deep seated un-disturbed coal beds. The areas where coal and natural gas are clay rich and in some instances, the coal is found among the clay beds. The clay beds are a result of compaction of buried flora remains.

The pressure and temperature of these buried flora was elevated by the deposition of the Kalahari and Karoo sends which comprise the bedrock of the area.

Regional Geology

The area lies in the Lower Karoo of the Zambezi and Sabi-Limpopo basins of Zimbabwe. The Lower Karoo corresponds to the lower portion of the Karoo Supergroup sequence.

The basal unit comprises glacial tillites, being the Dwyka Formation in the Mid-Zambezi Basin, Basal Beds in the Limpopo basins and Kondo Pools Formation in the Mana Pools and Cabora Bassa Basins. These are overlain in the Mid-Zambezi by the Wankie sandstones and coal and the Madumabisa Mudstone Formation.

Six (6) major lithofacies (diamictites, conglomerates, sandstones, siltstones, coal and mudstones) represents Lower Karoo Group sequence. The Mid Zambezi Basin and the Save Limpopo basin are separated by the Zimbabwean Craton. The Mid Zambezi Basin can be described as a half graben and it hosts thick seams.