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Overview - Projects in Southern Africa
Through its equity interest in Tshedza Mining Resources (Pty) Ltd and Nhlalala Mining (Pty) Ltd, Homeland Energy has a 50% interest in the following South African exploration properties. Homeland has an option to increase this interest to 51% in each company, with regulatory approval, through the payment of ZAR 1.00, and a further option to increase its interest to 74% in each company through the purchase of 23% from its Black Economic Empowerment Partner for market value.
Onbekend
At Onbekend, Tshedza Mining Resources (Pty) Ltd holds a prospecting license over some 2,864.2 hectares. Resource definition drilling began in 2007 and has been completed with the drilling of 122 boreholes at an average dept of 40 metres (4,880 metres in total). The main coal seam is the C seam (seem height of 0.8 metre, intersected at 24 metres), although there is a significant portion of B seam (seem height of 0.3 metre, intersected at 15 metres). The target is excellent quality, low phosphorous metallurgical coal.
Vlakvarkfontein (Arbor)
At Vlakvarkfontein, Nhlalala Mining (Pty) Ltd holds a prospecting license over some 1,117.2 hectares. Only 22 boreholes, of a 47 borehole program, have been drilled as the Company is currently in negotiations with the surface rights owners with regards to compensation for further access to complete the drilling program. The boreholes average 25 metres in depth (500 metres in total) and both the 4 and 2 seams were intersected.
The qualities as received from the laboratory indicate that the coal is of similar quality to the Kendal Mine. As Vlakvarkfontein is located only approximately 13 kilometres from the Kendal Mine, the use of the Kendal processing facility will be considered to treat this coal.
Other Projects
Botswana
In July 2008, Homeland acquired 70% of a Botswana coal exploration project from Wizard Investments (Proprietary) Limited. The property comprises a 1,000 square kilometre exploration concession located in south central Botswana, approximately 200 km northwest of the capital city of Gaborone. The prospecting licence on this concession remains in effect until March 2010.
This exploration concession was drilled extensively in the 1970s by British Petroleum. Homeland has access to much of the resulting drill data but intends to re-drill to confirm the original data and to ensure drilling standards comply with NI-43-101 requirements for resource definition. Homeland commenced with its drilling programme on October 13, 2008.
This area is flat grassland with no outstanding land features and is accessed by a tarred road that runs from Gaborone, through Molepolole past the town of Letlhakeng to Takatokwane. The concession starts 10 km from Takatokwane, the closest village, which has a recorded population of approximately 1,600.
 General Location Map for Botswana
 Botswana Exploration Concession
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