Mahura Muthla Diamond Mine

In March 2015 Cape Coal entered into an agreement to farm in up to a 10% equity interest in Neala Mining (Pty) ltd (Neala) through providing technical and commercial support on pre-defined deliverables.

The details of the deposit has been documented by various well know South African geologists and Universities. The gravel deposits are situated in dolomite of the Reivilo Formation that forms part of the Cambellrand Supergroup, Griekwaland Wes Supergroup. A diamondiferous paleoriver has been delineated through the drilling of 124 percussion drill holes, a detail ground based, magnetic geophysical survey on a 10X10m grid as well as airborne geophysical (magnetic) survey over the entire area. Gravel thickness varies between 2m and 8.5m with an average of 4.9m. The area has been mined between 1906 and 1914 and the diamonds mined described as "well crystallized and of exceptional fine quality" (Percy Wagner 1914) To date, mining took place in only two of the ten resource blocks after a Proven Mineral Reserve was established in 2003.

The mine is currently in care and maintenance and the conversion to new order mining rights is in progress. Cape Coal updated the 2009 Bankable Feasibility Study, reviewed the current plant and equipment and prepared a LOM plan after obtaining an updated JORC complaint Resource and Reserve statement.