- Natural resource development company Contango said it expected to transition to production by the next quarter following better-than-expected results from a set of sample analyses conducted by Bureau Veritas of South Africa.

The analyses assessed a variety of metrics and properties derived from 49 samples extracted from the 1A Lower and MSU metallurgical seams at the Lubu coal project, located in the Hwange region of Zimbabwe, including ash, sulphur and phosphorous contents, as well as yield and calorific values.

The results, exceeded the company's expectations and also confirmed the viability of Lubu's metallurgical coal in the production of coke, the key reactant and fuel in primary steelmaking.

'With the studies now completed and both a regional and global market identified, I believe Lubu is ideally positioned to benefit from this pricing outlook over both the near and medium term,' Carl Esprey, Chief Executive Officer of Contango.

'I look forward to providing further updates on our progress in the current quarter, ahead of our transition into a producer early next quarter.'

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