Caledon Resources
Caledon Resources plc is a dual listed public Company listed on the Alternative Investment Market of The London Stock Exchange and The Australian Securities Exchange (trading symbol: "AIM:CDN & ASX: CCD"). Caledon is a coking coal producer and explorer in the Bowen Basin of Queensland, Australia. It acquired the mothballed Cook Mine in late 2006 and has since recommissioned the operation and introduced an innovative new underground mining methodology. The Company also purchased the nearby Minyango exploration concessions in 2006 and has conducted a number of drilling programs in preparation for a feasibility study.
Caledon Resources more than doubles coal resource at Cook Mine
A significant uplift in JORC-compliant coal resources at both the Cook Mine and the adjacent Minyango development property was announced today by Caledon Resources, the AIM listed coal miner operating in Queensland’s Bowen Basin.
The resource at the Cook Mine has more than doubled, by the addition of 230 million tonnes to give a new total of 406 million tonnes. The new figures have been arrived at by a review of all the historic geological data – some of which has only recently been acquired – and uses a cut-off of 1.5m thickness. It also excludes coal close to the known major fault zones, although for the first time, the coal resources have been extended 2km beyond the outermost boreholes based on high resolution seismic surveys. The entire resource is above 500 metres in depth, and 303 million tonnes is at depths of no more than 300, including virtually all of the reserves, 86% of the Indicated resource and 61% of the Inferred resource.
At Minyango, the resource increase is 50 million tonnes, bringing the total to 342 million tonnes. This has been achieved by bringing in additional areas which had previously been disregarded. As with Cook, a 1.5m cut-off has been used, and coal close to fault zones is excluded. Almost all of the Minyango resources – 308 million tonnes - lie above 300m in depth, with the balance no deeper than 500m. Drilling at Minyango will resume this month, to increase knowledge of coal quality, and gas content and drainage characteristics, as well as to infill the existing resource and define additional coal resources in the southern portion of Minyango.
Caledon, which has been in discussions with unnamed possible offerors and under Takeover Panel rules since 19 January, saw its shares climb more than 20% on market opening after an extended opening auction.
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