New Age Exploration (ASX:NAE) has completed a resource upgrade at its Lochinvar coking coal project in Scotland, following Phase 1b drilling.
A total resource of 111 million tonnes, comprising 49 Mt Indicated Resource and 62 Mt Inferred Resource, has been defined for the Nine Foot and Six Foot Seams.
The 49 Mt Indicated Resource represents a 44% conversion of the October 2013 Inferred Resource to Indicated status.
The total resource has reduced by 1 Mt from the October 2013 total resource as a result of reinterpretation of the basin margins and the results from Phase 1b drilling.
In the northern part of the resource the upper and lower plies of the Nine Foot Seam converge into a single seam with an average thickness of 2.7 metres.
The average Nine Foot Seam thickness in the southern part of the deposit is 1.6 metres, exclusive of upper plies.
An additional exploration target of 31 to 64 million tonnes has been identified in areas where there is insufficient information to define a resource.
The Indicated Resource, Inferred Resource and the Exploration Target have been independently estimated by Palaris Australia, an internationally recognised mining consultancy specialising in coal exploration and mining.
The resource estimate is based on 9 holes drilled by the National Coal Board from 1979 through to 1983, and 10 holes drilled by NAE in 2013 and 2014.
Over 100 kilometres of seismic data was also incorporated in the resource estimate providing interpretative evidence for the lateral continuity of coal seams.
Coal washability tests confirmed the potential for Lochinvar to produce a low ash high volatile coking coal product that will be attractive to the UK and European steel industry, and provide a strong platform for the completion of the Lochinvar Scoping Study.
This will form the foundation of a Scoping Study which will be completed by October.
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