Jameson Resources
Jameson Resources has entered into an option agreement to acquire the Basin Thermal Coal Mine (“Basin”) located in British Columbia, Canada. Basin has a large resource base of 124 million tonnes of raw coal with significant exploration upside. The Company is in the final stages of a feasibility study to recommission the existing mine at an expanded production rate between 500,000 and 700,000 tonnes per annum. Feasibility will be completed in the March quarter of 2010 and pending a decision to mine, production could commence by late 2010. Preliminary estimates support a cash operating margin of approximately $US20 per tonne based on 2010 futures contract pricing of thermal coal.
Jameson Resources Basin Coal quality confirmed as a PCI product for export market
Perth-based company Jameson Resources’ (ASX: JAL) Basin Coal mine project has been rated highly by coal quality evaluation experts Khan and Associates.
The leading coal evaluation consultants confirmed the Basin Coal as suitable quality for a PCI product or as an enhancing component for the PCI market.
Specifications, including low sulphur (0.56 per cent) and phosphorous (0.012 per cent), and HGI 46, indicate Basin Coal is suitable as enhancing product for Western Canadian PCI coals.
At 10.34am, shares in Jameson were 0.5c down, or 1 per cent, to 48.5c.
PCI coals of similar quality typically achieve a US$10-$15 premium on thermal spot prices.
Processing options are currently being assessed to produce both thermal and PCI products
The evaluation of the Basin coal was largely based on analytical and test work data from the trenching program undertaken by the Jameson across the main seam in July.
The Basin Coal mine has an existing NI43-101 resource of 19 million tonnes of raw thermal coal. The resource is confined to a 17m main seam, which is five times the Australian coal seam average, extending over a 1.5km strike length.
The project is located 30km northwest of Princeton in the British Columbia, Canada.
In addition, Jameson has received an exploration permit from the British Columbia Ministry of Energy, Mines and Petroleum Resources to undertake a diamond drilling and trenching program at the Basin Thermal Coal Mine Project.
Drilling results will be incorporated into the final reserve estimate as part of the ongoing 1,000,000 tonnes per annum feasibility study.
Results from this program will be utilised to quantify reserves from the currently defined 123Mt raw coal resource base for the proposed 1,000,000 tonnes per annum staged expansion.
The Basin Coal mine tenements cover most of the Tulameen Syncline, of which the Province of British Columbia government has estimated the global resource to be 240Mt of coal.
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Other Jameson Resources articles
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24/11/09 Jameson Resources targets Feasibility Study completion for Basin Coal mine in 1Q 2010
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13/08/09 Jameson Resources a star performer on ASX, with Basin Coal Mine recommissioning plans in Canada
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22/07/09 Jameson Resources increases thermal coal resource at Basin Coal Mine to 117 million tonnes
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04/06/09 Jameson Resources raises $1.7 million to progress restart of Basin Coal Mine in Canada
Other Jameson Resources news
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03/02/10 Jameson Resources finalising feasibility at Basin Thermal Coal Mine
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01/10/09 Jameson Resources divests non core gold assets at Ora Banda
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18/09/09 Jameson Resources ticks another box to bring Canadian coal mine into production
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29/07/09 Jameson Resources has strong quarter as Basin Coal mine momentum, pushes shares higher
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12/02/09 Jameson Resources to acquire thermal coal mine in Canada