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 suspends Basin Coal Mine Project work
Jameson Resources (ASX: JAL) has suspended further work on the Basin Coal Mine recommissioning study. The mine is located 300 km east of Vancouver near the town of Princeton, British Columbia.
The company and its consultants Norwest Corporation said the Basin Coal Mine project, did not justify the required capital investment to recommission the project. Although they noted it did generate a positive operating cash flow based on current operating parameters.
Adverse movement in the USD/CAD exchange rate and operating costs were the major contributing factors to the decision to suspend the study.
The company said potential exists to improve the economics of the project through the identification of additional near surface tonnage.
The company and its consultants have already identified several prospective areas on the Eastern limb of the Basin syncline. This exploration canbe funded from existing working capital.
In addition, increases in the prices received for Basin thermal and Pulverised Coal Injection (PCI) coals would produce additional profitable tonnes within optimised pits.
Jameson is in discussions with the project vendors Compliance Energy to extend its current option to acquire the project. This would provide the company with an opportunity to conduct further exploration.
Register here to be notified of Proactiveinvestors One2One Forums.
Other Jameson Resources articles
-
24/11/09 Jameson Resources targets Feasibility Study completion for Basin Coal mine in 1Q 2010
-
13/08/09 Jameson Resources a star performer on ASX, with Basin Coal Mine recommissioning plans in Canada
-
22/07/09 Jameson Resources increases thermal coal resource at Basin Coal Mine to 117 million tonnes
-
04/06/09 Jameson Resources raises $1.7 million to progress restart of Basin Coal Mine in Canada
Other Jameson Resources news
-
06/08/10 Jameson Resources updates Basin Coal Mine Project status
-
01/06/10 Jameson Resources agrees to Basin Coal Mine twelve month extension
-
03/02/10 Jameson Resources finalising feasibility at Basin Thermal Coal Mine
-
16/10/09 Jameson Resources Basin Coal quality confirmed as a PCI product for export market
-
01/10/09 Jameson Resources divests non core gold assets at Ora Banda
-
18/09/09 Jameson Resources ticks another box to bring Canadian coal mine into production
-
29/07/09 Jameson Resources has strong quarter as Basin Coal mine momentum, pushes shares higher
-
12/02/09 Jameson Resources to acquire thermal coal mine in Canada