Jameson Resources
Jameson Resources (ASX:JAL) is focused on the identification and acquisition of strategic coal projects in Western Canada and Australasia.
The company has entered into an option agreement to acquire the Crown Mountain Coal Project in the Elk Valley region of south-east British Columbia. Two significant metallurgical coal operations are located within 20km of the project area.
Jameson Resources suspends Basin Coal Mine Project work
Friday, April 23, 2010
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.
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