NuCoal Resources (ASX: NCR) is an emerging coal producer based in Newcastle, NSW, Australia, with a focus on the development of its wholly owned coal asset, Doyles Creek Mining located in the Hunter Valley, NSW.
NuCoal Resources (ASX: NCR) has updated progress from the inaugural drilling program at the 100%-owned Doyles Creek coal project and reported a substantial increase in the JORC Inferred Resource from 247Mt to 420Mt.
Doyles Creek is strategically located adjacent to many world class operating coal mines in the lower Hunter Valley in New South Wales and this is the first drilling to be undertaken at the project since the last hole in 1990 and prior drilling in the late 1960’s and 1970’s.
The targeted and globally marketed Hunter Valley coal seams – Whybrow, Redbank Creek, Whynot and Woodlands Hill provide an opportunity for multi seam longwall mining within the 100%-owned project.
The company expects ongoing drilling, with results expected to be available by December 2010, to upgrade a portion of the resource to Indicated resource status.
A further increase of the Inferred Resource is expected by providing additional data on the Whynot Seam, including Seam 1 and the Abbey Green seams not included in the current Resource Statement.
Extensive work has been conducted by Independent Technical Experts, Palaris Mining, to locate old borehole data to supplement the recent exploration data and therefore extend the geological database – 21 boreholes are now used compared to 5 boreholes in the previous JORC resource report.
A targeted exploration program is currently in progress with the first 4 holes now completed. The remaining 2 holes of the initial program are scheduled for completion in the June quarter and results will be available during the September quarter.
The objective of the current drilling program is to further increase the current JORC Inferred Coal Resources of 420.3 Mt.
This program will also enable the company to further increase its understanding of the physical and chemical properties of the coal within the tenement and to make initial determinations of the structural geology in the areas in which the drilling is occurring.
Following completion of the current 6 holes, a 20 – 25 hole drilling program is planned with the objective of upgrading a portion of the Inferred Resources to Indicated Resource status and to better delineate structure and identify mining sections within the target seams.
To increase the efficiency of the Phase 2 drilling program, a second drill rig will be utilized commencing in the September quarter.
Glen Lewis, managing director, said the significant upgrading of the resource within the tenement enhances the development plans for both the Mine and the Training Facility by providing additional coal that is potentially available, as well as the opportunity for multi seam longwall mining of the high quality coal seams that have been identified.
The average depths to the seams are 184m to the Whybrow seam, 210m to the Redbank Creek seam, 264m to the Whynot seam and 437m to the Woodlands Hill seam.
These exploration results considerably extend the potential life of the Mine and Training Facility which will provide a benefit to all Stakeholders associated with the project.
Palaris Mining is currently conducting a Concept Study for the project with results due for publication in the March quarter 2011.
Umwelt (Australia) Pty Limited has also been engaged to conduct the baseline environmental studies that will be necessary to develop sustainable co-existence plans for the project within the surrounding Community and Environment.