Canadian coal developer Jameson Resources (ASX: JAL) has ticked another box in the re-commissioning of the Basin coal mine in British Columbia.
Testwork has confirmed that the mine could produce an export quality thermal coal product. Evaluation is being undertaken to assess the marketability of the Basin coal as a potential PCI blend.
A trenching campaign across the main seam within the currently exposed pit has now been completed. Samples were sent to Birtley Coal and Minerals Testing Laboratories in Calgary.
Typical coal quality was found to be: 12% ash, 10.8% moisture, and 0.56% sulphur returned from bulk sample test work. A wash plant will be designed to produce a clean coal product at 12% ash from ROM material at approximately 36% ash.
John Holmes managing director of Jameson said Norwest Corporation is in final stages of work on recommissioning the Basin coal mine. An initial 250,000 tpa operation is planned at Basin. Norwest would complete evaluation and designs of the mining operation by Q4 2009.
The company is awaiting approvals for a diamond drilling and trenching program to the north of the existing open pit.
Holmes said results from this program will be utilised to quantify reserves from the currently defined 123Mt raw coal resource base for the proposed 1Mtpa staged expansion.
He said prefeasibility studies on the 1 Mtpa expansion are being undertaken in parallel with the recommissioning study.
The company could commence production "at the permitted capacity within 12 months of decision to mine", John Holmes said.