Cardero Resource Corp. (TSX: CDU)(NYSE MKT: CDY)(NYSE Amex: CDY)(FRANKFURT: CR5) said June 20 that a coal tenure application that covers a significant portion of the Carbon Creek metallurgical coal property has been processed by the British Columbia Ministry of Energy and Mines resulting in the issuance of four coal licenses.
These licenses cover an area of 3,680 hectares that is contiguous to the 10 Crown Granted District Lots leased by the company (covering 2,600 hectares). This area collectively contains a National Instrument 43-101 measured and indicated resource of 166.7 million tonnes of metallurgical grade coal, Cardero noted.
Permits for exploration drilling are expected in advance of the proposed resource definition drill program, scheduled to commence in July. The program will complete collection of all engineering and geological information in support of a feasibility study. In addition to the drilling component, the program will include analysis of coal quality necessary to finalize coal product specification to ultimately secure off-take agreement(s). Environmental base line work, which is an essential component of securing a permit to operate a mine, is ongoing and will address all requirements outlined in the company’s project description, which was approved by the British Columbia Environmental Assessment Office in May.
The company released results of an independent assessment, including an updated resource estimate, in December 2011, which contemplates production of 2.9 million tonnes of saleable metallurgical coal products per year.
Cardero Coal Ltd., a unit of Cardero Resource, started the pre-application process May 9 at the British Columbia Environmental Assessment Office for a new surface and underground metallurgical coal mine with an average annual production rate of 2.9 million tonnes of clean coal. In June 2011, Cardero acquired the balance of Coalhunter Mining Corp., now renamed Cardero Coal, which holds a 75% interest in the Carbon Creek project.
The project is located in northeastern BC approximately 40 kilometers west of Hudson’s Hope, south of Williston Lake, and 50 kilometers north-northwest of Highway 97 through Pine Pass. The Canadian National rail line connecting the Fort St. John and Tumbler Ridge areas with Prince George passes 30 kilometers south of the property. Proximity to rail is an important cost metric when it comes to this coal, which would be bound by rail to coal export terminals on British Columbia’s West Coast.