Colonial Coal International Corp. (TSX VENTURE: CAD) said Sept. 4 that an independent, measured, indicated and inferred resource estimate for its 100% owned Huguenot coking coal project located in northeast British Columbia is contained in a new technical report dated Aug. 31 completed by consultant Norwest Corp.
These resource estimates have been determined using a 0.60 meter true thickness cut-off for open pit resources and 1.5 meter for underground resources. The resource estimates have been conducted by Norwest in conjunction with the preparation of the technical report for the property’s main coking coal targets contained within the Gates Formation coal measures.
David Austin, Colonial President and CEO, said: “The inclusion of the underground resource in the Measured and Indicated (‘M&I’) categories is a huge step forward for the company and its shareholders. In aggregate, Colonial now has an M&I resource in excess of 189 [million tonnes] plus 194Mt inferred resource of high value coking coal.”
Colonial is a publicly-traded coking coal company in British Columbia. The northeast coal block of British Columbia, within which its projects are located, hosts a number of proven deposits and has been the subject of merger and acquisition activities by Xstrata plc, U.S.-based Walter Energy, Anglo American plc and others.
Analytical results indicate that the Gates coal seams are metallurgical coals that would yield a coking coal product after beneficiation in a wash plant, the report noted. Dry Mineral Matter Free volatile (Dmmf) contents indicate that the seams are overall medium volatile bituminous rank. Raw North Block seam ash values range from 7.9% to 33.9%, although most are between 13% and 27%. Raw Middle Block seam ash values range from approximately 6.9% to 30.9%, although most are between 14% and 26%. Raw South Block seam ash values range from 8.3% to 53.8%, although most are between 17% and 27%. For all three blocks clean coal free swell index (FSI) levels are between 6.0 to 9.0, sulfur contents are between 0.27% to 1.38% and phosphorus contents are between 0.01% to 0.17%. Float sink analysis indicated that cleaning to an 8% ash product is possible.