Colonial Coal International Corp. (TSX VENTURE: CAD) said Dec. 6 that it has been exploring its coal reserves in British Columbia and that it has hired consultant Norwest Corp. to do a preliminary economic assessment that will include exploration data from the 2012 exploration program.
Norwest expects the report to be completed in the spring of 2013. Colonial’s exploration activities during the summer and autumn of 2012 included diamond drilling of six holes and rotary drilling of 11 holes. An additional 19 large diameter (combined rotary-core) holes were also drilled.
Most of the company’s recent HQ-core drilling was carried out within the southern half of the South Block with a view to raising the resource classification for that portion of the block (currently classified as inferred) to indicated or better. Two holes drilled within the central-western parts of the Middle Block were located to better define fault repeated coal measures below the Pika Fault.
Large diameter drilling was carried out in the central portions of the North Block. Multiple cores were taken, mostly from the five main coal seams, to obtain a larger quantity of coal for detailed attrition and washability analysis and for subsequent carbonization testing, the company noted.
David Austin, President and CEO of Colonial, said: “I am very pleased with our recent exploration activities and the results anticipated to come. With our company’s already established Measured and Indicated resources in excess of 189 [million tonnes], together with our Inferred resource in excess of 194 Mt, of high value coking coal, we expect our updated results and related Preliminary Economic Assessment to be very positive going forward.”
Colonial is a publicly-traded, pure-play coking coal company in British Columbia. The northeast coal block of British Columbia, where its projects are located, hosts a number of proven deposits and has been the subject of mergers and acquisitions activities by Xstrata, Walter Energy, Anglo American and others, Colonial noted.