Maxwell Resources Inc. said Dec. 3 that its geologists have found that one of the parcels it controls (through fee-simple ownership) has good potential for coking coal.
The parcel is known in U.S. Geological Survey (USGS) records of the Raton Basin in northern New Mexico as Dawson-Koehler. Maxwell refers to the parcel – one of its primary assets – as Dawson East. The parcel is located between the highly productive and historic Dawson and Koehler mines, the company said.
Maxwell said it is exploring the Raton Basin based upon a 1991 USGS survey authored by a USGS geologist, the late Charles “Chuck” Pillmore, which found that the Raton Basin may contain an abundance of high-grade metallurgical (coking) coal. A 2005 USGS survey of the same area also found that even more high-grade coal could be under the basin than the 1991 survey estimate.
Maxwell possesses fee-simple mineral rights to coking coal and gold in the Raton Basin. The Dawson East parcel is in Colfax County, N.M.
“Our geologists are now presenting their desktop study of their findings to our engineering firm, Golder Associates,” said Philip Dias, Maxwell President and CEO. “Golder then will evaluate their findings and create an exploration plan that includes a core drilling program. We anticipate that we’ll start drilling in spring 2013.”
The mines in Colfax County produced high-grade coking coal for more than 40 years, producing an estimated 72.6 million tons, according to the U.S Bureau of Mines minerals yearbooks and state mine inspector reports, with the mines at Dawson producing about half of the total, Maxwell noted.
Maxwell Resources owns mineral rights (fee simple) for more than 170,000 acres in the Raton Basin in northern New Mexico’s Colfax County. The company is aiming to prove up deposits of gold, coal and hard minerals, with the goal of pinpointing the sites that will deliver the largest return on investment.
The Raton Basin stretches from New Mexico north into southeastern Colorado. It has been mined for coal only sporadically in recent years. Canada-listed Cline Mining‘s New Elk deep mine is in the Colorado end of the basin, with the company investing heavily in the last couple of years to produce coking coal from its property. In the New Mexico end of the basin, in Colfax County, Pittsburg & Midway Coal Mining had the York Canyon deep and surface-mine complex, which produced steam coal, with the deep mine shut due to roof control problems and the strip mine shut in 2002 due to high costs and sketchy markets.
Said Maxwell’s Nov. 20 quarterly Form 10-Q filing with the SEC: “Mericol, Inc. (the ‘Company’) was incorporated in the State of Nevada on November 17, 2010 with the original intent of providing 3D printing technologies. On August 22, 2012 the Company changed its name to Maxwell Resources, Inc. and shifted its business focus to that of natural resource mining and exploration. We have not generated any revenues and the only operation thus far has included acquiring certain gold, silver, iron ore, copper and coal interests in New Mexico.”
The Form 10-Q added: “On July 27, 2012, the Company acquired from Sun River Energy, Inc. (‘Sun River’) certain gold, silver, iron ore, copper and coal interests in Colfax County, New Mexico. A U.S. Geological Survey (USGS) study has stated the area contains high-grade coking coal, as well as gold, silver and other rare earth minerals. The property consists of approximately 170,000 acres, and is located approximately 200 miles northeast of Santa Fe, New Mexico. The property area is accessed by New Mexico State Highway 64. Since the acquisition at July 27, 2012, the Company has commenced an exploration program to determine the extent of mineralization on the property.”