Colonial Coal International Corp. (TSX VENTURE: CAD) on may 23 provided the latest update for its Huguenot Coal Project located in northeastern British Columbia.
Colonial Coal recently commissioned Kobie Koornhof Associates Inc. (KKAI) to undertake a review of coal quality and carbonization data derived from core samples. This review was carried out by KKAI’s principal, Kobie Koornhof, who is an authority on Canadian metallurgical coal.
Koornhof’s comments are based upon a preliminary review of coal quality data from drilling programs, washability results and coke tests undertaken in 2008 and from 2011 to date.
“The Huguenot coals are in the same geological formation (Gates Formation) as hard coking coals from NEBC which are currently being exported to steel mills on a worldwide basis,” said David Austin, Colonial Coal’s President and CEO. “These hard coking coals fall within the suite of high quality Canadian coking coals which have gained market acceptance and have come to play an important part in coke oven blends over the last 40 years.”
Austin added: “We are very pleased that Mr. Koornhof and his team have been able to confirm our Company’s opinion that Huguenot coal would meet current and globally accepted hard coking coal standards.”
As of Jan. 31, the company reported working capital of C$6.2m, including cash of C$5.8m. With these funds in place, the Company intends to advance the exploration and development of the Huguenot Coal Project and, subject to receipt of coal licenses and permit approval, the Flatbed Coal Project, and to fund the current ongoing feasibility investigation of the development of the proposed Watson Island bulk shipping terminal.
The company is pursuing the acquisition of Watson Island, located just outside of Prince Rupert, British Columbia, to develop a seaport terminal and supporting industrial park. The Flatbed Coal Project is in the Liard Mining Division in northeastern British Columbia.