New Colombia Resources (OTCQB: NEWC) said Aug. 13 that it has received the preliminary results for coal surface samples taken by SGS Colombia S.A. from their coal mine in Guaduas, Colombia.
SGS needed these results in order to finish a drill program on behalf of New Colombia. SGS expects the drill program to be ready the week of Aug. 12.
The samples taken by SGS in June were analyzed by SGS Minerals Services in Barranquilla, Colombia, on July 11. Of the nine samples analyzed, seven were very high quality coal and two were lower quality coal. The company said it is extremely pleased with the first two samples which showed High Grade (HG) anthracite values with an 80% fixed carbon content, 0.64% sulfur, and 9.5% ash. The company is not satisfied with the lower quality results of two samples and is waiting for a formal report from SGS to determine the locations and extraction method of these samples. New Colombia Resources believes the majority of its coal is a coking coal with a semi-anthracite rank.
“New Colombia Resources is very encouraged by these results since Anthracite sells for 2 or 3 times as much as bituminous coals and is used in the metallurgical, chemical, and manufacturing industries,” stated John Campo, President of New Colombia Resources.
SGS Colombia S.A. is close to completion of a National Instrument 43-101-compliant drill program at New Colombia’s wholly owned La Tabaquera coal mine in Guaduas, Colombia. Upon delivery of the program, New Colombia plans to hire an international drilling company to perforate the holes according to the plan. SGS will take custody of the core samples back to their laboratory in Barranquilla and provide drill hole database management services.
Other exploration services SGS provided include a Topographic Survey and Geological Mapping which will give the company direction of where to begin production. These surveys will also give New Colombia the information necessary to complete its environmental impact study. The company has already submitted a Works Plan to the National Mining Agency. Once the environmental impact study is submitted, New Colombia Resources believes its environmental license can be approved within a reasonable time allowing it to begin production. Prior to this the company can begin construction and set-up with an approved Works Plan. A recent site visit delegated by the National Mining Agency classified concession contract ILE-09551 as being in the construction and set up phase.
New Colombia Resources is focused on the acquisition and development of high-quality metallurgical coal properties in the Republic of Colombia. It owns 100% of the La Tabaquera coal mine in Colombia with an estimated 15-17 million tonnes of reserves, of which 70% is metallurgical and 30% is thermal coal. Once the necessary financing is obtained, the company plans to have three revenue producing business units in Colombia: coal mining, coking oven facilities, docks, river, and rail transportation to export terminals in Colombia. The Company is also exploring allegiances with U.S. and Colombian universities to study capturing Coal Bed Methane (CBM) in Colombia.