Morien Resources Corp. (TSX VENTURE: MOX) on Feb. 11 provided an update on development activities at the Donkin Coal Project in Cape Breton, Nova Scotia, where owner/operator Kameron Collieries ULC, a subsidiary of The Cline Group LLC, has been actively advancing the project toward production.
Morien has a gross production royalty on all coal sales from the project. The Cline Group was founded by U.S.-based coal operator Chris Cline, who made a fortune a few years ago in developing new coal mines in Illinois.
Morien said that initial mining is anticipated to commence in the second half of 2016 with coal sales to follow the construction of a coal handling, preparation and processing plant. Design of this wash plant and earthworks for the plant area are underway. Bulk sampling of the target coal seam for testing by local utility Nova Scotia Power is anticipated in the next 60 days.
Also, additional underground assessment drilling has been completed. Tunnel refurbishment is nearing completion. A 69-kV electrical line from the town of Glace Bay to a newly-constructed sub-station at the project has been completed.
Assembly of the initial mine fleet has commenced, said Morien, which includes one continuous miner, two roof bolters, and three personnel carriers on site, with a second continuous miner expected by mid 2016. The mining plan calls for a room and pillar operation which includes the use of four continuous miners. The installation of conveyor infrastructure in the main access tunnel is underway with full installation of the conveyor system anticipated in the first half of 2016.
Key members of operational team have been hired, 36 employees/contractors are now on site, and recruitment for operating phase is continuing.
Kameron increased its ownership in Donkin to 100% through the purchase of Morien’s 25% interest in February 2015 for a production royalty and cash consideration.