Universal Coal boosts the Berenice Cygnus coking coal project resource to 1.3Bt

Universal Coal (ASX: UNV) continues to unleash the potential of the company's South African coal projects, with the latest positive news a resource and confidence categories upgrade.

At the Berenice Cygnus coking coal project, the JORC Resource has now increased to 1.325 billion tonnes, which was achieved after the company received outstanding slim diameter analytical data from infill holes - which were completed during the first phase drilling program.

Another significant outcome is the 56% increase in the coal Indicated to Measured Resource categories over the previous estimate, which was delivered mid-year.

Berenice now comprises:

- 7.9 million tonnes in the Measured category;
- 394.5 million tonnes in the Indicated category; and
- 922 million tonnes in the Inferred category.

Tony Harwood, chairman, commented on the positive news for the company and said, "We are delighted with the increase in the resource base at Berenice-Cygnus and in particular the significant increase in the JORC Indicated and now defined Measured tonnages.

"The additional results from the first phase of drilling confirm that the yield and quality of the potential primary coking and thermal middling products are in line with expectations and typical to the Soutpansberg Coalfield."

Universal Coal are now proceeding with a detailed interpretation of the data and with the results of the full coking coal and coke analysis, expected later this month, the company will target the highest yield areas with the most attractive extraction parameters for a Scoping Study.

A Feasibility Study is forecast to commences in 2012.


Berenice seams up to 40 metres thick

The coal occurs within eight sub-zones in a 35 metre to 40 metre thick composite carbonaceous unit deposited within a structurally controlled half-graben structure, which is around 12.5 kilometres in length and 4 kilometres wide.

The coal-rich sub-zones have been intersected from sub-outcrop, less than 20 metres in depth to up to 250 metres below the surface, and consist of interbedded bright coal and carbonaceous mudstones.

Universal Coal has deemed three sub-zones to be potentially commercial coking coal yielding horizons at this stage.

The respective sub-zones have thicknesses of 3.85 metres, 3.80 metres and 1.88 metres.

Importantly, the low density fraction (CF1.40 g/cm3) from all the above sub-zones contains coal with coking characteristics.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20354/universal-coal-boosts-the-berenice-cygnus-coking-coal-project-resource-to-13bt-20354.html