Universal Coal launches Concept Study at 1.3Bt Berenice Cygnus coking coal project

Universal Coal (ASX: UNV) continues to progress the Berenice Cygnus coking coal project in South Africa forward at speed - with today the company appointing DRA Mining Ltd to undertake a Concept Study.

Tony Harwood, chairman of Universal Coal commented, “We are delighted to have the strong technical DRA team to assist Universal in determining the quality and size of our future coking coal operation at Berenice-Cygnus.”

This study comes hot on the heels of the announcement earlier in the week that the JORC Resource has been increased to 1.325 billion tonnes at the project.

The upgrade 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 to the upgrade 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.

A Feasibility Study is forecast to commence 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/20451/universal-coal-launches-concept-study-at-13bt-berenice-cygnus-coking-coal-project--20451.html