Shareholders of Jameson Resources (ASX: JAL) have been handed some good news. There has been a significant increase in the resource base on the Basin Coal Mine in British Columbia.
Total resource base at Basin Thermal Coal has increased 515% from 19 Mt to 117 Mt (a 515% increase) of bituminous thermal coal.
The increase in reserve significantly increases potential for extended mine life, improving project economics and returns to shareholders.
The resource is both National Instrument 43-101 (“NI 43-101”) and JORC code compliant.
Importantly, Jameson may be able to access early cash flows - as approvals are already in place to re-start mining at Basin Coal Mine and processing operations within 12 months.
A total of 82.3 Mt (or 70.3%) of the resource classification is in the measured/indicated category. With 35.1 Mt as an inferred resource.
The coal resource estimate utilised additional historical drill hole and trenching information, trial mining data, and also recent bulk sampling undertaken by Norwest Corporation (“Norwest”) on behalf of Jameson.
The Resource of immediate Interest included only the Measured / Indicated resources that fall within a potentially mineable zone with a cut off stripping ratio of less than 8:1.
Jameson indicated that there is significant potential to further upgrade the categories of the defined resource as further drilling over the northwest extension of the open pit has yet to occur.
Indicative coal quality of 5,780kcal/kg (as received) 12.5% ash, 10.5% moisture, and 0.57% sulphur was returned from first phase of bulk sample test work.
Test work on the remaining samples from Trenches 2 and 3 is currently in progress. Final results will be available on completion of the feasibility study.
Norwest is undertaking pit optimisation studies on the new resource information. Mine designs will follow as the feasibility study moves toward the final stages. It is anticipated the study will be completed within the Q3 2009.
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