Privately-held Ouro Mining is working through the technical analysis for an exploration program at the operation in Heavener, which straddles Le Fore County, Oklahoma and Scott County Arkansas, part of the Arkansas Valley coalfield.
The project, also being called Hartshorne, is made up of six coal leases with an estimated 65 million metric tonnes of proven and probable reserves and resources on a non JORC-compliant basis.
It also neighbors another tenement that could provide a potential additional 140Mt that are unleased.
“This study is expected to run through to June 2013 and will review coal seam gas data, geological structures, coal quality and washability in formation and marketing studies
which will then determine product economics and suitability for export coking coal markets,” Ouro officials said late last week.
It is also in the early stages of a mine plan that will determine mining method, needed approvals, mine conditions and the ultimate construction of Hartshorne.
Pre-operational planning will continue through the end of the year and Ouro said mine personnel could be employed during the first quarter of next year.
In the meantime, it will retain contractors for technical mine planning activities this year, including some earthwork to commence in the third quarter.
Mine development is projected in 2014, employing 400 miners at its peak.
According to the Associated Press, the news of the operation’s progress has been positive for a region that is approaching 10% unemployment.
“We've been working many years to try to figure out how to attract more businesses to create more jobs,” Heavener city manager Mike Kennerson told the news service.
Samples taken from the mine reflect a low to mid volatile hard coking coal from the Lower Hartshorne seam.
Previous owner Farrell Cooper Mining completed open cut mining of the project in 2006, when it produced unwashed metallurgical-grade coal for local and overseas customers.
Ouro said its plans for the complex included an onsite coal washery near the Kansas city railway line, which in turn accesses the ports of New Orleans in Louisiana, Port Arthur in Texas and the western seaboard port of Lazaro Garden in Mexico.
