Jameson said that with all five large-diameter core holes returning “excellent core recovery” averaging over 95%, it was certain it had adequate samples to characterize coal quality and washability.
The samples are at Birtley Coal & Minerals’ laboratories in Calgary, where they will be processed through a series of washability, physical and chemical tests, with full results expected next quarter.
Reverse circulation drilling is underway to further delineate the resource area, particularly the two blocks identified in a pre-economic assessment.
The Australian-based company is also determined to fast-track its economic assessment process. It has installed four groundwater monitoring stations and collected large amounts of rock core and cuttings for geochemical analysis.
“The company anticipates drilling to be completed by mid-September and intends to advance the Crown Mountain project into prefeasibility commencing in Q42013, followed closely by preparation of the economic assessment, which is the gateway to the mining permitting process,” CEO Art Palm said.
Environmental baseline studies, including hydrological test work, are continuing on a monthly basis.
Additional downhole hydrological studies, including water quality and recharge rates, would be undertaken on completion of drilling, Jameson said.
Jameson’s 90%-owned Crown Mountain project is expected to produce 1.3-1.9 million tons per annum of clean metallurgical coal from approximately 3.2Mtpa run of mine coal, supporting a potential mine life of 24 years.
The funds for the drilling program were recently raised through a $A2.6 million ($US2.4 million) placement of 13.125 million shares at 20c each to sophisticated and institutional investors.
