The licenses issued by the British Columbia Ministry of Energy and Mines comprise 3680 hectares adjacent to Cardero property, which holds a NI 43-101 measured and indicated resource of 166.7 million tonnes of metallurgical coal.
A resource definition drilling program to support a feasibility study is scheduled to begin July 2012 following permit approval.
Cardero said essential environmental base line work is ongoing and will address all requirements outlined in project’s official description which was approved by the BC Environmental Assessment Office last month.
Carbon Creek is a metallurgical development project in British Columbia’s Peace River coal district and has a coal resource estimate of 166.7Mt (measured and indicated) and 167.1Mt (inferred).
Analysis presented by the company last December estimated a post-tax undiscounted cashflow of $C3.1 billion for the project and a production potential of 2.9Mt of saleable metallurgical coal per annum.
Earlier this year, Cardero carried out a bulk sample drill program on nine of the metallurgical coal seams within the tenement, prompting it to pursue offtake agreements with potential end-users.
