Coal consultancy Salva Resources calculated the revised coal resource estimate for both the Waclaw and Lech deposits at Nowa Ruda to be 86.5 million tonnes, comprising 30.5Mt measured and indicated, and 56Mt inferred resources.

This new calculation follows the completion of a seven-hole, 6920m drilling program performed over the past 16 months that comprised of three holes at Waclaw and four at Lech.

This drilling program also provided updated coal quality, geotechnical and other data for the deposit. The results will also underpin the completion of the Nowa Ruda pre-feasibility study, which is currently well advanced and due for completion by the end of this month.

Balamara said very thick intersections that were obtained from the recently completed CHL-2, CHL-3 and CHL-4 drill-holes at the Lech deposit, drill holes which produced substantial coal seam package thicknesses of between 5.65-7.81m for the 415 series seams, and from 3.61-4.09m for the 4103-412 series.

Drill hole CHW-3 at Waclaw also produced thicknesses of 1.96m and 1.98m respectively for the 408 and 409/10 seams.

All these results indicated that an overall pattern has emerged for Nowa Ruda: its coal deposits consist of 300-series seams and 400-series seams, both of which are essentially a “package” containing several closely spaced individual seams.

The 300 series ranges in total stratigraphic thickness from 10-20m, while the 400-series generally ranges from 50-70m stratigraphic thickness. The two series are separated by approximately 80-100m of barren sandstones.

At Waclaw, both the 300-series and the 400-series predominantly consist of hard coking coals.

At Lech, the 300-series predominantly consists of hard coking coals and the 400-series contains a combination of hard coking coals but with substantial amounts of the highly desirable low volatile high rank coal that is required as an essential additive to coking plants in Poland.

“Lech is emerging as the most likely potential starting area for initial mining – given that this deposit has all the essential coking coal types required for optimum blends as well as substantial coal seam thicknesses,” Balamara said.

“There is a 1.5km long zone of interest defined by the excellent results from drill-holes CHL-2, CHL-3 and CHL-4. This aspect is currently being investigated in detail as part of HDR’s (Salva) PFS.”

The main target seams for Nowa Ruda are likely to be seams 304, 420 and 415.