The company recently commissioned Kobie Koornhof Associates (KKAI) to undertake a review of coal quality and carbonization data derived from core samples.

The review was carried out by KKAI principal Kobie Koornhof whose comments are based upon a preliminary review of coal quality data from drilling programs, washability results and coke tests undertaken in 2008 and from 2011 to date.

"Huguenot coal quality has been assessed on the basis of the full set of quality parameters used for the classification of metallurgical coals for use by the steel industry, in particular coking and caking properties, rheological properties, chemical characteristics and petrography of the coal,” Koornhof wrote in his report.

"The Huguenot coals are in the same geological formation as hard coking coals from northeast BC which are currently being exported to steel mills on a worldwide basis.

“These hard coking coals fall within the suite of high quality Canadian coking coals which have gained market acceptance and have come to play an important part in coke oven blends over the last 40 years.”

Koornhof said the Huguenot project coal was similar to the hard coking coals of the region and met the requirements for classification as a hard coking coal.

"Based on the quality data reviewed to date, coals from Huguenot will find a place among the hard coking coals delivered to [international] steel mills," he said.

Colonial Coal president and chief executive officer David Austin said the company was proud to report the results.

"We are very pleased that Mr Koornhof and his team have been able to confirm our company's opinion that Huguenot coal would meet current and globally accepted hard coking coal standards,” Austin said.

As at January 31, 2013 the company reported working capital of $6.2 million, including cash of $5.8 million.

With these funds Colonial intends to advance the exploration and development of the Huguenot and, subject to receipt of coal licenses and permit approval, its other projects and developments.

Colonial is in early stages of development on its Flatbed project – also in BC – and is completing feasibility investigation of the development of its proposed Watson Island bulk shipping terminal.