Engineering design, Hillsborough noted, has started for a “push back” of the property’s highwall to allow for a portal, as well as the underground plan’s layout and design.
As soon as a core drill is available to the company, it plans a second phase that will include looking at the coal’s quality as well as the drilling of several exploration holes on adjacent land that is currently under option to Hillsborough. The area proved fruitful in 2004, when a single hole intersected a seam of 10ft (3.12m).
Washability studies and analysis are also underway on a bulk sample the producer took from the pit highwall.
“Results confirm that a good coking coal product can be produced with potential secondary production of a by-product thermal coal,” it said.
Hillsborough has retained Pennsylvania firm Crown Coal & Coke as its coal sales agent, which will focus on the distribution of coking coal for by-product thermal sales. Crossville will be working with TVA for sales to its Kingston power facility.
“Management is very encouraged with results to date and, with continued positive results, expects that a new mine can be opened in the near future,” officials for the producer said, adding that minimal capital cost would be needed to restart the operation’s wash plant and handling equipment.
The company said last month that it would pursue the plan for Crossville further after seeing positive results from its drilling tests.
“Because of the permitted nature of the mine, a decision to recommence mining operations, if subsequently determined to be appropriate, can be executed with rapidity, without a major outlay of capital,” it said at the time.
Hillsborough also currently operates the Quinsam underground mine near Campbell River, is developing the Wapiti complex, and controls the Bingay Creek operation, all in British Columbia, Canada.
The company also serves as a limited partner in the Peace River Coal Partnership, which has significant properties in production and under development near Tumbler Ridge in the same province.
