Resource Outline, Exploration Potential (AS:JAL)
Perth, April 3, 2009 AEST (ABN Newswire) - Jameson Resources Limited (ASX:JAL) is pleased to announce that it has appointed Norwest Corporation, a leading international consulting group with an office in Vancouver, to undertake a recommissioning study on the Basin Coal Mine. Norwest have completed numerous feasibility studies on coal projects throughout Western Canada.
The objective of the study will be to develop a project implementation schedule to recommission the project as a low cost open pit coal mine under the existing 250,000 tpa mining permit. Pending successful outcome of the study, production could commence within 12 months. Preliminary scoping studies and environmental assessment will also be undertaken to assess the viability of an expanded production scenario of over 1m tonnes per annum.
The Basin Coal Mine has an existing NI43-101 resource of 19 million tonnes of raw thermal coal. The resource is confined to the 17 metre (average) main seam (over 5 times the Australian coal seam average) extending over a 1.5km strike length. The study will incorporate a review of the proposal to upgrade the existing resource via the inclusion of a second coal seam (7 metres thick) which lies in the existing pit design beneath the main coal seam. Resources and initial reserve calculations will be undertaken to JORC reporting standards. Significant exploration upside remains both along strike and down dip.
Because of the current condition of the existing 250,000 tpa coal processing plant, minimal capital expenditure is anticipated in bringing the plant back into production. The recommissioning study will assess the options for the 1Mtpa expansion case, including capital requirements to upgrade the existing wash plant as well as assess capital requirements for a new modular wash plant facility.
Previous operators Compliance Energy Corporation consistently produced clean coal with specifications, after washing, of: calorific value of 6,080 kcal/kg, 12-16% ash, total moisture content of 10% and 0.5% sulphur. Additional coal quality and specification test work will be undertaken as part of the recommissioning study.
Basin is the closest mainland coal project to the Western Canadian ports and has good rail and road access with significant available capacity. The existing infrastructure, including logging roads, loading facilities and rail, will significantly minimize the capital required to recommence operations. The recommissioning study will assess the transportation options available to Jameson.
Prospective buyers of thermal coal include international utilities and local cement manufacturers. Recent discussions with both potential overseas and domestic off-take partners have confirmed interest in the thermal coal produced from the Basin Coal Mine.
The Jameson Board believes that the acquisition of the Basin Coal Mine, can be developed into a +1mtpa coal operation that should deliver significant upside for Jameson shareholders.
A video presentation of the Basin Coal Project is available on the Company website http://www.jamesonresources.com.au
Any inquiries regarding this announcement should be directed to Jameson's Executive Director, John Holmes.
Contact
John Holmes
Executive Director
79 Hay Street, Subiaco 6008
Western Australia
Phone +61-8-9200-4473
Fax +61-8-9200-4463
john.holmes@jamesonresources.com.au
www.jamesonresources.com.au
David Prentice
Non Executive Director
david@redforkenergy.com.au
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