Jameson Resources Limited (ASX:JAL)
Perth, July 22, 2009 AEST (ABN Newswire) - Jameson Resources Limited (ASX:JAL) is pleased to announce a significant increase in the resource base on the Basin Coal Mine ("Basin" or the "Project") in British Columbia.
The coal resource estimate has utilised additional historical drill hole and trenching information, trial mining data, and also recent bulk sampling undertaken by Norwest Corporation ("Norwest") on behalf of Jameson. The resource has been prepared by independent Canadian technical consultants ResourceEye Services Inc (ResourceEye"). The resource is reported in accordance with the National Instrument 43-101 ("NI 43-101") and the JORC code (2004).
COAL RESOURCE ESTIMATE
The resource estimate has been undertaken by ResourceEye and is reported in accordance with NI43-101 and the JORC code. The previous NI43-101 compliant resource (2002) only considered a small portion of the main seam in an area of the property proposed for the existing open pit. The upgraded resource is a result of broadening the area of the resource study.
Resource calculations were performed using Minesight(R) 3-D computer software used to construct wireframe surfaces and solids as well as a 3D block model. Cross sections were developed at 100 m spacings using information from mapped surface outcrops, trenches and historical drill holes. The cross sectional information was used to created 3D wireframe surfaces for the tops and bottoms of the various coal seam plys. Drilling intersections indicate that the Main seam averages 17m true thickness while the Lower seam averages 7.4 m true thickness. The two seams are separated by 10 - 30 m of rock.
The geological complexity in the area of the Basin Mine is considered to be moderate to complex based on the structural dip of the seams generally being greater than 30 degrees. Additionally, faulting is not uncommon, although displacements are often small, in the order of 1-10 m. Indications are that additional faulting may become evident as exploration work continues. Any faulting encountered to date has resulted in increased seam thicknesses. Complex faulting has not been observed on the property, but has been observed close by, in the vicinity of other historical workings.
Resource confidence categories were classified according to the distance from the nearest data point (surface trench, drill hole or outcrop). Coal less than 400 m (450m is the Canadian standard for a moderate geological classification) from the nearest data point is measured. Coal greater than 400 m but less than 850 m (900m is Canadian standard) from a data point was assigned to the indicated category. Inferred resources are those greater than 850 metres and less than 2350 metres from a data point (Canadian standard is 900-2400 m).
The Coal deposit type is a categorization of the most probable method of extraction of the deposit. This method is determined by the parameters of seam thickness, depth from surface and ratio of coal/rock within the seams. The deposit type for the Basin deposit is surface. Guidelines suggest reporting surface resources using a cut off strip ratio of 20:1 (BCM:tonne raw coal). Previously, surface resources were presented at a more conservative 8:1 ratio, believed to be more realistically representative of the probable quantity to be removed for mining. For this reason, surface resources will be presented at 8:1.
ResourceEye has reviewed the available geological data and is satisfied that drill hole and bulk sample data were collected in an appropriate manner and that the results can be used in accordance with the NI43-101 guidelines. Exploration data utilised in the resource estimate has included surface core drilling, trenching and sampling across outcrops, trenching within the exposed open pit, and data from the trial mining program undertaken by Compliance Energy Corporation ("Compliance") from 2002 to 2006. Drill hole data from three diamond drilling campaigns including the 1977-1978 Cyprus-Anvil ("Cyprus") campaign, the 1998 Pacific West Coal ("PWC") campaign and the 2005 Compliance drilling have been used in the resource estimate.
The Cyprus campaign consisted of twelve HQ-sized cored drill holes totalling 1,479m (T77-1 to T77-12). Seven of the holes were logged by down-hole geophysics. All holes intersected the Main Coal Seam with core recoveries averaging 94%. Nine of the twelve holes penetrated the Lower Coal Seam.
The 1998 campaign was carried out by PWC in proximity to the Cyprus drilling and consisted of nine in-fill HQ sized drill holes (RS98-1A to RS98-9) for a total of 927 metres. All holes were logged by down-hole geophysics and results confirmed the results of the older drilling campaign. Compliance drilled 3 HQ diamond drill holes (TU-05-01 to TU-05-03) in 2005 to test for the coal bed methane potential down dip of the previously defined resource. Two of these holes intersected the coal seams in the interpreted positions, whilst the third hole was abandoned due to drilling difficulties.
Trenching data from both the 1977 Cyprus mapping and the 2009 bulk sampling campaign has also been utilised in the resource estimate. In addition, all the Compliance trial mining data has been used.
Key points from the resource work undertaken are as follows;
- Total resource as defined with a cut off stripping ratio of 8:1 comprises 71.2 Mt Measured and 11.1 Mt Indicated and 35.1 Mt Inferred
- Resource contained within two separate seams, the Main Seam (average thickness of 17m), and the Lower Seam (average thickness 7m)
- Resources of Immediate Interest included only the Measured / Indicated resources that fall within a potentially mineable zone with a cut off stripping ratio of less than 8:1
- Significant potential to further upgrade the categories of the defined resource remains
Resource categories were determined on the basis of spacing between drill holes.
-------------------------------------------------------Category Seam BCM SG Ash Tonnes-------------------------------------------------------Measured Main 25,599,100 1.56 31.9 40,054,600 Lower 18,109,000 1.72 49.1 31,177,400-------------------------------------------------------Indicated Main 4,664,100 1.58 33.6 7,369,300 Lower 2,160,800 1.72 49.1 3,716,600-------------------------------------------------------Total Measured/ Main 30,263,200 1.57 32.1 47,423,900Indicated Lower 20,269,800 1.72 48.9 34,894,000-------------------------------------------------------Inferred Main 11,370,500 1.57 32.5 17,965,400 Lower 9,958,300 1.72 48.9 17,128,200-------------------------------------------------------Grand TotalAll Categories 71,861,800 1.60 39.4 117,411,500-------------------------------------------------------
The Coal resource estimate by ResourceEye has been classified as Measured Indicated Inferred based on the NI43-101 guidelines.
The coal resource estimate has been based on:
- A base data set consisting of information from 25 drill holes totalling 3808 metres and four trenches totalling 122.4 metres in length;
- Extensive geological investigations in existing open pit coupled with a complete evaluation of the geology and all available historical information including maps and cross sections from previous exploration programs of the entire Basin geological structure;
- 8:1 cut off strip ratio (BCM waste : tonne raw coal);
- Two mineable seams - Main Seam and Lower Seam
- Coal seams on the west side of the basin dip between 20 Degrees and 55 Degrees to the east;
- Minimum mineable seam thickness of 0.45 m;
- Due to the complex nature of plies within the thick seam, parting thicknesses were not modelled separately, with the exception of three bentonite horizons, whose continuity and thickness (10 cm - 1.8 m) enabled modelling. The Main Seam is comprised, on average, of 22% parting material. This material may or may not be separable. Further mining studies will evaluate the issue of separable partings as it applies to a mining scenario; and,
- Specific gravity values ranging from 1.56 - 1.72 , depending on the ash content (according to the formula SG=ASH%*0.0092+1.2712 - derived from Table 1 GSC Canada Paper 88-21 for bituminous coal)
Preliminary assessment of the mapped coal seams within the eastern half of the leases has been undertaken. Exploration and confirmatory drilling is being proposed to test the more accessible parts of the resource on the eastern side of the project. First pass drilling on some of these zones is being considered in conjunction with additional drilling over the northwest extension of the open pit.
INDICATIVE COAL SPECIFICATIONS
The coal is classified as high volatile bituminous (ASTM) thermal coal. A comprehensive set of coal quality, washability and sizing analysis data from the Cyprus drilling campaign, Compliance bulk sample test work, Compliance trial mining data and more recent Jameson bulk sample test work has been utilised.
Indicative coal quality data is available from the Jameson test work recently undertaken on site under the direction of Norwest Corporation. Bulk samples were collected from 3 trenches across the main seam within the currently exposed pit. All samples were sent to Birtley Coal and Minerals Testing Laboratories in Calgary. Test work included Proximate analysis, screen size analysis and washability tests.
Table 2 - Indicative Coal Quality Main Seam - 12.5% Ash
Proximate Analysis-------------------------------------- As-received Air-dried--------------------------------------Ash 12.5 13.3Volatile Matter 30.3 32.2Fixed Carbon 46.7 49.5Moisture 10.5 5Sulphur 0.57 0.60Btu/lb 10400 11040kcal/kg 5780 6130--------------------------------------
Estimated yield range from a reconfigured wash plant at 12.5% Ash is between 45-50% for the main seam.
Test work on the remaining samples from Trenches 2 and 3 is currently in progress. Final results will be available on completion of the feasibility study.
Norwest are undertaking pit optimisation studies on the new resource information. Mine designs will follow as the feasibility study moves toward the final stages. It is anticipated the study will be completed within the Q3 2009.
Contact
John Holmes
Executive Director
Tel: +61-8-9200-4473
Fax: +61-8-9200-4463
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