Jameson Resources has provided a project and corporate update concerning its main coking coal projects.
The company continues to focus on the Crown Mountain and Dunlevy coking coal projects, and remains committed to advancing them on schedule.
Execution of the Crown Mountain prefeasibility study (PFS) is still due to be completed in June/July 2014. Preparation for submittal of a project description, which is a precursor for the Environmental Assessment (EA) process, will commence in this quarter.
The governmental review of the Dunlevy exploration permit application is progressing, and the company expects exploration to commence on Dunlevy this summer.
Jameson, in conjunction with its joint venture partner Saturn Minerals, has chosen to relinquish the coal leases held on the Red Earth project in Saskatchewan. Red Earth is a sub-bituminous thermal coal prospect in an early stage of evaluation. Releasing Red Earth will conserve cash and allow Jameson to focus on its western Canadian coking coal assets.
Jameson CEO, Art Palm, commented: “The company is pleased with the progress being made with the PFS at Crown Mountain, and believes the long-awaited Dunlevy drilling campaign should commence this summer following NoW approval. These two projects represent the future of Jameson, and remain as high priorities.
“Despite a difficult market with respect to commodities, and coking coal in particular, the company intends to position itself to be able to bring production on-line as markets improve. To that end, it is Jameson’s intent to continue to fast-track Crown Mountain, and diligently pursue exploration at Dunlevy as soon as regulatory approvals and on-site conditions allow.
“Jameson is keenly aware of the need to control costs in the current market environment. We have reduced our office costs by approximately 40%. The vacancy created by the resignation of a non-executive director (David Prentice) will not be filled for the short term, creating additional savings. Finally, releasing the Red Earth project (of which Jameson held a 20% minority interest) will conserve funds as well without compromising Jameson’s long-term objectives. With US$ 3.5 million cash-on-hand and no debt, Jameson is well positioned to continue to execute its asset strategy.
The company remains firmly committed to advancing its project forward in a sensible and economic manner while keeping corporate costs to a minimum. We believe this strategy will make Jameson a strong long-term player in the coking coal marketplace.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/02052014/jameson_resources_coal_project_update_797/