3D Resources has signalled its intention to acquire a New Zealand coal project in the Taranaki and King Country coalfields. The company has entered into an agreement to acquire all of the issued shares in Croydon Coal in consideration for US$ 10,000 plus 40 million 3D Resources shares, which are to be issued in four trenches.
3D Resources will acquire 100% of Croydon Coal, a New Zealand company that holds 100% of Exploration Permit EP40752. This permit covers part of the Tangarakau coalfield, which is known as one of the largest continuous coalfields in the Taranaki and King Country coalfields.
EP40752 covers 74.38 km2 and contains at least nine drill holes, which were completed mainly by the New Zealand Government.
Data from the drill holes suggests the coal is a high-ranking sub-bituminous coal. This is typical with New Zealand North Island coal, which is typically high inb vitrinite with reactive qualities, used primarily for feedstock to Huntly power plant, as well as Glenbrook steel mill, which is a direct reduces iron steel plant located south of Auckland and west of the Huntly coalfields.
The Croydon Coal project shares old underground workings of an old state mine, the Tatu State Mine, which produced over a million t of thermal coal from underground mining for local domestic consumption between 1940 – 1971.
The coal project is in close proximity to useful infrastructure, which would reduce capital costs of mine development. The infrastructure includes a railway that passes the mine, as well as a rail siding area some 10 km from the mine mouth by tarred road.
Mining Permit MP41511 – covering an area of 3.1 km2 reportedly contains a JORC indicated resource of 7.3 million t, based on an average seam thickness of roughly 2 m.
The acquisition of Croydon Coal by 3D Resources remains conditional on various approvals, including a capital raising and due diligence investigation.
Edited from various sources by Sam Dodson