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Kyrgyz Republic coal project will be explored further by Celsius Coal

World Coal,

Celsius Coal Ltd. will begin an extensive multi-rig diamond drilling programme at the company’s Uzgen Basin metallurgical coal project in the central region of the Kyrgyz Republic.

The Uzgen Basin metallurgical coal project is comprised of three prospective metallurgical coal tenements: Kargasha, Kokkia and Min Teke.

Significant historical drilling was carried out at Kargasha by the Soviets between 1947 and 1953. A total of 60 diamond core holes were drilled for 28,920 m, in addition to approximately 15,000 m of trenching and adits.

During 2012, Celsius completed 3800 m of diamond core drilling in 10 drillholes across Kargasha and Min Teke. The majority of 2012 drillhole assessments confirm coal seams at Kargasha have good metallurgical properties. Seams at the Min Teke Project have coals with a mix of premium thermal coal and metallurgical coal characteristics.

The company plans to carry out 4000 to 5000 m of diamond core drilling, across the Uzgen Basin project. The drilling forms part of an exploration programme designed to expand the existing 255 million t JORC coal resource.

Equipment for drilling is onsite, and the company’s field team and work has commenced. Drilling is expected to commence in mid July.

The drilling programme aims to increase Celsius Coal’s total resource inventory, target exploration in areas with limited historical drilling, which are most prospective for the highest ranking metallurgical coals, and to collect data for mining studies.

Alexander Molyneux, chairman of Celsius Coal, said “This 2013 programme [aims] to acquire the data Celsius needs to move on and begin mining within the next two years or so.”

Celsius has a field team of around 40 people for the upcoming drilling programme. This number includes geological staff and third-party contractors. Celsius Coal anticipates the programme will be completed in October 2013.

Adapted from press release by Samuel Dodson.

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