First Colombia Gold Corp. (OTCPink: FCGD) have announced their preliminary projections on their newly acquired coal lease located at 12964 S. Hwy 421 Manchester, Kentucky 40964.
The company obtained lab analysis on several coal samples taken from this lease to determine the quality and specification the coal would fit and could be reliably marketed and sold. The lab analysis demonstrated that the coal within the Haddix seam had less than 5% ash and had a Btu of more than 12 000. Based upon this specification and permits that are already in place which include three seams, the Haddix, Fireclay and Amburgy totalling more than 1 million t of coal, preliminary expectations are that this coal could bring in excess of US$50 per short t. Additionally, the company estimated that their mining costs would be between US$40 and US$42 per short t.
Jason Castenir, CEO of First Colombia Gold Corp. stated:
“This lease was in operation in early 2016, but at the time, coal was only selling for between US$38 and US$40 per short ton which caused the operator to take huge losses. Today’s prices give us nearly US$10 per short t of profit. We believe that with the current strength in the coal markets and what appears to be a long term rebound, that the profit margins are stable and will be strong enough to sustain operations and really allow the company to grow and expand their footprint within the coal industry.”
The site and operating plan will focus initially on the Haddix Seam which ranges in thickness from 48 in. to 55 in. and will be mined using the area mining method. This seam has an existing permit in place which includes 300 000 t of recoverable coal. The mine location will give First Columbia Gold Corp, the option to sell the coal through either the Eastern Kentucky Market or through access to the Norfolk Southern Rail system. Mr. Castenir further commented, “In our model, we would like to use the coal located within reasonable distance of the Norfolk Southern’s Cincinnati to Chattanooga line to provide a wider market for the coal. We believe that the numbers will allow us to develop significant infrastructure around this operation that could add additional profit centres in the future.”
Read the article online at: https://www.worldcoal.com/coal/26052017/first-colombia-gold-corp-announces-projections-on-coal-lease/