Tiaro Coal has completed two short exploration programmes at the T9 West coal project in Queensland, Australia. The exploration programmes have tested coal quality and resource extension as part of a pre-feasibility study for the company’s key coal projec.
Tiaro said the results from the programmes were “highly encouraging”.
China Qinfa Group and ICP Ltd have joined Tiaro Coal as partners on the Queensland project.
In 2013, Tiaro defined an increase in JORC resources to 87 million t at T9 West.
Significantly, it also identified an additional 200 – 300 million t of conceptual coal potential.
The Paragon metallurgical coal project is centred on the T9 West Area located within the northern portion of EPC 956.
This includes measured resources of 4 million t; indicated resources of 21 million t and inferred resources of 63 million t.
Analysis
Analysts at Proactive Investors have predicted good things for Tiaro in the future, on the back of recent developments at the T9 coal project. The firm said that the mining company “looks to be well placed to capitalise on the strengths of the T9 West Project currently undergoing Pre Feasibility Study and potential development with a competitive advantage of minimal infrastructure requirement.”
Paragon coals have high a vitrinite content of 90%, which is prized by end users.
Looking at the latest programme testing, analysts said that “Tiaro is positioning itself as a coal exploration and mine development company. Paragon Coal is the first such partnership, which has brought together strong industry partners.”
China Qinfa has been a key element of support for exploration and development of T9 West.
“Today's results are positive for the PFS and we believe share price accretive in the short to medium term,” analysts said.
Edited from various sources by Sam Dodson