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CLNR confirms large coal exploration target

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World Coal,

Cluff Natural Resources (CLNR) has announced an initial JORC-compliant exploration target of between 384 and 640 million t of metallurgical coal on its Cumbrian exploration licences in the northwest of England.

The exploration target comes in addition to the company’s existing underground coal gasification (UCG) assets in the area. CLNR is now in the process of amending the terms of its existing licences to allow further evaluation of the metallurgical coal potential.

“This significant exploration target adds an exciting new dimension to [our] portfolio of UK energy assets,” said Algy Cluff, Chairman and CEO of CLNR. “The global outlook for metallurgical and coking coal is predicted to remain steady with substantial upside potential on the back of decreasing supply and increased steel demand and the global economy continues to recover.”

There are now a number of projects underway to find new metallurgical coal resources in the UK, including by West Cumbria Mining in the area adjacent to CLNR’s acerage. The company will also be evaluating the potential for UCG in the offshore parts of the licence areas, which will be appraised with future drilling programmes.

The exploration target was confirmed within the Workington and Maryport licence areas by CLNR’s independent consultants, Wardell Armstrong. The target is focused on seven coal seams with average thickness of greater than 60 cm. Based on limited analytical data, the coal has the potential to be of coking quality with volatile matter of >30%, FSI of between 4 an8 and usually less than 10% ash and 0.6% - 8% sulfur.

“While the potential of this licence area is significant, the quality and spatial distribution of historical data means that further drilling and other surveys will be required to confirm the geological structure, lateral continuity of coal seam thickness and quality throughout the licence area,” the company said in a statement. “This further activity is currently unfunded and CLNR will be evaluating a number of alternative methods of funding this work programme over the coming months.

The Workington and Maryport licences form part of the Cumberland Coalfield, an area with a long history of coal mining dating back to the 16th Century. The last deep mine in the area lay to the south of CLNR’s acreage and closed in 1984.

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