Paringa Resources has announced it has defined a maiden resource estimate of 154 million short t of thermal coal at its Buck Creek coal project in the Illinois Coal Basin.
The company has confirmed the site has potential to develop a large, high quality thermal coal deposit in the low cost and highly productive Illinois Coal Basin.
The coal resource is contained entirely in a single flat and laterally continuous coal seam known as the Springfield Seam, which is the third largest producer of thermal coal in the US.
Illinois Coal Basin produce is increasingly being sought after for its valuable properties, including a high heating value of 6550 kcal/kg, low ash content of around 8.4% and low chlorine (0.2%).
Paringa Resources said that it would continue to acquire leases and conduct its exploration programme with the potential to substantially increase the resource base.
The maiden coal resource estimate is reported in accordance with the JORC Code 2013 and comprises over 135 million short t in the measured and indicated categories.
David Gay, CEO of Paringa Resources, said: “The maiden coal resource estimate is the first step in consolidating one of the largest undeveloped coal deposits in the region. The size of the estimate allows us to commence our scoping study to determine potential production scenarios and economics.”
Infrastructure and export potential
The Buck Creek coal project lies adjacent to the Green River, which provided year round connection to the Ohio and Mississippi river systems. These river systems supply both the domestic US coal power market and coal-fired power plants, as well as the rest of the world via export coal terminals in the Gulf of Mexico.
“We are excited to progress this project towards production in this highly profitable coal region, which can serve both the US and international thermal coal markets,” Gay said.
163 bore holes were drilled by Paringa Resources, across an area of 25,000 acres of controlled coal leases.
The company is currently conducting a nine hole core drilling programme, which is intended to increase understanding of the various geological and geotechnical properties of the coal, as well as overall coal quality. The drilling programme is expected to be completed in Q4 of 2013, with results announced in Q1 2014.
Adapted from press release by Sam Dodson
Read the article online at: https://www.worldcoal.com/mining/04112013/thermal_coal_deposit_defined_in_illinois_coal_basin_219/