Fitzroy Resources has intersected 1.2 m of metallurgical coal below drainage in the last hole of its due diligence drilling at the Emmaus project in West Virginia.
The discovery of below drainage coal of mineable thickness could have a significant impact on the long-term future of the project’s development.
Fitzroy Resources is now discussing how to progress future exploration with Cardno MM&A, which was appointed to provide an independent technical report and a geological presence during the drill programme.
Fitzroy has an option agreement to acquire Premier Coking Coal, which holds the Emmaus, Blackstone lleases and Deep Mine Permit, for US$ 805,000 in cash, 30 million ordinary shares and 20 million performance shares.
On this deal, the company said it had “Substantially improved the requirements to complete the deal.” It also said that the Blackstone permit would give the company immediate access to the Red Ash/Douglas seam at any time in the future, following technical, engineering and financial analysis.
The leases contain prospective coal seams that outcrop on hills within the Appalachian Basin that have a short-term target to commence low capital expenditure production through the use of third party processing close to the property.
Permits already exist on property for mining, plant, refuse disposal and rail loading.
Emmaus was last mined in the late 1990s, producing mid-volatile, hard metallurgical coal.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/mining/06122013/drilling_results_at_appalachian_coal_mine_326/