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Crown Mountain coal project update

World Coal,

Jameson Resources has announced that the preliminary results of three large diameter core (LDC) holes drilled at its Crown Mountain metallurgical coal project have exceeded expectations.

Advanced testing now indicates the coal at Crown Mountain is better than suggested by preliminary results previously released by the company. Predicted coke strength after reaction (CSR), which was initially reported for the 9 and 10 seams as 63.4 and 69.1, respectively (calculated based on petrography), has been revised higher, to 76.5 and 76.7 based on actual results fro the sole heated oven testing. The company said that these figures were “excellent”. While CSRs will need to be confirmed by future pilot oven testing, they are expected to remain attractive.

Jameson said that preliminary results are now available for the first two of four remaining LDC holes. As expected (and documented in the preliminary economic assessment [PEA]), the in-seam ash increases southwards through the project area. The company noted however that the average ash content of the two holes is 33.2%, compared to the predicted 37.2%, which is a favourable comparison and should contribute to positive economics.

Proposals have been received for the execution of the pre-feasibility study (PFS); the award is anticipated later in December.

The Crown Mountain drilling programme was focused on the north and south blocks of the project area. These two blocks, which contain a combined total of 66 million t of measured and indicated resources (of Crown Mountain’s 90 million t total resource base), were determined by the most recent PEA to show robust economics.

Jameson Resources said it intends to advance the Crown Mountain project into prefeasibility by the end of the current quarter, followed closely by preparation of documents required to begin the EA process.

Adapted from press release by Sam Dodson

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