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Celsius Coal confirms Kyrgyz Republic potential

World Coal,

Celsius Coal Limited has released coal quality data received from laboratory analysis for drilling that took place last year in the company’s Uzgen Basin project in the Kyrgyz-Republic, confirming the coking coal potential.

Figure 1 - Geology of the Kyrgyz Republic showing the Uzgen Basin.

Highlights of the report include:

  • Assay results confirm coking properties in Northern Kargasha (DDTK0010 & DDTK0011) & Southern Kargasha (DDTK0008 & DDTK0009).
  • Most sample results from drill holes DDTK0008 to DDTK0011 from the Kargasha area show Free Swell Index (FSI) numbers in the range of 6.5 to 8.5, indicating good coking potential. 46 of the 49 samples analysed from these drill holes show FSI levels greater than 4.5, which is typically assessed as a threshold for coking coal.
  • Results from the analysis of DDTK0008 to DDTK0011 from the Kargasha area are consistent with the laboratory results from the 2012 drilling program, suggesting that the majority of the Kargasha area has coking coal potential.
  • The 2013 laboratory results from the Kargasha area also show a continuing trend of low sulphur and other deleterious elements.
  • Laboratory results are being complied for the Kokkia area of the Uzgen Basin coking coal project and are expected to be available by the end of January.
  • Further detailed metallurgical analysis, including Coke Strength after Reaction (CSR) analysis, is expected to be available during the March quarter. These results will assist the company with its ongoing mining studies that are currently underway and in discussions with potential off-take partners.
  • Celsius is currently preparing an update to its Inferred Mineral Resource of 255 million t and Exploration Target of 55-110 million t for its Uzgen Basin project based on the results of the 2013 drilling. This work is expected to be completed by the end of the first quarter.
  • Celsius is currently preparing an update to its JORC resource, which is expected to be finalised by the end of Q1 2014.

Figure 2 - Geology map of the Kargasha license showing Celsius 2013 and 2012 drilling, coal intersections and historical Soviet-era drilling.

Celsius chairman Alex Molyneux stated: “We’re very pleased with the results we have received for Kargasha to date, particularly the continuing strong FSI figures and low sulphur levels. We’re eagerly looking forward to seeing results from our first drilling campaign in the Kokkia tenement and will be sharing those with the market and potential customers as soon as we receive them.”

Adapted from press release by Katie Woodward

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