The Conversation (0)
On March 15, Celsius Coal (ASX:CLA) released a JORC-compliant maiden resource of 255 million tonnes of coking coal for its Uzgen Basin project in the Kyrgyz Republic.
Celsius Coal entered into a conditional agreement in June of 2012 to acquire 80 percent interest in three prospective coking coal tenements (Kargasha, Kokkia and Min Teke) in the Kyrgyz Republic’s Uzgen coal basin. Historical drilling was carried out by the Soviets on the Kargasha from 1947 to 1953.
In Q3 of 2012, Celsius carried out an exploration program on the property, which included over 3,000 m of drilling, on the Kargasha and Min Teke targets. Results from the program confirmed good coking coal properties at Kargasha and a mix of premium thermal and coking coal at Min Teke.
A breakdown of Celsius’ maiden resource includes 230 million tonnes of Inferred Resources at Kargasha and 25 million tonnes of Inferred Resources at Kokkia. Overall, Celsius has derived an Exploration Target of between 500 and 700 million tonnes of coal for the Uzgen basin. The company is looking to continue with it’s exploration program, including executing an aggressive work program in the summer of 2013.
Mr. Grant Thomas, Celsisus Coal’s Managing Director commented “At 255 Mt, this very large maiden coal Resource with high yield and good coking characteristics, positions Celsius to become a significant coking coal producer.”
Also of note, earlier in March, Celsius Coal received its first $5 million of strategic funding from the Singapore-based Blumont Group. In February 2013, Celsius and Blumont formed a Strategic Alliance to review additional investment opportunities in Central Asia.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in the company mentioned.