18th Jun 2015 09:28
LONDON (Alliance News) - Strategic Minerals PLC Thursday said it has secured a maiden resource estimate for the Tatu project in the North Island of New Zealand.
The JORC compliant resource estimate, provided by Gordon Geotechniques Pty Ltd, forecasts there is 6.7 million tonnes of measured and indicated thermal coal in place at the project. Strategic Minerals said the estimate is of "high certainty" because 75% of the resource is classified as measured.
Of that total resource, over 5.0 million tonnes is in the measured category with the remaining 1.7 million tonnes being classed as indicated.
"Particularly pleasing is that 75% of the resource is classified as measured under the JORC code which is the highest certainty category of a resource," said Chairman John Peters.
Strategic Minerals currently has an interest of 51% in the resource through its 51% ownership of King Country Mining Ltd. However, the company is expecting to acquire the rest of King Country in the third quarter of 2015, it said.
"A number of potential customers for the Tatu product have been identified on the North Island and the company will be looking to complete a bulk sample from the mine in the next quarter of this year to confirm the quality of coal for these customers," said the company.
Strategic Minerals is also developing a detailed mine plan for the site, alongside a feasibility study to support the mine development.
Peters said the resource supports the company's vision of producing a minimum of 200,000 tonnes of thermal coal per year from the project with a 20-year mine life. He also reiterated the project should be conducting its first sales of thermal coal in the first half of 2016.
The Joint Ore Reserves Committee, or JORC, is an organisation that sets the code for reporting of exploration results, mineral resources and ore reserves, otherwise known as the JORC code. The JORC code is a professional code of practice that sets minimum standards for public reporting of minerals exploration results, mineral resources and ore reserves and is used as a worldwide standard.
Strategic Minerals shares were up 9.0% to 0.600 pence per share mid-morning Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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