NEC identifies 190Mt Yamala coal resource

Northern Energy Corporation (NEC) has delineated a 190Mt initial Inferred...

  Northern Energy Corporation (NEC) has delineated a 190Mt initial Inferred Resource at its Yamala coal project in Central Queensland’s Bowen Basin.NEC is proving up the resource in joint venture with Japanese trading house Sojitz Corporation, which has farm-in rights to earn up to a 30 percent interest. NEC’s Managing Director, Keith Barker said the company had now firmly established itself as a potential future coal producer through the addition of Yamala’s resource to its other projects in Queensland and northern New South Wales. “Confirmation of this initial substantial resource at Yamala, coupled with the thermal coal project at Elimatta and our two hard coking coal projects at Maryborough and Ashford, confirms Northern Energy as an emerging multi-project coal development company,” Mr Barker said. “The timing could not be better for us as global demand for energy, including coal, is growing and prices are firming,” he said. The release of the Yamala Resource Statement follows completion of the initial exploration stage, funded by Sojitz Corporation, as part of the joint venture farm-in arrangement. The resource estimate followed the inclusion of NEC’s recent drilling results in the company’s Yamala geological model. “We have added these results to those used to identify the previously announced 410Mt to 460Mt Exploration Target, based on third party exploration results,” Mr Barker said. “The initial drilling program has successfully converted between 40 and 50 percent of the previously identified target to a 190Mt Inferred Resource and it has also confirmed an additional Exploration Target of 220 to 260Mt,” he said. Mr Barker said the initial quality results indicated the 190Mt Inferred Resource comprises low raw ash coal and there is the potential for a semi-soft metallurgical coal fraction in the washed product mix, together with export thermal coal. “The results also show potential for open-cut mining, prior to underground mining, which will apply to the bulk of the resource, given shallow cover close to the sub-crop,” he said. NEC has scheduled drilling and geophysical exploration programs to recommence at Yamala in the September quarter. Their aim will be to increase confidence in the resource and establish the key mining and product quality parameters for input into engineering and associated studies.