Canadian resource company, Goldsource Mines announced that it has concluded an updated resource evaluation for the Border Coal Project.
The latest results of the resource evaluation revealed a 47.8% increase in the Indicated Resources. This increase from 79.1 Mt of coal to 117.0 Mt of coal is attributed to the inclusion of Niska 105, the coal sub-basin. Indicated Resources now surpass 100 Mt, which is believed to be a resource threshold for a prospective coal project.
The latest technical report for this updated resource is anticipated to be filed on SEDAR. N. Eric Fier, CPG, P.Eng., COO and qualified person for Goldsource Mines has prepared this technical report.
Goldsource Mines’ President, J. Scott Drever commented that that company is happy that the 2011 drilling campaign has included over 37 Mt of Indicated Coal Resources in its entire resource base. These results indicate that more amount of coal can be discovered within the company’s property borders. Drever added that the company will continue to explore the existing options so as to maximize its coal asset value as a potential energy source. Timing, favorable investment climate, technology changes and commodity pricing will be required for this project in order to show rates of return proportionate with the capital. In addition, the project will need financial capacity and expertise for culmination. In this regard, the company is looking for prospective participants to meet these strategies.
In the Niska 105, the average quality of coal is believed to be better than the quality observed in other coal sub-basins.
Goldsource Mines will test several priority targets that could expand the total resource base of the region. The company will then gather a coal sample from Chemong 3, Pasquia 2 and Niska 107 to develop the Border Coal Project. A coal to liquid lab testing, including sulphur and sodium reduction testing will be conducted by the company. In addition, environmental baseline information will be collected.
Sampling program will be conducted in the 2012 winter drilling season, depending on the availability of funds. The total cost for the entire activities will be approximately $3 to $5 million.