Around 13Mt of this is in the indicated status and the total resource base includes a fifth seam, West Borehole, which added 59Mt to the resource, NuCoal managing director Glen Lewis said.
“This represents another major milestone for both the project and the company. Since listing in February 2010, every published milestone has been achieved on time and within budget,” he said.
“The significant increase of resources, as well as the upgrading of a portion to indicated status, further strengthens the commercial viability of the project.”
Recent drilling has increased confidence in the inferred resources and continuity and quality data relating to the seams, Lewis said.
Drilling results continue to confirm the quality of the Whynot seam, which is expected to underpin the economics of Doyles Creek.
The company has reported a decrease in raw ash for the Whybrow, Redbank Creek and Woodlands Hill seams from the June resource report and an increase of data points in the estimation from 20 to 28. The database now includes 11 of the recently drilled holes.
Exploration drilling has focused in the northeast and central part of the licence area. Fifteen drillholes have been completed to date in the 25-hole phase two drilling program with three rigs currently operating.
NuCoal has continued discussions with its strategic alliance partners – Hunter Valley Training Company, Westpac Rescue Helicopter Service and the University of Newcastle – about its planned training centre.
A formal partnership agreement has been executed with the Westpac Rescue Helicopter Service to provide financial assistance to that organisation for training-related activities.
A trainee geologist has started working at Doyles Creek as a step towards supporting the training mine concept, and three trainee drillers have been employed on the project during the exploration phase.
The inaugural university scholarship program sponsored by Doyles Creek Mining has also begun. This program provides five sponsored positions at the University of Newcastle, with the scholarships available to students from the Upper Hunter region who wish to pursue a career in geology or earth sciences.
The scholarships are valued at up to $7000 each per year for three years. Applications are being processed for five apprenticeships (two in mechanical and three electrical), funded by Doyles Creek Mining, to begin in 2011 in conjunction with Hunter Valley Training Company.
NuCoal’s share price was 0.5c lower at 40c in morning trade.
