Thelon gets OK to purchase Jellico

CANADIAN firm Thelon Capital has received acceptance from the TSX Venture exchange for its letter of agreement to purchase the Jellico coal project in Tennessee.
Thelon gets OK to purchase Jellico Thelon gets OK to purchase Jellico Thelon gets OK to purchase Jellico Thelon gets OK to purchase Jellico Thelon gets OK to purchase Jellico

Thelan's Jellico project

Donna Schmidt

The letter was submitted May 18.

The Jellico project is made up of 6000 acres of land in Campbell and Claiborne counties and encompasses a minimum of 13 million tons of high-quality thermal and metallurgical coal, according to a 2009 report by AR Leamon.

As that report is not compliant with National Instrument 43-101 standards, Thelon said it would immediately conduct a work plan to confirm and expand the reserve and file a compliant report. Thelon said in late May that it would issue 3.5 million shares and spend $US750,000 on confirmation drilling for the NI 43-101 resource report.

It also noted at the time that it planned to issue another 3.5 million shares once a definitive agreement was signed and the report showing 20Mt of more conventionally minable measured and indicated resources was completed and received.

“Coal quality analysis conducted from coreholes and test pits on the property between 1992 and 2007 have shown favorable sulfur, ash and Btu values consistent with high-quality metallurgical coals being produced in the area,” Thelon said.

The Jellico project has well-established power, logistics and transportation in the area, including mine access roads and a railroad that runs parallel to state highway 90.

“We are very excited and grateful for this opportunity, given the recovery and continuing strength of the domestic and foreign coal markets,” Thelon president Jason Walsh said in May.

“The state of Tennessee has a highly skilled labor force with a long and proud history of coal production in the Appalachians … [and we are] committed to operate to the highest standards environmentally, in a safe and socially responsible manner to create value for our shareholders and the people whom we shall employ in the area."

Thelon Capital is also working on uranium projects in Canada, Nevada and Utah, as well as a diamond project in Canada’s northwest territories.

For more on the Thelon Jellico project, check out the August 2010 issue of Coal USA Magazine.