MARKETS

Colonial Coal completes fieldwork at Huguenot

CANADIAN-based Colonial Coal International has wrapped up a four-month long fieldwork phase at its planned Huguenot metallurgical coal project in northeast British Columbia.

Donna Schmidt

The company revealed on Wednesday that the work under the site’s exploration program which commenced in July was completed in late October.

This included diamond drilling, rotary drilling, down hole geophysical logging, geological mapping, hand trenching, core description and sampling and access trail construction.

“The work focused mainly on those areas not drilled by the company in 2008; namely, the southeastern half of the north block and along the projected trend of Gates Formation coal seams within the middle and south blocks,” the company said.

“Most of the work was helicopter-supported although some of the northern drill sites were accessed by trails.”

The company drilled 33 holes under the program that totalled 6871 metres (22,536 feet).

Thirteen diamond drill holes totalling 3401m (11,156ft) were of HQ size core, 16 rotary drill holes were made at a total of 3019m (9902ft) and four large diameter holes (for PQ and 6in core) totaling 48m (157ft) of core and 403m (1322ft) of rotary drilling were completed.

During the phase, Colonial increased its budget to $C4.1 million to allow for additional drilling intended to enhance coal seam definition. This task was initially planned to begin next year.

It also earmarked an additional $550,000 for baseline environmental studies that began in the late spring, as well as for ongoing environmental data collection.

“Preliminary results from the fieldwork indicate that the 2011 exploration program was successful in confirming the presence of coal seams of potentially economic thickness across the length of the main target areas,” the company said. It noted that these reflections were also indicated by historical exploration results contained in coal assessment reports filed with the BC Ministry of Mines by previous operators Denison Mines and Gulf Canada Resources in the 1970s.

The company is also proceeding with coal seam data analysis while coal quality testing is ongoing.

Once that data has been reviewed and evaluated, geological interpretation and modelling, a coal resource estimation and quality evaluation will begin so an independent National Instrument 43-101-compliant report can be commissioned.

The Huguenot coal project is located 70km south-southeast of Tumbler Ridge and 115km southwest of Grande Prairie, Alberta.

Current access is being made via a network of provincial paved highways and unpaved, all weather roads.

No other routes or major infrastructure is located in the vicinity of the project area, but it is 65km southeast of a rail line operated by CN Rail.

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