Corsa opts to lock up Keyser

CANADIAN met coal group Corsa Coal has exercised its option to purchase the 2300-acre Keyser property in Somerset County, Pennsylvania for $US2.8 million.
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Courtesy Corsa Coal.

Donna Schmidt

The company said Tuesday that preliminary calculations for property in Jenner and Conemaugh townships indicated the presence of 11 million tonnes of in-place, low volatile, coking coal in the Lower Kittanning seam.

Lower Kittanning is at a depth of about 100 to 600 feet in the area and has an average inclination of three degrees and an average seam thickness of 3.45ft.

“This property has been drilled with a total of 24 cores extracted within and immediately adjacent to the footprint of this indicated resource,” Corsa officials said.

“All of these coreholes were drilled in 2011 under the supervision of an independent qualified person.”

The deposit is also national instrument 43-101 compliant, but the company noted the mineral resources were not being referred to as reserves at this time because a feasibility study had not yet been completed.

The purchase transaction is expected to close within a few days.

Corsa also reported its 2011 sales this week, recording approximately 252,000t of met coal for the year at an average realised price of $167.00 per tonne clean as well as about 142,000t of thermal coal during the fiscal year ended November 30.

The company has held fast to its 2012 outlook for sales of 800,000-900,000t of metallurgical coal.

“We have had a great first year, having acquired a strong group of coal properties and projects, commenced underground operations at the Casselman mine, successfully commissioned the Wilson Creek wash plant and commenced shipments of met coal at or above contracted specs,” president and chief executive Don Charter said.

“While we were disappointed with [an] October/November slowdown, we are pleased to be back mining at capacity in December. The acquisition of the Keyser property is another step in the continuing growth of the company's resource base.”