NEMI Northern Energy & Mining Inc. (NEMI) wishes to announce receipt of a report entitled ?Summary Report on the Extension Block Trend Coal Property? prepared by John H. Perry, PGeo, JHP Coal-Ex Consulting Ltd.
The report provides estimations of coal resources for the Extension Block in accordance with criteria specified in National Instrument 43-101. The following are relevant quotations from the report on resources.
?The resources estimated for the Gates coal seams (D, E, G, J, L, and N Seams) total approximately 23 Mt and are classified as inferred, in-place, and of immediate interest. The thick L Seam provides close to 36% of the tonnage, G and J Seams each contribute approximately 18% and N provides 15%.?
?The resource estimated for the Gething GT Seam totals approximately 4 Mt; this resource is classified speculative and in-place. According to Geological Survey Paper 88-21, speculative resources must be classified as being of future interest. However, from a practical standpoint, these resources are of current interest for the definition of low strip ratio coal and are to be further defined as part of the next phase of exploration.?
As previously reported in the Coal-Ex report ?Summary Report on the Trend Coal Property?, the resources on the South and Roman Blocks totaled 56 million tonnes, classified as inferred, in-place and of immediate interest. Hence the total inferred resource is now 79 million tonnes on 3 of the 5 Trend blocks.
?In addition to the inferred resource estimates provided for the property as it was configured in 2002, and as modified by the 2003 drilling, there is significant potential for additional coal resources. In particular, this includes the more recently acquired Hambler Block, which comprises a 4.5 km strike extension of the South Block ? Extension Block structure. Also, the discovery of L and N Seams in 2003, allows the possibility of these seams being present in the southeastern part of South Block and in the Q West Block.?
?The data indicate that, on a dry, mineral-matter-free (dmmf) basis, most of the coal seams are of medium volatile bituminous rank.? ?The coals are of metallurgical quality and should be suitable as a coking coal product after beneficiation in a wash plant.?
The Company is planning extensive field programs for the summer season, firstly to provide infill drilling, bulk samples and other investigative work to support the feasibility program to be initiated in the third quarter, and secondly, to carry out exploration work on the Hambler, Q West, and Roman Blocks to permit resource quantification and classification upgrade.
The Trend property is favourably located, only 25 km south of Tumbler Ridge and only 12 km south of the BC Rail spur into the Quintette mine site. The Company?s Trend feasibility program is based on initial development of a mine having an annual production level of 1.5 million tonnes, with capability of expansion to 3 million tonnes-per-year with further development of resources. The Company is also evaluating early production of a raw coking coal product to be mined from the low ash L Seam in the Extension Block.
Further information can be obtained from David Fawcett, Chief Operating Officer, or David Austin, President at 604-689-0277, or by visiting the website www.nemi-energy.com .