NEMI Northern Energy & Mining Inc. (NEMI) has received a third-party assessment of the historical coal resources for its Saxon and Omega coal licenses (Saxon Project) located some 120 km southeast of Tumbler Ridge in the northeast coalfields of British Columbia.
The report ?Summary Report on the Saxon Coal Project? has been prepared by John Perry, P.Geo., JHP Coal-Ex Consulting Ltd.. NEMI commissioned this report as a first step in evaluating the development potential for the Saxon area coal blocks.
The following information is an excerpt from the report:
?? a number of reserve estimations were performed for the Saxon South, Saxon East and Omega areas. Although these reserves estimations were performed prior to implementation of National Instrument 43-101, and so do not conform fully to current reserve classification criteria, they do represent an acceptable methodology for resource quantification. Based upon a review of the data and of the historical reserve estimates, current coal resources may be re-stated and classified as 53.1 million tonnes (Mt) indicated and of immediate interest; 167.3 Mt inferred and of immediate interest: and, 275 Mt speculative and of future interest. The resources estimated for each block are:
Licence BlockIndicated (Mt)Inferred (Mt)Speculative (Mt)
Resources classified above as indicated and inferred, are considered to present opportunities for the definition of low strip ratio, surface mineable coal and also, at Saxon East, for underground mineable coal below resources identified as being potentially mineable by surface methods. Resources stated for Saxon South Block include areas covered by current licence applications.?
The estimates are based on the exploration work, assessment reports, and feasibility studies completed by prior tenure holders. The report forms an excellent basis on which to proceed with further evaluation of the development potential.
The Company has recently made application for a block of 10 coal licenses referred to as Saxon North, which effectively provides an 8 km northwesterly extension to the Saxon East coal measures, and parallel structures, on the north side of the Narraway River. Prior reports on the property reported substantial resource and exploration tonnage.
Management believes that the Saxon property provides an attractive coal asset with potential long-term benefits to the Company. The coal tonnage could support a new, larger development in the northeast, and support the capital required for extension of infrastructure. With 4 large open-pit mining blocks located within 15 km of a central site for a wash plant and coal handling facility, the resources could potentially support a 4 to 5 million tonne-per-year operation for a minimum of 20 to 25 years. Based on the potential tonnage, such a development could be as large as the original northeast coal development but at a much reduced infrastructure cost.
Of significant merit for the Saxon property tonnage is the coal quality. From prior work, the Saxon coals are recognized as very good to premium hard coking coals having favourable coking indices, including high estimated coke strength after reaction (CSR).
The Company intends to proceed with evaluation of development potential and will be meeting with the provincial government and transportation companies to further assess the development opportunity.
Management will continue to develop the Trend property as its primary focus. The Trend property is 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 short-term objective is to complete a feasibility program based on an initial development of a mine with an annual production level of 1.5 million tonnes of product.
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 .
NEMI NORTHERN ENERGY & MINING INC.
Chief Operating Officer
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