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  • International Coal Reports Strong Geological Results From Bundaberg Project 0 comments
    Feb 5, 2013 7:50 PM

    International Coal (ASX:ICX) has provided a geological update on the Bundaberg exploration program joint venture with Queensland Coal Investments Pty Ltd (QCI), a wholly owned subsidiary of Hancock Prospecting Pty Ltd (HPPL).

    Eleven boreholes have been drilled at EPC 2194 and EPC 2196 as part of the company's farm-in and JVA.

    Two new pilot holes and two partially-cored holes were drilled recently within EPC 2196 confirming the presence of coal seams within the Cretaceous Burrum Coal Measures at depths ranging from 30 metres to 428 metres.

    Signficiantly for investors, core hole BUN006C exhibited hard coking coal properties with a Crucible Swelling Number (CSN) of nine and less than 11.5% ash.

    Coal was encountered with intersections varying in thickness from 0.66 to 2.63 metres.

    Ply-by-ply sampling has been undertaken and a comprehensive analysis methodology developed:

    - Stage 1 Ply-by-Ply proximate analysis;
    - Stage 2 Selection of composites followed by sizing and float/sink testing, analyse floats for coking properties;
    - Stage 3 Generate clean coal composites (generally CF 1.50) and test for a wide range of thermal and coking coal properties
    - Stage 3 at CF 1.50 results received to date from core hole BUN006C exhibited hard coking coal properties with a crucible swelling number (CSN) of nine (9) and less than 11.5% ash.

    Stage 1 results indicate that holes BUN006C and BUN010C have similar raw proximate quality characteristics.

    However, BUN011C shows higher raw ash and lower calorific values and volatile matter.

    Clean coal composite results from the other two partially-cored holes are still outstanding, and correlations between boreholes are being considered.

    Further interpretation of the coal quality of the area cannot be completed until a suitable number of samples across the three locations become available.

    Work is now progressing on creating a structural and coal quality model on EPC2196.

    Complete laboratory test results are expected within the next 2-3 months.

    Crucible Swelling Index background

    The simplest test to evaluate whether a coal is suitable for production of coke is the free swelling index test. This involves heating a small sample of coal in a standardised crucible to around 800 degrees Celsius (1500 °F). After heating for a specified time, or until all volatiles are driven off, a small coke button remains in the crucible.

    Analysis

    Today's JV results with Hancock Prospecting subsidiary Queensland Coal Investments Pty Ltd, of cored holes are very promising indeed. Apart from confirming the presence of coal seams within the Cretaceous Burrum Coal Measures at depths ranging from 30 metres to 428 metres, the core hole BUN006C exhibited a crucible swelling number (CSN) of nine, a very significant result.

    Put in perspective, good prime coking coals give off a CSN of 6.5-8. The CSN of 9 in BUN006C is an outstanding result. In further perspective, Northern Energy Corporation had a coking coal of 8 at one of its coking coal projects which itself was a very strong CSN.

    Based on this, as well as a strong exploration program at its Queensland coal projects in 2013 and based on its announced coal resource inventory and milestones ahead, Proactive Investors has estimated that ICX has a valuation of closer to $0.32 per share.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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