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Universal Coal On Track For Confidence Category Upgrade At Berenice-Cygnus

Universal Coal (ASX: UNV) is on track to deliver a Resource update for its Berenice-Cygnus coking coal project by the end of November with the recent completion of second phase Resource drilling.

The latest drilling program was designed to bring the Inferred and Indicated Resources within the southern open pit area into the high confidence Measured category.

The last of the analytical results from this drilling campaign are expected to be available by mid-October 2012, ahead of the updated geological model and Resource update in November 2012.

The Berenice-Cygnus coking coal project has a JORC Resource of 1.3 billion tonnes of coking coal, with around 7.9 million tonnes of that already in the Measured category.

Universal is targeting a Measured Resource for Berenice-Cygnus of over 560 million tonnes for a potential open pit operation.

The most recent drilling campaign comprised 80 holes, including both slim diameter and large diameter drilling.

The program confirmed the presence of a 35 to 40 metre thick coal zone from sub-outcrop, less than 20 metres depth, up to 200 metres below surface.

The coal zone consists of inter-bedded bright coal and carbonaceous mudstone with a number of coal-rich horizons containing between 40% and 50% coal.

Tony Weber, chief executive officer of Universal Coal, commented: "The completion of this second phase drilling program has continued to increase our confidence in the Resource at Berenice-Cygnus.

"The results of the technical analysis of the drilling campaign in terms of coal qualities flowing into an update on technical modelling will continue to demonstrate the Resource and allow the company to continue its positioning of this important asset."

A Scoping Study has identified the potential for soft coking coal to support a 10 to 15 million tonne per annum run of mine operation.

The project is strategically located just 30 kilometres from a rail siding that provides access to the Maputo Port.

Preparing for Pre-Feasibility

In preparation for the start of the Pre-Feasibility Study, Universal has completed an environmental risk assessment and both the geohydrological survey and geotechnical studies are well advanced.

The company will undertake a third phase of Resource drilling, comprising 47 holes, will be undertaken during 2013 to bring the Inferred and Indicated Resources within the northern open pit area into the Measured category.

The end of this drilling campaign, combined with the finalisation of analytical results and upgraded geological model will see Universal move to a 50% ownership interest of the Berenice-Cygnus coking coal project through its earn in right.

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