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Significant Coal Exploration Target Confirmed at Workington and Maryport Licence Areas in Cumbria, UK
Cluff Natural Resources Plc, the AIM quoted natural resources investing company, has announced an initial Exploration Target in accordance with the JORC Code of between 384 million and 640 million tonnes of coal within its 100% owned coal exploration licences located in the Solway Firth, Cumbria.
This Exploration Target provides a potentially attractive addition to the Company’s existing Underground Coal Gasification and conventional North Sea gas assets.
Overview:
· Continued expansion of UK energy asset portfolio
· Wardell Armstrong International Ltd confirms an Exploration Target in accordance with the JORC Code of between 384 million and 640 million tonnes of coal at Cumbrian Licence Areas held by CLNR
· The Exploration Target is based on seven key coal seams which present themselves in a manner which is potentially suitable for conventional coal mining
· The coal is potentially of coking quality based on data from former coal mines operational within the licence areas and a number of regional boreholes
· UCG prospectivity is likely to be restricted to areas further offshore where exploration data is currently limited
· CLNR is in the process of varying the terms of its existing licences to allow further evaluation of conventional coking coal potential, in addition to UCG
· Completion of additional resource maturation and exploration drilling are necessary to mature the Exploration Target
Commenting, CLNR’s Chairman and Chief Executive Algy Cluff said: “This significant Exploration Target adds an exciting new dimension to CLNR’s portfolio of UK energy assets. The global outlook for metallurgical and coking coal is predicted to remain steady with substantial upside potential on the back of decreasing supply and increased steel demand as the global economy continues to recover. This is reflected in continued interest and exploration investment in delineating new coking coal resources in the UK, including the adjacent acreage currently being explored by West Cumbria Mining. Significant UCG potential is also likely to exist in the seaward parts of the licence area and will be appraised in conjunction with future drilling programmes.”
Summary of the Coal Exploration Target:
Wardell Armstrong International, the Company’s independent consultant has confirmed an Exploration Target in accordance with the JORC Code of between 384 million and 640 million tonnes of coal within the Company’s Workington and Maryport Licence Areas. The Exploration Target is calculated on a net in-situ (excluding all partings and using an air dried density) basis, with no recovery factors applied. The Exploration Target range has been derived by estimating a coal tonnage (the maximum) and applying a 40% geological loss factor (the minimum). The Exploration Target focussed on seven coal seams (which includes three leaves of the Main Seam) with average thicknesses of greater than 0.60m which represents the minimum technically recoverable thickness. The Exploration Target is spread over two distinct domains with varying levels of confidence based on the availability of historical data. ‘Area A’ has been geologically modelled based on a greater density of historical data and is therefore significantly better defined than ‘Area B’. ‘Area B’ is thought to contain the majority of the coal likely to be suitable for UCG development, however this remains unverified due to limited data.
Based on limited analytical data the coals have the potential to be of coking quality with volatile matter of >30%, a free swelling index (FSI) between 4 and 8, usually less than 10% ash (net coal, air dried basis) and 0.6% to 8% total sulphur. Further analysis will be required to confirm variation in coal quality.
