(MENAFN - ProactiveInvestors - Australia) Celsius Coal (ASX: CLA) has completed a drilling program at its Uzgen Basin Coal Project in Central Kyrgyzstan that was targeted at validating historic Soviet era drillholes at the Tuyuk Kargasha Prospect.
This drilling has found that here is good correlation between the Soviet era drilling and that completed by Celsius.
Completion of analytical work and more detailed evaluation is required to confirm the extent to which the Soviet era data can be used in resource modelling.
The company had drilled seven diamond holes at the prospect, five of which were immediate twins of former Soviet era drillholes, being located within 5 metres and 50 metres.
Another was drilled 125 metres from an existing hole while the last was an exploration hole that showed the coal seams continued to the northeast of the licence area.
The extension bodes well for a significant tonnage of coal to be delineated in the area if further drilling is able to prove continuity of coal seams between the exploration hole and these surface expressions.
The only coal quality analysis done to date on the first drill hole also confirmed the presence of coking coal.
At Min Teke, Celsius has focused its drilling on delineating a coal resource that could be utilised to supply the local domestic thermal market
Two easterly drillholes intersected cumulative coal thicknesses of 11.62 metres and 12.54 metres.
The company also mined 7,500 tonnes of coal from Min Teke to fulfil the obligations under its Development / Mining License. This coal will be sold into the local Kyrgyzstan domestic market and should generate a small cash flow which will further fund the company's exploration programmes.
Celsius also plans to mine 5,000 tonnes of coal from the Sary Mogol mining lease by the end of 2012.
To complete mining Celsius has purchased two 40 tonne trucks, a loader and excavator. The loader and trucks are already located on site with the excavator to be delivered within the next two weeks.
Celsius is planning to have coal delivered to the local Kyrgyzstan domestic market by mid-December 2012.
The Tuyuk-Kargasha Prospect is located at the northern end of the main Uzgen Basin where seams are normally closer to the surface, thicker and better developed than elsewhere in the Basin.
The northern portion of the basin has also been identified as having the potential to host coal of coking qualities.