Caledon Resources plc – Minyango Resource Upgrade to 1,216 Million Tonnes

Australian coal producer and explorer Caledon Resources plc announces a 256%  increase (874 Mt) to the Coal Resource estimate for the Minyango coking and thermal coal project bringing the total Minyango Coal Resource estimate to 1,216 Mt. The Minyango project is located approximately 15km north of the Company’s Cook Mine. 
 
The updated Resource estimate is based on the results of an exploration programme conducted between June 2009 and September 2010. The Resource evaluation included:

• The drilling of six partly cored boreholes (61mm diameter samples) of the Aries, Castor and Pollux seams.
• Re-processing of 2D seismic line data from 1982 and 1990.
• Re-interpreted fault patterns based on seismic data and new borehole data
• Updated seam correlation based on additional drilling data from ten gas boreholes.

 
Washplant simulations indicate that coal from Minyango can generate a primary coking coal product of 7.5% to 8.0% ash with low to moderate sulphur and phosphorous and a secondary thermal product of 15% ash.
 
Seismic surveys are planned for the first half of 2011 in addition to ongoing drilling as part of the project feasibility study.