Vancouver – A doubling of the resources at Hillsborough Resources‘ (HLB-T) Bingay Creek coal project in southeastern British Columbia bodes well for the company’s decision to scrap its application for a small mine permit in favour of a larger operation.
An independent resource estimate, prepared by consulting firm Westwater Mining, pegs the resource at 15.5 million tonnes of metallurgical coal in the measured and indicated resource categories. Another 2.41 million tonnes are inferred. The resource comprises 16 major coal seams at least one metre thick.
Last year the resources were estimated at 7.56 million tonnes measured and indicated with 2.68 million tonnes inferred in three major coal zones.
The new resource, includes results from this year’s drilling, last year’s drilling and three holes drilled by Utah Mines in 1983. The coal resources remain open to the west where they would lie deeper, and along the northern strike extension.
The coal-seams are hosted by the Mist Mountain formation, in the Jurassic-Cretaceous Kootenay Group. The coal measures are folded into an east verging, northeast-plunging asymmetric syncline.
The coal at Bingay Creek is mainly high rank, a good portion of which will be suitable for pulverized coal injection (PCI) or good-grade metallurgical coal suitable for blending.
A forest service road provides access to the property from the town of Elkford, 21 km to the north, while the nearest railhead is about 30 km away on the Fording River branch of the Canadian Pacific Railway.
Hillsborough is now considering a full mine permit application for the Bingay Creek project. The company had been working torwards getting a small mines permit, but with the increase in resources and the potential for expansion, it now envisions producing from a larger operation of up to one million tonnes per year.
What’s more, the company says that rail congestion in the Elk Valley corridor could present delays for a small mine until CP Rail completes the planned improvements to its system.
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