Celsius Coal has completed its 2013 drilling program at the Uzgen Basin Coking Coal Project with 11 HQ and PQ diameter core holes drilled for a total of 4050.6 metres, the largest drilling program undertaken by Celsius. At Kargasha deposit, 2304.0 metres of drilling was completed and at Kokkia 1746.6 metres was completed.

Coal sample and data analysis is now under way. Desktop works include reviewing seam correlation and construction of a 3D model of the coal seams prior to updating the resource statements for project areas. Coal samples are being sent progressively to SGS labs in Russia and ALS labs in Australia for quality testing of a range of coking and other properties.

At Kargasha, high-quality diamond core from six drill holes have been logged and sampled, with a significant cumulative coal thickness of 13.63 metres and 14.13 metres intersected in two holes. Another hole shows coal seams continue in the east of the licence area, where no drilling had previously been carried out.

Results from intersections in three holes confirm predictions made during 2012 resource modelling that coal seams thicken north of the Kargasha area, where coal is generally closer to surface.

Validation work on Soviet-era drill holes and adits was completed with a number of drill holes and adits having been located using modern survey techniques to help confirm the accuracy and location of the historical data.

Significant coal intersections were also observed at Kargasha and Kokkia, with cumulative thicknesses up to 16.28 metres and individual seams of up to 2.58 metres. Near-surface results at Kokkia highlight additional open-pit and auger potential. In addition, the 2013 program included two larger diameter PQ holes to allow for testing of specific coking properties, including coke strength after reaction (CSR).

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