Celsius Coal has started its 2013 exploration work on the Uzgen Basin Coking Coal Project in the central region of the Kyrgyz Republic. Equipment is now on site to support an extensive multi-rig diamond drilling program with 4000-5000 metres of drilling planned.

Following 2012 exploration season success with estimation of Celsius’ maiden JORC resource of 255 million tonnes of inferred coal resources, the 2013 program seeks to bolster resource inventory; target exploration areas most prospective for highest ranking coals while moving inferred resources into the indicated category; and collecting data for mining studies. Bulk samples will also be collected and tested with results distributed to prospective customers and off-takers.

“Based on 2012 work, we are looking at the right approach to start mining, including some very low cost scenarios,” says Celsius chairman Alexander Molyneux. “The point is to acquire data we need so we can be mining here within the next drilling program.”  Based on exploration results, capacity is available to expand the drilling program.

Celsius has a field team of 40 people for the 2013 program, including its own geological staff and third-party contractors. Celsius anticipates an October 2013 completion, barring expansion. The next focus will be on lab analysis, resource modelling and desktop studies.

The 2013 program will be more extensive than Celsius’ maiden 2012 drill program, involving more work focused to support a mining licence application and subsequent production.

Larger-diameter PQ core holes will be drilled to procure samples to more accurately determine coal specifications, particularly coke strength after reaction. Additionally, more base line and geotechnical data will be collected for mining studies.

Celsius owns 80% of the Uzgen Basin Coking Coal Project comprising the Kargasha, Kokkia and Min Teke deposits covering an established Soviet-era coking coal resource. It also owns 90% of the Alai Range Project comprising Sary Mogol and Bel Alma.

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