Lab results of drill core from samples at Celsius Coal’s Tuyuk-Kargasha project within the Uzgen Basin property in central Kyrgyzstan have confirmed most intersections have strong coking properties. 15 of 16 coal samples have shown a free swelling index (FSI) greater than 4.5 which is the typical threshold for coking coal. Most samples show FSI in the range of 6.5 to 8.5, or high quality coking coal.  1

Celsius managing director Grant Thomas says, “These laboratory results confirm coal intersected at Tuyuk-Kargasha has the potential to be used as coking coal, and also validate the thickness of coal intersected in drilling from visual inspection. All coal samples show very good thermal characteristics with high air dried gross calorific values, low inherent moisture and low phosphorus and total sulphur. Coking coals with these attributes are favoured by steel producers.”

These latest results are consistent with previous assays announced in October 2012, and show a continuing trend for low phosphorus and sulphur. The company believes given the distance between the drill holes, it is possible a substantial portion of the coal at Tuyuk-Kargasha has the potential to be coking coal.

Celsius is continuing to assess Soviet-era data for the site to create digital coal seam thickness and quality models to form the basis of a coal resource estimation. In November 2012, significant intersections of hard black coal were intersected in all seven diamond drill holes at the site, ranging from 1.63 metres to 9.28 metres.

The company says initial analytical work is correlating with historical Soviet drilling, giving Celsius further confidence in its exploration target of 501 to 700 million tonnes of coal.

Australian-based Celsius recently acquired an 80% share in three licence areas within the Uzgen Basin, which contains the country’s main coal deposits. The Tuyuk-Kargasha prospect in the north of the region hosts coal seams closer to the surface which are thicker and better developed than elsewhere in the Basin.

www.celsiuscoal.com.au

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