Raw coal laboratory test results from Celsius Coal’s 2013 drilling program in the Kargasha area of the Uzgen Basin Coking Coal Project have confirmed that all drill holes tested have returned intersections with good coking coal potential.

The tests were undertaken by the internationally accredited SGS laboratory in Novokuznetsk, Russia, using industry standard procedures. Results were also used to validate thickness of coal intersected in drilling from prior visual inspection.

Coking coal potential is demonstrated by the results from Free Swell Index (FSI) coking tests, with 46 of 49 coal samples from four drill holes submitted for FSI tests returning results greater than 4.5, which is generally considered a threshold for coking coals.

All coal samples also show very good thermal characteristics with high GCV (air dried gross calorific value, very low inherent moisture and acceptable total sulphur. Coking coals with low concentrations of deleterious elements such as phosphorus and total sulphur are preferred by steel producers.

Results from the four 2013 holes are consistent with the 2012 laboratory results and continue to show a consistently high FSI and a low to moderate total sulphur trend. Given the spacing of the drill holes it suggests that most of the Kargasha area has coking coal potential.

Samples for a fifth hole located in the previously untested eastern side of Kargasha and five drill holes from the neighbouring Kokkia tenement, where significant coal intersections have been returned in the recent drilling campaign, have been received at the SGS Novokuznetsk laboratory and work has commenced on their analysis. Samples for float/sink beneficiation testing on the four 2013 drill holes have been identified and testing is also under way.

Samples from two PQ drill holes have been received at ALS Richlands laboratory in Australia and work has started on Coke Strength after Reaction (CSR) analysis. The company expects to receive the results from the ongoing test work in the balance of the March quarter. Results will assist Celsius with its mining studies that are under way and in discussions with potential offtake partners.

Celsius’ executive chairman Alex Molyneux says, “We’re very pleased with the test results we have received for Kargasha to date, particularly the strong FSI figures and low sulphur levels. We’re eagerly looking forward to seeing results from our first drilling campaign in the Kokkia tenement and will be sharing those with the market and potential customers as soon as we receive them.”

www.celsisuscoal.com.au

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