Risky
Yes, my area of expertise is the mineral sands industry. I have an understanding of coal properties and usage via that industry use of coal in its synthetic rutile process. I am not a coal geologist but one does not have to be a rocket scientist to interpret the results of the drilling program forced on ENB by CNX.
Looking at the latest report,5 August, the results are surely a total disaster for ENB.
The two seams have an average thickness of 1.34 and 2.68 metres. CNXs latest quarterly report clearly states that it has a seam thickness cut-off point of 2.0m and that the thickness should preferably be greater than 5m.
Three of five drill holes around the edge found no coal.
The water+ash content totals around a whopping 50% of the coal. Not only does that part have no heat/energy value but moreover the water represents an energy/cost penalty. CNXs UCG process will consume energy in converting that water into waste steam.Specific energy(=calorific value) results should prove interesing!
I am somewhat surprised by the statement that the ash content is moderate when it is reported at being 20 to 31%.This is particularly so coming from a Collie-based laboratory. Collie coal typically runs around 5-7%ar.
How ENBs MD, Babidge can assert that "The Company is extremely pleased with the very positive results to date, which demonstrate capability for future UCG operations" is beyond my comprehension.
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