The Caledon deal (should GRAM be successful) will be an exciting one for ORD, Queensland floods and a surging Aussie Dollar notwithstanding, here are the most recent resource estimates:
Caledon Resources upgrades Minyango coal resource to 1.2 bln tonnes.(ProactiveInvestors):-
Monday, December 13, 2010 By Jamie Ashcroft
CALEDON REOURCES (LON:CDN) has announced a huge 256 percent increase to the Minyango coking and thermal coal resource estimate.
It has added 874 million tonnes to the resource, which now stands at 1.2 billion tonnes.
A feasibility study is currently underway at Minyango.
The company is being taken over by a state-owned Chinese mining company - Guangdong Rising Assets Management (GRAM).
Minyango is around 15 kilometres away from Caledon's operational Cook mine in Queensland, Australia.
The resource upgrade is the result of exploration work carried out between June 2009 and September 2010.
The Cook mine is Caledon's flagship asset. In 2009 it 604,000 tonnes of coal from Cook and the latest figures show the group's raw coal production from operation rose 35% to 174 million tonnes of raw coal in the three months to the end of June.
It has targeted saleable output of 700,000 tonnes this year.
Ends
To put these increases into perspective George Salamis, the director responsible for the acquisition of Cook, reckoned a target of 1.5 million tonnes was a possibility within two years.
The company has been allocated 4Mtpa capacity in Stage 1 of the Wiggins Island Coal Export Terminal project (WICET), which is scheduled to come online in 2014.
VAN Price at posting:
5.3¢ Sentiment: LT Buy Disclosure: Held
