New Horizon Coal (ASX: NHO) has defined a maiden JORC Resource based on historical drilling at the Kinney Coal Project in Utah, within two months of acquiring the project.

Discussions are underway to award the first stage of a Bankable Feasibility Study, with the company planning to formally commission a consultant by the end of this quarter.

Behre Dolbear Group has delineated an underground mineable Resource of 26.1 million tonnes, based on a database of more than 70 drill holes drilled during the 1970’s and 80’s.

Significantly, 92% of the Resource falls in the Measured and Indicated categories, of which 51% is Measured.

The Resource supports the potential for a coal operation that can produce up to 2 million tonnes per annum.

A preliminary assessment of coal quality, based on limited historical core hole information, indicated that coal at Kinney is of a high calorific, bituminous nature.

Additional exploration upside exists outside the current resource area on lands adjacent to the project lease, which are also controlled by New Horizon.

The Kinney project is strategically located adjacent to all necessary infrastructure, including rail, power and water, with a clear route to access both domestic and export coal markets.

New Horizon believes this project could be the first step in the direction of becoming a mid-tier U.S. coal company.
 

source:mines and money