Jameson is in the process of conducting a mining feasibility study on the Basin Coal Mine with the objective of re-opening the mine once they have exercised their option to purchase 100% of Compliance's interest in the mine located near Princeton, BC.
Further to the Company's news release dated July 23, 2009 reporting on resources at the Basin, the final resource report on the project has now been completed. The report, dated September 4, 2009, entitled "Technical Summary Report and Resource Estimate on the Basin Coal Project", was prepared by Mr. Ron Parent, P.Geo. of ResourceEye Services Inc., a "qualified person" for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral projects.
The work has resulted in the calculation of in place coal resources contained in the Main and Lower coal seams, totalling 87,015,000 tonnes Measured/Indicated, and 36,685,000 tonnes Inferred. The surface coal resources were determined to be in the category of "resources of immediate interest", and have been classified as measured, indicated and inferred, with resource calculations provided for each category. Basin Coal Project's surface coal resources are outlined in Table 1, below.
Table 1 ------- Surface Coal Resources (using an incremental strip ratio cutoff of 8:1 BCM: tonne in-situ) -------------------------------------------------------------------
------------------------------------------------------------------------ TOTAL - Inferred 36,685,000 ------------------------------------------------------------------------
The tonnages have increased slightly compared to the original news release announcing the resources. The reason for the change was a re-interpolation of the ash content of the Main Seam to reflect the distribution of the seam characteristics as it relates to the mapped seam plys. The result was an increase in the overall ash content of the Main Seam to 48.3% from 32.3%. The overall volume calculation remains unchanged.
A full text version of the Basin Property resource estimate is being filed on SEDAR today and will be available at www.sedar.com under the Company's profile and can also be found by visiting the Company's website at www.complianceenergy.com.
