activities report q2

Most of us must have read the activities report and the earlier resources upgrade. After having had a detailed look at JAL, I feel that there could be some potential for good news ahead as JAL is at the stage from an exploring / prospecting company to a production company.

If you read the activities report, you will find the below lines, which potentially could carry good news during the next 12m as the progress has to be announced by the company.

- Norwest Corporation (�gNorwest�h), a leading international consulting group is undertaking the recommissioning study on behalf of Jameson on the Basin Coal Mine (�gBasin�h or the �gProject�h) in British Columbia.
- Other components of the recommissioning study including, mining studies, and transportation studies are at varying stages of completion with final results anticipated early in Q3 2009.
- The placement provides the first tranche of working capital required for the recommissioning of the Basin Coal mine.
- Preliminary scoping studies and environmental assessment are also being undertaken to assess the viability of an expanded production scenario of approximately 1M tonnes per annum. Pending successful outcome of the study, production could commence within 12 months.
- Test work on the remaining samples from Trenches 2 and 3 is currently in progress. Final results will be available on completion of the feasibility study.
- Discussions with both potential overseas and domestic off�]take partners have been positive, with interest confirmed in the thermal coal produced from the Basin Coal Mine.
- It is anticipated to have the re�]commissioning study under the existing 250,000 tpa mining permit completed by September 2009.
- Jameson currently holds two project areas in Western Australia, Ora Banda located in the Eastern Goldfields Province, and Errabiddy located in the Gascoyne Province. The Company is currently reviewing these projects in the context of its focus on the Basin Coal Mine Project with a view to divestment or joint venture.

Supporting Facts
- At 30 June 2009 the Top 20 shareholders held approximately 58% of the capital of the Company and the Company had a cash balance of $3.2 million
- The resource is confined to the 17 metre (average) main seam (over 5 times the Australian coal seam average) extending over a 1.5km strike length.
- Results have confirmed that the Basin coal is a high quality bituminous thermal suitable for the export market.
- Basin is the closest mainland coal project to the Western Canadian ports and has good rail and road access with significant available capacity.
- During the quarter the Company approved for issue to Directors of unlisted options.


In essence, it simple:
- they could be come productive until Q3 2009 with the 250k mining permit and potential upgrade to 1m given the recommission study. They should be able to keep the cost low for the first 250k as the infrastructure is already there. Becoming productive would give some hedge to the company to capture the potential reviled given the resource upgrade announced.

Just my opinion, do your own homework :-)