adam, this is a great diagram linking coal classifications to industrial uses (taken from the Australian Coal Association website):
It shows that all forms of coal can be used for either power generation or more lucratively in manufacturing, and even lignite (brown coal) is used in power generation.
Other info from the website:
Low rank coals, such as lignite and sub-bituminous coals, are typically softer, friable materials with a dull, earthy appearance; they are characterised by high moisture levels and a low carbon content, and hence a low energy content.
Higher rank coals are typically harder and stronger and often have a black vitreous lustre. Increasing rank is accompanied by a rise in the carbon and energy contents and a decrease in the moisture content of the coal. Anthracite is at the top of the rank scale and has a correspondingly higher carbon and energy content and a lower level of moisture.
Between anthracites and peat there are three broad coal rankings.
Bituminous coals are dense black solids, frequently containing bands with a brilliant lustre. The carbon content of these coals ranges from 78 to 91 percent and the water content from 1.5 to 7 percent.
Sub-bituminous coals usually appear dull black and waxy. They have a carbon content between 71 and 77 percent and a moisture content of up to 10 percent and are used for electricity generation or can be converted to liquid and gaseous fuels.
I googled "lignite core sample" and found this:
It matches the description above for lignite, especially with the moisture and looks quite different to the drill core from TVNs announcement:
Having said that, the above photo would've been the best from drill hole NDH01. I would like to have seen some of the core that was described as black/brown in the announcement.
Previous historic drilling results have indicated a resource based on thermal coal so it will be interesting to see if NDH01 assays show thermal coal. That will really be the catalyst to rocket the share price imo. If lignite is found I am keen to see how the company interpret this- whether other holes indicate the same and whether the resource is large enough and easily mineable to make it a valid project.
I am more interested to see other drill holes and trenching work, as well as a map with proper mapping between each hole and the trenching to get an idea of scale.
I expect Friday's announcement to be a meaty one need lots of digestion. I hope it's released after market on Thursday or early Friday morn.
TVN Price at posting:
6.9¢ Sentiment: LT Buy Disclosure: Held
