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Bathurst Resources upgrades coal resource to 42.2mt at Buller Project

Published: 03:25 26 Jul 2010 EDT

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Bathurst Resources (ASX: BTU) has reported an upgraded JORC compliant resource of 42.2 million tonnes of coal for the Buller Coal Project in New Zealand and commenced a 16 hole drilling program at Deep Creek in the Denniston Sector.

Bathurst’s exploration program for the Buller Project is focused on establishing sufficient resources to support a greater than 20 year operational mine life from the southern section of its Buller Project permits and on upgrading the exploration targets to JORC compliant standards.

The first stage initially focused on the Escarpment Project; the area targeted for first coal production in the Denniston Sector. The Escarpment resource of 7.3 million tonnes of coal, announced in May, is the foundation of a now well advanced Definitive Feasibility Study (DFS).

The second stage of the exploration program, to establish a JORC compliant resource within the primary development and exploration targets, has just been completed with 42.2 million tonnes now identified from five of the company’s seven target zones.

Hamish Bohannan, managing director, said “as a result of this latest drilling program Bathurst can confirm that it has resources in excess of 40 million tonnes of high quality coking and thermal coals, which should underpin the first 20 years of production from the Buller Project.”

“Bathurst’s objective is to commence production at an annualised rate of 1 Mtpa from 4Q 2011, increasing to 2 Mtpa once further deposits are brought into operation.”

“The additional resources established from the exploration program significantly improve the economics of mining the Buller Project both for our shareholders and the local community.”

“The results also validate the earlier exploration undertaken by both NZ Coal Resources Survey and L&M in the region. They add to Bathurst’s confidence on developing the mining operation.”

“The DFS is well advanced and preliminary results should be available shortly,” he added.

Following completion at Escarpment, the drilling program has since continued on to Deep Creek, the second area targeted for possible production in the Denniston Sector.

Bathurst expects the 16 hole drilling program to be completed this week after which the program will be halted for winter.

The drilling will be followed by a period of interpretation and modelling which should lead to a JORC compliant resource being established within the next few months, further supplementing the 42.2 Mt JORC compliant Resource.

The results from the drilling program to date gives Bathurst confidence that a considerable number of tonnes in the upgraded JORC compliant Resources from the southern part of the Buller Project will be able to be converted into Reserves following completion of the DFS.

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