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JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2012
Oct 30, 2012
65152_rns_2012-10-30_eb8771a5-cc10-40f2-b40c-104bcb469f30.pdf
Interim / Quarterly Report
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Jameson Resources, ABN 34 225 891| Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61
ASX RELEASE
31 October 2012
The Manager Australian Securities Exchange Companies Announcement Centre 20 Bridge Street Sydney NSW 2000
ACTIVITIES REPORT FOR SEPTEMBER QUARTER 2012
Highlights
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Expanded resource definition drilling program near completion on the Company’s Crown Mountain project.
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The British Columbia Ministry of Energy and Mines (“MEM”) approved a supplementary Notice of Work during the quarter.
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Exploration to date has included 37 reverse circulation drill holes for a total of 5,317m and three major trenches, all of which was completed ahead of schedule and under budget.
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Drilling has further defined the three major coal seams which include up to seven individual members ranging in thickness up to 12 metres.
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Pending weather conditions and MEM approval, up to seven additional holes will be drilled into the Southern Extension prospect during the December quarter.
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Initial coal quality results from the first phase of drilling expected mid-November.
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The Company remains on track to complete the inaugural JORC compliant resource estimate on the Crown Mountain project by year end.
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Regulatory approvals for the Dunlevy project have been further delayed and are now anticipated in the December quarter.
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At 31 October 2012 the Top 20 shareholders held approximately 51% of the capital of the Company and the Company had a cash balance of $5.5 million.
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
Overview
Jameson Resources Ltd (“Jameson” or “the Company”) is on track to release its maiden coal resource on the Crown Mountain project by year end. The Company completed two phases of exploration drilling during the quarter which included 37 reverse circulation holes for 5,317m along with 3 major trenches. The British Columbia Ministry of Energy and Mines approved a supplementary Notice during the quarter. Drilling was completed ahead of schedule and significantly under budget.
Coal seam thicknesses have generally conformed to expectations with individual seams ranging in thickness up to 12 metres. Analysis of the samples is underway with initial coal quality results from the first phase of drilling expected in mid-November.
Pending weather conditions and MEM approval up to seven additional holes will be drilled over the southern extension of the project area which will then complete the 2012 drilling campaign. The proposed drilling will enable the Company to evaluate the potential to expand the resource base. The Company remains on track to complete the inaugural JORC compliant resource estimate on the Crown Mountain project by year end.
The regulatory approvals process on the Dunlevy project continues to advance. The Company anticipates approvals will now be issued in the December quarter. Low impact exploration activities including geological mapping and hand trenching were undertaken on the Company’s Peace River projects throughout the quarter. Results of this work are also anticipated in the December quarter.
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Figure 1 –Location Plan – Jameson’s Metallurgical Coal Projects
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
(Jameson 90%)
Project Summary
Crown Mountain Project - Elk Valley Coal fields, British Columbia
Jameson commenced its inaugural drilling program on the Crown Mountain project on 9[th] August 2012. More drilling was undertaken than originally proposed following approval of a secondary Notice of Work from the British Columbia Ministry of Mines. Drilling to date is ahead of schedule and significantly under budget.
The expanded drilling program was undertaken to allow the Company to gain more information on the three major seams intersected within the North and South prospects. The additional drill-hole data will allow better definition of geological structure for resource modelling and will enable the Company to move directly into a Preliminary Economic Assessment study early in the New Year.
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Figure 2 – Crown Mountain Project
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
By quarter-end the Company had completed two phases of exploration drilling including 37 reverse circulation holes for 5,317m along with 3 major trenches. Holes ranged in depth from 62m to 231m, with the average depth being 144m. The majority of holes penetrated the Mist Mountain coal bearing sequence and terminated in the Moose Mountain basal sandstone formation.
Down-hole geophysics was undertaken on all holes with coal seam thicknesses generally conforming to expectations from the historical drilling. Samples were collected across all coal seams on half metre increments. Coal quality test work is currently being performed by Birtley Laboratories in Calgary. Test work being carried out includes proximate analysis, ultimate analysis, petrography, washability and a selection of other tests for metallurgical coal. Initial coal quality results from the first phase of drilling are expected in mid-November.
Other exploration activities including mapping and additional geological modelling were undertaken as part of the program. The surface mapping of coal exposures has provided additional data points for the proposed geological modelling and resource estimation. Baseline environmental monitoring including hydrology, surface water quality and fisheries studies continued during the quarter. Reclamation of all drill pads and new access trails has been completed in accordance with the requirements as set out by the British Columbia Ministry of Mines in the Notice of Work permits.
Exploratory drilling was also undertaken within the Southern Extension prospect. Multiple coal seams of appreciable thickness were intersected and as a result the Company has elected to undertake further drilling to evaluate the potential to expand beyond the current resource base. Pending weather conditions, up to seven additional holes will be drilled which will then enable the Company to complete the field program for 2012.
The Company remains on track to complete the inaugural JORC compliant resource estimate on the Crown Mountain project by year end.
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Figure 3 – Drilling Activity –Crown Mountain North
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
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Figure 4 - Crown Mountain - Drill Hole Location Plan
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Figure 5 - Crown Mountain – Typical Cross Section across North and South Prospects
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
(Jameson 100%)
Peace River Projects – North East British Columbia
The Projects overlie the northwest extension of the Peace River coal fields district of northeast British Columbia (Figure 6). Some of Canada’s major coking coal and PCI coal mines (Willow Creek, Brule, Wolverine and Trend) are located along strike from the property. Major resource projects including Cardero Resource Corp’s Carbon Creek Project and Canadian Kailuan Dehua’s Gething Project are located within 15 km of the Dunlevy Project area.
Albeit further delays, the regulatory approvals process for the Dunlevy project has advanced and approvals are now anticipated in the December quarter. The Company plans to commence drilling and other exploration activities as soon as these approvals are in place. Planning and preparatory work for the drilling campaign has advanced.
The Company has undertaken a geological mapping and hand trenching program over all the Peace River Projects early in the September quarter. The objective of the program was to determine coal seam thickness and geological structure in preparation for the lodgement of a Notice of Work to undertake initial drill testing. Coal seams of appreciable thickness have been exposed in forestry road cuts at Carbon East. Results from the reconnaissance mapping and trenching are now anticipated in the December quarter.
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Figure 6 – Peace River Projects - Location Plan
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473
Red Earth Coal Project – Saskatchewan
(Jameson 20%)
An application was made to the Saskatchewan Energy & Resources to convert the six coal prospecting permits (CPPs) covering the project area into coal leases. No work was undertaken on the Red Earth coal project during the quarter. The Company holds a 20% interest in this project.
Corporate
As at 31 October 2012, the Company had A$5.5 million in cash, no debt, and 154,783,676 shares on issue.
Project Generation
The Company continues to be active in its evaluation on several other metallurgical coal opportunities in Canada.
Yours faithfully,
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John Holmes
Managing Director
For further information please contact:
Tel: +61 8 9200 4473 (Australia) +1 604 629-8605 (Canada) Fax: +61 8 9200 4463 Web: www.jamesonresources.com.au
The information pertaining to the technical content of this report has been reviewed by Mr John Holmes, who is a member of the Australian Institute of Geoscientists. Mr. Holmes is employed by Jameson Resources Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Holmes consents to the inclusion in the report of the technical information in the form and context in which it appears.
www.jamesonresources.com.au
Jameson Resources I ABN 34 225 891 | Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61 8 9200 4473