Fitzroy Resources (ASX: FRY) has intersected 1.2 metres of coking coal below drainage in the last hole of its due diligence drilling at the Emmaus project in West Virginia.
The discovery of below drainage coal of mineable thickness could have a significant impact on the long term future of the project’s long-term development.
It is now discussing with Cardno MM&A, which was appointed to provide an independent technical report and a geological presence during the drill program, on how to progress future exploration.
This includes a drill program to understand the size and extents of this new discovery.
Fitzroy has an option agreement to acquire Premier Coking Coal, which holds the Emmaus, Blackstone leases and Deep Mine Permit, for US$ 805,000 in cash, 30 million ordinary shares and 20 million performance shares.
The leases contain prospective coal seams that outcrop on hills within the Appalachian Basin that have a short term target to commence low capital expenditure production through the use of third party processing close to the property.
Permits already exist on property for mining, plant, refuse disposal and rail loading.
Emmaus was last mined in the late 1990s by Virginia Crews, producing mid-volatile, hard coking coal.
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