Fitzroy Resources (ASX:FRY) has received final results from 2013 drilling at its Emmaus coking coal project in West Virginia, U.S.
The independent report by Cardno MM&A confirms historic data that the seams at Emmaus are high quality, mid-volatile hard coking coal.
As part of efforts to delineate a coal reserve at Emmaus and Blackstone, Fitzroy intends to commission an independent marketing study.
The study will supply information to be used as modifying factors in the conversion of any future Coal Resources to Coal Reserves, and to understand whether coal from existing seams at our future operations could be sold for premium uses.
Certain coals have characteristics that yield higher market prices to even those that hard coking coal can receive.
Fitzroy has an option agreement to acquire Premier Coking Coal, which holds the Emmaus and Blackstone leases 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, with a short term target to commence low cost production via nearby processing facilities.
Permits already exist on property for mining, plant, refuse disposal and rail loading.
The company is a focused coking coal pure play capitalised at around $4 million.
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