Bathurst on track for late 2011 mining start

Bathurst on track for late 2011 mining start

Feb. 1 (BusinessDesk) – Buller coal project developer Bathurst Resources Ltd. is on track to be producing high-quality coking coal at an annual equivalent rate of 650,000 tonnes by the end of this calendar year, the company says in its quarterly operations report.

Lodged with the NZX and ASX, the report says mining in the Escarpment Block – the first of several South Island West Coast open cast mining developments – will rise to one million tonnes annually by 2013, increasing to two million tonnes a year as its Deep Creek mine starts producing.

“Exploration drilling to increase the resource base and confirm the coal qualities of these blocks will be undertaken in the second half of 2011,” said managing director Hamish Bohannan. “Exploration in the first half of 2011 will focus on resource conversion and upgrade on South Buller.”

One drill rig is currently operating in the Whareatea West mining block, with a second rig to start shortly.

Commencement of mining operations still depends on the issuing of resource consents and access arrangements by the Department of Conservation, both of which were delayed late last year by the Pike River underground coal mine disaster. However, Bathurst has now resumed discussions.

During the December 2010 quarter, the company completed capital raising through a A$76 million placement and a one for two non-renounceable rights issue to raise A$34 million, both of which were over-subscribed.

Bathurst’s share price has been volatile since New Year trading commenced, rising as high as NZ$1.40 on Jan. 20 on the heaviest day of trading since the stock listed on the NZX at 92 cents in late November. It was trading this morning at $1.30.

Bathurst replied to an ASX inquiry on Jan. 14 about substantial stock price movements, saying it was unaware of any undisclosed information that could explain the recent strength.

(BusinessDesk)

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