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Coal

Celsius Coal builds case for coking coal project in the Kyrgyz Republic

Celsius Coal (ASX: CLA) has completed raw laboratory tests that further improve the overall coking properties of coal from the Kokkia Area at its Uzgen Basin Coking Coal Project in the Kyrgyz Republic.

Most samples from the 2013 drilling show Free Swell Index (FSI) numbers in the range of 7.5 to 9.5, indicating good coking potential. 60 of the 63 samples analysed show FSI levels greater than 4.5, which is typically assessed as a threshold for coking coal.

The locations of the drill holes indicates that the majority of the north of the Kokkia area has coking coal potential and trends suggest that coals to the south of Kokkia will produce similar results.

In addition, Kokkia FSI’s are on average 1.0 to 1.5 points higher compared to those at the neighbouring Kargasha area.

Sulphur content appears slightly higher than Kargasha but previous Kargasha float/sink testing suggests sulphur levels can be reduced by coal washing.

Integration of this work into the company’s ongoing mining studies is underway and results are being communicated to potential offtake partners.

The Uzgen Basin Coking Coal Project is located at the northern end of the main Uzgen Basin where seams are normally closer to the surface, thicker and better developed than elsewhere in the Basin

The northern portion of the basin has also been identified as having the potential to host coal with coking qualities. To the south of the basin coals are thought to be anthracitic and therefore of too high a rank to be able to produce coke.

In addition, the Kyrgyz Republic has secured US$400 million in Chinese funding to construct a new north-south link road that will pass close to the Uzgen Basin Coking Coal Project, complementing the Trans-Asia railway which is also planned to pass within 10 kilometres.

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