Celsius Coal (ASX: CLA) has reported that the licenses for its Kargasha and Kokkia tenements, which together comprise the Uzgen Basin Coking Coal Project, have been successfully extended by the Kyrgyz Republic’s State Agency for Geology.
The two licenses have had their expiration dates extended by 2 years until the 31st of December 2015.
The extension of these licenses gives the Celsius secure tenure to continue exploration and development works.
Recently, Celsius completed raw laboratory tests that further improved the overall coking properties of coal from the Kokkia Area at Uzgen Basin.
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, and 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 indicated that the majority of the north of the Kokkia area has coking coal potential and trends, and suggest that coals to the south of Kokkia will produce similar results.
Celsius expects to finalise initial mining plans in the coming months, then seek to convert part of the license area into a license that permits mining.
Celsius also has a 90% interest in the Sary Mogol coal licence in the south of the Kyrgyz Republic.
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