TORONTO (miningweekly.com) – Goldsource Mines, which caused a stir earlier this year when it discovered coal in Canada's Saskatchewan province, has now confirmed that its Durango coal seam contains good quality, thermal coal, the firm said on Tuesday.

Basic analytical results for samples taken from nine holes drilled this summer indicate that the coal ranges from sub-bituminous C to bituminous C in rank, with a calorific value of between 20 640 kj/kg and 23 358 kj/kg on a 'dry' basis.

The seam has raw ash values ranging from 11,4% to 18,7% and moisture contents from 24,8% to 37,9% on an 'as received basis', Goldsource reported.

Once air dried, the moisture contents drop significantly to as low as 4%, which can positively effect the calorific value and marketability of the coal.

"We are excited by the overall results of this summer's program in that they demonstrate we have a near-surface thermal coal deposit that currently averages about 20 metres in thickness with good calorific values, low ash content and low to moderate sulphur content,” said president J Scott Drever.

Goldsource first intersected this coal seam while drilling for diamonds in April, sparking a staking rush in the area surrounding its Border property, in eastern Saskatchewan.

The firm is now waiting for approvals for its winter exploration programme from the Ministy of Environment of Saskatchewan.

It expects to receive the go-ahead by mid-January, Drever said.

Goldsource is also developing a geological model based on all the drill holes to date, to help define the lateral continuity of the coal zone and stratigraphy within the discovery area.

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