PERTH (miningweekly.com) – Coal hopeful Paringa Resources has started development drilling at the proposed Buck Creek No 2 mine, in the US.
The ASX-listed company in November last year flagged the possible development of a second mine at its Buck Creek complex, which would be funded by cash flow from the 3.4-million-tonne-a-year Buck Creek No 1 mine.
Paringa said on Tuesday that shallow coal seam depth at the planned Buck Creek No 2 mine, and the ability to use planned infrastructure at the adjacent Buck Creek No 1 mine should provide for a low-cost development.
“The Buck Creek No 2 drilling programme will provide additional data that will assist us in engineering design of the planned mine portal as part of the technical study for Buck Creek No 2 mine,” said Paringa CEO David Gay.
“We have an exciting six-month period with the prefeasibility study (PFS) results for Buck Creek No 1 and results from the Buck Creek No 2 mine technical study.”
The PFS for the Buck Creek No 1 mine is due later this quarter.