Tuesday, 30 Aug 2011
WPG Resources Limited announced that Evergreen Energy Inc has completed its initial test work on coal from the Penrhyn project that were sent to Evergreen's test facility in Wyoming in May 2011.
Penrhyn is owned by Southern Coal Holdings Pty Limited, the JV vehicle with Evergreen that has the exclusive rights to use Evergreen's coal upgrading technology in Australia for the first 15 million tonnes per annum of product coal from any project, not just from tenements that it currently holds. As previously disclosed, the total coal resource estimate for the Penrhyn deposit is 352.4 million tonnes.
Note in particular that Evergreen has reported that the heating value of the coal after it had been upgraded exceeded 5,500 kilocalorie per kilogram prior to rehydration required for product shipping and storage. Additional tests that will allow us to confirm the heating value after the coal has returned to stabilized moisture level are expected to be completed prior to the end of September. We anticipate that the likely heating values for the final product may be lower than 5,500 kilocalorie per kilogram, but will be ideal for export markets, and could utilize the infrastructure available in WPG's Port Pirie terminal.
WPG announced on August 22nd 2011 that it had agreed to sell its iron ore assets to OneSteel Limited. WPG's coal interests and its land in Port Pirie and its right to construct an export port there were not included as part of that sale. If development of Penrhyn or SCH's other coal deposits including Lochiel North prove to be technically feasible and economically viable then Port Pirie could be used for coal exports.
WPG Resources Limited announced that Evergreen Energy Inc has completed its initial test work on coal from the Penrhyn project that were sent to Evergreen's test facility in Wyoming in May 2011.
Penrhyn is owned by Southern Coal Holdings Pty Limited, the JV vehicle with Evergreen that has the exclusive rights to use Evergreen's coal upgrading technology in Australia for the first 15 million tonnes per annum of product coal from any project, not just from tenements that it currently holds. As previously disclosed, the total coal resource estimate for the Penrhyn deposit is 352.4 million tonnes.
Note in particular that Evergreen has reported that the heating value of the coal after it had been upgraded exceeded 5,500 kilocalorie per kilogram prior to rehydration required for product shipping and storage. Additional tests that will allow us to confirm the heating value after the coal has returned to stabilized moisture level are expected to be completed prior to the end of September. We anticipate that the likely heating values for the final product may be lower than 5,500 kilocalorie per kilogram, but will be ideal for export markets, and could utilize the infrastructure available in WPG's Port Pirie terminal.
WPG announced on August 22nd 2011 that it had agreed to sell its iron ore assets to OneSteel Limited. WPG's coal interests and its land in Port Pirie and its right to construct an export port there were not included as part of that sale. If development of Penrhyn or SCH's other coal deposits including Lochiel North prove to be technically feasible and economically viable then Port Pirie could be used for coal exports.
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