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Canada

Huguenot Project

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Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Coal (metallurgical)
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotThe Huguenot project has the potential to produce premium quality hard coking coal.

The project is located approximately 111 km by road from existing infrastructure, with alternative access available via an 85 km rail spur or a combination of rail and overland conveyor.

The site is amenable to both surface and underground mining operations.

The capital expenditures are based on two scenarios:
• The first scenario assumes that all major mining equipment is purchased outright in the year in which it is required for the mining operation;
• The second scenario (chosen to represent the financial results) assumes that the major mining equipment will be leased in the year in which it is required for the mining operation and that replacements will also be leased when the equipment needs to be replaced.

Owners

SourceSource
CompanyInterestOwnership
Colonial Coal International Corp. 100 % Indirect
The Colonial Coal International Corp. owns a 100% interest in seventeen coal licenses commonly referred to as the Huguenot property.

Contractors

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Deposit type

  • Sedimentary

Summary:

The Huguenot Coal Project lies within a belt of Mesozoic strata that form part of the Rocky Mountain Foothills of northeastern BC. The stratigraphic succession broadly represents an alternating sequence of marine shale and marine and non-marine clastic lithologies. These strata were uplifted during the Laramide Orogeny, resulting in the development of thrust faults and intense folding. The main structural feature in the region is the broad, northwestplunging, Belcourt Anticlinorium. Lower Cretaceous coal measures are located along the western and eastern margins of this structure, with the Huguenot property located along its northeastern limb.

The coal seams of greatest potential are found within Lower Cretaceous strata of the Gates Formation. At Huguenot, the Gates Formation contains ten coal seams and/or coal zones numbered, in ascending order, from 1 to 10. The thickest is Seam 5, which ranges between 2.59 and 9.71 metres (m) (but is typically between 5 and 6m thick). The seams correlate northwest and southeast with those being evaluated by Belcourt Saxon Coal Limited (BSCL).

The property consists of mostly easterly dipping strata that lie within three main structural blocks; each block being separated from the other by thrust faults. The North Block is underlain by the Holtslander North Thrust and is located in the north of the property. It contains near-homoclinal, moderate, northeasterly- to easterly-dipping coal measures. The Middle Block is carried on the Holtslander South Thrust. Strata dip northeasterly throughout most of this thrust sheet. In this block, strata have moderate dips with localised steepening in the centre of the area. The South Block is situated in the southeast of the property, where the strata are steep, easterly-dipping to slightly overturned and form the eastern limb of an asymmetric anticline, the fold axis of which defines the western limit of the coal measures.

Mineralization
Mining sections have been defined either from discrete coal seams where all, or most, of the coal-bearing interval forms a single mining section, or as parts of a coal zone where one or more coal layers occurring in relatively close vertical proximity to one another, form separate mining sections. Thin, internal, rock bands, if present, are included in the mining sections. Thicker rock bands (in this instance 0.31m or more, as defined in GSC Paper 88-21 are omitted, even though, in practice, some would almost certainly be mined with coal in medium- to large-scale production scenarios. The mining sections are taken to a minimum true thickness of 0.60m. Coal at Huguenot can form discrete coal seams of variable thickness, or form thin seams interbedded with coaly shale and carbonaceous shale to form coal zones which, in themselves, are mappable stratigraphic units. Some “zones” consist of only one mappable coal layer/ply where other zones may include multiple mappable coal layers.

The North and Middle Blocks of the Huguenot property are considered to conform to the Moderate Geology Type. Although the dip of the strata in these blocks at times exceeds 30° it is consistent and the coal seams can be traced and correlated easily across the area. The South Block is considered to be Complex Geology Type.

North Block
A total of ten coal seams and/or coal zones are present within the North Block. Seam/coal zone nomenclature used in this report follows that used by Denison across their former Belcourt property; in ascending order they are numbered 1 through 10. The main coal splits that form part of a coal zone are assigned the number of the zone plus a letter. The letter ‘A’ indicates the lowermost coal split in a series; however, this is complicated in Coal Zone 6 by the presence of coal splits below Seam 6A. Consequently, this part of the zone is referred to as 6L.

All seams/coal zones with the exception of Seams 7 and 10 provide potentially mineable coal intervals. The main coal seams are Seams 1, 5, 6B, and 8; these are the thickest and most laterally continuous of the coal seams. Typically, the minor seams (i.e., 2A, 3B/3B Lower (3BL), 3D, 4, 6L, 6A, 6C Lower (6CL), 6D, and 9) meet seam thickness or coal to rock (C/R) ratio minimums only over portions of the blocks. Seams not considered to be potentially mineable, can still be traced geologically throughout the remainder of the block. Other coal seams/splits such as 3A, 8B and some splits above Seam 9 might locally exceed 0.60m in thickness but are not currently deemed to be persistent enough to present mineable targets.

Middle Block
A total of ten coal seams and/or coal zones are present within the Middle Block. All seams/coal zones with the exception of Seam 7 provide potentially mineable coal intervals. The main coal seams are Seams 1, 5, 6L, and 8; these are the thickest and most laterally continuous of the coal seams. Minor seams 2A, 3B, 4U, 6B and 9 meet seam thickness and C/R ratio minimums across the Middle Block, whereas seams 2D, 2EF, 2HI, 6D and 10 meet mining section criteria locally. Where these latter seams do not meet seam thickness or C/R ratio minimums, they can still be traced geologically. Coal seams in the Middle Block are progressively terminated towards the south by the Holtslander South Thrust Fault such that the lowermost seams only extend as far south as the central portion of the block. Only seams stratigraphically higher than Seam 6B are present at the southern end of the block.

South Block
Of the 10 coal seams and/or coal zones present within the South Block all seams/coal zones except 3, 7 and 10 provide potentially mineable coal intervals. The thickest and most laterally continuous of the coal seams are Seams 1,2Z, 4, 5, and 6L; Seams 6B, 6D, 8 and 9 are present in the southern half of the block. The distribution of the Gates coal measures within the South Block is largely determined by the presence and attitude of the Holtslander South Thrust Fault. Surface traces of the stratigraphically higher coal seams (above 6L) are progressively terminated towards the north by this thrust fault; this fault also forms the northern limit of the coal seam traces and of the South Block as defined herein.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsAvg. AnnualLOM
Coal (hard coking) Mt 2.772
All production numbers are expressed as clean coal.

Operational metrics

Metrics
ROM coal, LOM 98.9 Mt *
Hourly processing capacity 650 t *
Annual processing capacity 4 Mt *
Stripping / waste ratio 10.5 bcm/t *
Waste tonnes, LOM 1,036 Mbcm *
Tonnes processed, LOM 99 Mt *
* According to 2019 study.

Production Costs

CommodityUnitsAverage
Site cash costs (produced) Coal (hard coking) USD 61.5 / t *  
Cash costs Coal (hard coking) USD 98.3 / t *  
Assumed price Coal (hard coking) USD 174 / t *  
* According to 2019 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t processed) USD  ....  Subscribe
Direct operating costs ($/t processed) USD  ....  Subscribe
Processing costs ($/t processed) USD  ....  Subscribe
* According to 2019 study.

Project Costs

MetricsUnitsLOM Total
Equipment leasing costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 411
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 7.5% $M USD  ......  Subscribe
After-tax IRR, % $M USD  ......  Subscribe
Pre-tax payback period, years $M USD  ......  Subscribe

Required Heavy Mobile Equipment

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EV - Electric

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Aug 16, 2024
....................... Subscription required ....................... Subscription required Subscription required Aug 19, 2024
....................... Subscription required ....................... Subscription required Subscription required Sep 11, 2019

Aerial view:

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