Basin Coal Mine

We know it as Blakeburn, but it has many other names such as Basin Coal, Coalmont Colliery, Blakeburn Strip Mine, Mullin’s Strip Mine, Mount Carbon Colliery, Tulameen Coal, Columbia Coal, B.C. Coal, and Pacific West. Whatever you call it, it’s still our neighbourhood. The news is that it’s no longer Canadian.

The Mineral Resources Education Program of BC reports that drilling at the site has identified a potential 19 million tonnes of raw coal, which would sustain mining at current production for 15 years. That sounds great, but it didn’t look like Compliance Energy Corp could make a go of it, so what’s going to happen?

They were pretty busy for a while and we saw a lot of trucks coming through, but it seems that the company got tired of actual work and decided to spend more energy on sales instead. Well, it looks like it paid off, because they just made the following announcement:

“Vancouver, B.C., February 12, 2009 – Compliance Energy Corporation announces that further to the Company’s announcements on August 7, and December 18, 2008 regarding an option to NWPC Pty Ltd for the purchase of 100% of the Company’s interest in the Basin Coal Mine located near Princeton BC, for consideration of cash and shares totaling $8.25 million, the Company has now received the February 2009 option payment of $1,000,000 and 7,407,408 shares in Jameson Resources Limited. The shares are listed on the Australian Exchange under the symbol of JAL and are subject a one year escrow provision.”

Jameson’s web site states that they have “commenced a re-commissioning study on the project.” They figure the operating cost to be about US$50 per tonne. Apparently mining permits and other necessary approvals are in place to facilitate re-start of mining and processing operations.

The Jameson Board believes that the acquisition of the Basin Coal Mine Project has the potential to develop into a one million tonne per annum coal operation. They may be dreamers, but compare that to the Compliance operation which in 2005 expanded production to about 75,000 tonnes. In other words, Jameson plans to ship more than 12 times as many truck loads as we experienced previously. Brace yourselves.

It looks like the Aussies are moving in. I wonder how disruptive this is going to be around here. Does this mean that we’re really going to have a huge increase in truck traffic? Does it mean we’re all going to start calling each other “matie”, or is it just going to be the usual spike belts and people complaining about dust? Just kidding – nobody would ever use the word “matie” around here. Maybe it’ll just be a quiet affair with a bit of show to start, and then back to the sales table until another company decides they want to give it a try. We’ll see. Meanwhile you can watch a promotional video on YouTube if you like. Nowhere does it mention the Tulameen mining district or Coalmont. We don’t exist – yet. If they’re serious about this we could be in for a bit of a downturn in our quality of life around here. Perhaps there’s a good side, but they didn’t mention any. The only thing I know for sure is that if this flies, you’ll be reading more about it right here. Stay tuned.