The 14,300-acre property is expected to have significant high quality, mid-volatility metallurgical coal reserve.
Xinergy believes that the property contains about 30 million mineral resource tons in the Little Raleigh, Beckley & Fire Creek coal beds, locally known as Sewell seams, of which a majority is mid-volatility metallurgical coal, with the remaining being high quality thermal coal.
The mineral resource is comprised of 11.95 million tons measured mineral resources, 6.85 million tons indicated mineral resources and 11.2 million inferred mineral resources.
Total proven and probable mineral reserves are estimated to be 8.8 million tons of which 5.75 million tons are proven mineral reserve and 3.05 million tons are probable mineral reserve.
Initial production is expected to begin in the fourth quarter of this year.
