Jameson Resources is preparing to wrap up the company's feasibility on expanded mine case at the Basin Thermal Coal Mine in British Columbia, Canada next month.

The Company together has identified opportunities for revised operating cost assumptions in an expanded mine case scenario with a relatively minor impact on start up capital.

As such, it has revised the brief with its consultants Norwest Consultants to determine and complete feasibility at the optimal level for start up production for the project anticipated to be in the range of approximately 500,000 tonnes or greater per annum.

Subject to reserve definition and amendments to the existing mining permit, the Company is aiming towards ramping up from the initial permitted small mine rate of 250,000 tonnes per annum to a targeted rate in excess of 500,000 tonnes per annum.

Feasibility will be completed before end of Q1 2010. Preliminary estimates of the capital required to refurbish the existing wash plant suggest that the construction of a more efficient larger capacity plant will deliver enhanced project economics.

Advanced engineering studies on a new wash plant facility designed to produce a thermal product at 12.5% ash or both a thermal coal and pulverized injection coal product are in progress. The outlook for thermal coal prices has improved significantly with Newcastle futures contracts for delivery late 2010 just under USD 100 per tonne and over USD 105 per tonne for delivery in 2012.

Preliminary estimates support cash operating margin of USD 20 per tonne Basin is located 30 kilometer northwest of Princeton, British Columbia.

(Sourced from http://www.proactiveinvestors.com.au)