The Crown Mountain project area has been subject to limited exploration drilling in 1969 and 1979. Crow's Nest Pass Oil and Gas conducted exploration over the property area which included the drilling of 11 percussion holes, trenching and geological mapping in 1969. Shell Canada Resources Ltd completed 7 reverse circulation drill holes, trenching and bulk sampling from 1979 to 1981.
Detailed mapping by the British Columbia Geological Survey in 1985, identified 87 coal outcrops, from which 10 samples were collected for reflectance determinations. There is limited historical coal quality data.
Jameson Resources entered into an option agreement to acquire the Crown Mountain Project in April 2011. The British Columbia Ministry of Energy and Mines issued tenure May 2012 and the exploration approvals in June 2012. Jameson Resources completed an extensive exploration program in 2012 which included 40 reverse circulation drill holes for 5,707m, down-hole wireline geophysical logging, trenching, property wide geological mapping and coal quality test work.
Jameson Resources released its maiden resource estimate of 90 million tonnes for the Crown Mountain Project in February 2013. The preparation of the Coal Resource estimate was undertaken by Norwest Corporation ('Norwest") of Calgary Alberta. Jameson engaged Norwest to undertake a Preliminary Economic Assessment which was completed in March 2013.
The Preliminary Economic Assessment confirmed the Crown Mountain Project has robust economics showing potential to be a low cost coking coal mining operation. An indicative pre-tax NPV10 of US$845M, US$544M and US$233M at 60%, 50% and 40% plant yields respectively was determined.
The exploration drilling program at Crown Mountain commenced in mid-2013 and was focused on the North and South Blocks of the project area. The drilling program was designed to gather information required to quantify the coking characteristics of the coal and to allow a more accurate estimate of wash plant yield.
At the end of 2013, Jameson awarded the Prefeasibility Study (PFS) for the Crown Mountain Project to Norwest with an authorisation to commence work immediately. This decision was based on evaluation of results from the 2013 drilling program. PFS execution is expected to take approximately six months and be completed mid-2014 with data collection continuing in several areas as Jameson prepares to commence the Environmental Assessment process pending a positive PFS.