Galway Resources Ltd has announced that it has entered into an option agreement with Rio Tinto Mining and Exploration Corporation (Rio Tinto) to acquire 100% interest in nine coal concessions totaling 7,500 hectares, roughly 50% of the previously drilled San Louis coal basin located in Santander, Colombia.
The project will be known as Carboluis.
"We are pleased to announce the first project resulting from our Colombian strategy of targeting coal properties that have the potential for quick resource development and production potential for a medium-sized mine," said Rob Hinchcliffe.
"Of the 29 previous drill holes in the overall San Louis Basin, the best holes were on the property we optioned, which enabled us to develop a seven hole program targeting an open-pittable resource of 20-30 mt of high grade coal, that will be executed right away."
"There is already a coal production in the area and the infrastructure, which is already quite good, will be further improved with the new Carare railway, which will have a loading station at San Luis," said Alfonso Gomez director of administration for Galway Resources Colombia....
