Heavener Coking Coal Project is situated in Le Fore County,
Oklahoma and Scott County Arkansas and is part of the Arkansas
Valley Coalfield. The Project is owned by Ouro Mining, Inc.
under six (6) coal leases, totalling approximately 27.72 square
kilometres adjacent to each other and contain an estimated
65,000,000 tonnes, more or less, of proven and probable coal
reserves and resources (non-JORC compliant). The tenements
lie adjacent to a potential additional 140,000,000 tonnes
of coal resources (which are currently unleased) adjoining
the northern boundaries of the tenements.
The previous owners, Farrell Cooper Mining Company (FCMC),
recently completed open cut mining of the Project in 2006,
producing unwashed metallurgical grade coal for local and
overseas customers. Ouro Mining, Inc. plans to commence underground
development on the Lower Hartshorne Coal Seam. The coal is
low to mid-volatile hard coking coal which is much sort after
for the steel industry and, when washed, will command a premium
Ouro Mining, Inc plans to build a coal washery on site, which
is several hundred metres north of the Kansas City Railway
line. This railway line accesses the Ports of New Orleans
(Louisiana) and Port Arthur (Texas) as well as a western seaboard
port of Lazaro Garden as (Mexico). Coal can also be trucked
to ports on the Arkansas River (Keota or Van Buren) and barged
down the Mississippi river for offshore loading at New Orleans.
Both of these transport methods are used for material bulk
transport in the area.
The Lower Hartshorne seam within the Ouro Mining, Inc. coal
leases is one of the thickest coal seams in the entire Arkansas
Valley Coal Field. The seam dips between 12° to 17°
to the NNW in the Heavener area and varies from 1.5m to 4.5m
thick. There is insignificant faulting or folding noted in
the entire 18kms that were open cut mined by the previous
Ouro Mining Inc plans to take advantage of the excellent infrastructure
in the project area, and with the surging demand for high
grade coking coal, makes the project development at Heavener
extremely well timed.