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Paparoa Coal Seams

In Pike River's 2007 prospectus for the Initial Public Offer, the potential coal in the Paparoa seams had been estimated at up to 8 million tonnes, based on limited drilling and analysis of the exposed coal seam outcrops along a western cliff (called the "Western Escarpment").

The latest exploratory test drill in January 2009 found three potentially mineable seams of low sulphur hard coking coal totalling 9 metres in thickness. These seams are at depths ranging from 140 metres to 240 metres below the Brunner seam.

Location of Paparoa test drilling

As mining of the Brunner seam advances over the next 18 months, more underground (in-seam) test drilling will be undertaken to establish the thickness and length of the Paparoa seams to inform any decisions on mining potential.

If the Paparoa seams prove economically viable, much of the infrastructure is already in place and development costs would be significantly reduced compared to the Brunner seam.

Mining of the Paparoa seams would require additional approvals from the Minister of Conservation and possible amendments to existing resource consents and/or new resource consents.