294 VM 26-Nov-04 at 12:52:00 12:57
SN-V : Update On Corporate Development
Symbol: SN U/SNNJF
26Nov04 Market News Publishing Inc. 2004/11/26 No:0003
SENNEN RESOURCES LTD. ("SN-V")
- Update On Corporate Development
Mr. Ian Rozier, President of Sennen Resources Ltd. (the "Company"),
reports;
A news release dated July 15th; 2004 provided a review of the Company's
three coal projects in Queensland, Australia, being Middlemount,
Collingwood and Onaview. The news release provided the classification of
Measured and Indicated Coal Resources at all three projects in accordance
with National Instrument 43-101. Additional information on all three
projects was provided in a news release dated January 26th, 1998.
In the July 2004 news release the Company reported that it would be
reviewing the extensive data- base that exists on all three projects and
conduct economic valuations prior to upgrading the classification of coal
resources to coal reserves in accordance with JORC standards. This work
has not yet been completed. However, the July 2004 news release did refer
to two of the Exploration Permits ("EPC's") held by the Company having been
converted to Mineral Development Licences ("MDL's".) and that under the
rules governing mineral leases in Queensland, MDL's are only granted when a
deposit is considered to have large "Measured and Indicated Class I
Reserves" in accordance with the classification system used by the
Queensland Department of Mines and Energy. The release noted and that
"although government publications, technical papers and resource/reserve
classification systems are not acceptable sources for the reporting of
coal resource estimates, the Company considers the transfer of EPC's to
MDL's as being significant in that it further demonstrates the validity of
the previous work done".
In the July 2004 Release the Company noted that there is 'renewed
interest in coal resources in Australia, particularly from China, and
several entities have approached the Company with respect to potential
joint ventures and operating/contract mining agreements", and that " the
Company is currently reviewing all its options with its consultants in
Australia with respect to how to proceed with the development and/or sale
of its coal interests there." Since that time the Company has been in
negotiations with various entities interested in participating in the
development of its coal assets in Australia and anticipates concluding an
agreement in the near future.
The recent increases in long term coal contract prices has been
reflected in the significant recent increase in the share prices of
operating coal companies around the world and since the recent publication
of very 'bullish' articles written in Canada's national newspapers (Globe
and Mail, Saturday 20th November, 2004, and the National Post, Monday
November 22, 2004) with respect to the short and long term prospects for
the coal mining industry, the Company has been inundated with inquiries as
to the status of the Middlemount, ,Collingwood and Onaview projects.
"The renewed interest in world coal has been reflected in the interest
being shown in companies such as Sennen. We own large, advanced,
undeveloped coal projects with Measured Resources located in areas with
excellent infrastructure that have Mineral Development Licences", stated
Ian Rozier, President of Sennen. "The current commodities cycle for coal
has been a long time coming and we will move on the opportunity to exploit
it", he further stated.
TEL: 604-685-6851 Barbara Dunfield, Chief Financial Officer
EMAIL: ir@sennenresources.com
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