Consolidates Strategic Position at Groundhog Anthracite Project
Perth, Jan 21, 2014 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) is pleased to announce the 100% acquisition of a substantial coal licence package contiguous with the Company's flagship JORC 1.57 billion tonne Groundhog Anthracite Project ("Groundhog") in British Columbia, Canada.
HIGHLIGHTS
- Atrum has agreed to acquire eleven (11) coal licence applications totalling 15,554 hectares from Panstone Mines and Minerals Inc on very attractive and non-dilutive terms
- Acquisition ground is contiguous with Atrum's flagship Groundhog Anthracite Project and is located within the coal-bearing Groundhog coalfield
- Acquisition provides Atrum with a 68% increase in its consolidated foot-print in the Groundhog Coalfield to 38,369 hectares
- Atrum receives grant of an additional four (4) coal licences at Groundhog following community, First Nations and ministerial consultation taking its Groundhog tenure to 22 coal licences and 15 coal licence applications, including the proposed acquisition tenure
Commenting on the acquisition, Managing Director Dr Eric Lilford said:
"We have increased our strategic dominance, in what we believe is the best part of the coal bearing geology at Groundhog. We are on track for an exciting year with a pre-feasibility study, off-take, first coal extraction and our spin-out activities expected to deliver significant value."
The acquisition includes eleven (11) coal licence applications ("Panstone Applications") covering a total of 15,554 hectares. It provides the Company with a substantial consolidated footprint totalling 38,369 hectares in the Groundhog Coalfield.
The Company will transition the Panstone Applications to granted licences as part of preparation for the 2014 exploration activities.
The new acquisition will provide Atrum with potential upside to its existing 1.57 billion tonne JORC Resource at Groundhog as well as providing a strategic foothold to the project area.
The Company aims to deliver a low cost anthracite operation at Groundhog and is targeting high value, high grade and ultra-high grade anthracite coal for application to the steel and ferro-alloy industries.
GRANT OF ADDITIONAL COAL LICENCES
The Company has recently received confirmation from the British Columbia Mines Department that Groundhog coal licence application 417980 (tenure number 418443), 417981 (tenure number 418444), 417994 (tenure number 418445) and 417993 (tenure number 418446) have been granted and converted to coal licences following consultation with local community, First Nations and ministerial stakeholders. This increases the total granted tenure at Groundhog by an additional 5,454 hectares.
This provides the Company with a total of 22 coal licences and 15 coal licence applications (including proposed acquisition) at Groundhog. The Company will incorporate these newly granted licences into its 2014 exploration activities.
To view diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATU-664615.pdf
About Atrum Coal Limited
Atrum Coal Limited (ASX:ATU) is a metallurgical coal developer. The Company flagship asset is the 100%-owned Elan Hard Coking Coal Project in southern Alberta, Canada. Elan hosts large-scale, shallow, thick, hard coking coal (HCC) deposits with a current JORC Resource Estimate of 298 Mt (70 Mt Indicated and 228 Mt Inferred). Comprehensive quality testing of Elan South coal on samples from the 2018 exploration program, combined with review of substantial historical testwork data for the broader Elan Project, has confirmed Tier 1 HCC quality.
The initial focus for development is the Elan South area, which is located approximately 13 km from an existing rail line with significant excess capacity, providing direct rail access to export terminals in Vancouver and Prince Rupert. Elan South shares its southern boundary with Riversdale Resources Grassy Mountain Project, which is in the final permitting stage for a 4.5 Mtpa open-cut HCC operation. Around 30km to the west, Teck Resources operates five mines (the Elk Valley complex) producing approximately 25 Mtpa of premium HCC for the seaborne market.
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