Quarterly Activities Report - 30 September 2014
Perth, Oct 27, 2014 AEST (ABN Newswire) - Atrum Coal NL ("Atrum" or the "Company") (
ASX:ATU) (ATRCF:OTCMKTS) is pleased to report the Company's activities for the quarter ended 30 September 2014 in relation to its flagship Groundhog Anthracite Project and the advanced development of the Groundhog North Mine located in British Columbia, Canada.
Commenting on the quarterly achievements, Executive Chairman James Chisholm stated: "This past quarter has been a very active and busy time for Atrum. Importantly, we have identified multiple market segments for the high grade and ultra-high grade anthracite at our 800sqkm Groundhog tenure, and multiple potential mine sites in addition to Groundhog North. We have built our operational team to achieve the key milestone of 'first anthracite on ship' and our supplementary PFS (SPFS) has demonstrated that under an owner operator model, the Groundhog North Mine is able to generate a post-tax NPV of $1.7bn."
"Experienced coal and infrastructure specialists, Cameron Vorias and Steven Boulton, have joined the board to guide the management team that now consists of three experienced Vice Presidents - Operations (Ben Smith), Business Development (Peter Doyle) and Finance (Theo Renard) - and our Mine Manager (Rick Greene)."
"Over the next few months, the Company's focus is to secure financing to advance the Groundhog North Mine, and as such our on-site crew has fallen from more than 40 personnel at camp to less than 10, with a commensurate fall in expenses. The current small capital raise will ensure we have sufficient funds to undertake discussions and negotiations with steel mills, traders and funding groups. To that end, the Company has advanced discussions with various international investment banks to assist the management with the Groundhog North sell down process, which has already started."
"With so much happening across the Groundhog project, including the SPFS for Groundhog North and the commencement of conceptual studies on other potential mine sites, management have only recently finalised the Kuro spin-out documentation, which has now been submitted to ASIC for review."
To view the full quarterly report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATU-696652.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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