Quarterly Activities Report March 2016
Sydney, April 29, 2016 AEST (ABN Newswire) - Atrum Coal NL (
ASX:ATU) is pleased to provide its Quarterly Activities Report for the period ending 31 March 2016.
HIGHLIGHTS
- Preliminary results from Duke E seam at Groundhog Project's Eastern Resource block return clean product yields averaging above 80%, producing a premium 10% ash ultra-high grade anthracite
- Further optimization of pre-feasibility work has been undertaken to evaluate various development and transportation options
- Atrum has completed all information requests from regulators in British Columbia who continue their process towards issuing a Bulk Sample Permit
- Atrum progresses discussions regarding possible Joint Ventures over the Panorama licenses in an effort to accelerate development of Groundhog region
- Settlement of promissory note payable to Anglo Pacific through payment of US$0.6 million and new royalty
- Raised A$2,902,393 through the issue of a convertible note (A$1,542,393 post quarter end), with the convertible notes also including a royalty component
Executive Chairman, Robert Bell, commented:
"It has been a solid quarter of work with pleasing results received from the Duke E seam at the Groundhog Project's Eastern Resource block, where yields of clean product compared to raw anthracite have averaged above 80%. The quality results are currently undergoing washplant simulations to predict primary and secondary yields from the designed washery, and we look forward to using these results as we build upon our understanding of the Groundhog Project and develop the most feasible mining options.
"Atrum has also progressed discussions regarding a possible joint venture over our Panorama licenses. These licenses make up the western region and about one third of the overall Groundhog project area. A joint venture would enable us to accelerate our exploration work across Panorama and bring forward the development of the entire Groundhog region, so this is an option we are keen to explore.
"Settling our promissory note with Anglo Pacific was also significant as we were able to conserve our cash reserves and negotiate a new royalty that will benefit both companies in the long term.
"The convertible note was well received and Atrum appreciated the support of the note holders."
To view the complete report, please visit:
http://abnnewswire.net/lnk/395X09W6
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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