Receives Bulk Sample Permit for Groundhog North Mining Complex
Sydney, May 9, 2016 AEST (ABN Newswire) - Atrum Coal NL (
ASX:ATU) is pleased to announce it has received the required permits to start mining activities at its flagship Groundhog Anthracite Project ("Groundhog"), located in British Columbia, Canada.
Highlights:
- Bulk Sample Permit and associated permits have been received from the BC Government
- Total bulk sample size of 100,000 tonnes approved for extraction by way of surface cut-and-cover and underground mining
- Atrum is now permitted to begin bulk sample mining activities, designed to supply customers trial cargoes of Groundhog Ultra 10% ash anthracite
Groundhog North Mining Complex
The British Columbia Government approved the permits required to start bulk sample mining at Groundhog.
The permits include:
1. Amendment to Atrum's Mineral & Coal Exploration Activities & Reclamation Permit (commonly referred to as the Bulk Sample Permit) to mine the bulk sample; and
2. Special Use Permit to use an existing railbed subgrade for land access to move equipment to the mine site and truck the bulk sample to the railway connection point.
Executive Chairman, Bob Bell commented:
"Obtaining the Bulk Sample and associated permits is a major step forward in the development of the Groundhog Anthracite Project and Atrum as a Company.
To date, the company has successfully achieved a number of important milestones in exploration and planning. This includes delineating a rare deposit of ultra-high grade anthracite, and the design of the bulk sample project to take into account the interests of affected aboriginal groups.
The awarding of these permits allows us to move to the next phase of our development as a mining company, and begin construction at our Groundhog North Mining Complex. We are excited by the opportunity to produce additional test material for our customers, and look forward to selling the first cargo of Groundhog North anthracite.
The awarding of these permits is the result of an extensive, iterative review process, involving officials from several ministries within the British Columbia Government, Aboriginal Groups, and the Company. We thank all who participated for the time and energy spent reviewing our project application and advising the approved final permits.
The granting of these permits demonstrates Atrum has the capability to satisfy regulatory requirements to undertake mining activity at Groundhog, and underpins our investment in the jurisdiction of British Columbia."
These permits allow Atrum to begin mining activities at Groundhog designed to extract a bulk sample of up to 100,000 tonnes of anthracite from Groundhog North. The ultra-high grade lump and fine anthracite produced from the bulk sample are expected to be sold to customers for trials in blast furnace and sinter plants, with the potential to provide a portion of the product for beneficiation for specialty industrial users. These customer trials are required to secure long-term offtake agreements for supply of Groundhog Ultra High Grade 10% ash anthracite.
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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