Canada Coal (TSX VENTURE: CCK) said Dec. 12 that it has filed an updated independent technical report for its Nunavut Coal Properties, that consist of seven coal license areas in extreme northern Canada, made up of 75 active licenses spanning approximately 2,442,627 acres.
The report details the results of Canada Coal’s extensive 2012 mapping and sampling program. Report highlights include:
- High priority drill targets to further define coal deposits in Phase 2 program.
- Multiple highly prospective coal zones in close proximity to tidewater.
- Consistently low sulfur and low ash, high quality thermal coal in samples.
Geological mapping and surface sampling results from the 2012 exploration program have confirmed the presence of widespread coal occurrences within the company’s Fosheim Peninsula exploration licenses. The 2012 program was successful in identifying numerous targets at surface exhibiting over 5 kilometer strike lengths and made up of multiple seams aggregating over 15 meters of low-sulfur and low-ash, high quality thermal coal which form the basis of a proposed Phase 2 exploration drilling program. The company said it intends to focus future exploration within the Fosheim Peninsula region.
The proposed Phase 2 exploration drilling program will target four to six high priority coal zones with the aim of delineating coal of sufficient continuity, rank, and quantity to develop a National Instrument 43-101-compliant coal resource estimate. At present, Canada Coal has applied to permit 80 drill holes including 30 primary drill holes, 37 secondary drill holes, and 14 wildcat holes and intends to drill approximately 9,000 meters of core as part of the proposed Phase 2 exploration program.
Braam Jonker, President and CEO of Canada Coal, stated, “We are very pleased with the outcome of our 2012 exploration program, confirming the presence of abundant high quality thermal coal with low ash and sulphur levels in the Fosheim Peninsula region. Historical reports indicate the presence of a multi-billion tonne coal resource (not NI 43-101 compliant) on our Fosheim license areas. The focus of our Phase 2 work program is to commence the establishment of a NI 43-101 compliant coal resource on the most prospective areas as identified by our Phase 1 program and to test for high grade metallurgical coal at deeper levels. At this stage of development, Canada Coal is well positioned for growth, and if successful 2013 could be a milestone year for the company. We are committed to working with all of our stakeholders and local communities in order to create opportunities and possible energy independence for Nunavut.”
Canada Coal, through its two wholly-owned subsidiaries, Canada Sovereign Coal and 5200 Nunavut Ltd., holds 75 active license located on Ellesmere Island and Axel Hieberg Island in Nunavut. These are islands off the north coast of Canada in the Arctic region.