On behalf of Elan Coal Ltd., Altitude Resources (TSX VENTURE: ALI) announced Sept. 11 an initial National Instrument 43-101 coal resource estimate for the Elan coal property in Canada.
The resource is comprised of 62.14 million tonnes (Mt) in the Indicated Mineral Resource category and 84.72 Mt in the Inferred Mineral Resource category. A 742.95 Mt exploration target for the Elan property has been identified. The coal quality rank is low- to mid-vol coking. The study was carried out by Dahrouge Geological Consulting Ltd. of Edmonton, Alberta.
The Coal Resource estimate is based on historic data from 82 rotary holes, 127 diamond drill core holes, 19 adits, 21 coalbed methane wells, and a significant amount of trenching in the tenements. Coal exploration on the Elan properties began in 1949 and continued intermittently until 1976. Additional coalbed methane exploration was completed between 1971 and 2002.
As part of a Resource Summary Letter, Dahrouge has also outlined several exploration targets and proposed drill programs for Elan.
As announced on Aug. 12, Altitude entered into an exploration and option agreement with Elan, a private non-arm’s length party. Altitude will acquire an option to earn up to a 51% undivided working interest in Elan’s 27 coal lease applications. The agreement allows Altitude the right to enter upon and conduct exploration activities in and on all parts of the leases.
The 22,951 hectare Elan property is located in southwestern Alberta near Crowsnest Pass and adjacent to Riversdale’s recently purchased Grassy Mountain coal project. The property can be accessed by driving north from Crowsnest Pass on secondary roads. Elan has access to rail and port infrastructure with spare capacity.
Commenting on the Elan’s initial coal resource, Andrew Wusaty, President and CEO, said: “This maiden resource report on Elan’s lease applications is based entirely on historic data and no recent drilling has been carried out. Altitude is presently working on organizing an exploration program which will include drilling and coal quality work on the Elan property. We are anticipating that it will be carried out late this year and into early 2014.”
In the Crowsnest Pass area, economic coal potential exists in the Kootenay group which has a thickness of a maximum of 1,100 meters. Just to the west across the provincial border in British Columbia there are five operating coal mines owned and operated by Teck Coal.
Five different areas of interest with surface mineable potential have been identified from historic exploration work carried out by companies including CONSOL Energy, Devon Canada, Granby Mining, CanPac Minerals, and Canadian Hunter dating back to the 1940s. The project areas of primary interest which have been identified by Dahrouge consist of Isolation, Savanna, Grassy North, Wildcat, and Isola. More than ten coal seams have been identified on the properties with thicknesses ranging from 3 to 10 meters. Coal quality is low to medium volatile with variable but generally moderate ash content, with good washability and coking coal properties. Elan is focused on development of coking coal with surface mining potential.
Altitude Resources is a new Canadian coking coal exploration and development company focused on developing its portfolio of coking coal properties in west-central Alberta. Altitude’s most advanced property, the Palisades Coal Project, is located about 12 kilometers from CN rail which has the capacity to provide transport of coal to deep-water ports on the west coast of Canada to service growing demand from world markets.