Altitude Resources Inc. (TSX VENTURE: ALI) announced Dec. 9 that the Kuro and Elan Coking Coal Limited Partnership (the “Elan LP”) has completed a three-week drill program on Elan Coal Ltd.’s property located in southwestern Alberta, Canada.
The coal exploration program consisted of seven drill holes (4 core and 3 rotary) and seven trenches designed for specific coal quality analysis. The program targeted shallow open cut coal occurrences. A National Instrument 43-101 compliant coal resource upgrade is expected on the Elan Project following modelling of the new exploration data and coal quality testing. Results are expected in Q1 2015. Historical coal quality results indicate a mid-volatile coking coal in the drill target area, consistent with premium coking coals from the region.
Gene Wusaty, Altitude President and CEO, said: “The drill program was focused primarily on establishing coal quality at the Elan Project and yielded some significant coal intersections. The Elan LP is now applying for permits for a much larger drill program for the exploration season in the summer of 2015.”
On Nov. 20, 2014, Altitude, on behalf of Elan Coal Ltd., announced the completion of the Elan LP with Kuro Coal Elan Inc. (“Kuro”), an Australia-based coal exploration company. Kuro has the opportunity to acquire up to a 70% interest in the Elan Project upon successful completion of, amongst other exploration requirements, a feasibility study. Assuming Kuro fulfills all requirements to earn its 70% interest under the Agreement, Altitude and Elan will retain an ownership equal to 12.5% and 17.5%, respectively. The 2014 drill program is part of the first milestone in the Elan LP that allows Kuro to earn an initial 20% interest in the Elan Project.
The Elan Project extends for 55 kilometers northward from Crowsnest Pass along strike in the Kootenay Group coal formation. Five different areas of interest with surface mineable potential have been identified from historic exploration work carried out by companies including CONSOL, Devon Canada, Granby Mining, CanPac Minerals, and Canadian Hunter dating back to the 1940’s. More than 10 coal seams have been identified on the properties with thicknesses ranging from 3 to 10 meters. The Elan Project has access to nearby rail and port infrastructure with spare capacity.
Altitude Resources is a Canadian coking coal company focused on developing its Palisades Coal Project located northwest of Hinton, Alberta, Canada, and the Elan Project through its participation in the Elan LP. The Palisades Coal Project is located approximately 12 kilometers from CN rail which has capacity to provide transport of coal to deep-water ports on the west coast of Canada to service the growing demand from world markets.