Altitude confirms mid-vol coking coal in latest exploration of Canadian reserve

Altitude Resources (TSX VENTURE: ALI) said Feb. 26 that the Kuro and Elan Coking Coal Limited Partnership (Elan LP) has completed laboratory testing on coal samples obtained during the fall 2014 drill program on the Elan Project located in southwestern Alberta, Canada.

The coal exploration program consisted of seven drill holes and seven trenches designed for specific coal quality analysis. Analysis from coal samples collected from outcrops during a June 2013 field program in the same area had shown the rank to be a mid-volatile coking coal.

The program targeted shallow open cut coal occurrences within the southern most area of the Elan Project, known as Grassy North. The drill target area is approximately 10 kilometers in strike length and 5 kilometers in width and was identified in the fall 2013 preliminary field assessment program carried out by Dahrouge Geological Consulting Ltd. of Edmonton, Alberta. The Elan Project extend for 55 kilometers northward from Crowsnest Pass along strike in the Kootenay Group coal formation.

Gene Wusaty, company President and CEO, said: “The Elan drill program successfully established the mid-volatile rank of the coal and delivered very favourable initial coal quality results. The Elan LP is now applying for permits for a much larger drill program later this year which will focus on resource definition and further coal quality work.”

Kuro Non-Executive Director Gino D’Anna stated: “The coal quality results from this drilling program have demonstrated the ability for Kuro to deliver a world-class mid-vol coking coal in a region with established infrastructure, proximity to rail and access to deep water ports. Our next priority is to continue with our exploration planning so that we are ready to drill again during the summer of 2015 and progress our economic studies.”

In November 2014, Altitude, on behalf of Elan Coal Ltd., announced the completion of the Elan LP with Kuro Coal Elan Inc., 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. 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.

Altitude previously announced an initial National Instrument 43-101-compliant Coal Resource estimate of 62 million tonnes (Mt) in the Measured and Indicated Mineral Resource categories and 85 Mt in the Inferred Mineral Resource category. Dahrouge has identified a 726 Mt exploration target for the Elan property. The largest component of the exploration target tonnage is located in the Wildcat and Grassy North areas in the southern area of the Elan property.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.