Altitude Resources (TSX VENTURE: ALI) announced April 13 a joint venture arrangement whereby Japan Oil, Gas and Metals National Corp. (JOGMEC) can acquire up to a 51% interest in the Palisades Coal Project by investing C$4.8 million in exploration expenditures over a three-year period.
The Palisades Property is located approximately 40 kilometers northwest of Hinton, Alberta, Canada. The Palisades property is in close proximity to CN Rail‘s mainline which services the Grande Cache mine to the northwest.
Altitude President and CEO Gene Wusaty stated: “We are very excited by this opportunity to partner with an internationally recognized resource agency like JOGMEC. This joint venture will potentially provide the project with access to long-term development funding and possible future markets for the coal.”
Based on a 2013 drilling program, Altitude had previously announced a National Instrument 43-101-compliant Coal Resource Estimate made up of 10.1 million tonnes (Mt) in the Measured and Indicated Mineral Resource categories and 4.9 Mt in the Inferred Mineral Resource category. A 33 Mt exploration target for the Palisades property has been identified. The coal quality rank is low volatile (Ro 1.45 to 1.53). The study was carried out by Dahrouge Geological Consulting Ltd. of Edmonton, Alberta.
Altitude Resources is a new Canadian coking coal company focused on developing its Palisades Coal Project and the recently-optioned Elan project in southwestern Alberta. The Elan and Palisades projects are located in close proximity to Canadian Pacific and CN Rail respectively which have capacity to provide transport of coal to deep-water ports on the west coast of Canada to service the growing demand from world markets.
JOGMEC, which was established in 2004, integrates the functions of the former Japan National Oil Corp., which was in charge of securing a stable supply of oil and natural gas, and the former Metal Mining Agency of Japan, which was in charge of ensuring a stable supply of nonferrous metal and mineral resources and implementing mine pollution control measures. JOGMEC has a mandate to conduct natural resource exploration projects. For projects that proceed to the development and production stages, JOGMEC will look to attract Japanese mining and resources-related companies as long-term partners to promote funding by Japan.