Altitude Resources (TSX VENTURE: ALI) on Feb. 1 announced the results of the 2015 field exploration program at the Palisades coal reserve in western Canada.
The program is in the first year of a joint venture with JOGMEC. JOGMEC can acquire up to 51% interest in the Palisades Coal Project by investing C$4.8 million in exploration expenditures over a three-year period.
The 2015 exploration program consisted of field reconnaissance and drilling program and access construction. The Palisades Property is located approximately 40 kilometers northwest of Hinton, Alberta, and is in close proximity to Canadian National rail’s mainline, which services the Grande Cache mine to the northwest.
Altitude President and CEO Gene Wusaty stated: “We are very pleased with the program results and by the opportunity to partner with JOGMEC. The program was completed successfully on time and within the [C]$1.5 million 2015 exploration budget.”
The Palisades field reconnaissance was carried out in May/June 2015 and was followed up by an access construction and drilling program which commenced on Aug. 12. Dahrouge Geological Consulting Ltd. of Edmonton, Alberta, was contracted to oversee both the field reconnaissance and drilling program. The program was completed on Oct. 10. A total of 25 holes were drilled.
Based on a 2013 drilling program, Altitude had previously announced an National Instrument 43-101-compliant Coal Resource Estimate comprising of 10.1 million tonnes (Mt) in the Measured and Indicated Mineral Resource categories and 4.9 Mt in the Inferred Mineral Resource category, and a 32 Mt exploration target for the Palisades property. The coal quality rank is mid to low volatile (Ro 1.33 to 1.53).
Work completed in 2015 focused on the northerly projection of the Solomon Anticline, to the west and south of the Coal Hill area which was drilled in 2013. Drilling covered both limbs of the anticline along several drill sections crossing strike. The anticline is asymmetrical, with a steeper eastern limb. Several west-dipping thrust faults cause repetition of parts of the coal-bearing Grande Cache member similar to that observed at Coal Hill in 2013.
The drilling completed in 2015, resulted in an overall approximate 50% increase in the Measured, Indicated and Inferred Resource of the Palisades property. Due to structural complexity and revised interpretation from new mapping, there still remain significant undefined areas that show potential to add further resources to the property. These areas include a previously unidentified thrust block to the east of Coal Hill which includes the Grande Cache member, as well as substantial gaps between defined resource areas along strike, and potentially part of the Palisades Extension.
The Palisades Coal Project is located northwest of Hinton and the recently optioned Elan project is in southwestern Alberta. The Elan and Palisades Coal 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.
Japan Oil, Gas and Metals National Corp. (JOGMEC) was established in February 2004. JOGMEC 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 invest in early-stage resource exploration projects.