Altitude Resources (TSX VENTURE: ALI) announced Feb. 25 that JOGMEC out of Japan has agreed to proceed to the second farm-in milestone in the Joint Exploration Agreement on Altitude’s Palisades coking coal mining project in Alberta.
Upon completion of the second farm-in exploration program, JOGMEC will have earned a 31.875% interest in the project. JOGMEC can then earn up to a 51% interest in the Palisades project over the course of the next two exploration seasons (2016/17). The Palisades Project is located approximately 40 kilometers northwest of Hinton, Alberta. The Palisades property 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 to continue our partnership with an internationally recognized resource investor like JOGMEC. Proceeding with the 2nd farm-in of the joint venture will continue to provide the Palisades project access to ongoing development funding in 2016.”
The Joint Exploration Agreement is based on three Farm-In Periods which are tied to specific funding milestones:
- During the First Farm-in Period (2015), JOGMEC contributed C$1.5m towards exploration on the Palisades Project.
- During the Second Farm-In Period (2016), JOGMEC would contribute C$1.5m towards exploration on the Palisades Project.
- During the Third Farm-In Period (2017) JOGMEC would contribute C$1.8m towards exploration on the Palisades Project, bringing its share of the project up to 51%.
Based on a 2015 drilling program, Altitude had previously announced a National Instrument 43-101 compliant Coal Resource Estimate comprising of 15.8 million tonnes (Mt) in the Measured and Indicated Mineral Resource categories and 7.6 Mt in the Inferred Mineral Resource category. A 49 Mt exploration target for the Palisades property has been identified. The coal quality rank is low volatile bituminous coal. The field program 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.
Japan Oil, Gas and Metals National Corp. (JOGMEC) was established in 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. For projects that proceed to the development and production stages, JOGMEC will look to attract Japanese mining and industrial companies as long-term partners.