RGN | Atrum Coal

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MINING | Atrum Coal

AT R U M COAL

A Tier 1 hard coking coal resource in Alberta, Canada


Resource Global Network


MINING | Atrum Coal vendors on the best way to develop the Elan Atrum Coal was established in properties. 2012 to explore and develop high potential metallurgical The result of those discussions was an coal projects in Canada for the export markets. The ASX-listed agreement in 2017 for Atrum to acquire a 100% interest in Elan. At around the same firm’s initial focus was on the time, Atrum revamped its board with the Groundhog and Panorama additions of Charles Fear, George Edwards projects in British Columbia, and Charles Blixt - the latter being appointed which together hold more than chairman. More recently, Richard Barker one billion tonnes of high and joined the board at the start of this year. ultra-high grade anthracite JORC (Joint Ore Reserves Committee) “Each of these non-executive directors has brought outstanding credentials along with classified resources. After substantial and highly relevant experience to providing several years of exploration funding via a farm- our board,” says Atrum’s managing director in agreement, Japan Oil, Gas and and CEO Max Wang. Metals National Corporation Wang was appointed to the role in 2017 and (JOGMEC) now owns a 35% joint brings a strong background in metallurgical venture equity interest in the coal mining and global coal markets, as well Panorama North project, which as extensive experience in major project holds 174 million tonnes (Mt) engineering and development in Canada. of inferred JORC resources. However, Atrum’s current focus Historical exploration is on the accelerated exploration The tenements at Elan, especially those in the Northern areas such as Isolation South, have and development of the Elan Hard Coking Coal (HCC) project in been subject to five decades of historical exploration, starting in the early 1950s. This Southern Alberta. work included more than 220 drill holes

(mostly cored and geophysically logged) and Atrum first acquired an interest in Elan back

a significant number of trenches, adits and

in 2014 by way of a joint venture agreement

other field exploration work.

that allowed the company to earn up to a 70% interest in the Elan properties.

Extensive coking coal quality testing had

In late 2016, global coking coal markets

also been conducted on samples extracted

experienced renewed strength which

from different locations in order to confirm

facilitated discussions with the project’s

Tier 1 hard coking properties. All historical


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MINING | Atrum Coal at Elan. “Based on our extensive testing on core samples from two Elan South locations in 2018, the clean coal demonstrates Tier 1 medium volatile (mid vol) HCC characteristics closely resembling Teck’s premium products and Riversdale’s Grassy Mountain product,” Wang reveals. The Elan project is just 30 km east of Teck Resources’ Elk Valley – the beating heart of Canada’s HCC industry with 25 Mt produced across the sprawling complex per annum. Furthermore, the project is bordered to the South by the Grassy Mountain HCC project, owned by Riversdale Resources.

Max Wang, managing director and CEO

These existing facilities form part of a mining and infrastructure hub in the Crowsnest Pass region of Alberta, which will play a critical

exploration and coal quality testing data was

role in the development of Atrum’s flagship

subsequently acquired by Atrum.

project.

“In 2014, under the original JV earn-in

“In comparison with Teck’s Elk Valley, the

arrangement, Atrum funded a successful field

Elan deposits have comparable coal quality,

exploration programme to drill a number

comparable geology, comparable access to

of holes and extracted coal samples at Elan

infrastructure and a combined comparable

South. This work confirmed the existence of a

land base that could support a similarly

thick shallow coal deposit with potential Tier

scalable, multi-mine operation.

1 HCC quality at Elan South.” “The project enjoys close proximity to a high Last year, Atrum conducted extensive drilling

capacity rail line with surplus capacity that

programmes which were successful in

can deliver to several deep-water ports on

delineating an initial 298 Mt JORC resource

Canada’s West coast. This major Canadian

at the Elan project, confirming its status as a

Pacific rail line passes through Blairmore and

Tier 1 HCC asset.

Coleman, which are located only 13 km south of our Elan South development area.

Subsequent coal testing programmes also established the Tier 1 quality of the HCC


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Complete Project Life Cycle Solutions Millennium EMS Solutions Ltd. (MEMS) is an employee‑owned consulting firm providing a complete and diverse range of environmental, health, and regulatory services and support to clients across western Canada for over 20 years.

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403.592.6180

780.357.5500

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“Our Elan properties also enjoy direct road

These campaigns have led to several new

access from a combination of provincial

discoveries, including some ‘outstanding’

highways and private access roads developed

results from initial drilling at the South East

by the resource and forestry industry in the

Corner of the project.

region,” notes Wang.

The immediate focus

“On the exploration side, we will continue with our 2019 drilling programme targeted

Atrum’s immediate focus will remain on the

at growing and upgrading the existing

Elan South section of the tenements, which

classification of our resource base at Elan

currently accounts for 97 Mt of the total JORC

South and Isolation South. We expect to

resource (before the 2019 exploration results

complete updated resource estimates in the

update), with the larger Elan North area

final quarter of the year.”

earmarked as the next leg of the project. Concurrently, Atrum targets the completion After securing AUS$20 million in new

of a scoping study for Atrum South before

equity financing earlier this year, the firm

the end of 2019 which would then feed into a

commenced accelerated exploration

pre-feasibility study that would be published

drilling programmes at Elan, completing

in the second half of next year.

over 100 holes by the end of September.


MINING | Atrum Coal

“In comparison with Teck’s Elk Valley, the Elan depos comparable access to infrastructure and a combined scalable, multi-mine operation” Max Wan An expanded coal quality testing programme

The next leg

over the next several months is also set to

Elan North is Atrum’s next major focus in the

further validate the Tier 1 HCC properties

Crowsnest Pass and is a larger tenement area

of the Elan project, and will help develop

with a defined JORC resource of 201 Mt. The

an indicative product specification for Elan

current primary area of Elan North is referred

South. Comprehensive final coal quality

to as Isolation South, which holds an existing

results are expected in the first half of 2020.

JORC resource of 120 Mt.

“Finally, the next six to 12 months will

There is already an exploration programme

see us continuing to undertake our early

underway at Isolation South which is aimed

engagement programmes with stakeholders,

at expanding and upgrading the classification

including traditional land use studies by the

of the existing resource estimate. New core

First Nations,” says Wang. “We have also

samples are also planned to be extracted for

started a comprehensive programme to

further coal quality testing.

collect the full-scope baseline environmental data required for environmental impact

“The Isolation South deposit is attractive in

assessment (EIA) and project permitting at

that it possesses relatively simple geological

Elan South.”


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sits have comparable coal quality, comparable geology, d comparable land base that could support a similarly ng, managing director and CEO, Atrum Coal and geometrical settings for potentially very

“A Shallow, large-scale, Tier 1 quality hard

efficient open-cut mining. Atrum’s strategy is

coking coal deposit located in a first-

to rapidly advance Isolation South, alongside

class mining jurisdiction and proximate

Elan South, as two world-class Tier 1 HCC

to critical export rail infrastructure with

developments at Elan.”

surplus capacity represents a rare asset of substantial value. The 2019 field programme

Over the last 18 months, Atrum has rapidly

at Elan is aimed at rapidly unlocking the

demonstrated the scale and quality of

potential of this asset,” concludes Wang.

the Elan HCC project through a series of exploration campaigns and test work at the Elan South and Isolation South areas.

ASX:ATU

a j


Published by Anderson Murray Media Ltd

To tell the resource market your story, contact: editorial@resourceglobalnetwork.com

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