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MINING | Atrum Coal
AT R U M COAL
A Tier 1 hard coking coal resource in Alberta, Canada
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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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“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
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Published by Anderson Murray Media Ltd
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