ADVANCE METALS LIMITED ASX Release
th
Friday, 29
ASX Codes
PAK, PAKO
January 2016
for the quarter to 31st December 2015About
Pacific American Coal Limited is focused on the production, development and exploration of metallurgical coal assets in North America. The Company's strategic focus is on the 100% owned Elko coking coal project in British Columbia, and the Company's 30% equity interest in the P8N underground operating coal mine in Oklahoma'. PAK has 100% ownership in a total of 8 Coal Leases in the Kootenay and Peace River Coal Fields in British Columbia - Canada and tenements in application in low volatile bituminous region of the Arkoma coal basin in Oklahoma and the Raton coal basin in Colorado.
Board
Non-Executive Chairman - Geoff Hill Non-Executive Director - Simon Bird Non-Executive Director - Paul Chappell
Company Secretary
Ian Morgan
Management
Chief Executive Officer - Mark Sykes Business Development - Dom Hill
SUMMARY
Pacific American Coal Limited (ASX: PAK) is pleased to provide its Quarterly Activities Report for the three months ended 31st December 2015.
Key activities the Company engaged in during the period include:
-
Maiden JORC Resource at the Elko Coal Project
-
Tenement Management Updates
-
P8N Coal Production
-
GCI Option Agreement Lapses
-
Commencement of Strategic Review
-
Cash Management
- Annual General Meeting
Project | Stage | Location |
Elko | Exploration | Canada |
Hazell | Exploration | Canada |
P8 | Mine | Oklahoma |
Howe | Exploration | Oklahoma |
Bokoshe | Exploration | Oklahoma |
Left Fork | Exploration | Colorado |
Pacific American Coal Limited ABN 83 127 131 604
GPO BOX 3486
SYDNEY, NSW, 2001
P. +61 2 9252 5300
www.pamcoal.com
During the quarter, the Company announced a maiden JORC Code (2012) Resource at the Elko Coal Project of 257.5 million tonnes. The Elko Project is located in the East Kootenay Coal Basin of British Columbia, Canada. The maiden resource achieved the Company's objective to identify large, high quality coal assets close to infrastructure and services. PAK holds a 100% interest in the Elko Coal Leases.
Coal Basin
East Kootenay
Coal Licence
418649
Coal Licence
418648
Elko - 100% PAK3 x Coal Licences
Total Area - 3,571 Hectares
Canada
ElkoCoal Licence
418650
5km
Figure 1 - Location of Elko Coal Licences
Following the completion of PAK's initial exploration program at Elko, the Company was able to locate, log and confirm the historical activity on and around the Elko Coal Licences. This confirmatory information was modelled to update the Elko geological model and determine a maiden, JORC compliant resource at the Elko Project. The JORC resource consists of:
Classification ( JORC 2012 ) | Resource (million tonnes) |
Inferred | 181.3 |
Indicated | 57.0 |
Measured | 19.2 |
Total | 257.5 |
Table 1 - Elko JORC Resource Classification
The Elko Coal Project is the flagship asset within the Company's portfolio. PAK continues to work on further advancing the Project by mapping out the approvals process and timeline that will be required to bring the Elko Coal Project into production.
During the quarter the Company highlighted the Elko Coking Coal Project fundamentals and bench- marked the Project against other coking coal investment opportunities. The Company also focused on the pathway to develop the Elko Coal Project into an operating asset.
During the quarter, the Company made the decision not to renew the Peace River Coal Licences in British Columbia. The Coal Licences 418676 and 418677, were due for renewal on 20th November 2015.
In making this decision the Company considered the economic and resource potential of the Coal Licence areas. The combined resource potential of the Coal Licences was likely to contain less than 30mt, had complex geology and were not located sufficiently close enough to transport infrastructure. The Peace River Coal Licences were the only assets within the Company's portfolio that did not contain a JORC Exploration Target.
The Company has renewed, and continues to hold 100% ownership of the Coal Licences at Elko and South Hazell in the East Kootenay Coal Basin in British Columbia.
Tenement Reference | Nature of interest | |
Mining tenements held at the end of the quarter | Elko Coal Licences in British Columbia, Canada. Licences 418648, 418649 and 418650. | 100% ownership |
South Hazel Coal Licences in British Columbia, Canada. Licences 418645, 418646 and 418647. | 100% ownership | |
Mining tenements acquired during the quarter | Nil | Nil |
Mining tenements relinquished during the quarter | Peace River Coal Licences in British Columbia, Canada. Licences 418676 and 418677. | 100% ownership |
Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter | Nil | Nil |
Beneficial percentage interests in farm-in or farm- out agreements acquired or disposed during the quarter | Nil | Nil |
P8N is located in the low volatile bituminous region of the Arkoma Basin in Oklahoma. P8N produces approximately 400,000 tonnes of coal per year sold under long-term contract to the local power utility.
Figure 2 - Location of P8N in the Arkoma Basin
Over the period, the group through its associate GCI produced 82,000 tonnes of coal. Production was lower than budget due to operations ceasing over the holiday period, relocating the operating panel, poor operating conditions and downtime experienced with production units.
Year to Date (YTD) production of 360,000 tonnes is 86.5% of target.
40,000
Tonnes per month35,000
30,000
25,000
20,000
15,000
10,000
5,000
Rolling 12 Month Production Performance
0
Jan 2015
Feb 2015
Mar 2015
Apr 2015
May 2015
Jun 2015
Jul 2015
Aug 2015
Sep 2015
Oct 2015
Nov 2015
Dec 2015
Figure 3 - Production Statistics from P8N
Metals Finance Limited issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 31 January 2016 22:10:07 UTC
Original Document: http://www.metalsfinance.com/Assets/Documents/2016ASX/1520594 - Quarterly Activities Report.pdf
