PERTH (miningweekly.com) – Junior Allegiance Coal is hoping to expedite the development of the recently acquired Telkwa coal project, in British Columbia, with a prefeasibility study (PFS) scheduled for completion by the first half of 2017.
Allegiance earlier this year acquired private Canadian firm Telkwa Coal in a deal valued at A$1.25-million. Telkwa’s sole asset is a farm-in agreement over the advanced coking coal exploration project.
In a statement to shareholders on Thursday, Allegiance said that internal scoping studies had indicated that the project would be in the lowest cost production quartile, and supported a compelling business case to develop a mine in the current price environment for coking coal.
The ASX-listed junior is now looking for an independent consultant to undertake the PFS, and to assist in environmental field studies for 2017 and 2018.
In addition, the company will also start formal discussions with the British Columbia Ministry of Mines and Energy on the mine permitting progamme in December, with the aim of gaining all relevant permits by the second half of 2018.
The coal project is currently estimated to host a 165-million-tonne resource, of which 89-million tonnes are in the measured category.
Edited by: Creamer Media Reporter
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