The Telkwa metallurgical coal project (Project) is located on the western side of British Columbia, 375km by both rail and road to the deep water port of Prince Rupert, and Ridley Island Coal Terminal.
The Project has been the subject of an enormous amount of historical exploration and evaluation by previous owners estimated in today’s dollars to be in the order of A$40M. In 2017, Allegiance completed two pre-feasibiilty studies, the ‘Staged Production PFS’ and the ‘Stage 1 PFS’ both of which delivered outstanding results. On the basis of these results, Allegiance resolved to proceed to develop the Tenas resource which is now the subject of a full feasibility study in 2018, referred to as the Tenas Metallurgical Coal Project.
The Staged Production PFS and the accompanying statement of Resources and Reserves was prepared by SRK (Canada) Inc. (SRK) in accordance with the JORC 2012 Edition (JORC Code) and National Instrument NI 43-101 ‘Standards of Disclosure for Mineral Projects’ (NI 43-101). A summary of the Resources and Reserves is set out in Tables below.
| Resources (Mt) |
Measured |
Indicated |
Inferred |
Total |
| Tenas |
58.8 |
- |
- |
58.8 |
| Goathorn |
59.5 |
9.2 |
0.2 |
68.9 |
| Telkwa North |
15.7 |
3.7 |
1.0 |
20.4 |
| Total |
134.0 |
12.9 |
1.2 |
148.1 |
| Reserves* (Mt) |
|
ROM Coal |
Clean Coal |
Saleable Coal |
| Tenas Proven |
|
29.1 |
20.6 |
21.0 |
| Tenas Probable |
|
- |
- |
- |
| Tenas Total |
|
29.1 |
20.6 |
21.0 |
| Goathorn Proven |
|
22.1 |
12.6 |
18.8 |
| Goathorn Probable |
|
0.2 |
0.1 |
0.1 |
| Goathorn Total |
|
22.3 |
12.7 |
13.9 |
| Telkwa North Proven |
|
10.8 |
6.4 |
7.0 |
| Telkwa North Probable |
|
0.7 |
0.4 |
0.5 |
| Telkwa North Total |
|
11.5 |
6.8 |
7.5 |
| Grand Total |
|
62.9 |
40.1 |
42.5 |
* Reserves were calculated at a strip ratio of 5.8:1 BCM:ROMt
See ASX Announcement dated 3 July 2017 for further detail.
Telkwa metallurgical coal is suitable for steel production for use either as a coking coal in a coke oven or as a PCI coal for direct injection into the blast furnace. The detailed coal specifications have been reviewed by several north-Asian steel mills who have expressed an interest in purchasing Telkwa metallurgical coal. The table below summarises some aspects of coal quality by comparison to similar products supplied by operating mines in New South Wales, Australia.
| Telkwa Coal Quality |
Units |
Tenas |
NSW SSCC |
NSW HV PCI |
| Total moisture |
% |
9.8 |
6-10.5 |
6-10.5 |
| Volatile matter |
% |
24.6 |
33-37 |
33-39 |
| Ash |
% |
8.9 |
6.5-10.5 |
9-10.5 |
| Sulphur |
% |
0.9 |
0.5-10.5 |
0.35-0.85 |
| Fixed carbon |
% |
64.4 |
50-60 |
55 |
| Calorific value |
Kcal/kg |
7,450 |
N/A |
7,250 |
| Free swell index |
|
3-4 |
3-6 |
N/A |
| HGI |
|
64 |
N/A |
40-50 |
| Reflectance |
% |
0.84 |
0.80 |
0.65-0.85 |
| Maximum fluidity |
ddpm |
2-17 |
100-500 |
N/A |
| Coal strength reactivity (calculated) |
% |
37-43 |
25-30 |
N/A |
| Phosphorous |
% |
0.046 |
- |
- |
