The Telkwa metallurgical coal project (Project) is located on the western side of British Columbia. The Project enjoys simple access to rail and port and, from the Port of Prince Rupert, it is a comparatively short shipping distance to the Asian steel mills where Telkwa metallurgical coal will be sold.
The Project has been the subject of a significant amount of historical exploration and evaluation by previous owners estimated in today’s dollars to be in the order of A$40M. In addition, the subject of two pre-feasibility studies in 2017, the Project sits in the lowest five percentile of the global seaborne metallurgical coal cost curve.
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.
On 3 July 2017, Allegiance released (3 July Announcement) the results of a Staged Production Pre-feasibility Study of the Project undertaken by SRK (Staged Production PFS). That study assessed the viability of the Project across the entire reserve base of 42.5 million tonnes of saleable coal. It assumed the commencement of mining at 250,000 saleable tonnes per annum under the Sub-EA permitting process (as explained in the 3 July Announcement), ramping to 1.75M saleable tonnes per annum in four years if permitted to do so under a Full EA permitting process (again as explained in the 3 July Announcement).
On 11 September 2017, Allegiance released the results of its Stage 1 Pre-feasibility Study undertaken by SRK (Stage 1 PFS). The Stage 1 PFS assesses the viability of the Project assuming Allegiance is only ever permitted to mine at the rate of 250,000 saleable tonnes per annum.