The Tenas Project is a steelmaking coal project that sits in the Telkwa coalfield in northwest British Columbia, within a complex of three separate coal deposits, all within close proximity, namely Tenas, Goathorn, and Telkwa North. The Tenas Project is located just 375km by rail to the deep water port of Prince Rupert, and Ridley Coal Terminal, and from Ridley it is a competitive shipping distance to the northeast Asian steel mills compared to steelmaking coal from the east coast of Australia.

The Telkwa coalfield within these three deposit areas, was mined from the early 1900s through to the late 1970s suppling coal to the local industries and communities for many generations prior to the arrival of power. 

Since the 1980s, Telkwa has also been the subject of an enormous amount of historical exploration and evaluation by previous project owners estimated in today’s dollars to be in the order of A$40M. Allegiance became the owner of the three Telkwa deposits in late 2016 and from then to today, has completed 3 years of environmental baseline studies, 2 pre-feasibility studies the first covering all 3 deposits and the second focused solely on Tenas, and a definitive feasibility study focused solely on Tenas. 

Allegiance is now in the pre-application environmental assessment and permitting phase for the Tenas Project and is targeting to lodge an application for an Environmental Assessment Certificate along with all Permits to Mine, in H2 2021 (calendar).

Telkwa Coal Deposits Location

Telkwa Coal Resources & Reserves

The Staged Production PFS and the accompanying statement of Resources & Reserves was prepared by SRK (Canada) Inc. (SRK) in accordance with the JORC 2012 Edition (JORC Code) and National Instrument 43-101 Standards of Disclosure for Mineral Projects’. 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 Total
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 Coal Quality Parameters

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 and Queensland, Australia.

Telkwa Coal Quality Units Tenas NSW SSCC QLD MV SSCC
Inherent moisture % 1.1 2.5-4.5 2-2.5
Volatile matter % 25.8 33-38 25-27
Ash % 9.0 5-9.5 9.5-10
Sulphur % 0.98 0.35-0.85 0.35-0.55
Fixed carbon % 65.3 50-60 55
Free swell index   3-4 3-6 3-3.5
HGI   63 40-52 70-80
Reflectance % 0.96 0.65-0.85 0.99-1.06
Maximum fluidity ddpm 6 100-500 15-50
Base acid ratio % 0.15 0.10-0.20 0.12-0.21

Telkwa Coal Staged Production Pre-feasibility Study

Telkwa Coal Stage 1 Pre-feasibiity Study

Telkwa Coal Definitive Feasibility Study

Tenas Coal Project Summary

Please click on the image to view our Project Summary PDF document.
Please click on the image to view Tenas Project Postcard document.