Anglo Pacific Group PLC Trefi - Initial coal re...

Anglo Pacific Group PLC Initial Coal Resource of 90.95 million tonnes at the Trefi Coal Project in British Columbia, Canada In addition to its various other private coal interests in Canada, Anglo Pacific Group PLC ("Anglo Pacific Group" or "the Company") is pleased to announce an initial coal resource estimate of 90.95 million tonnes at the Trefi Coal Project in northeast British Columbia. The resource estimate is based upon the drilling and exploration work undertaken by Gulf Canada between 1980 and 1982 and then by Anglo Pacific Group itself in 2008 and 2009. The report was prepared by Moose Mountain Technical Services, an independent consultancy based in Canada. The coal resource estimate is reported in accordance with Australian JORC Code and Canadian National Instrument 43-101. The highlights of the report are as follows:- * Initial underground C-Seam coal resource of 90.95 million tonnes * Measured and Indicated Resource of 39.35 million tonnes * High quality low sulphur coal suitable for thermal and PCI export markets * Resource located close to infrastructure and railway For more details the full report can be found at the end of this press release. As noted in the recent 2009 interim results, the Company intends this autumn to carry out a scoping study on the Trefi resource in order to progress the project towards the Company's objective of earning a royalty entitlement and retaining a carried interest. Furthermore, the Company hopes to produce an initial 43-101 resource statement on its Groundhog coal project in northern British Columbia by the end of 2009. Both the Groundhog and Trefi coalfields remain on the balance sheet at cost. The development of coal interests in British Columbia is an important component of Anglo Pacific Group's strategy to broaden and diversify its portfolio of royalties. Furthermore, the Company is in the process of applying for a listing of its shares on the Toronto Stock Exchange. Anglo Pacific Group generates returns for shareholders by receiving royalties from operating mines which currently include coking coal mines in Australia owned by BHP Billiton and Rio Tinto. The Company's strategy remains to pay a substantial proportion of its royalties to shareholders as dividends, while reinvesting the balance in strategic listed and unlisted metal exploration and production opportunities such as at Trefi and Groundhog, with a view to obtaining more royalties for shareholders. The Company will continue to adopt an active, merchant banking approach to mining projects in order to achieve better returns at reduced risk. The information in this announcement which relates to Exploration Results, Coal Resources or Coal Reserves is based on information compiled by Mr Robert J. Morris P.Geol. and Mr Robert F Engler P.Geol., who are both Members of the Association of Professional Engineers Geologists and Geophysicists of Alberta. Mr Morris and Mr Engler work for Moose Mountain Technical Services a Canadian based independent consultancy. Mr Morris and Mr Engler have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Morris and Mr Engler consent to the inclusion in this announcement of the matters based on their information in the form and context in which it appears. For further information: Anglo Pacific Group PLC +44 (0) 20 7318 6360 Peter Boycott, Chairman Matthew Tack, Finance Director Liberum Capital +44 (0) 20 3100 2000 Chris Bowman Simon Stilwell Scott Harris +44 (0) 20 7653 0030 Stephen Scott James O'Shaughnessy Website: www.anglopacificgroup.com The following is the text of the full report: INITIAL COAL RESOURCE OF 90.95 MILLION TONNES AT ANGLO PACIFIC GROUP'S TREFI COAL PROJECT IN BRITISH COLUMBIA, CANADA +------------------------------------------------------------+ | Table 1 | | Trefi Coal C-Seam Resource | |------------------------------------------------------------| | Resource Category | Metric | Vertical Thickness (m) | | | Tonnes | | |----------------------+------------+------------------------| | Measured | 14,250,000 | 2.38 | |----------------------+------------+------------------------| | Indicated | 25,100,000 | 2.12 | |----------------------+------------+------------------------| | Measured & Indicated | 39,350,000 | 2.21 | |----------------------+------------+------------------------| | | | | |----------------------+------------+------------------------| | Inferred | 51,600,000 | 1.96 | |----------------------+------------+------------------------| | Total Coal Resource | 90,950,000 | 2.07 | +------------------------------------------------------------+ Two full C-Seam coal core samples from the 2009 drilling programme were analysed; the results from the 1.6 SG float are presented in Table 2 and confirm earlier work carried out by Gulf Canada. The coal is a high quality low sulphur, medium volatile bituminous coal suitable for the thermal and PCI markets. Based on initial laboratory results the yield is expected to be in the order of 70%. +----------------------------------------------+ | Table 2 | | Trefi Coal Washed C-Seam | | Averages from 2009 Drilling Programme | | Proximate Analysis Dry Basis | |----------------------------------------------| | Ash | 7.30% | |-----------------+----------------------------| | Volatile Matter | 22.51% | |-----------------+----------------------------| | Fixed Carbon | 70.19% | |-----------------+----------------------------| | Sulphur | 0.25% | |-----------------+----------------------------| | Calorific Value | 7864 kcal/kg / 32925 kJ/kg | +----------------------------------------------+ Location The Trefi Coal property comprises 15 coal licences covering 7,337ha located within the Pine Pass area of the Peace River District, northeast British Columbia, Canada. Additional licences covering the extension northwards have been applied for but are not included in the resource estimate. The property is approximately 30km southwest of the town of Chetwynd. The area is served by an all weather paved highway and the property is currently accessed by logging and gas exploration roads. The Canadian National Railway (CN) line is 8km north of the Trefi property and provides direct access to the port of Vancouver and the Ridley Island Coal Terminal at Prince Rupert (Fig 1) For the picture see the attached pdf Figure 1 Location Geology The Boulder Creek Formation of the Fort St. John Group hosts the coal-bearing strata on the property in a stratigraphic section up to 30m thick (Figure 2). There are five coal seams within this section with geology that is classified as moderate with respect to stratigraphy and structure (as defined in Canadian Geological Survey Paper 88-21). For the picture see the attached pdf Figure 2 Stratigraphic Column The coal lies within a shallow syncline and outcrops on either side of a north-south trending range of hills. For the picture see the attached pdf Figure 3 Cross Section across the centre of the property, blue line is the C-Seam, green line is the surface. Exploration Gulf Canada drilled 23 holes on or near the property and 9 full seam coal core samples from the C-Seam within the property boundaries were collected and analyzed between 1980 and 1982. In 2009 five holes were completed by Anglo Pacific totaling 1,006.4m and two full seam coal core samples were collected (Figure 4) and analyzed. MMTS were contracted to manage the 2009 Anglo Pacific drill programme and estimate the initial resource. MMTS are respected coal experts in Canada with a client base including Teck Coal, Mitsui, Kennecott and Western Canadian Coal. For the picture see the attached pdf Figure 4 Part of the coal intersection from DH09-02 Resources The coal resource estimate on the C-Seam is in accordance with the JORC Code and Canadian NI 43-101. +---------------------------------------------+ | Resource | Tonnes | Vertical Thickness | | Category | | m | |-----------+------------+--------------------| | Measured | 14,250,000 | 2.38 | |-----------+------------+--------------------| | Indicated | 25,100,000 | 2.12 | |-----------+------------+--------------------| | Inferred | 51,600,000 | 1.96 | +---------------------------------------------+ The C-Seam was modelled by Moose Mountain Technical Services with MineSightÃ’ using data from the Gulf Canada drill holes, Anglo Pacific holes and two deep gas exploration holes (Table 3 and Figure 5). A minimum width of 1.5m and maximum depth of cover of 600m were used. For the picture see the attached pdf Figure 5 Quality Two full seam coal core samples from the 2009 drilling campaign were analysed. The 1.4 and 1.6 SG float fraction underwent FSI and proximate analysis (dry basis) (Table 4), ash analysis (Table 5) rheology (Table 6) and petrographic analysis (Table 7). The work confirmed much of Gulf Canada's earlier findings that the coal is a low sulphur, moderately low ash, mid volatile bituminous coal with weak coking properties. Indications are that the coal would be suitable for thermal markets and PCI The information in this announcement which relates to Exploration Results, Coal Resources or Coal Reserves is based on information compiled by Mr Robert J. Morris P.Geol. and Mr Robert F Engler P.Geol., who are both Members of the Association of Professional Engineers Geologists and Geophysicists of Alberta. Mr Morris and Mr Engler work for Moose Mountain Technical Services a Canadian based independent consultancy. Mr Morris and Mr Engler have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Morris and Mr Engler consent to the inclusion in this announcement of the matters based on their information in the form and context in which it appears. Tables 3 to 7 below: Table 3 List of Drill Holes and Intercepts, C-Seam, on and nearby the Trefi Property Elev. TD From To Drilled Drilled Drillhole UTM-E UTM-N (m) (m) (m) (m) Thickness By (m) 93P12-a23D 569437.48 6152928.40 1264.00 4564.00 725.60 728.30 2.70 Gas Hole 93P12-c29C 571750.00 6151600.00 1242.00 3594.00 0.00 Gas Hole ddh-80-01 567031.22 6160881.20 710.00 198.70 165.30 165.50 0.20 Gulf ddh-80-02 556239.39 6160701.88 955.00 222.40 0.00 Gulf ddh-80-03 569804.46 6157197.37 832.00 220.30 194.75 195.27 0.52 Gulf ddh-81-100 572178.29 6150564.92 923.00 245.30 223.60 224.21 0.61 Gulf ddh-81-102 568011.62 6150175.50 1380.00 160.00 121.20 123.63 2.43 Gulf ddh-81-105 570960.80 6149506.59 971.00 238.30 204.48 206.85 2.37 Gulf ddh-81-108 566940.61 6151908.66 1204.00 617.20 592.80 594.50 1.70 Gulf dh-09-01 571044.89 6148897.43 977.28 184.09 58.80 60.10 1.30 Anglo Pac dh-09-02 572672.67 6147614.16 1232.95 288.95 274.60 276.10 1.50 Anglo Pac dh-09-03 573409.02 6146220.95 1258.79 197.51 187.40 189.10 1.70 Anglo Pac dh-09-04 575092.94 6145150.46 1141.30 161.84 146.10 146.20 0.10 Anglo Pac dh-09-05 574908.98 6143796.14 1046.11 175.00 0.00 Anglo Pac rdh-80-01 564531.63 6157670.08 775.00 317.00 283.10 283.50 0.40 Gulf rdh-80-02 560382.09 6163726.52 698.00 382.50 0.00 Gulf rdh-80-03 548400.00 6146220.95 885.00 244.00 0.00 Gulf rdh -80-05 569225.00 6163925.00 780.00 270.50 0.00 Gulf rdh-80-06 578811.77 6144477.39 1060.00 249.90 0.00 Gulf rdh-80-07 573475.09 6146149.91 1250.00 202.70 188.53 190.50 1.97 Gulf rdh-80-08 575097.90 6145138.36 1153.00 172.50 145.59 148.30 2.71 Gulf rdh-80-12 564086.14 6153761.73 832.00 128.60 107.42 109.52 2.10 Gulf rdh-81-101 565553.59 6153983.93 887.00 367.00 363.20 363.63 0.43 Gulf rdh-81-103 574739.14 6143658.88 1054.00 329.90 303.14 304.91 1.77 Gulf rdh-81-104 572663.53 6147602.48 1233.00 281.90 263.28 265.72 2.44 Gulf rdh-81-106C 575111.59 6145128.10 1153.00 148.90 144.48 145.34 0.86 Gulf rdh-81-107 572773.64 6146442.84 1297.00 342.90 130.80 131.76 0.96 Gulf rdh-81-109C 573475.09 6146179.48 1250.00 191.70 187.94 190.24 2.30 Gulf rdh-82-100 572597.97 6146934.08 1274.00 122.40 111.70 113.20 1.50 Gulf rdh-82-101 574273.90 6145675.33 1192.00 228.00 207.25 212.10 4.85 Gulf Note: Highlighted holes have full seam core samples from current the Trefi property and area under application Table 4 +----------------------------------------------------------------------------+ |Core # |Washability | |Proximate Analysis dry basis |Calorific | |---------+-----------------+-----+------------------------------+-----------| | |Sample |Weight %|FSI |Ash % | VM % | FC % |S % |Value | |---------+--------+--------+-----+-------+-------+-------+------+-----------| |DH09-02 |Raw | | | 16.07 | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Float | 64.87 | 2 | 5.77 | 23.25 | 70.98 | | 7962 | | |1.40 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Sink | 35.13 | | 35.33 | | | | | | |1.40 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Float | 75.14 | 1.5 | 7.52 | 22.55 | 69.93 | 0.25 | 7838 | | |1.60 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Sink | 24.86 | | 41.14 | | | | | | |1.60 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | | | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| |DH09-03 |Raw | | | 18.90 | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Float | 62.05 | 2 | 5.82 | 22.58 | 71.60 | | 7993 | | |1.40 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Sink | 37.95 | | 40.13 | | | | | | |1.40 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Float | 73.96 | 1.5 | 7.08 | 22.47 | 70.45 | 0.24 | 7889 | | |1.60 | | | | | | | | |---------+--------+--------+-----+-------+-------+-------+------+-----------| | |Sink | 26.04 | | 50.05 | | | | | | |1.60 | | | | | | | | +----------------------------------------------------------------------------+ Table 5 +--------------------------------------------------------------------------------------------------+ | DDH | Sample | Ash Chemistry (%) | | | |--------------------------------------------------------------------------------| | | | SiO2 | Al203 | TiO2 | Fe2O3 | CaO | MgO | Na2O | K20 | P2O5 | SO3 | Und | |--------+--------+-------+-------+------+-------+-------+------+------+------+------+------+------| | DH0902 | Float | 45.93 | 23.48 | 0.93 | 7.03 | 9.29 | 1.44 | 0.23 | 0.76 | 1.87 | 7.39 | 1.65 | | | 1.60 | | | | | | | | | | | | |--------+--------+-------+-------+------+-------+-------+------+------+------+------+------+------| | | Sink | 49.49 | 22.13 | 0.92 | 3.98 | 9.63 | 1.51 | 0.88 | 0.88 | 4.41 | 6.76 | -0.6 | | | 1.60 | | | | | | | | | | | | |--------+--------+-------+-------+------+-------+-------+------+------+------+------+------+------| | DH0903 | Float | 53.43 | 22.66 | 1.08 | 3.86 | 7.00 | 1.21 | 0.23 | 0.89 | 2.22 | 5.09 | 2.33 | | | 1.60 | | | | | | | | | | | | |--------+--------+-------+-------+------+-------+-------+------+------+------+------+------+------| | | Sink | 42.93 | 19.77 | 0.70 | 6.93 | 11.98 | 1.69 | 0.93 | 0.77 | 3.57 | 8.32 | 2.41 | | | 1.60 | | | | | | | | | | | | +--------------------------------------------------------------------------------------------------+ Table 6 +---------------------------------------------------------------------------------------------------------------------+ | | | Gieseler Fluidity | Dilatometer | | | |-------------------------------------------------+-------------------------------------------------| | DDH | Sample | Softening | Max | Max | Solid | Range | Soft | Max | Max | Contraction | Dilitation | | | | Temp C | Fluidity | Fluidity |Temp C |Temp C | T1 | Contr | Dlita | % | % | | | | | ddpm | Temp C | | | | T2 | T3 | | | |--------+--------+-----------+----------+----------+-------+-------+------+-------+-------+-------------+------------| | DH0902 | Float | 454 | 0.7 | 461 | 485 | 31 | 438 | 506 | 506 | 6.0 | 5.7 | | | 1.60 | | | | | | | | | | | |--------+--------+-----------+----------+----------+-------+-------+------+-------+-------+-------------+------------| | | | | | | | | | | | | | |--------+--------+-----------+----------+----------+-------+-------+------+-------+-------+-------------+------------| | DH0903 | Float | 451 | 1.6 | 454 | 481 | 30 | 425 | 506 | 506 | 11.0 | 6.6 | | | 1.60 | | | | | | | | | | | +---------------------------------------------------------------------------------------------------------------------+ Table 7 +--------------------------------------------------------------------------------------------------------------------+ | | | Maximum | Reactive Macerals | Inert Macerals | | DDH | Sample | Reflectance |------------------------------------+-----------------------------------------------| | | | Ro Max | Vitrinite | Exinite | Reactive | Micrinite | Inert | Fusinite | Mineral | | | | | | | Semifusinite | | Semifusinite | | Matter | |--------+--------+-------------+-----------+---------+--------------+-----------+--------------+----------+---------| | DH0902 | Float | 1.12 | 41.30 | 2.50 | 18.90 | 7.5 | 18.8 | 6.7 | 4.2 | | | 1.60 | | | | | | | | | |--------+--------+-------------+-----------+---------+--------------+-----------+--------------+----------+---------| | | | | | | | | | | | |--------+--------+-------------+-----------+---------+--------------+-----------+--------------+----------+---------| | DH0903 | Float | 1.11 | 41.70 | 2.20 | 18.00 | 8.70 | 19.0 | 7.40 | 4.0 | | | 1.60 | | | | | | | | | +--------------------------------------------------------------------------------------------------------------------+ This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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