Atrum Coal has upgraded JORC Inferred and Indicated Resources at its Groundhog metallurgical coal project in British Columbia by 220% to 159 million tonnes.

The upgraded resource is a result of access to 2008 drilling data at Groundhog as well as regional historical data from 1970 to 1985 under a data sharing arrangement with Anglo Pacific.

This is considered to be true open cut potential with more than 90% of the current resource occurring at depths up to 150 meters.

Ongoing drilling at Groundhog with two rigs is designed to expand the JORC resource across Measured, Indicated and Inferred categories as well as test for coal quality.

This and structural interpretation is expected to lead to a further JORC Resources upgrade in the first quarter of 2013.

Coal quality testing by previous exploration companies from a drill hole proximate to the central core area at Groundhog, have demonstrated the potential to wash the coal and achieve a 65% yield with low impurities, less than 10% ash, low volatile matter, a fixed carbon content in excess of 85% and calorific value ranging from 7,500Kcal to 8,000Kcal. Coal seams occur at near surface and have a tendency to dip down gently before re approaching the surface.

In addition, eight economic coal seams have been identified to a depth of 200 meters that have the potential to increase the coal resources through deeper drilling.

Moose Mountain Technical Services (“has been commissioned to complete a full technical report with respect to the resource upgrade. This is expected to be complete by the end of October.

Groundhog is located in the Groundhog Coalfield in the northern part of the Bowser Basin in north western British Columbia, about 890 kilometers northwest of Vancouver, 150 kilometers northeast of Stewart, and 300 kilometers northeast of Prince Rupert. It comprises 18 granted coal licenses covering an area of 8,322 hectares and 2 coal licence applications covering an area of 6,150 hectares.

Source - Atrum Coal

(www.coalguru.com)