North America-focused Pacific American Coal (ASX: PAK) has announced a boost in coal resources at its flagship Elko coking coal project in British Columbia, Canada.
The company today reported the JORC total resource for its 100%-owned project has increased 18% from 257 million tonnes to 303Mt of coal, with the measured resource growing more than six times to 117Mt.
This upgrade has been the result of a successful 2018 drilling campaign, in which nine coal seams were confirmed, including the discovery of three new high-quality seams that added 35.7Mt to the total resource.
A large 95% of Elko’s resource sits in the Western and Central blocks, where the recent drilling program was focused. Potential upside has also been identified in the Central and Eastern blocks that warrant further drilling.
According to Pacific, the quality of coal at the Elko project is “better than expected”, with all upper coal seams confirmed as high-quality low ash coking coal.
The company said the new washed coal quality results are supportive that the Elko project contains a large coking coal resource with the potential ability to produce a range of coking and metallurgical coal products.
Pacific chairman Geoff Hill added the increased certainty in the resource – being the growth of resources in the measured category – was “encouraging”.
“Most pleasing is the significant increase in tonnage in the high value top seams, including the newly identified Elk Formation coal seams, demonstrating excellent coal quality characteristics,” he added.
Pacific currently has permits in place to access the Elko resource for further drilling and exploration work in the coming Canadian summer.
The company has invested heavily in building and upgrading roads and is applying for additional exploration permits that will allow further exploration in new areas within its licences.
By afternoon trade, Pacific shares were sitting up 28.57% at $0.045.