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Telkwa metallurgical coal project moves closer towards production

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World Coal,

Allegiance Coal Ltd has provided an update to the market on progress relating to the mine permitting of its Telkwa metallurgical coal project, as it plans to bring the project into production.

Following the successful results of two pre-feasibility studies undertaken for the company by SRK Consulting Inc., the first commencing production at 250 000 tpa ramping to 1.75 million tpa in year four, and the second assuming the project is only ever permitted at 250 000 tpa, the Directors have resolved to expedite the Project into production.

The results of those two pre-feasibility studies were released to the market on 3 July 2017 and 11 September 2017 respectively, and were supported by independent research posted on the Company’s website on 25 September 2017.


The Environmental and Regulatory Setting in British Columbia, Canada

The environmental assessment and permitting framework for mining in British Columbia, Canada, is well established. The Federal and Provincial Government environmental assessment processes provide a mechanism for reviewing mining projects to assess their potential impacts.

Mining projects typically undergo an environmental assessment process (EA), and if successful, proceed to permitting and licensing phases. Projects falling below certain production thresholds may not require the EA process and may advance directly to permitting and achieve production sooner. It is this option which the company is pursuing in order to bring the Project into production.

The two critical thresholds, in the case of coal mining, are less than 1 million tpa, which is the Federal Government EA review trigger, and less than 250 000 tpa, which is the British Columbia Provincial Government EA review trigger.

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