Name of the Project
Elan hard coking coal project.

Location
Southern Alberta, in Canada.

Project Owner/s
Atrum Coal.

Project Description
An updated scoping study has incorporated the recent Isolation South resource upgrade into an enlarged and enhanced mine schedule for the Elan project, which also displaces all Elan South mining to drive project simplification, permitting efficiency and development fast-tracking.

However, there is potential for Elan South to be permitted and mined in the future as an expansion development and/or mine life extension for the Elan project.

Total Elan project resources are currently 486-million tonnes, comprising measured resources of seven-million tonnes, indicated resources of 228-million tonnes and inferred resources of 252-million tonnes.

The updated scoping study envisages a nameplate mining and processing capacity of ten-million tonnes a year run-of-mine for six-million tonnes a year of hard coking coal product.

Total run-of-mine coal has increased from 126-million tonnes to 187-million tonnes.

Initial life-of-mine has increased from 15 years in the April 2020 scoping study to 21 years in the updated November 2020 scoping study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s after-tax net present value has increased from $860-million, at a 9% discount rate, in the scoping study to $1.4-billion in the updated scoping study.

The internal rate of return has also increased from 25% in the April 2020 scoping study to 28.8% in the November 2020 updated scoping study. The payback period has decreased from 4.4 years from first production in the April 2020 scoping study to 3.7 years in the updated scoping study.

Capital Expenditure
Total preproduction capital expenditure has increased by $90-million, from $683-million in the April 2020 scoping study to an estimated $773-million in the November 2020 updated scoping study.

Planned Start/End Date
Not stated.

Latest Developments
The significant increase in measured and indicated resources at Isolation South provides the potential for the declaration of a substantial maiden coal reserve in accordance with the Joint Ore Reserves Committee (2012) upon completion of the Elan project prefeasibility study (PFS).

The PFS remains on track for completion by mid-2021.

A further update to the Isolation South resource is expected in the first quarter of 2021, following receipt of residual coal quality testwork results.

Key Contracts, Suppliers and Consultants
Palaris Australia (coal technical consultant).

Contact Details for Project Information
Atrum Coal, tel +61 3 8395 5446 or email info@atrumcoal.com.