PAC Canada undertook its inaugural exploration drilling campaign at Elko in Q3 CY2018 conducting 3,451m of RC and core drilling. This campaign confirmed nine coal seams running through the Elko resource with thickness’ ranging from 1.77m - 12.70m. Of significance was defining three additional coal seams, identified as belonging to the Elk Formation. These new coal seams E0, E1, E2 have added an extra 35Mt to the total JORC Resource.
In addition to the three Elk Formation coal seams, the work undertaken by PAC Canada’s geological consultant, Highland GeoComputing LLC (HGC) confirmed the existence and continuity of the six coal seams in the Mist Mountain Formation that had been previously identified, both in literature reviews and through in field coal mapping. The seams have splits of some degree and are often interbedded with thin mudstone and carbonaceous shale bands. Thin leader and rider coal seams occur below and above the main seams, respectively.
Coal quality at the Elko Project is better than expected, with moderate to high FSI and low ash. The washed coal quality results confirm that seven of the nine seams are indicative of mid-vol, low ash, coking coal. The bottom two seams are in line with a mid vol, semi-hard coking coal to a PCI metallurgical coal. This new and updated information is 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.
Recent coal analysis conducted by SGS focused on obtaining more information regarding the metallurgical properties of the coal seams. This work was conducted so that Pacific American Coal can produce Indicative Coal Specification Sheets. The indicative specification sheets will be used in an Independent Market Report that has been commissioned by PAC Canada.
The analysis indicates the CSR (calculated) for the hard coking product (seams 4, 5, 6, E0, E1 & E2) is above 60. The CSR (calculated) results for the PCI product (seams 1 & 3) is above 40. More work is required to improve the confidence levels of the coal properties on an individual washed coal basis and in turn the characteristics they contribute as part of a blended coal product. To date the results from SGS (from a calculated CSR perspective) are very encouraging.
The three Elko licenses are located within the Crowsnest Coal Field, part of the larger East Kootenay Coalfield. The Jurassic age Fernie Formation is the lowest stratigraphic unit in the Elko applications and is composed of dark grey silty shale and siltstone grading up to fine sandstone. The Cretaceous aged Kootenay Formation conformably overlies the Fernie formation and contains three units: the Moose Mountain, Mist Mountain; and Elk members.
The Mist Mountain Member of the Kootenay Group is the main economic coal bearing unit in the region, with individual seams ranging from 1‐15m in thickness (BC Energy & Minerals, 1996). This member is typically 425‐500m in thickness, consisting of sandstone, siltstone, mudstone and coal. Up to seven seams are identifiable within the Mist Mountain Member. The Elk Member overlies the Mist Mountain Member, forming a resistant cap of sandstones and siltstones.
The Elko license areas reside within the Crowsnest Coal basin. The Crowsnest Coal basin consists of Jurassic and Cretaceous sedimentary rocks belonging to the Fernie Formation – Jfe (mostly shales), the Kootenay Formation – JKK (interbedded sandstones, shales and coal), and the Blairmore Formation – IKTBC (conglomerates). The Elko licenses reside at the southern end of the Crowsnest Coal basin with regional northerly dips ranging from 15 to 40 degrees.