August 7, 2008 - TSX Symbol: ELT
ELECTRA TO MINE COAL
Electra is excited to announce an option agreement with Hanam Canada to explore and develop the Suquash Coalfield on Northern Vancouver Island.
The Suquash Coal Mine was in production between 1908 and 1922 on Seam #2 totalling 12,000 feet of development at the mine’s 52m elevation. Prior to the mine development the Kwakiutl First Nation produced coal for sale to the Hudsons Bay Company and others in 1835. This was the first mining anywhere in the Pacific Northwest.
The Suquash coal basin on land is about 32km in length by 4km wide (140 square km). An equally large or larger part of the basin extends under the ocean to Malcolm Island.
The coal quality and potential resources of the basin are defined by the coal mine and numerous drill holes. Exploration has occurred at intervals since 1922, the most recent have been in the mid 1970’s by BC Hydro with a 13 hole program and by Filtrol Corp in 1980. Government publications suggest a global geological potential resource of over 40 million tonnes of coal and possibly much greater. No estimate of the possible mineable resource is currently available and a mineable resource, if any, will require considerable additional exploration drilling and study.
A lower seam than what was mined was intersected by the 1980 drilling (Hole Su-80-01) at 294m containing a total coal zone of 3.31m thickness with clean coal making up 1.61m.
The Company, through Hanam, has now filed and fully paid for 3 Coal Lease Permit Applications totalling 1,038 ha which are pending with the Ministry of Energy, Mines and Petroleum Resources. All the applications have been made in accordance with all the rules and regulations set forth by the government of BC’s permitting office.
As with all other companies applying for coal leases in BC, the Company has its applications and coal prospecting permits subject to the BC government's approval process. The standard Ministry comfort information states, "The extent to which the land described in these applications can be issued has not been investigated, and therefore it should not be construed as an indication that any land will be issued, as a full review is still to be completed." It has been determined by the Ministry that there are no private coal tenures and all coal rights are vested with the Crown.
The early stage of consultation with the Kwakiutl First Nation has begun. In this regard, Electra has met with Chief and Council in Fort Rupert. At this introductory meeting, the Chief and Council indicated that they will support an exploratory diamond drill program. Electra’s goal in the consultation process is to ultimately achieve a Project Agreement that provides both economic and social benefits to the Kwakiutl First Nation by working together and following consultation protocols as we move through the exploration phase.
Subsequently, a Notice of Work has been filed with the Ministry of Energy Mines and Petroleum Resources to conduct an exploratory diamond drill program in the near future. Upon the successful completion of the drilling, Electra plans to apply for driving an exploration decline to extract a significant bulk sample to deliver to potential customers.
Initial discussions have been held with potential customers in the cement manufacturing sector which Electra already has been delivering cement raw materials for the last five years. Electra has a loadout facility at Jensen Cove in Port Hardy.
The rank of the coal is that of high volatile Bituminous “B” or “C” (ASTM). A sample at the 52m level in the Suquash Coal Mine returned a dry BTU level of 13,760.
Electra has engaged J. T. Shearer, M.Sc., P.Geo. to prepare a 43-101 Technical Report on this exciting acquisition.
For further information please contact:
A. Salman Jamal
VP Finance and Corporate Communications
604-694-1994 Business
604-694-1995 Fax
888-410-1994 Toll Free
J. T. Shearer, M.Sc., P.Geo, President, is the Qualified Person as defined by NI 43-101 who supervised the preparation of the technical material of this release.
On behalf of the Board of Directors,
“J. T. Shearer”
President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.
For further information, please see website at www.electragoldltd.com |
