Pacific American Coal Ltd (ASX:PAK) is well-funded with more than $5 million in cash as it prepares to begin the 2018 exploration program at the Elko Coking Coal Project in British Columbia, Canada.
With drilling permits approved, the company is locking in key personnel and necessary equipment to begin drilling as soon as weather allows.
Seeking additional resources
The focus will be defining additional JORC resources and reserves through 8,500 metres of rotary and spot core drilling.
Elko has 257 million tonnes of JORC 2012-compliant resources.
READ: Pacific American Coal receives drilling permit to advance coking coal project
The drilling program will enable Pacific American to progress the technical and commercial aspects of the project during 2018.
Chairman Geoff Hill said: “We fully expect that the additional data we gain from the drilling campaign will provide prospective off-takers, financiers and investors, the confidence to move the project forward significantly over the course of 2018.”
Program delayed
The exploration program was delayed by an extended regulatory process as well as the extreme wildfire season across British Columbia.
Pacific American had built up its cash resources to $4.2 million at the end of 2017 largely due to divesting its 30% stake in Imagine Materials and receiving the final repayment of its GCI divestment.
Cash reserves were further boosted in late March when a further $1 million was realised from the sale of the South Hazell property to North Coal Limited.
In addressing the company’s annual general meeting, Hill said: “Having a leaner and cashed up business, means that we are fully funded and focused on the exploration program we have planned at Elko.”
“Shaping up as a company-maker”
“The Elko project is shaping up as a company-maker for PAK,” he said.
“Last May, we announced the positive results from the Project Study Report prepared by Polaris Australia.”
The study identified that Elko has:
Hill said: “The project is a highly attractive asset as it provides shareholders with direct exposure to a significant resource base, in a prolific coking coal basin, in a strong and stable mining jurisdiction.
“These attributes are hard to find in a company of our size.
“As we progress the technical and commercial aspects of Elko, we fully expect that the market will start to understand the value inherent in the project, which we hope will then be reflected in our share price.”
