Montem Resources Ltd (ASX:MR1) has increased its coal resources at the Chinook Project in Alberta, Canada to 172 million tonnes with 108 million tonnes in the indicated category and 64 million tonnes in the inferred category.
The Chinook Project also contains an exploration target, which has been upgraded from 125 million tonnes to 450 million tonnes.
Plans to drill out remaining areas
Montem managing director and CEO Peter Doyle said: “We are very pleased with the significant increase of the JORC resource estimate for the Chinook Project.
“This upgrade of the resource is the result of new information from the 2020 exploration which led to a re-interpretation of the geological model for Chinook and follows announcements detailing the excellent coal quality results received from the 2020 drilling program, as well as the positive scoping study we completed for the Chinook Project in early 2021.
“The next step is to drill out the remaining areas included in the Scoping Study mine plan and progress to a Pre-Feasibility Study.
“As the entire Chinook Project lies within Alberta 1976 Coal Development Policy Category 4 land, we are able to continue exploration and project planning.
“We are excited by Chinook and look forward to the next phase of development.”
Background and next steps
The Chinook Project is made up of two areas - Chinook Vicary and Chinook South.
Montem’s resource update is in the Vicary Domain, which makes up the central portion of the Chinook Vicary area.
The Vicary Domain was the target of Montem’s 2020 exploration drilling program, which confirmed the occurrence of near surface, structurally thickened coal seams suitable for future open-cut extraction.
Montem will continue to explore areas of Chinook Vicary identified in the scoping study mine plan, aiming to define an open-cut project at preliminary feasibility level.