Altona
Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
4th
March 2008
Altona Resources Plc
(“Altona” or “the Company”)
Completion of Field Technical Programme
And Progressing Coal-to-Liquids Feasibility Study
Altona Resources Plc, the Australian based
energy company, is pleased to announce the completion of the key technical
field components of the pre-feasibility study for the development of an
integrated Coal-To-Liquids (“CTL”) plant and Co-generation power
facility, at its Arckaringa Project (“Arckaringa”) in South Australia.
The drilling
campaign focused on the Wintinna Coal Deposit and was completed on schedule on
11th February, 2008. Sufficient total drilling meterage and sampling
was achieved from 20 boreholes to meet the programme’s key objectives,
including the definition of approximately 700 million tonnes of coal that can
be classified as Measured or Indicated according to the current JORC Code for
reporting resources.
The Company
anticipates that it will take two months to evaluate and report on the results
of the field programme and bring the pre feasibility stage to a close. A
positive outcome will enable Altona to proceed confidently to the final
feasibility stage of its Bankable Feasibility Study (“BFS”).
The following
core strengths have been confirmed during pre-feasibility at Arckaringa:
·
Proven coal resources
·
Conventional open
cut coal mining possible for the Wintinna deposit
- Coal resources of a quality suitable for CTL
technology
- Expandable plant design
- Excellent infrastructure with immediate access to
existing railway and ports
- Strong demand for electricity in South Australia due
to State deficit
- Existing export and domestic markets for diesel
and jet fuels
- Strong Government support in a politically stable
country
- Environmental issues identified
- Competitive project economics
A decision to
move to final feasibility is likely to elevate Arckaringa to “Major
Project” status in South
Australia, under which the State Government would
establish a process to streamline evaluation and approvals. Based on advice
from key advisers, including Jacobs Consultancy and Hatch Engineering, the
Company anticipates that the final feasibility and Government approvals stage
will take approximately 24 months. The construction of two modules comprising
the “base case” 10 million barrel per year CTL Plant and associated
power facility could come on stream over a period of between 36 and 54 months.
Presenting at
the AJM 3rd Annual Coal-To-Liquids/Gas-To-Liquids Conference in Brisbane on 27 February, Altona’s
Managing Director Chris Schrape highlighted the steady progress demonstrated over
the past 12 months, and set out the proposed schedule for the final feasibility
stage, including Government approvals, and for the construction of Arckaringa.
The Minister for Resources and Energy, Hon. Martin Ferguson stated at the
conference, “Energy security is absolutely critical to Australia’s economic prosperity and I
believe coal-to-liquids and gas-to-liquids will play a major role in Australia’s
energy future.”
As part of
Altona’s continued drive in targeting Australasian markets, Mr Schrape
will also be presenting at the 5th Annual CTLtec Conference in Beijing on 4 March.
Chris Schrape
said, “Following an intense and productive period for Altona I am pleased
to wrap up the drilling campaign at Arckaringa, and with the completion of the
pre feasibility study in sight, look forward to progressing to the final stage
of the BFS. All the positive factors favouring development at Arckaringa
continue to be confirmed by our studies and it is shaping up as a highly
exciting project. The Arckaringa coal basin contains an estimated 7.8 billion
tonnes of coal. The CTL process is ideal for the resource, and the demand
economics from local and international markets will underpin the potential of
the project.
“The
next period of activity for the Company will be even busier, as we focus on
planning and managing the final feasibility work and targeting both the
Australian and Asian markets for the project’s future production of high
value liquid fuels. We believe that the Asian market in particular could be vital
for Altona and we are keen to cement relationships, such as our recently
announced deal with Hong Kong investment house
Tongjiang International Energy, to build strategic business opportunities
moving forward. In that regard, I look forward to presenting in Beijing and telling the
Chinese market more about the full potential of the Arckaringa Project.
Technical Information
A bulk sample
of approximately five tonnes of coal has been sampled from five large diameter
(200mm) partially cored boreholes since drilling operations commenced on 5th
May, 2007. Groundwater production wells and monitoring piezometers were
constructed for a comprehensive assessment of the hydrogeological
characteristics of the deposit and four cored geotechnical boreholes were
completed to better define the geotechnical parameters of the different
lithological units proposed to be mined at the deposit. Ten geophysically logged
slim diameter (HQ-61mm) partially cored boreholes and two geophysically logged
open holes were drilled to reduce the borehole spacing within the area of
interest to between 500 metres and 1 kilometre for resource definition
purposes.
Each of the completed
boreholes was successfully geophysically logged. All coal seams have been sampled and dispatched to the ACIRL
laboratories for testing and analysis. The programme focused on the optimum
area within the Wintinna deposit for extraction by open-cut mining methods.
A copy of the Mr.
Schrape’s presentation to the Brisbane Conference is available on the
Company’s website www.altonaresources.com
The information contained in this
announcement has been reviewed by Norman Kennedy, the Technical Director of the
Company. Mr Kennedy holds a Bachelor of Science from the University of NSW, and
is a Member of the Australian Institute of Mining and Metallurgy
***ENDS***
For further
information visit www.altonaresources.com
or please contact:
Christopher
Lambert Chairman +44
(0) 20 7024 8391
Christopher
Schrape Managing Director +61
(0) 417 984 434
Hugh Oram Nabarro Wells & Co Limited +44
(0) 20 7710 7400
Alastair
Stratton Matrix
Corporate Capital LLP +44
(0) 20 7925 3300
Victoria Thomas St Brides Media & Finance +44
(0) 20 7236 1177
Hugo de
Salis St Brides Media
& Finance Ltd +44
(0) 20 7236 1177
Notes to Editors:
About Altona
Altona
Resources Plc is an Australian based energy Company that listed on the AIM
market of London Stock Exchange in March 2005. Altona’s primary
focus is the completion of a bankable feasibility study for its wholly owned
Arckaringa Project for an integrated 10 million barrel per year Coal to Liquid
(‘CTL’) plant with a 560 MW co-generation power facility.
The Company
holds, through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100%
interest in three exploration licences covering 2,500 sq. km in the northern
portion of the Permian Arckaringa Basin
in South Australia.
These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and
Murloocoppie (EL3362). All three lie close to the Adelaide
to Darwin
railway and the Stuart Highway.
Containing more than 7.5 billion tonnes of coal (based on previous JORC
equivalent standards of the time) these coal deposits are effectively one of
the world’s largest undeveloped energy banks, capable of conversion into
clean liquid fuels, low cost power and high value industrial feedstocks.
About Coal-to-Liquids (also see www.altonaresources.com)
CTL is a
proven technology which converts coal into more environmentally clean and
manageable energy sources including gas and synthetic fuels. The process
involves two major stages, gasification to produce synthetic gas
(“Syngas”) rich in hydrogen and carbon, and a liquefication stage
where the Syngas is reacted over a catalyst to produce high quality, ultraclean
synthetic fuels and chemical feedstocks.
CTL is a prime
example of clean coal technology - the associated combined cycle units produce
negligible sulphur oxides, significantly less nitrogen oxides and 10 –
20% less CO2 per unit of power generated than a conventional coal
fired plant, whilst carbon capture and storage offers the potential to reduce
the overall greenhouse gas emissions from CTL to below the “well to
wheel” level of fuels derived from crude oil.
The technology
is best demonstrated in South
Africa, where currently 30% of the
country’s gasoline and diesel fuel needs are met through CTL
plants.
Victoria Thomas
Chaucer House
St Brides Media
& Finance Ltd
38 Bow Lane
London EC4M 9AY
T: +44 (0)
207 236 1177 | M: +44 (0) 7866 705 793 | F: +44 (0) 207 236
1188 | www.sbmf.co.uk
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