West Hawk acquires huge coal resource
West Hawk Development has acquired all rights to 272,503 acres of coal licenses in the Tulita (formerly Ft. Norman), Seagull Island, Tate Lake and the Mattson Formation on or near the navigable Mackenzie and Liard Rivers in Northwest Territories, Canada. These licenses cover areas examined in the 1970s by Luscar, Manalta Coal and Utah Mines. Techman completed a pre-feasibility study in 1979 for Manalta at the Fort Norman project, which included the Seagull Island deposit, both directly adjacent to the Mackenzie River. Following a 22-hole drill programme completed in 1975, on the then 11,500 acre property, the study cites in-place (inferred) reserves calculated at 272,834,000 t of thermal coal, of which 80% was deemed recoverable using low-ratio strip mining methods.
With the abundance of available reserves, a prime mining area was outlined on the Seagull Island prospect with sufficient coal in place to support a very large dragline stripping operation barging a 1 Mt/y of coal south to north central Alberta. In addition, access to potential future markets exists to the north through navigable arctic waters. The company notes that with polar shipping realities becoming more tangible, reliable access to world markets via Atlantic and Pacific shipping lanes is becoming more of a reality.
Techman also suggested that the basin could be one of the better possible coal gasification sites in North America. Techman noted that while higher costs of a northern mining operation exist, they would be offset by the coalfield’s typical low stripping ratios, and the geographical location of the reserves are in an important position with respect to the total energy development picture for Northern Canada.
The location of the Ft. Norman Deposit, consisting of 117,572 acres, shows tremendous potential for the delivery of natural gas from an envisioned mine mouth coal to gas, coal gasification/methanization facility, accessed through an existing winter road and the planned Mackenzie Valley Pipeline route, which passes through the property. Coal quality on the Ft. Norman property ranged from lignite to sub bituminous “C” in rank, with an averaged in-situ 7,400 BTU/lb product value. Moisture and mineral free values are 12,150 BTU/lb, ash < 15%, volatiles 29%, sulphur 0.45% and carbon 62.1
The 111,578 acre Tate Lake coal prospect lies 50 km south of the Ft. Norman project and the town of Ft. Norman, and about 100 km southeast of Norman Wells, the major centre for the region. A 1975 report by R. Engler for Luscar notes: Three coal seams are inferred to underlie 34,412 acres within the eastern half of the property where the in-place reserve would be 2,100 Mt. A later, 1977 report, by A.C. Newson and G. McCourt for Luscar stated; geological mapping of the area delineated coal reserves (proven and probable) of 315 Mt of lignite.
The 43,353 acre Fort Liard project lies 5 km west of the navigable Liard River and 75 km northwest of the town of Ft. Liard. A June 1979 report filed by RP Hill for Utah Mines delineated a hypothetical resource for the southern Mattson Formation and Sawmill Mount of 260 Mt and 170 Mt, respectively.
The above information is historical in nature and is not to be relied upon. The historical resource does not use categories stipulated in National Instrument (NI) 43-101. The company advises that it has not done the work necessary to verify this classification of the mineral resource. The company is not treating the historical resource estimate as an NI 43-101-defined resource or reserve verified by a qualified person. The company is not aware of any more recent estimates or available data. The company is commissioning an independent review of all the historical data in order to ascertain an inferred mineral resource estimate compliant with the National Instrument 43-101 guidelines.