Canada Coal Inc. Operations Timeline
Site Assessment 2011
An independent site assessment of the Fosheim Peninsula Project was completed August 9th, 2011 through August 27th, 2011. The site assessment focused primarily on coal exploration licences in the Fosheim Peninsula region for the following reasons: 1) Fosheim Peninsula is considered a primary exploration target based on historic coal rank, level of previous exploration, and proximity to the Eureka weather station, and 2) weather conditions were adverse and many of the outlying exploration areas could not be accessed.
The site assessment team was able to confirm the existence of a laterally continuous coal zone within Fosheim Peninsula, and was able to extend the zone to 25 kilometres along strike. The coal zone strikes NNE and dips gently to the NW in most areas. The coal zone is comprised of multiple seams including at least two 4-6 m thick seams and numerous metre-scale seams. A few major structural breaks exist toward the southwest end of the coal zone but that for the most part the zone is continuous.
The coal zone at Fosheim Peninsula was sampled from three locations to verify historical reports and get a preliminary indication of coal rank in the region. Sample results from the site inspection confirm historic reports that the coals in the Ellesmere Island vicinity range in rank from high volatile bituminous ‘C’ to lignite. Coals are generally low in ash (5-10%) and sulphur (<0.5%), although occasionally exhibit moderate ash values. Coals are considered to be suitable for use as a high quality thermal coal.
Based on recent and historic sample analyses, Fosheim Peninsula remains the most prospective area for identifying a higher quality coal resource as coal rank at Fosheim Peninsula has been shown to increase with depth through the measured section. More detailed mapping and additional surface sampling is planned along the strike length of the zone in advance of the drilling activities.
Phase 1 Exploration – Summer 2012
Canada Coal Inc. is in the process of planning a reconnaissance exploration program on their Ellesmere Island coal exploration licences. The program will include geological prospecting, surface mapping and surface sampling. The aim of the work program will be to help delineate and prioritize target areas for further exploration.
The program will be conducted mid-June through July (6 weeks), weather permitting. Additional studies intended to supplement the 2012 exploration program may include geophysical permafrost studies and archaeological, palaeontological, or environmental assessment studies.
Most of the mapping and sampling planned for the 2012 exploration program will occur within the Fosheim Peninsula area. Additional reconnaissance of the Strathcona Fiord and Bache Peninsula areas will take place if weather and time permits.
Phase 2 Exploration
Ultimately, Canada Coal Inc. envisions a two phased exploration strategy for their Ellesmere Island coal exploration licences. Phase 2 will be contingent on the results of Phase 1 and will consist of a drilling program to move the project forward to defining NI 43-101 compliant coal resources.