Altona Energy Regulatory News (ANR)

25 Nov 2005 07:00

Altona Resources PLC25 November 2005 Altona Resources Plc ("Altona" or "The Company") Appointment of Director Arckaringa Coal Project Update Altona Resources Plc (AIM:ANR) announce the appointment of Norman Lee Kennedy tothe board of directors and provides an update on the Company's Arckaringa CoalProject ("Arckaringa") in South Australia. Appointment of Norman Kennedy as a Director Further to the Company's announcement of 18 November 2005, with respect to thecompletion of the acquisition of Arckaringa, the Company is pleased to announcethe appointment of Norman Kennedy as a Non-Executive Director. Mr Kennedy is a geologist with more than 25 years experience in explorationmanagement in both Australia and overseas and is a principal of Rank GeologicalServices Pty Ltd, a geological services consulting firm. He has been anexploration consultant for a number of resource companies, including WesternMining Corporation (WMC), Caltex, CRA, Meekatharra Minerals, NRG Flinders,Shell, BP, and ABB Energy Ventures. He is currently a director of AustralianStock Exchange listed resource exploration company PepinNini Minerals Limited. Mr Kennedy has been associated with Arckaringa since the early 1980's asprincipally a consulting geologist, and has extensive knowledge of its geologyand commercial aspects. He oversaw the extensive drilling programme whichprogressed Arckaringa from an early stage to a JORC compliant resource,including a significant Measured Resource component. Mr Kennedy has been actively involved in the mining exploration industry ofSouth Australia for more than 20 years and has established relationships withSouth Australian Government Departments, consultants and various industry andcommerce groups operating in the state. He is a member of the South AustralianChamber of Mines and Energy. Proposed Drilling Programme The Company is currently developing an initial drill programme on the mostprospective seams of Arckaringa's extensive coal resource. The drillingprogramme will include the following key objectives: - to obtain fresh core samples for technical analysis as to various applications, including application of "coal to oil" technology; - confirmation of historical data; and - potential increase of resource. In addition, the drilling programme is planned to test beneficiation options toimprove the competitiveness of Arckaringa coal as an export product. Valueadding options relating to the utilisation of waste from the beneficiationprocess will also be investigated particularly in regard to the production ofgold and heavy minerals. Paste the following link into your web browser to view the location plan: http://www.rns-pdf.londonstockexchange.com/rns/6651u_-2005-11-24.pdf Location Plan - Arckaringa exploration licences 3360, 3361 and 3362 Review of Extensive Historical Data The Company has been undertaking a review and analysis of the extensivehistorical data in respect of Arckaringa. The areas covered by the Arckaringaexploration licences are estimated to have had historical explorationexpenditure of over AUD$10 million. The Company has obtained several thousand pages of data in respect ofArckaringa, including a comprehensive feasibility study. The Company has engaged experienced coal industry consultants to undertake thisreview and analysis. This review process has been providing significant inputinto the development of the Company's business plan for Arckaringa. Assessment of Economic Potential for "Coal to Oil" The Company has had preliminary indications that Arckaringa has the potential toprovide suitable coal feed stock for the gasification and subsequent productionof synthetic fuels. The Company has had preliminary contact with potentialdevelopers and technology suppliers with a proven track record in the "coal tooil" ("CTL") industry. The Company is aware of a number of large scale "coal to oil" projects underconstruction or for which feasibility studies are in progress, including theestimated US$3 billion first stage development of an 160,000 barrel per day coalto oil plant in China being developed by Shenua Coal Company, China's largestcoal producer and the fifth largest publicly listed coal producer in the world. The industry imperatives for a successful application of the "coal to oil"process are considered to include: - access to large reserves of low cost gasifiable coal; - the country should be a net importer of crude oil and/or refined products, which is the case with Australia; - energy self sufficiency is of strategic importance to the central government of the country, with a willingness to provide incentives to achieve this; - the site for the CTL facility should preferably have appropriate infrastructure to support such a venture ie access to water, roads, railways. Assessment of Potential for Supply to Domestic Power Industry The Company is currently undertaking a review of the Arckaringa historical data,including the feasibility study undertaken in the 1980's in respect of thesupply of coal to the domestic power plants proposal for an on-site base loadpower station. The Company intends holding discussions with government and private powerindustry entities in respect of the potential supply of coal from Arckaringa tothe existing power stations and strategies for future State power requirements. Adelaide to Darwin Railway Connected to the port of Darwin in the Northern Territory of Australia, theAustralAsia railway creates a new transport system linking the south east ofAustralia with the markets of Asia. Freight links started commercial operationsof the newly completed railway in 2004. The lease and maintenance of thepre-existing 830 km line between Tarcoola (near Adelaide) and Alice Springscompleted integration with Darwin's east arm port, which includes a railwayembankment and intermodel container terminal. The railway runs between tenements included in Arckaringa. It is noted that thefeasibility studies previously undertaken in respect of Arckaringa, did not takeinto account the significant potential positive economic impact of the Adelaideto Darwin railroad. The Company intends holding discussions with the operators of the railway aboutthe commerciality of the transportation of feed stock from Arckaringa. Assessment of Export Potential The significant size of the Arckaringa resource, with a JORC compliant resourceof over 7 billion tonnes, represents a potentially strategic coal resource,given its size and long term supply potential. Historical data indicates that export quality coal could be produced throughapplication of coal handling and processing technologies, or by selectivelymining certain seams. The proposed initial drilling programme will providefresh core samples for further testing in respect of the assessment of theexport potential for the Arckaringa resource. Historically the coal industry in Australia has been the country's largestgenerator of GDP exports, with purchasers being positively influenced by thestable political environment in Australia. -ends- For further information please contact: Altona Resources Plc Nabarro Wells & Co Limited Parkgreen CommunicationsChristopher Lambert, Hugh Oram Justine HowarthChairman Director Director+44 (0) 20 7016 5100 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713 APPENDIX Further information on Norman Kennedy Full name: Norman Lee Kennedy Age: 53 Current Directorships: Rank Geological Services Pty LtdPepinNini Minerals LimitedArckaringa Energy Pty LimitedAltona Resources plc Directorships held within the last five years: None This information is provided by RNS The company news service from the London Stock Exchange