Altona Energy Regulatory News (ANR)

27 Nov 2007 07:01

Altona Resources PLC27 November 2007 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 27th November 2007 Altona Resources Plc ("Altona" or "the Company") Update on Field Technical Programme for Australian Coal-to-Liquids Project Altona Resources Plc, the Australian based energy company, is pleased to providean update on the pre-feasibility study for the development of an integratedCoal-To-Liquid ("CTL") plant and co-generation power facility, supported by anopen-cut coal mine at its Arckaringa Project ("Arckaringa") in South Australia.The pre-feasibility study is expected to be completed in Q1 2008, followingwhich the Company plans to proceed to a definitive Bankable Feasibility Study ("BFS"). Altona Chairman, Chris Lambert, said, "Owing to the world class size of theArckaringa Project, the scale of the pre-feasibility study has been extensive,therefore I am delighted to announce that we are nearing its completion. Apositive outcome from the pre-feasibility study will be a major value accretivemilestone for the Company and should position us to significantly advancecommercial and financial relationships for the development of Arckaringa." The current field and technical programme detailed below represent the finalstages of the pre-feasibility study for the Arckaringa Project. The Company's drill programme, which has targeted the Wintinna coal depositwithin Arckaringa, is focussed on identifying the optimum area for coalextraction by open cut mining methods in order to fuel the proposed CTL andpower generation project. Through the drill programme, the Company aims toredefine at least 700 million tonnes of coal from Wintinna to be classified asMeasured or Indicated, according to the current JORC code for reporting coalresources. Extensive drilling programmes conducted at Arckaringa in the 1980sand 1990s previously defined the resource under the equivalent JORC standardsapplicable at the time. Large diameter bulk sampling drilling completed The large diameter (200mm) bulk sampling core drilling programme has beencompleted with five boreholes located at representative sites evenly spreadthroughout the area of coal resource definition and has produced approximatelyfive tonnes of coal. A total of 1,031.23 metres of large diameter pre-collaringand coring was undertaken and all holes were geophysically logged successfully. The purposes of the bulk sampling are two-fold. Firstly, it will be used tovalidate and upgrade the previously defined coal resource to be classifiedaccording to the current JORC code for reporting coal resources and for thisreason, the large diameter boreholes have been drilled adjacent to previouslydrilled sites. Secondly, the bulk coal samples will be used for various testsand analyses to define the optimum specifications for the mining and preparationof Wintinna coal for use in the CTL process. Testing and analysis of samplesfrom three of the large diameter holes are scheduled to be completed at thelaboratories of ACIRL, Australia's leading provider of analytical and coaltechnology services, by December 2007. A further two tonnes of coal from theremaining two holes are being held in reserve for future coal gasificationtests. Hydrogeological field work completed Three production wells and three piezometers (wells with monitoring devices)were constructed for the hydrogeological study of the various stratigraphicunits at the coal deposit. All field work needed to test groundwater conditions,including extended pump tests, has now concluded. Data collection and analysisis being used to develop a Hydrogeological model, which will underpin agroundwater management plan for the open pit mining process. HQ ( 61mm slimcore) drilling commenced The HQ programme, consisting of 15 partially cored and five geophysically loggedopen holes, will provide further detailed data for coal resource definition andcoal quality evaluation. The first partially cored and logged HQ diameter holehas been completed to a depth of 218.89 metres and all coal seams have beensampled and dispatched to ACIRL for analysis. The HQ resource drilling programme will continue to mid December and asoriginally estimated, is scheduled to be completed along with the associatedtesting and analysis at ACIRL in February 2008. Geotechnical Programme commenced The geotechnical programme, which will comprise up to four boreholes, hascommenced. One fully cored borehole to 189.08 metres is being completed and asecond hole is currently underway with the programme scheduled for completion bythe end of November this year. Specialised geophysical testing equipment, including probes and an acousticteleviewer, are being utilised in the geotechnical boreholes. Samples from thefirst hole have been dispatched for routine analysis and to assist resourceestimation. The analysis of core samples will be used to confirm the strength ofthe materials to be excavated in open pit mining and to determine safe pitdesign parameters. The information contained in this announcement has been reviewed by NormanKennedy, the Technical Director of the Company. Mr Kennedy holds a Bachelor ofScience from the University of NSW, and is a Member of the Australian Instituteof Mining and Metallurgy **ENDS** For further information visit www.altonaresources.com or please contact: Christopher Lambert Chairman +44 (0) 207 024 8391Christopher Schrape Managing Director +61 (0) 417 984 434Hugh Oram Nabarro Wells & Co Limited +44 (0) 207 710 7400Alastair Stratton Matrix Corporate Capital LLP +44 (0) 207 925 3300Hugo de Salis St Brides Media & Finance +44 (0) 207 242 4477 Notes to Editors: About Altona Altona Resources Plc is an Australian based energy Company that was admitted totrading on AIM in March 2005. Altona's primary focus is the completion of abankable feasibility study for its wholly owned Arckaringa Project for anintegrated 10 million barrel per year Coal to Liquid ('CTL') plant with a 560 MWco-generation power facility. The Company holds, through its wholly owned subsidiary Arckaringa Energy PtyLtd, a 100% interest in three exploration licences covering 2,500 sq. kms in thenorthern portion of the Permian Arckaringa Basin in South Australia. Theseinclude three coal deposits, Westfield (EL3360), Wintinna (EL3361) andMurloocoppie (EL3362). All three lie close to the Adelaide to Darwin railwayand the Stuart Highway. Containing more than 7.5 billion tonnes of coal (basedon previous JORC equivalent standards of the time) these coal deposits areeffectively one of the world's largest undeveloped energy banks, capable ofconversion into clean liquid fuels, low cost power and high value industrialfeedstocks. About Coal-to-Liquids (also see www.altonaresources.com) CTL is a proven technology which converts coal into more environmentally cleanand manageable energy sources including gas and synthetic fuels. The processinvolves two major stages, gasification to produce synthetic gas ("Syngas") richin hydrogen and carbon, and a liquefication stage where the Syngas is reactedover a catalyst to produce high quality, ultraclean synthetic fuels and chemicalfeedstocks. CTL is a prime example of clean coal technology - the associated combined cycleunits produce negligible sulphur oxides, significantly less nitrogen oxides and10 - 20% less CO2 per unit of power generated than a conventional coal firedplant, whilst carbon capture and storage offers the potential to reduce theoverall greenhouse gas emissions from CTL to below the "well to wheel" level offuels derived from crude oil. The technology is best demonstrated in South Africa, where currently 30% of thecountry's gasoline and diesel fuel needs are met through CTL plants. This information is provided by RNS The company news service from the London Stock Exchange