Altona Energy Regulatory News (ANR)

7 Sep 2007 07:01

Altona Resources PLC07 September 2007 Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production 7th September 2007 Altona Resources Plc ("Altona" or "the Company") Update on Feasibility Study for Australian Coal-to-Liquids Project Altona Resources plc, the Australian based energy company, announces an updateon the Company's field programme, as part of the on-going feasibility study forthe development of an integrated Coal-To-Liquid ("CTL") plant and co-generationpower facility, supported by an open cut coal mine at the Company's ArckaringaProject ("Arckaringa" or "the Project") in South Australia. The continuing drill programme at the Wintinna coal deposit within Arckaringa,which commenced in May 2007, focuses on identifying an optimum area for coalextraction by open cut mining methods in order to fuel the CTL and powergeneration project. The programme now underway is designed to define at least700 million tonnes of coal to be classified as Measured or Indicated, accordingto the current, 2004, JORC Code for reporting coal resources. The resource waspreviously defined under the JORC standards applicable at the time. A bulk sample of approximately five tonnes of coal has been extracted from five200mm diameter partially cored boreholes, which were completed in June and havebeen logged successfully. These large diameter boreholes have been drilledadjacent to previously drilled sites and will be used to validate and upgradethe previous exploration results and allow the previously defined coal resourceto be classified according to the current, 2004, JORC Code for reporting coalresources. The bulk sample will also be used for various tests and analyses to define theoptimum specifications for the mining and preparation of Wintinna coal inrelation to the CTL process. Test work will commence this month at the Newcastlelaboratories of ACIRL Pty. Ltd., one of Australia's leading coal testing andanalysis companies, in accordance with the test programme supervised by Altona'scoal quality and testing consultants, QCC Resources Pty. Ltd. (part of DownerEDiMining). As part of the associated hydro-geological and geotechnical assessmentprogrammes, the monitoring of ground water levels, drilling of production wellsand monitoring piezometers is currently underway. Following completion of thesehydro-geological wells, an additional fifteen geophysically logged slim diameter(HQ-61mm) partially cored boreholes and five geophysically logged open holes,are proposed to be drilled. This will reduce the borehole spacing within thearea of interest to between 500 metres and 1 kilometre for resource definitionpurposes. At least two geotechnical holes will also be undertaken to betterdefine the geotechnical parameters of the different lithological units proposedto be mined at Wintinna. Altona Chairman Christopher Lambert said, "The Company's field programme is ontrack with its objectives and is an important step forward in the progression ofthe Project feasibility study. In conjunction with progressing the technicalaspects of the Project, the Company continues to actively develop commercialopportunities and relationships to advance the development of this exciting,world-scale energy project. The positive support from the South Australiangovernment agencies involved in formal project approval processes, followingmeetings with the Company in July, has been extremely pleasing." The technical information contained in this announcement in respect of thedrilling programme has been reviewed by Norman Kennedy, the Technical Directorof the Company. Mr Kennedy holds a Bachelor of Science from the University ofNSW, 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) 798 0017 108 Christopher Schrape Managing Director +61 (0) 417 984 434 Hugh Oram Nabarro Wells & Co Limited +44 (0) 207 710 740 Alastair Stratton Matrix Corporate Capital LLP +44 (0) 207 925 3300 Hugo de Salis St Brides Media & Finance +44 (0) 207 242 4477 Notes to Editors: 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 an integrated 10 million barrel per year Coal toLiquid ('CTL') plant with a 560 MW co-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 railroadand the Stuart Highway. Containing more than 7.5 billion tonnes of coal (basedon JORC standards applicable at the time), these coal deposits are effectivelyone of the world's largest undeveloped energy banks, which the Directors believewill be capable of conversion into clean liquid fuels, low cost power and highvalue industrial feedstocks. 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 SOx, significantly less NOx and 10 - 20% less CO2 perunit of power generated than a conventional coal fired plant, whilst carboncapture and storage offers the potential to reduce the overall greenhouse gasemissions from CTL to below the "well to wheel" level of fuels derived fromcrude 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