(MENAFN- ProactiveInvestors - Australia) Attila Resources' (ASX: AYA) drilling has indicated the target coal seams at its Kodiak Project in Shelby County, Alabama, will produce a premium hard coking coal product.
Kodiak currently hosts an Inferred Resource of 81 million tonnes with a 12,400 metre drill program continuing with the aim of converting the Resource to the Measured and Indicated categories.
Coal from the project has a calorific value of between 7,950 and 8,400 Kcal/Kg, 59% to 69% carbon, 32% to 36% volatile matter, up to 5% ash and between 0.5% and 0.8% sulphur.
The analysis of the eight holes targeting the Atkins and Coke coal seams has led Attila to initiate discussions with several key potential off-take partners in the export market and potential financing solutions are currently being explored.
Attila has also restarted the preparation plant and rail load out facilities.
The plant was constructed in 2007 and is capable of operating at rates of over 300 tonnes per hour, giving annual throughput of about 2.5 million tonnes of coal.
Output can be increased to 400 tonnes per hour with minimal additional capital required.
The rail load out facility has been successfully restarted with all electronic and conveyor systems in sound working order. Recalibration of the automated loader is currently underway for minimal capital expenditure.
Attila has also held logistics discussions with rail provider Norfolk Southern as well as key offtake partners.
Discussions have also being held with adjacent mineral rights owners with a view to acquiring additional leases of metallurgical coal within the Cahaba Coal Basin.
Analysis
Attila is pulling all the right levers as it looks to transition its 70% owned Kodiak Coking Coal Project in Alabama, USA into a near term producer. Today's brace of news provides further evidence of the many advantages of the Kodiak Project. It looks to have been a terrific acquisition by Evan Cranston and Max Brunsdon.
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