Atrum Coal NL: Completes Phase 1 Portal Drilling at Groundhog

Perth, May 20, 2014 (ABN Newswire) - Atrum Coal NL (ASX:ATU) (OTCMKTS:ATRCF) ("Atrum" or the "Company") is pleased to announce the completion of phase 1 portal drilling at the Company's flagship Groundhog Anthracite Project ("Groundhog"), located in British Columbia, Canada.

Managing Director, Dr Eric Lilford commented:

"We have set ourselves ambitious targets. Our project schedule is geared towards delivering Groundhog's first anthracite on ship this year and we are confident we can achieve this sooner than previously planned."


COMPLETION OF PHASE 1 PORTAL DRILLING AT GROUNDHOG

Drilling in 2014 recommenced at Groundhog following the mobilisation of equipment and crew to site. The exploration program occurred along section lines perpendicular to the strike of the main structure of the key seam #70. The Company is continuing to map the extent of the sub-crop which further enhances confidence around the portal and bulk sample location.

Following completion of the pre-production drilling program and contemporaneous with the bulk sample program, the Company plans to relocate the drill rigs to undertake a combination of mine plan drilling as well as drilling on newly granted coal licences where further resource upside has been identified.

The phase 1 portal drilling program included six HQ cored drill holes for a total distance of 714m ranging from 50m to 115m in drill depth. These were drilled in the bulk sample mine plan area and access portal location.

All holes were photographed as well as geophysically and descriptively logged for lithology and geotechnical purposes.

Samples were collected for anthracite quality and geotechnical analysis. A total of 18 geotechnical samples, including roof and floor samples, and 109 anthracite seam samples were submitted to ALS laboratory in Canada for quality and roof/floor geotechnical analysis.

Geophysical logging included acoustic televiewer and sonic assessments, to provide detailed geotechnical characterization which will increase understanding of the roof and floor conditions immediately above and below the target #70 seam, enabling the Company to finalise its portal design specifications for the bulk sample.

Seam #70 was encountered at shallow depths ranging from 3.3m to 26m below surface with no evidence of oxidisation. Phase 2 portal drilling will commence before the end of May and will track seam #70 in a dip direction to the west within the bulk sample area. Within this area and its immediate surrounds, and based on our most recent results, seam #70 thicknesses range from 1.25m to 4.7m and average 2.13m, which is an excellent result for mine planning purposes.

The previous map identifies the locations of the drill holes both completed (under phase 1) and planned (under phase 2) within the bulk sample location in the north-west zone at Groundhog.

The drilling program will continue to fully define the bulk sample area in the summer program starting the week of 26 May 2014.


SEISMIC PROGRAM COMPLETED AT GROUNDHOG

A seismic program consisting of 9 lines for a total of 9,350m of "shallow focus reflection seismic survey" was completed within the North-West zone of Groundhog in Q1 of this year.

The purpose of the seismic program was to:

- define the structural form of the anthracite seams;

- assist as a predictive tool for further drilling and mine planning; and

- define the depth of unconsolidated material and anthracite seam sub-crops (where the seams come to surface and meet the unconsolidated overlying surface material).

The quality of the data collected was excellent and preliminary processing shows good reflectors at depth, confirming the general structural interpretation in the North-West zone of Groundhog. Reprocessing is ongoing to focus on specific horizons, including very shallow features to map the depth to bedrock and clearly delineate anthracite seam surface traces.


MOBILISATION OF HEAVY EQUIPMENT TO GROUNDHOG SITE

The Company recently mobilised heavy equipment to the staging platform in the North-West zone at Groundhog, including an articulated dump truck, excavator and dozer. The equipment will be used to complete mechanical trenching.

The Company anticipates receiving approval to complete mechanical trenching near the bulk sample location under its extended Notice of Work.

As development activities are accelerated at Groundhog in the coming weeks, the frequency of shareholder updates will increase.

To view all pictures and tables, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ATU-678278.pdf


About Atrum Coal NL

Atrum Coal NL (ASX:ATU) is an emerging metallurgical coal explorer and developer.

The Company has a substantial coal position in British Columbia which, as a region boasts:

- Abundance of high quality PCI, coking and anthracite coals
- Well developed rail and port infrastructure with excess capacity
- Access to deep sea ports
- Competitive shipping distance to Asia
- Positive government stance on mining

The Company is building a quality portfolio of metallurgical coal assets suited to the Asian export market and the Board of Directors have a strong track record in identifying and developing world class coal assets in Australia and abroad.



Contact

Atrum Coal NL
Dr Eric Lilford, Managing Director
Tel: +61-424-757-452
E-mail: eric@atrumcoal.com

Nathan Ryan, Chairman Investor Relations
Tel: +61-420-582-887
E-mail: nathan@atrumcoal.com