Altitude Resources Inc.
TSX VENTURE : ALI

Altitude Resources Inc.

September 26, 2013 08:41 ET

Altitude Resources Initiates Exploration Program on Elan Coal Properties in Southern Alberta, Canada

Initial Coal Quality Testing Indicates Mid Volatile Coking Coal

CALGARY, ALBERTA--(Marketwired - Sept. 26, 2013) -

Highlights:
  • Program to include field reconnaissance followed by drilling / coal quality assessment
  • Summer 2013 quality testing indicates mid volatile coking coal on drill target area
  • Dahrouge Geological Consulting retained for exploration program at Elan
  • Drill program expected to commence in early 2014

Altitude Resources Inc. (TSX VENTURE:ALI) ("Altitude") is pleased to announce that it has retained Dahrouge Geological Consulting Ltd. to carry out an initial exploration and drill program at Elan Coal Ltd.'s ("Elan") properties in southern Alberta. The first phase is a field reconnaissance program which will start first week of October 2013. Upon completion of the reconnaissance Altitude will apply for a permit which will be followed up by a drill program that is expected to start in early 2014 and will focus on coal quality confirmation and strategic infill drilling. These initial two stages are estimated to cost $1.3 million.

To view the Location Map, please visit the following link: http://media3.marketwire.com/docs/900728_1.pdf

Commenting on the program, President and CEO, Andrew Wusaty said, "We are pleased to announce that Altitude is proceeding immediately to complete an Elan property field reconnaissance program which will lead to a drill program in early 2014. The work to be completed in this initial field reconnaissance will provide the drill hole locations and access requirements for the drilling program. Altitude expects to be filing drilling permit applications with the Alberta Government in October".

The program objective is to trace the known three major coal seams that were mined at Grassy Mountain (aggregate average thickness of 15 m) northward on the Elan property. In addition, known outcrops and historic trenches will be verified and mapped. The planned drilling will include full seam core sampling to determine coal quality. Initial coal quality testing from outcrop samples indicates mid volatile coking coal in the drill target area. Samples collected during a June 2013 Elan field program were submitted for proximate and petrographic analysis.

Initial indicative clean coal quality, derived from Elan's spring 2013 reconnaissance sampling program, is shown below:

Rank : Mid Volatile Coal
RoMax : 1.3 - 1.4
Volatile : 20 - 25%
Ash : 8.0 - 9.5
Sulphur : 0.5 - 0.6%

The Elan Leases extend for 55 kms northward from Crowsnest Pass along strike in the Kootenay Group coal formation. The drill program will focus on coal quality and resource expansion drilling. The drill target area is located in the southernmost 15 km of the Elan leases (see lease map below). Five different areas of interest with surface mineable potential have been identified from historic exploration work carried out by companies including CONSOL, Devon Canada, Granby Mining, CanPac Minerals, and Canadian Hunter dating back to the 1940's. More than ten coal seams have been identified on the properties with thicknesses ranging from 3 to 10m. The property can be accessed by driving north from Crowsnest Pass on secondary roads. Elan has access to rail and port infrastructure with spare capacity.

The project areas of primary interest which have been identified by Dahrouge consist of Isolation, Savanna, Grassy North, Wildcat, and Isola. Coal quality on the entire property ranges from low to medium volatile with variable but generally moderate ash content, and good washability and coking coal properties.

Altitude previously announced an initial NI 43 - 101 Coal Resource estimate comprising of 62 million tonnes ("Mt") in the Measured and Indicated Mineral Resource categories and 85Mt in the Inferred Mineral Resource category. A 726Mt exploration target for the Elan property has been identified. The study was carried out by Dahrouge Geological Consulting Ltd. of Edmonton, Alberta. The largest component of the exploration target was located in the Wildcat and Grassy North areas (see map below) in the southern area of the property. This initial field reconnaissance and drill program is targeting this specific part of the property which extends for approximately 15 kilometers northward along strike.

To view the Lease Ownership Map & Drill Target Area map, please visit the following link: http://media3.marketwire.com/docs/900728_2.pdf

Altitude announced on August 12, 2013 that it had entered into an Exploration and Option Agreement (the "Agreement") with Elan, a private Non-Arm's Length Party. Altitude is acquiring an option to earn up to a 51% undivided working interest (the "Option") in 27 Alberta Crown coal lease applications (22,951 ha) located near the historic coal mining area of Crowsnest Pass, Alberta (the "Leases"). The Agreement allows Altitude the right to enter upon and conduct exploration activities in and on all parts of the Leases.

Gene Wusaty, Chairman of Altitude, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this release.

About Altitude Resources

Altitude Resources is a new Canadian coking coal company focused on developing its Palisades Coal Project located northwest of Hinton, Alberta, Canada and the recently optioned Elan project. The Palisades Coal Project is located approximately 12 kilometres from CN rail which has capacity to provide transport of coal to deep-water ports on the west coast of Canada to service the growing demand from world markets.

Under NI 43-101 Mr. John Henry Gorham, P. Geol consents to the inclusion of such information in this news release in the form and context in which it appears. The information in this news release that relates to Coal Resources is based on information compiled by Mr. Gorham, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Gorham is a full-time employee of Dahrouge, Geological Consulting Ltd. who are consultants to Elan. Mr. Gorham has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined as a "Qualified Person".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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