The Chickaloon Project consists of a leasehold interest over 4,000 hectares of land in the Matanuska Valley, approximately 120km north east of Anchorage, Alaska. The location offers access to port infrastructure from where key Asian markets are relatively close. The area has a history of coal exploration and some limited production. Riversdale is in the exploration and evaluation phase of the Chickaloon Project and has not defined Coal Resources or Coal Reserves.
Riversdale Alaska (100% owned subsidiary of Riversdale) signed a Coal Lease in February 2012 with the Alaska Mental Health Trust (AMHT) in respect of the Chickaloon Project. AMHT was awarded the land as part of the Alaska Mental Health Enabling Act in 1956 in order to generate funds to support mental health programs. Riversdale acquired the Coal Lease through a competitive coal lease sale.
The Chickaloon Project is located in the Matanuska Valley, south-central Alaska. The Matanuska Valley is an 8 to 16km wide and 80km long, lowland structural trough that extends from Moose Creek on the west, to the Matanuska Glacier on the east, and is bounded on the north by the Talkeetna Mountains and on the south by the Matanuska River and the Chugach Mountains.
A significant coal outcrop and a large amount of historical work provides basic resource knowledge, although this will only be confirmed with additional drilling. Previously gathered geologic information in the Leased Area from prior explorations show the area having two synclinal and two anticlinal fold axes. The most prominent structure was a generally east-west trending syncline in the area of the old Chickaloon Mine workings. Additional geologic data from prior exploration efforts at Chickaloon from 1917 to 1922 was the location and relative movement of several faults that had passed through the old mine tunnels. The mapped faults discovered in the Chickaloon tunnels can be projected from the old Chickaloon Mine area north-westward to the base of Castle Mountain.
Coal from the Chickaloon Project could potentially be exported via either of two deep water ports being Port Mackenzie and Port Seward, with good shipping access to customers in Japan, Korea and potentially China.
Port Mackenzie was opened in May 2001 and is an established port with available capacity for bulk commodities such as coal. The port has a depth of 18.3 metres at mean lower low water and was successfully tested for coal by an existing Alaskan coal miner in 2010. Port Mackenzie is approximately 120km to the south west of the Chickaloon Project on the Glenn Highway, which makes road transport to the port an option, although there is potential to look at rail transport options as an alternative to road transport. Such an option would involve an existing rail line that runs to the town of Palmer, approximately 46km from the Chickaloon Project.
An alternative option to transport coal from the Chickaloon Project would be on the rail to Port Seward, an existing Alaskan coal terminal approximately 320km to the south of the Chickaloon Project.