Riversdale (through its wholly owned subsidiary, Benga Mining) completed the acquisition of the Crowsnest Pass Complex in South West Alberta, Canada on 29 August 2013.
The Crowsnest Pass Complex area of South West Alberta has a long history of coal mining and is located within 50 kilometres of a number of Teck Resources' metallurgical coal mines in British Columbia.
The Crowsnest Pass Complex includes:
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Since signing the Asset Purchase Agreement, Riversdale, with the assistance of a number of consultants, has completed its own pre-feasibility study based on its own analysis of the data generated by the Vendors.
The coal seams of the Grassy Mountain Project are medium volatile bituminous in rank and found within the Mist Mountain Formation of the Kootenay Group, which is Jurassic to Lower Cretaceous in age. The coal sequences in the Mist Mountain Formation consist of a cyclic succession of carbonaceous sandstone, mudstone, siltstone, coal and some conglomerate. The main coal zones identified within the Mist Mountain Formation in this area, from top to bottom, are Zones 1, 2 and 4. Coal Resources and Coal Reserves estimates take into account the two thickest seams from Zones 1 and 4 and the single thickest seam from Zone 2. Zone 2 contains the thickest single seam.
The Grassy Mountain Project is located in the Rocky Mountain Foreland Thrust and Fold Belt, within a succession of generally west-dipping thrust faults and associated folds with predominantly west-dipping axial surfaces. The Grassy Mountain Project lies between two major thrust faults, in an area of somewhat lesser disturbance. The coal deposits of the Grassy Mountain Project area are typical of those for Inner Foothills and Rocky Mountain areas which have been subjected to a relatively high tectonic formation. Fault offsets are common but fault-bounded plates generally retain normal stratigraphic thicknesses.
With the exception of access roads and a main electrical power transmission line, there is no major existing infrastructure at the Grassy Mountain Project. The basic mine infrastructure must be established and will include an electrical power system, haul roads, a coal conveyor system, a coal preparation plant, a rail loadout, maintenance shops, a laboratory and other necessary facilities.
The Grassy Mountain Project is located in close proximity to rail infrastructure, being approximately 6km from an existing high capacity rail line that leads to destinations in:
There are a number of existing and proposed ports on the west coast of North America through which Grassy Mountain Project coal could potentially be exported. The nearest ports to the mine site are in the Vancouver area.