The acquisition of the 478sq.km Amaam North tenement will increase the company’s total tenement area to 709sq.km in the prospective Bering coal basin.
Tigers Realm currently holds a 40% interest in the Amaam tenement and can earn up to 80%.
The Amaam tenement has an inferred resource of 294 million tonnes of coking coal and an additional exploration target of 220-345Mt. The Amaam deposit is located 30km from a proposed deep water port site on the Bering Sea coast.
Tigers Realm Coal CEO and managing director Martin Grant said: “This acquisition substantially increases our footprint in the emerging coal province in Chukotka. Based on our current understanding of the deposit, we believe that Amaam North has the potential to significantly increase the scale of our coking coal resources in the region.”
The Amaam North and Amaam deposits are located within separate structural blocks of the Bering coal basin, which covers about 7500sq.km and extends from north of Beringovsky (Nargornaya mine) to the southern coastline.
The primary coal host sequence at Amaam North and Amaam is the Middle Chukchi formation of Palaeogene age.
The coal formation at Amaam North is synclinal in structure with longitudinal and cross cutting faults, moderate dips at the margins and flatter dips along the axis.
Tigers Realm considers Amaam North to be prospective for high volatile semi-soft to semi-hard coking coal.
Tigers Realm is also required to fund all project expenditure until the completion of a bankable feasibility study.
After completion of a bankable feasibility study each joint venture party is required to contribute to further project expenditure on a pro-rata basis.
Current owner BS Chuchki Investments is also entitled to receive a royalty of 3% gross sales revenue from coal produced from within the Amaam North license.