The company highlighted an average of 20m of cumulative coal for the entire 83sq.km target area, including an 8.2m intersection at 370m depth and a 3.7m intersection at about 50m depth.

Atrum said each of the cored diamond drillholes intersected multiple coal seams and several thick seams close to surface.

A follow-up drill program is set to begin in the 2013 second quarter.

Atrum expects to expand significantly on Groundhog’s current 159 million tonne JORC resource (57Mt indicated and 102Mt inferred).

More than 800 samples have been sent to a Calgary lab for quality testing and are expected to produce quality results by the end of the Q4 2012.

Atrum is targeting high-rank and high-value anthracite at the project.

Groundhog is located in close proximity to mining infrastructure including power, water, rail and port facilities.

A rail line 30km south of the site continues to the dedicated coal terminals at the deep sea ports of Prince Rupert and Port Metro Vancouver.

The explorer said a scoping study for the proposed open pit was expected to be commissioned in the coming weeks, with results at the end of Q1 2013.