Altitude said the compilation and analysis of historical data by Dahrouge Geological Consulting defined an exploration target of 742.9 million tons and an initial coal resource estimate comprising 62.14Mt indicated and 84.72Mt inferred.

However, Altitude said the company was planning to drill the land itself later this year.

“This maiden resource report on Elan’s lease applications is based entirely on historic data and no recent drilling has been carried out,” Altitude president and chief executive officer Andrew Wusaty said.

“Altitude is presently working on organizing an exploration program, which will include drilling and coal quality work on the Elan property.

“We are anticipating that it will be carried out late this year and into early 2014.”

The coal resource estimate was based on historic data from 82 rotary holes, 127 diamond drill coreholes, 19 adits, 21 coalbed methane wells and a significant amount of trenching across the Elan property.

The 22,951 hectare Elan property is located in southwestern Alberta near the historic coal mining municipality of Crowsnest Pass and has been under intermittent exploration since 1949.

Dahrouge’s study suggests the coal quality is low to medium volatile with variable but generally moderate ash content, with good washability and coking coal properties.

Five project areas of primary interest have been identified by Dahrouge.

The Isolation, Savanna and Isola areas all have fair exploration targets, while the Grassy North and Wildcat areas prove more promising, with exploration targets over 200Mt.

More than 10 coal seams have been identified on the properties with thicknesses ranging from 3m to 10m.

On August 12, Altitude signed a deal with Elan, a private non-arm's length party.

Under the transaction, Altitude will acquire an option to earn up to 51% undivided working interest in Elan's 27 Alberta Crown coal lease applications.