Colonial Coal Files Ni 43-101 Technical Report FOR Flatbed Project
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COLONIAL COAL INTERNATIONAL CORP.
Suite 200 -595 Howe Street, Vancouver, British Columbia, Canada, V6C 2T5
Telephone: (604) 568-4962
NEWS RELEASE
COLONIAL COAL FILES NI 43-101 TECHNICAL REPORT FOR FLATBED PROJECT
Vancouver, B.C., Canada – January 16, 2018 – Co lonial Coal Interna tional Corp. (TSX-V:
CAD) (the “ Corporation” or “ Colonial Coal ”) is pleased to announce that, on January 10,
2018, it filed on SEDAR (the System for Electro nic Document Analysis and Retrieval) a
Technical Report (the “ Technical Report ”), in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Properties (“NI 43-101”) requirements, detailing the initial
exploration within the Gordon Creek area of its 100% owned Flatbed Coal Project (“ Flatbed”)
located in northeast, British Columbia. The Technical Report confirms the coal resources
previously announced by the Company on Nove mber 27, 2017 for its 2017 exploration program
conducted at Flatbed and updates the coal quality assessment confirming the resources as coking
coal quality coals.
The Technical Report is authored by Dere k Loveday, P.Geo, of Norwest Corporation
(“Norwest”), who is the Independent Qualified Person for the Technical Repor t. As previously
announced, geological modeling and resource estimation, carried out by Norwest on the Gordon
Creek 2017 exploration program results, have id entified an Inferred underground mineable coal
resource of 298 million tonnes. Norwest’s review of the coal quality results from drill core
samples indicates these coal resources have good c oking properties after beneficiation. The coal
resources estimated by Norwest are in accordance with the requirements of NI 43-101.
The Inferred coal resource estimates were dete rmined using a minimum seam thickness of one
metre, limited to a maximum depth below surface of 900 metres. Eight co al seams are present
with true thicknesses from the exploration data ranging from 1.2 metres to 5.3 metres, combining
for an average total true thic kness of 20.9 metres. The average seam dip is 11 degrees towards
the southwest. The resources estimated for each coal seam and the initial coal quality data
derived from raw coal samples, together with the results from float-sink analyses, can be seen in
the Company’s news release of November 27th.
On a dry, mineral matter free (dmmf) basis, volatile contents indicate that the coal seams range
in rank from low volatile bituminous to medium volatile bituminous, according to the ASTM
coal rank classification system. An alytical results indicate that the Gates coal seams within the
Gordon Creek area are metallurgical coals th at would yield a coking coal product after
beneficiation in a wash plant. Float-sink analysis indicates that coal beneficiation could produce
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a theoretical product ranging from an 8% to 9% ash air dried basis (adb ) with yields ranging
from 58.3% to 83.2% after adjustment for core loss in the test samples.
Recent tests performed on clean coal composites de rived from the flotati on and froth testing are
tabulated below.
Gordon Creek Clean Coal Composite Quality (adb)
Seam
Clean Coal Mean
Maximum
Reflectance
(RoMax)
Gieseler
Fluidity
Max
DDPM
Dilatation
% S.D. 2.5
Base
Acid
Ratio
Cut‐Point Clean Coal Composite Analysis (adb)
S.G. Froth
(sec) Moist% Ash% VM% S% FSI %P in
Coal
B* 1.50‐
1.55 30‐60 0.51 8.85 25.04 0.92 8.5 0.081 1.19 1140 117 0.22
D 1.45 NSS 0.53 8.37 25.08 0.82 6.0 0.050 1.17 1120 78 0.10
E 1.5 NSS 0.56 8.16 22.58 1.32 8.0 0.041 1.29 286 64 0.11
F1 1.5 60 0.50 8.58 21.92 0.58 8.0 0.058 1.32 35 28 0.13
F2 1.6 60 0.43 8.27 21.27 0.39 7.0 0.046 1.32 4.4 ‐ 13 0.22
G 1.5 60 0.46 7.93 20.64 0.53 8.0 0.089 1.39 26 17 0.08
J 1.55 60 0.44 8.45 18.40 0.37 3.5 0.020 1.43 1.0 ‐ 0.10
K 1.5 60 0.52 6.01 18.14 0.41 3.5 0.002 1.43 1.7 ‐ 0.10
*Weighted Average of FD17‐01 and FD17‐03A; FSI rounded to the nearest half‐unit., NSS = not sufficient sample
Clean coal composite (“ CCC”) samples using both floats and froths from each seam, targeting
ash contents in the 8% to 9% (adb) range, typically clean to a low sulphur product; seven of the
eight seams report less than 1% sulphur, with the exception being Seam E at 1.32%. The
phosphorus-in-coal contents for all CCC’s range from 0.002% to 0.089%. FSI values range from
3.5 to 8.5, although most seams report a FSI of six or higher. Maximum fluidity values range
between one to 1,140 dial divisions per minute (ddpm), while dilatation values range from minus
13 to plus 117. Base/acid ratio s range from 0.08 to 0.22, with the majority below 0.13. Mean
maximum vitrinite reflectance (RoMax) values (from 1.17 to 1.43) fall within the range for
coking coals traded on the seaborne market.
From the results of the initial coal quality testing program on Gates Formation coal seams in the
Gordon Creek area, it is reasonable to anticipate that product coal s from Seams B to G could be
marketed as hard coking coals, while coals from Seams J and K (the deepest seams, representing
approximately 28.6% of the reporte d resources, and the seams that would likely be mined last),
would meet the requirements of the semi-soft coking coal market.
Based on the above findings, Norwest has reco mmended further exploration to advance the
Flatbed project as well as an internal, high-level mining study to determine whether or not to
proceed with a Preliminary Economic Assessment based upon current data. Further exploration
recommended by Norwest includes additional dr illing within the Gordon Creek area and 2D
seismic surveys. The additional drilling would be to further advance the definition of the
geology, resource and coal quality potential. The 2D seismic surveys would be designed to
identify coal seams and geological structures both within the Gordon Creek area and over the
eastern anticline target area. It is expected this work will total approximately $2.6 million.
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The scientific and technical disclosure in this news release has been approved by Derek
Loveday, P.Geo, of Norwest, a Professional Geologi st and Qualified Person as defined in NI 43-
101.
About Colonial Coal International Corp.
Colonial Coal is a publicly traded coal corporati on in British Columbia that focuses primarily on
coking coal projects. The nor theast Coal Block of British Columbia, within which our
Corporation’s projects are located, hosts a number of proven deposits and has been the subject of
M&A activities by Xstrata, Anglo-American and others.
Additional information can be f ound on the Corporation’s website www.ccoal.ca or by viewing
the Corporation’s filings at www.sedar.com.
For further information please contact:
Colonial Coal International Corp.
David Austin, President and CEO
604.568.4962
www.ccoal.ca
Forward-Looking Information
Information set forth in this news releas e involves forward-looking statements, including statements relating to the Corporation’s
potential sale of an interest in its Flat bed Property. Forward-looking statements are statements that relate to future, not pa st,
events. In this context, forward-looking statements often ad dress a Corporation’s expected future business and financial
performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that
an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their natu re,
forward-looking statements involve know n and unknown risks, uncertainties and othe r factors which may cause our actual
results, performance or achievements, or ot her future events, to be materially diffe rent from any future results, performance o r
achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks:
risks associated with marketing and sale of securities; the n eed for additional financing; re liance on key personnel; the poten tial
for conflicts of interest among certain offi cers or directors with cert ain other projects; and the volatility of common share p rice
and volume. Forward-looking statements ar e made based on manage ment’s beliefs, estimates a nd opinions on the date that
statements are made and except as re quired by law, the Corporation undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against
attributing undue certainty to forward-looking statements.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEA SE REPRESENTS THE
EXPECTATIONS OF THE CORPORATI ON AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS
SUBJECT TO CHANGE AFTER SUCH DATE. RE ADERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT R ELY UPON THIS INFORMATION AS OF ANY OTHER
DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION
AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES
LEGISLATION.
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