Forge Resources re-encounters coal seam at La Estrella Mine, Colombia
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Forge Resources Corp. [CSE: FRG; OTCQB: FRGGF; FSE: 5YZ] provided an operational update from its fully permitted flagship La Estrella coal project, located in Santander, Colombia. Underground development activities continue to advance steadily, supported by a fully deployed operational team and ongoing progress in the main underground ramp as the company enters 2026.
During recent development of the underground project, the Company has re-encountered a coal seam at the development face of the underground ramp showing at 1.1 metres in width. The company first encountered this coal seam in July 2025. This exposure further confirms the continuity and geological potential of the La Estrella coal system. No additional assays are planned at this stage, as the seam encountered corresponds to previously identified and characterized coal horizons for which laboratory analysis has already been completed.
In parallel with ongoing development, Forge has started implementing additional enhancement measures in collaboration with Grupo A and Webber Mining & Tunneling to further support safety and long-term performance of the underground ramp. These initiatives involve the use of resin injection and self-drilling bolts to strengthen and reinforce the main access tunnel, which represents a key piece of infrastructure and the primary gateway to the underground workings over the life of the project.
This approach reflects the company’s focus on building durable, high-quality underground infrastructure designed to support safe operations and sustained project development over the long term. This technique complements the primary support system of the underground ramp, which consists of TH25 and TH29 steel arches, timber lagging, and electro-welded mesh, further enhancing overall structural integrity and long-term performance.
PJ Murphy, CEO of Forge Resources, commented: “Underground development at La Estrella continues to progress steadily, and the re-encounter of a coal seam at the underground ramp face further strengthens our confidence in the coal deposit and the continuity of the coal system at the project. As we advance, we are proactively enhancing the main access tunnel to support safety, durability, and long-term performance. The underground ramp is a critical asset over the life of the project, and our focus remains on building high-quality underground infrastructure that supports sustained development and responsible operations.”
Driven by increased demand, coal prices have experienced a notable resurgence as we enter 2026.The domestic consumption in the United States has spiked by 7-8% over the past year, to record levels. At the same time, China is commissioning dozens of new coal-fired plants to ensure energy security amidst surging industrial electricity needs, while India’s continuous infrastructure expansion keeps global coal demand at record-breaking levels near 8.8 billion tonnes. The price increases are due to these factors combined with tight inventories and robust power-sector demand.
Global coal markets have demonstrated continued resilience, supported by steady demand for both metallurgical and thermal coal. Metallurgical coal prices have shown improvement in recent months, reflecting ongoing steel production, infrastructure investment, and disciplined supply in key producing regions. This has reinforced confidence in the medium-term fundamentals of the metallurgical coal market.
Thermal coal prices have also remained stable, with signs of gradual improvement in several markets driven by energy security considerations, seasonal demand, and the ongoing role of coal in ensuring reliable baseload power. While regional dynamics vary, thermal coal continues to play an important role in global energy systems, particularly in emerging and industrial economies.
Overall, these market conditions support sustained interest in high-quality coal projects with existing permits, established infrastructure, and development momentum. Projects such as La Estrella, which benefit from multiple metallurgical and thermal coal seams and near-term operational progress, remain well positioned within the current coal market environment.
Metallurgical and thermal coal futures have currently a blended FOB price per metric tonne of US$177 (CAD $246/metric tonne), with metallurgical coal prices surging from September 2025 and thermal coal being steadier at USD $120/metric tonne to US$95/metric tonne.
Forge Resources holds an 80% in Aion Mining Corp., a company that is developing the fully permitted La Estrella coal project in Santander, Colombia. La Estrella contains eight known seams of metallurgical and thermal coal. The company also holds an option on the Alotta project, a prospective porphyry copper-gold-molybdenum project consisting of 230 mineral claims that cover 4,723 hectares, located 50 km south-east of the Casino porphyry deposit in the unglaciated portion of the Dawson Range porphyry/epithermal belt in the Yukon Territory, Canada.
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