Lilyvale Project

The Lilyvale Project is located 25km north east of Emerald in the Bowen basin ( Queensland Australia) and is in close proximity to BHP Mitsubishi Alliance’s Gregory Crinum operating coking coal mine and bordering Rio Tinto’s Kestrel mine. Cape Coal holds a 15% interest in the project, whilst the remaining 85% is held by Stanmore Coal (ASX:SMR)

A desktop review of the Lilyvale project identified the German Creek (or Lilyvale) seam as potentially amenable to underground extraction based on depth and estimated seam thickness. This seam is presently mined as a high quality coking coal at the adjacent Kestrel and nearby Gregory Crinum operations. The project is well located within 15km of existing rail infrastructure given the surrounding operating mines.

Historical German Creek seam intersections within the Lilyvale project area demonstrate attractive coking properties including CSN values of 5.5 – 6.5. Adjacent underground mines at Kestrel and Gregory Crinum produce a low ash, high volatile hard coking coal from the German Creek seam. Table 1 highlights the actual quality observed from two cored holes within the tenement area.