The Mackenzie Coking Coal Project in the Bowen Basin is well located for export markets as it lies on the existing Blackwater railway line to Gladstone. The project is located between the Ensham and Curragh operating mines and is adjacent to the Washpool coking coal project, which is also targeting the Burngrove Coal Formation.
The project contains a total of 80 bore holes. The coal sequence comprises two main coal seams being the Leo and Aquarius seams within the Burngrove Formation. The seams strike in a general North South direction over an approximate 27km strike length, and dip towards the west at approximately 2 degrees. The main coal seams occur at depths of between 10 and 110 metres.
Mackenzie currently has a JORC Resource as shown below:
| |
November 2011 |
| Indicated Resource |
25.7 Mt |
| Inferred Resource |
117.5 Mt |
| Total |
143.2 Mt |
Cape Coal Pty Ltd (“Cape Coal”) entered into a Joint Venture with Stanmore Coal Limited (ASX:SMR, “Stanmore Coal”) in October 2012 in order to jointly progress the Mackenzie Project. Under the terms of the agreement Cape Coal has now earned a 5% ownership interest in the project through the provision of technical and study management services, with the potential to increase up to 9%. Cape Coal also holds an option to acquire a further 10% interest after completion of a Bankable Feasibility Study.
Cape Coal has completed a technical review of the deposit which considered the impact of applying both conventional Australian mining and processing techniques, as well as alternatives familiar to Cape Coal through their experience with lower yielding coal mining operations.
- The key outcomes of the initial technical review are:
- Some areas of the deposit are disposed to dual washing which creates a primary 10% - 15% ash
- Coking Coal product with a secondary thermal coal product;
- Better yield results are expected to be achieved by utilising best practice and alternative beneficiation techniques;
- ROM pre-treatment is likely to improve product yield; and
- The optimal economic approach may be to develop multiple smaller mines within the overall tenement area.
Based on the outcome of the Technical Review Report, Stanmore Coal and Cape Coal have agreed to complete a Concept Study for the project, focussed on evaluating the feasibility of producing a coking coal at Mackenzie. The Concept Study will study the technical and economic viability of various mining and processing options and is targeted for completion by the end of the first quarter 2013.
