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Quality innovative exploration targets
PAUL ASKINS Tel +618 9380 9382 Mob +614 07712768 [email protected]
COLLIE SOUTH COAL and BAUXITE PROJECT TWO NEW COAL BASINS IDENTIFIED ‐ SUPERB INFRASTRUCTURE CLOSE TO PERTH A new rare opportunity to secure a COAL and BAUXITE PROJECT on negotiable flexible terms via option, or purchase for cash and/or shares. Location. Immediately south of the Collie Coalfield, Western Australia. About 160km SSE of Perth, Fig1. Tenement. Exploration Licence E70/3331, 101 blocks, granted 27 July 2011, (The Tenement). Granted area excludes the relatively minor areas of Premier Coal’s Mining Leases/ Prospecting Licences, and of A Class Reserves. Mostly Private Freehold lands, some Pastoral Property, and some State Forest. Good access via a network of roads. On Collie 1:250,000 Sheet Area (SI‐50‐06).
New Coal Basins Identified. Recent scout drilling (by MRG Metals Ltd – see below) has found coal in two locations, confirming that two new coal basins occur south and east of the known Collie Basin and east of the known Wilga Basin. P Askins had previously postulated that these coal basins occurred, based on imagery of First Vertical Derivative air‐magnetics. Magnetics can now reliably be used as a tool to delineate these prospective new basins, which are strikingly evident as areas of low magnetic activity, as shown on Figs 4 and 5. The prospective basins have similar geological setting to those at Collie, and contained coals could be expected to be similar. Basins are under a thin veneer of Cretaceous sediments and/or Tertiary laterite and sandy soil, as is the case at the Collie and Wilga Fields, so prospectors would not have found coal cropping out. The prospective basins are large and could accommodate many deposits which have the size of those known in the Collie Field; Fig 3 shows the Muja open pit for size comparison. The tenement partially surrounds the known Wilga Basin, held by Premier Coal with small Mining Leases and Prospecting Licences. Some known coal deposits of
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Quality innovative exploration targets
unquantified size extend into the Tenement, and untested basins are interpreted with the aid of magnetics to exist nearby. Infrastructure. The infrastructure of the area is excellent: nearby towns with skilled workforce, such as Collie ‐ Electricity power stations to receive feedstock ‐ Good quality water supplies ‐ Already on the national power grid ‐ Proximity to the lifestyle areas of Western Australia’s South West region. Previous Exploration for coal. MRG Metals in 2011‐12 held an option to purchase the Tenement, and conducted scout drilling to test the concept that new coal basins existed. They drilled three of several target areas, and successfully found coal in two areas, see Figs. 4 to 7: Target 1 ‐ Coal in two holes over 3 and 4m, at depths of about 10m. The extent of coal is partially closed off but open to the north‐west, Fig 6. Depth to basement was less than 30m.
Target 3 – Coal over 400m in width but generally as fragments. Because coal does not travel too far this area deserves follow‐up. The nearby better prospective areas of subdued magnetics are untested, Fig 7.
Prior to 2011 coal exploration in the Tenement recorded in the DMP WAMEX system is minimal: the only recorded field work is coal exploration by Western Collieries, from about 1987 to 1996. Very few exploration drill holes are recorded in the interpreted basinal areas and the logs for these are presently unavailable in the WAMEX system. The field work concentrated on gravity surveying to try to locate buried basinal sedimentary rocks, but the gravity data covers only part of the newly identified prospective areas, and where data exists there is poor station distribution. Geology. The mapped basement geology, Fig 5, within the Tenement, is sporadic Archean granite and granite gneiss. Much of the area is covered by thin Cretaceous to Tertiary unconsolidated sediments, and a dissected laterite profile is developed. Terrain is generally relatively flat. No outcropping coal is known. The fault system controlling the Collie Basin extends into the Tenement area. Distinct faults can be recognised from the magnetic imagery. Collie Coal. The Collie Basin, Wilga Basin and Boyup Basin, are fault‐bounded, graben structures containing Permian siliciclastics, within granite/granite gneiss of the Archean Yilgarn craton. Coal deposits were first discovered in the Collie Basin in the late 19th Century. Mining began in 1898 and the area remains the only producing coalfield in Western Australia. The Basin is around 26km long and 13km wide, up to nearly 2km thick, containing over 50 individual seams in three distinct Coal Measures. The Collie Coalfield has seen 37 mines operating (24 underground mines extracting 50 million tonnes and 13 open cut mines producing nearly 140 million tonnes) and over 30 different seams exploited since its discovery, Figs 8 & 9.
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In the Premier mine there are 12 major coal seams from 2‐12m thick, with Hebe the largest at 12m thick. Collie Coal is very low in sulphur and ash content and has no associated methane so it is more environmentally friendly than other coal types. At Premier coal is generally around 4‐7% ash, 27% volatiles, 42% fixed carbon and 0.6% sulphur at 25% moisture. Maximum vitrinite reflectance averages 0.43 in the Muja Coal Measures and 0.60 in the deeper Premier and Ewington Coal Measures. On a modified Coded Commercial Classification System the coal type is hurnic with a range between code 2 (vitric) and code 7 (inertic) and reactives constituting up to 80%. The coal rank is (meta) sub‐ bituminous in the Muja Coal Measures and crosses the vitrinite reflectance boundary (0.5%) to (hypo) bituminous in the Ewington and Premier Coal Measures. Specific energy is 18.0‐22.0 MJ/kg (as received) and 29.0 to 31.9 MJ/kg (dry ash free), moisture content is approximately 25% (ar), ash content is 3‐10% (ar), volatile matter is 22‐37 % (ar), fixed carbon is 37‐50 % (ar) and 54‐61% (daf), and sulfur is 0.29‐0.49%. See Fig 10.
Two coal producers operate in the area – Griffin Coal and Premier Coal: – Collie Coal provides about 40 per cent of Western Australia’s electricity needs.
GRIFFIN COAL (owned by Lanco Infratech, an Indian consortium listed on BSE and NSE).
Griffin Coal was bought in 2011 by Lanco Infratech for $750M
Resources of 1.2Bt of thermal coal produce 4Mtpa from open pits
Lanco Infratech proposed in May 2013 to upgrade berth and coal loading facilities at Bunbury to enable export of coal to Indian power stations at an estimated cost of $1B and increase coal production to 18Mtpa.
PREMIER COAL (previously owned by Wesfarmers and now owned by Yanzhou).
Premier Coal was bought by Yancoal for $296.8M in September 2011.
JORC resources of 539Mt and reserves of 141Mt allow production of 3Mtpa thermal coal.
Wilga Basin. The Wilga Basin, located 30 km south east of Collie, is geologically similar to the Collie Basin but has a much smaller area (39 km2) and a maximum stratigraphic thickness of 300m of Permian sedimentary rocks. The sequence consists of variably thick sandstone units interbedded with coalseams, mudstone, conglomerate and shale. The sediments are structurally preserved in two small fault‐bounded grabens (Wilga Basin West and Wilga Basin East). It was discovered in 1918 during a regional exploration and shaft‐sinking program searching for additional coal in the vicinity of Collie. Western Aluminium, CRA Exploration, Mobile Energy Minerals, and, most recently, Western Collieries have undertaken exploration over the basin. The coal seams show a substantial range in grade and thickness from in excess of 3m to centimetre scale. The seams are complexly split by intra‐seam partings of sandstone and siltstone; however, three laterally persistent zones can be identified. The Table below gives some of the principal attributes of the Wilga and Boyup coals. The coal quality is largely analogous to the Collie coals. The Wilga Coalfield south of Collie Basin has JORC resources of 170Mt and a reserve of coal of 85Mt. No mining is currently carried out at this coalfield. Prospectivity for bauxite. Much of the area is covered by laterite, and with high alumina content can be classed as bauxite, as is known in the Darling Ranges further west. It is highly significant that Bauxite Resources Ltd has surrounded the Tenement with
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Exploration Licence Applications specifically for bauxite. There is no record of bauxite exploration here, but two highly encouraging analyses of laterite collected immediately adjacent to the Tenement by CSIRO for regional geochemical exploration reported a spectacular 48.7% Al2O3 and 33.8% Al2O3, augering well for discovery of very attractive commercial bauxite deposits in the area. FURTHER INFORMATION Contact Paul Askins for further details on the project. Paul Askins is a geologist who has held senior management positions with major exploration and mining companies, and has over 40 years’ experience in mineral exploration for a broad range of commodities in Australia and overseas. He has strengths in all phases of exploration from administration, strategy, aggressive and innovative prospect selection, target generation, field and office assessments, through to feasibility studies. He enjoys innovative prospect and target generation, using lateral thinking at all scales from regional to detailed prospect scale. He is an ore finder, and is proud to have been Western Australian Exploration Manager for Billiton (Shell Metals) when his team discovered the multi‐mineral ounce Sunrise Dam gold deposit. While every care has been taken in the preparation of this document, no warranty is given as to the correctness of the information and no liability is accepted for any statement or opinion or for any error or omission. The information is presented in good faith and is derived from sources believed to be reliable and accurate, and is provided on the basis that readers will be responsible for making their own assessment of the information and that they should verify all relevant representations, statements and information. Consequently Paul Askins will not be responsible or liable for any loss or damage caused arising from the use or reliance on the information, data or advice.
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COLLIECOLLIECOLLIECOLLIECOLLIECOLLIECOLLIECOLLIECOLLIECOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELD
WILGAWILGAWILGAWILGAWILGAWILGAWILGAWILGAWILGACOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELD
BOYUPBOYUPBOYUPBOYUPBOYUPBOYUPBOYUPBOYUPBOYUPCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELDCOALFIELD
INTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDINTERPRETEDUNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED UNEXPLORED NEWNEWNEWNEWNEWNEWNEWNEWNEWCOAL BASINS COAL BASINS COAL BASINS COAL BASINS COAL BASINS COAL BASINS COAL BASINS COAL BASINS COAL BASINS
FAULTSFAULTSFAULTS
FAULTSFAULTS
FAULTSFAULTSFAULTS
FAULTSinterp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
interp from magnetics
MUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PITMUJA OPEN PIT(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)(for scale comparison)
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50'-33º20'-33º20'-33º20'-33º20'-33º20'-33º20'-33º20'-33º20'-33º20'
-33º45'-33º45'-33º45'-33º45'-33º45'-33º45'-33º45'-33º45'-33º45'
-33º40'-33º40'-33º40'-33º40'-33º40'-33º40'-33º40'-33º40'-33º40'
-33º35'-33º35'-33º35'-33º35'-33º35'-33º35'-33º35'-33º35'-33º35'
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Author: ASKINS
Office:
Drawing:
Date:4/8/2008
Scale: 1:300000 Projection: Longitude / Latitude (Australia GDA94)
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COLLIE SOUTH PROJECT
0 2.5
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Fig 4. Target 1, 3, 6 drilling, on total magnetic intensity image, showing newly discovered
coal basins as magnetic low zones.
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Fig 5. First vertical derivative magnetics image, showing extensive prospective basins.
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Fig 6. Target 1 drilling, showing open ended intersections and untested area.
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Fig 7. Target 3 drilling on 1VD magnetic image, showing where coal fragments were
intersected is away from the main prospective low magnetic zones.
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WESTRALIA EWINGTON No. 2 EWINGTON No. 1 1909-1932, 1.6 Mt
BLACK DIAMOND 1953-1956,O 07 Mt
NEW WESTRALIA ESTERN No. 1 1953-1956, 0.09 Mt
CHICKEN CREEK 81- December 1990,l 97 Mt
GRIFFIN, WYVERN, PHOENIX 1926-1959,2 8 Mt
1954-1965,l 2 Mt
1966-1967,O 03 Mt
CARDIFF (INCL. NEATH) 1903-1960,4 7 Mt
WESTERN No. 4 1958-1969,0.7 Mt
t N
~~ OPEN CUT MINE
UNDERGROUND MINE WESTERN No. 6 1982-December 1990,3.09 Mt
5 krn - R38 GLBS5
nesites in the Collie Basin and their respective total coal production (by colliery) to 1990 CONFIDENTIA
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cal classification showing Collie coal-classification domain compared to coal-utilization domains CONFID
ENTIAL
CTERISTICS OF WESTERN AUSTRALIAN COAL DEPOSITS
Perth Basin
Collie Wilga Boyup Carnarvon Canning Bremer and EuclaBasin Basin Basin Vasse Hill Irwin Basin Basin Basins
River River River
Age Permian Permian Permian Permian Permian Permian Permian Permian Eocene
Palaeoenvironment ---------------------------------- Early glaciolacustrine then fluvial Paralic interdelta Fluviolacustrine Paralic to distal delta plain Fluviodeltaic
Number of significant seams 55 7 complex 8 :56 9
Cumulative thickness coal (m) <76 <9 6 :516 10 2.5 :512
Maximum seam thickness (m) 15 3 4 II 3 2.5 12
Seam depth (m) 0-1 000 0-250 180-1 000 0-300 0-1 000 170-1 000 0-1 000 0-100
Coal-bearing interval (m) 1000 100 120 40-100 60-120 n.k. n.k. 20-50
Coal type Sub-bituminous Sub-bituminous Sub-bituminous Bituminous Sub-bituminous Sub-bituminous Sub-bituminous Sub-bituminous Lignite
Coal quality
Moisture (%) 25 13-27 18 20-6 15-25 16-25 3-11 20 60
Ash (%) 6 6-9 5 20-7 13-17 21 12-28 20 12
Volatiles (%) 24 28-36 29 23 28-34 25 29-22 27 16
Specific energy (MJ/kg) 20 18-22 22 17-31 17-25 16 28-17 18 7
Sulphur (%) 004 0.5 n.k. 104-0.5 1.0-1.5 0.6 1.1-1.7 1.5 6
Ash fusion temperature (OC) I 150-1 500 n.k. n.k. I 200 1400+ n.k. coking n.k. n.k.
NOTE: n.k. not known CONFIDENTIA
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