The Mackenzie Coal Project (EPC 1445; MDL 503) is located approximately 25 km northeast of Blackwater in central Queensland’s Bowen Basin. The tenements are situated between the current operating mines of Yarrabee to the northeast, Jellinbah to the southwest, and Mackenzie South to the northwest. There are also a number of coal projects still under development in the vicinity of the project.
The Mackenzie Coal Project is targeting the Late Permian age Rangal Coal Measures, of which the Aries, Pollux Upper, and Pisces coal seams are the current economic targets. These seams have been identified as metallurgical quality coal suitable for use as pulverised coal injection (PCI). The thickness of overburden above the uppermost coal seam, the Aries Seam, ranges from approximately 280 m to 360 m.
JORC Coal Resource
The Company engaged HDR Salva in mid-2014 to manage and undertake further exploratory drilling within MDL 503 with the intent of increasing Resource classification confidence in the previous Inferred Coal Resource estimate of 201 Mt prepared by Xenith Consulting in 2013 under the minimum standards set for public reporting by the JORC Code. The Company can now report as consequence of a work program completed by HDR Salva, which included drilling a further 21 boreholes (16 cored), associated coal quality analysis, geological modelling, resource estimation and classification an updated in-situ Coal Resource of 138.1 Mt (65.1 Mt Indicated and 73.0 Mt Inferred).
Access to Infrastructure
The Mackenzie Coal Project is strategically situated in close proximity to existing mining infrastructure. Access to the Project is via the Yarrabee-Jellinbah Haul Road, which provides direct access to the Boonal Coal Loadout Facility on the Blackwater Railway System, located approximately 280 km by rail to the Port of Gladstone coal export facilities.