HILLALONG COKING COAL PROJECT - (EPC 1824 & EPC 2141 - BCB 85%, SUMITOMO 15%)

The Hillalong Coking Coal Project (“Hillalong”) is located in the northern Bowen Basin approximately 105km west-southwest of Mackay and 10km North of Burton. The project is currently the subject of a farm-in agreement with the Sumitomo Corporation increasing its commitment over time and agreeing to contribute another $2.5m on Phase 2B exploration in June 2023, lifting their total holding in the Project up to 20%.

Hillalong is planned to operate as a satellite pit within the Burton Complex, which would see its coal processed through the CHPP and people accommodated in the Kerlong village.

In August 2023, Bowen announced a significant increase in the resource estimate for Hillalong South of 64Mt. This followed a successful exploration program which demonstrated significant intercepts of the Elphinstone and Hynds seams bringing the total resource estimate for the Hillalong project to 106Mt.

Based on the previous exploration program and coal quality and washability results, there is potential to produce a Mid Volatile Matter (25% ad basis) coking coal from the Hillalong South project, which complements the other products within the Bowen portfolio, including the Low Volatile Matter coking coals of the Burton Complex. The third exploration program for Hillalong is currently underway.

***Location of the Hillalong Project, and its southern and northern areas***

Table 1. Summary of the resource estimate for Hillalong South

    South
    Measured
(Mt)
    Indicated
(Mt)
    Inferred
(Mt)
    Total
(Mt)
  

  


    ELP
    -
    20.0
    15.5
    35.5
  

    HYDU
    -
    8.8
    7.3
    16.1
  

    HYDM
    -
    6.7
    5.2
    11.9
  

    TOTAL
    -
    35
    28
    64
  

Note – Some rounding to the nearest significant figure has occurred and this may reflect in minor differences in the overall reported resource.

Table 2. Summary of the total Hillalong resource estimate post the recent drilling program*

    TOTAL
    Measured
(Mt)
    Indicated
(Mt)
    Inferred
(Mt)
    Total
(Mt)
  

  


    HYDU
    -
    25.6
    25.1
    50.8
  

    HYDM
    -
    6.7
    5.2
    11.9
  

    TOTAL
    -
    56
    50
    107
  

*See ASX Release dated 6 August 2023 for full detail of the Resource Estimate

Previous Exploration – Hillalong North

A successful Phase 1 program conducted in 2020 at Hillalong North included a maiden 27‐hole drilling program wherein consultants Xenith Consulting estimated a total maiden resource of 43Mt in accordance with the JORC Code. (see Table 1 below).

Table 3 ‐ Summary of the resource estimate for Hillalong North*

    DEPTH
    SEAM
    RESOURCE CATEGORY (MT)
  
    MEASURED
    INDICATED
    INFERRED
    TOTAL
  
    <150m
    Elphinstone
    
    4.0
    25.1
    50.8
  
    Hynds Upper
    
    9.1
    5.2
    11.9
  
    Subtotal
    
    13.1
    6.4
    19.5
  
    >150m
    Hynds Upper
    
    7.7
    15.9
    23.7
  
    Subtotal
    
    7.7
    15.9
    23.7
  
    TOTAL
    
    21
    22
    43

*See ASX Release dated 9 June 2020 for full detail of the resource estimate. Note - some rounding to the nearest significant to the figure has occured and this may reflect in minor differences in the overall reported resource. Tonnes were calculated for an in situ Relative Density (RD). No total moisture or moisture holding capacity analysis resulsts were available to use as in situ moisture.

In addition, coal quality and washability analysis of four cored holes not affected by intrusions demonstrated that the Elphinstone seam has the potential to produce a single primary coking coal with 10.5% ash at an average yield of 84% over the deposit. The Hynds Upper seam has the potential to produce a high quality, 8.5% ash primary coking coal product with a secondary high energy thermal coal at a combined yield of 87%. The key quality parameters from the washabilities are summarised in Tables 2 and 3 below.

Table 4 ‐ Elphinstone seam. Primary Coking Coal (High yield option)*¹

    SEAM
    Primary Coking Coal
  

    Thickness (m)
    Product Ash %
    Yield %
    CSN
    Volatile Matter %
    Phos %
    Total Sulphur %
    Max. Fluidity (ddpm)
    Rv.Max %
  


    Elphinstone
    1.94
    10.5%
    84
    7
    28.8
    0.003
    0.4
    348
    0.95
  

*¹ Laboratory yields without any dilution or losses, air dried basis, inherent moisture of 2%. Average values of 4 non-heat affected drill holes.

Table 5 ‐ Hynds upper seam. Primary Coking Coal (High yield option)*¹

    SEAM
    Primary Coking Coal
  

    Thickness (m)
    Product Ash %
    Yield %
    CSN
    Volatile Matter %
    Phos %
    Total Sulphur %
    Max. Fluidity (ddpm)
    Rv.Max %
  


    Hynds Upper
    2.32
    8.5%
    66
    7.5
    28.2
    0.043
    0.40
    361
    0.99
  

    SEAM
    Secondary Energy
  

    Thickness (m)
    Product Ash %
    Yield %
    CV (kcal/kg)
    Volatile Matter %
    HGI
    Total Sulphur %
    
    
  

    Hynds Upper
    2.32
    16.5%
    21
    6730
    24.3
    49
    0.31
    
    
  

    Total
    
    
    87
    
    
    
    
    
    
  

*¹ Laboratory yields without any. dilution or losses, air dried basis, inherent moisture of 2%. Average values of 4 non-heat affected drill holes. See ASX release 28 August 2020 for detail