Cooroorah Coking Coal Project - (MDL 453)

Cooroorah is located 17 kilometres north of Blackwater, between Westfarmers’ Curragh mine (and MDL 162) in the West and Jellinbah Mine in the East.

The Project targets the well-known Rangal measures and hosts the Aries, Castor, Pollux and Pisces seams. In July 2013, the Company announced a JORC 2012 compliant resource estimate for the project of 125Mt, comprising 70Mt indicated and 55Mt Inferred resource.

Cooroorah Project Map

In February 2018, the Company announced the results of its maiden drilling program comprising two HQ drill holes to target all four coal seams for resource delineation and to test the washability and coking coal quality.  The positive results of this program was followed up by an additional drilling program, which was completed in December 2018.  Following a review and validation of the regional historic drilling results, the Company obtained data which demonstrates the extension of the Mammoth and Pollux seams into the Northern area of the tenement. The total Mineral Resource estimate is now estimated at 177Mt, of which 96Mt (54%) is classified as Indicated and 81Mt (46%) as Inferred, of which the Mammoth seam is now estimated to be a total of 60Mt, comprising 38Mt as Indicated and 22Mt as Inferred.

Coal quality analysis from COR 014 confirmed the extension of the high-quality coal previously observed in holes COR 013 and COR 001 for the Mammoth seam. Core samples from hole COR 014 demonstrated the potential to be washed to a 3.0% ash, low sulphur, high CSN coking coal with secondary PCI product for a combined yield of over 90%. The analysis also demonstrated the ability to produce an unwashed Low Volatile PCI Product.  The key washed coal quality parameters for the Mammoth seam are listed in Table 2 below (average of holes COR 013, COR 001 and COR 014).

Table 2. Washed coal quality observed from the Mammoth seam for the primary and secondary products (average for all three holes).

Property Primary Coking coal Secondary PCI coal
Inherent Moisture (% ad) 1.4 1.5
Ash (% ad) 3.4 9.7
Volatile Matter (% ad) 18.5 17.1
Fixed Carbon (%ad) 76.7 72.0
Total Sulphur (% ad) 0.43 0.38
Phosphorus (% ad) 0.02 0.05
Calorific Value (kcal/kg gad) 7600
HGI 88 84
Gray-King coke type G2 – G4
Reflectance Rv max. % 1.57
Vitrinite content % 65
Fluidity (ddpm) 5
Base-acid ratio 0.13
Yield % (Lab, dilution free) 40%-45% 45%-50%

 A comparison of the Cooroorah coking coal to the range of internationally traded coking coals is illustrated below.

Cooroorah Chart

The Company is extremely pleased with the outcome of the recent exploration program which not only demonstrated the continuance of the Mammoth seam to the East, but also confirmed the exceptional coal quality of this extension in the Resource.