Hillalong Coking Coal Project -
(EPC 1824 & EPC 2141)

EPC 1824 is located in the northern Bowen Basin approximately 105 km west-southwest of Mackay.  The tenement comprises 15 sub-blocks (approximately 48km2) located to the west of the Mount Hillalong Anticline and is approximately 16 km northwest of Rio Tinto’s Hail Creek Mine. The tenement contains the Rangal coal measures and Fort Cooper coal measures at depths commencing at 150 meters below the surface.  Two economic coal seams, Elphinstone and Hynds (Leichardt and Vermont equivalents) within the Rangal measures are currently being mined at proximate mines. The seams sub-crop in the adjacent lease to the east and steeply dip to the west at the limb of the Hillalong anticline.  Within EPC1824, the strata are interpreted to flatten out at depth. Past work has shown isolated drill hole intercepts within the tenement and geophysical surveys that defined good drilling targets as the basis for further exploration by the Company.

20190306 BCC Landscape - Mt Hillalong - Topo Image.jpg

Exploration Target

The Company engaged Xstract Mining Consultants (“Xstract”) to consolidate all the historic and Rio Tinto  (“RTX”) exploration data into a geological model and to recommend an exploration plan to advance the Project.

Xstract estimated an Exploration Target* in accordance with the guidelines of the JORC Code (2012) of between 61Mt and 409Mt from the Rangal Coal Measures (”RCM”) and Moranbah Coal Measures (“MCM”) as per Table 1 below.  The estimate for the RCM is based on a high quality coking coal assumption and open pit configuration with strip ratio <20:1, with the Underground target to a maximum depth of 160m (Low case) and 500m (High case).  The estimate for the MCM is based on Low Volatile PCI and open pit configuration with strip ratio <15:1, with the Underground target to a maximum depth of 400m (Low case) and 550m (High case). See Table 1. below for raw coal quality assumptions.


Table 1. Exploration Target* estimate for the Mt Hillalong Project (EPC1824 and EPC2141)

The Company anticipates commencing its maiden drilling program at Hillalong in Q3 or Q4 of calendar 2019.

Exploration Target Low case
Tonnes
Low case
Raw Ash
Low case
Raw CSN
High case
Tonnes
High case
Raw Ash
High case
Raw CSN
(Mt) (% adb) (Mt) (% adb)
RCM Open Cut 8 18 5.5 222 34 3.0
RCM Underground 7 18 5.5 116 26 4.0
Total 15 18 5.5 338 31 3.5
MCM Open Cut 18 36 2.5 30 36 1.5
MCM Underground 28 39 1.5 41 32 1.0
Total 46 38 2.0 71 34 1.0
TOTAL 61 409