Hillalong - EPC1824, 100%

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.

Although intrusions are common in the area, an historic drill hole (MH2) in close proximity to the northern boundary of EPC2141 (Rio Tinto) indicated the potential for high quality coking coal from the Hynds seam at a depth of approximately 150 meters.

MH2
Unit Seam 3
Ply 1
Raw Coal
Seam 3
Ply 2
Raw Coal
Seam 3
Composite
Raw Coal
Seam 3
Composite
F 1.50
Physical Properties Width m 0.85 2.62 3.47
Relative Density 1.82 1.46 1.55
Ultimate
Analysis
Ash Content % 44.1 14 21.2 9.3
Volatile Matter 18.9 26.8 24.9 26.8
Fixed Carbon 34.9 57.6 52 61.5
Sulphur % 0.21 0.35 0.32 0.34
Phosporus % not available 0.03
Calorific Value MJ/kg 17.54 29.4 26.5 31.63
Coking
Properties
CSN mmr max
ddm
1 4.5 7.5
Gray King not available G3
Rank 0.94
Fluidity 101
Maceral
Analysis
Vitrinite Vol % 54
Sporinite 1
Micrinite 15
Semifusinite 23
Clay 6