Mackenzie Joint Venture - BCB 5%, Stanmore Coal 95%
The Mackenzie Coking Coal Project in the Bowen Basin is well located for export markets as it lies on the existing Blackwater railway line to Gladstone. The project is located between the Ensham and Curragh operating mines and is adjacent to the Washpool coking coal project, which is also targeting the Burngrove Coal Formation.
The project geological model contains a total of 80 bore holes. The coal sequence comprises two main coal seams being the Leo and Aquarius seams within the Burngrove formation. The seams strike in a general North South direction over an approximate 27km strike length, and dip towards the west at approximately 2 degrees. The main coal seams occur at depths of between 10 and 110 metres.
Cape Coal Pty Ltd (“Cape Coal”) entered into a Joint Venture with Stanmore Coal Limited (ASX:SMR, “Stanmore Coal”) in October 2012 in order to jointly progress the Mackenzie Project. Under the terms of the agreement Cape Coal earned a 5% ownership interest in the project through the provision of technical and study management services, with the potential to increase up to 9%. Cape Coal also held an option to acquire a further 10% interest after completion of a Bankable Feasibility Study.
Cape Coal completed a technical review of the deposit which considered the impact of applying both conventional Australian mining and processing techniques, as well as alternatives familiar to Cape Coal through their experience with lower yielding coal mining operations.
In January 2017 Cape Coal assigned its rights in terms of the Mackenzie Joint Venture to Bowen.