Encouraging Intersections Confirm Target Area at the Moorlands Deposit
Sydney, Oct 18, 2012 AEST (ABN Newswire) - Cuesta Coal Limited (
ASX:CQC) ("Cuesta") is pleased to announce an update to the exploration activities at the Moorlands Deposit (EPC 1738) located at the company's 100% owned West Bowen Project in the Western Bowen Basin, Queensland.
Completed Work
Since the announcement on the 9th of October 2012, a total of 13 open holes have been completed and geophysically logged (Table 1, refer to link below). Coal thickness intersections and lateral distribution of the coal measures have further substantiated expectations.
The drilling activities have indicated that a shallow (less than 120m from surface) open cut target exists (Figure 1, refer to link below). This open cut target area will be a priority focus for Cuesta and the exploration and development activities at the Moorlands Deposit.
It has been interpreted from the geophysical logs that the B8 and B9 seams are of primary importance being 8 m - 12 m and 3 m - 4 m thick respectively.
A longer term underground opportunity is present to the south of the open cut target area.
Remaining Planned Work for 2012
Coring commenced on the 16th of October as shown in Figure 2, a total of 6 holes are targeted to be cored by twinning open PCD holes ML 2, ML 14, ML 21, ML 23, ML 27 and ML29 as shown on Figure 1.
These holes have been selected for coring, as up to 6 seams have been intersected in the sequence, allowing for sufficient coal quality information to be obtained for each of the seams, for input into the geological 3D model and for future revised resource estimates.
Coal quality data will also include coal washability testing to determine washability yields and final product quality. The company's intention from the coal analysis and washability work is to determine which coal seams require beneficiation through a wash plant and their recovery yields and which seams can be excluded as this will be a key driver in the project economics in future mine scoping studies.
A total of 4 open holes remain to the south of the Moorlands Open Cut Target Area will be conducted at the completion of the coring activities, these holes will be in the longer term underground target area.
Cuesta Coal's Managing Director, Matt Crawford said:
"Cuesta is very encouraged by the progress made to date at the Moorlands Deposit and verifies the geological interpretation of the deposit. The focus of our exploration activities continues to be in the north of the deposit thickest coal seams and being closest to the surface occurs.
"The objective of the program is to fully drill out the northern target area to better understand the coal quality data and increase the size and confidence of the resource base at the Moorlands Deposit.
"We look forward to updating our shareholders on the activities as the program progresses at Moorlands and also the Yellow Jacket Project drilling activities."
About the West Bowen Project
The West Bowen Coal Project stretches over an area of 1,000km2 and is located 25km west of Clermont, Queensland. It consist of EPC 1738 and 1891 and EPCA 2008, which sit in close proximity to the Rio Tinto Blair Athol Open Cut Coal Mine which has operated since 1984 and produced up to 12Mt of thermal coal per annum.
Cuesta's Inferred Mineral Resource of 39.5Mt in accordance with the JORC code (2004) guidelines is located within EPC 1738, known as the Moorlands Deposit. This resource is contained within a discrete Permian sub-basin situated approximately 14km northwest from the Blair Athol Mine.
Cuesta is conducting detailed geological desktop assessments to identify additional coal bearing targets to the Moorlands Deposit, primarily in EPC 1891 with an aim to conduct scout drilling in 2013.
View the complete Cuesta Coal announcement including Tables and Figures at the link below:
http://media.abnnewswire.net/media/en/docs/73875-ASX-CQC-700795.pdf
Contact
Cuesta Coal Limited
T: +61-2-9284-5900
F: +61-2-9284-5999
E: info@cuestacoal.com.au
WWW: www.cuestacoal.com.au
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