Quarterly Activities and Cashflow Reports
Sydney, Oct 29, 2012 AEST (ABN Newswire) - Cuesta Coal Limited (
ASX:CQC) announce the Quarterly Activities and Cashflow Report.
CORPORATE
- Exploration activities under budget, on schedule and resource targets achieved.
- Cash on hand $18.266m
- Mr Ruoshui Wang (representative of Beijing Guoli) invited to join the Board of
Cuesta Coal subject to shareholder approval at the AGM
PRIORITY PROJECTS
- West Bowen Project
- Moorlands Deposit - 45% Resource Upgrade from 27.3Mt to 39.5Mt JORC Inferred announced 20 August
- Resource definition drilling commenced early October with promising intersections validating prospective open cut target area
- Cuesta's priority project, to transition to an advanced project
- Eastern Galilee Project
- Coal Intersected over 15 km2, maiden resource targeted for February / March 2013
- Joint Venture and Farm-In Agreement with QCI (Galilee) Pty Ltd announced on 8 August for the Snake Creek Project in the Eastern Galilee Basin
- West Emerald Project
- Metallurgical Coal target identified
PROSPECTIVE PROJECTS
- Amberley Deposit - Resource Upgrade from 5.1Mt to 54.7Mt JORC Inferred announced 6th September
1. QUARTERLY OVERVIEW
The quarter ended 30 September 2012 was a busy period of corporate and operational activity for Cuesta.
Cuesta is actively pursuing a four pronged targeted exploration strategy of the following projects which is designed to deliver a pipeline of growth opportunities for the company;
1. The Moorlands Deposit in the Western Bowen Basin offers a medium term small scale thermal coal development opportunity;
2. The Thorn Hill Deposit in the Surat Basin offers a medium term development opportunity
3. The West Emerald Project in the Western Bowen Basin offers a longer term metallurgical coal opportunity; and
4. The Yellow Jacket Project offers a longer term large scale thermal coal development opportunity in the Eastern Galilee Basin.
The above mentioned strategy is similar to that which has been successfully applied by start-up iron ore producers in Western Australia and is one which Cuesta believes it can implement in the Queensland coal industry. The low strip ratio potential of the Moorlands Deposit, its close proximity to infrastructure and satellite targets in the wider West Bowen Project Portfolio, is ideally suited to this strategy.
Exploration activities during the September quarter have focused on the 100% owned Moorlands Deposit and the 100% owned Yellow Jacket Project. Encouraging intersections have been encountered in both projects.
Resource upgrades were achieved at the Moorlands and Amberley deposits as a result of previous drilling activities by the Company at the respective projects. The results of the resource upgrades are explained in detail in sections 2.1 and 2.5.
Desktop geological studies continued at the West Emerald and Montrose Projects to focus on priority metallurgical coal targets for 2013 drilling.
Cuesta continues to investigate infrastructure options principally for the Moorlands Deposit. Corporately, a $3 million Farm-In and Joint Venture Agreement was reached with QCI (Galilee) Pty Limited subject to successful granting of the tenements. Under the terms of the agreement, QCI is able to earn up to a 51% interest in the two tenements through $3 million of expenditure in two separate tranches. QCI can earn 25% interest through the staged development and expenditure of $1.5 million and a further 26% through the expenditure of a further $1.5 million.
Cuesta maintains a strong cash position with no debt funding and minimal working capital liabilities on its balance sheet. At the end of September 2012, Cuesta had cash and cash equivalents of $18.266m.
The full Quarterly Activities report can be viewed at:http://media.abnnewswire.net/media/en/docs/ASX-CQC-703009.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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