Moorlands Geological Model & Resource Estimate Completed
Sydney, April 9, 2013 AEST (ABN Newswire) - Cuesta Coal Limited (
ASX:CQC) ("Cuesta") is pleased to announce the completion of Geological Modelling and Resource Estimate at the company's 100% owned Moorlands Project (EPCs 775, 776, 1738) in the Western Bowen Basin, Queensland.
The Moorlands Project is Cuesta's flagship development project containing ~146Mt of export thermal coal with significant exploration upside. The Moorlands Project comprises EPCs 775, 776 and 1738 is located 14km to the west of the Blair Athol Coal Mine and rail access.
Geological Model and Resource Calculation
The geological model was produced by combining geological data following the acquisition of EPCs 775, 776 with Cuesta's existing data base (notably on EPC 1738 where Cuesta has drilled 44 holes totalling 5,382m since 2011), creating a robust 3D geological model confirming the north / south continuity of the coal seams throughout the basin. The resource has been calculated at 146.1Mt with 86% of the resource is less than 150m from the surface. Details of the resource are shown in Table 1 and 2 (see link below).
Mine Scoping Study and Future Work
Cuesta has engaged Xenith Consulting (Xenith) to complete a Mine Scoping Study on the Moorlands Project and it is anticipated that this will be completed in the next 3 - 4 weeks.
The Geological Model has been provided to Xenith including the coal washability work indicating good washability characteristics with good to excellent recoveries. Importantly early indications are that several raw coal seams can bypass the requirement for washing, thus reducing capital and operating expenditure in the development and operation phase of the project.
Cuesta intends to drill the resource base to a JORC Indicated category in the lead up to commencing feasibility studies.
Cuesta looks forward to informing shareholders of the full outcomes of the Mine Scoping Study when completed.
To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CQC-729704.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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