Quarterly Activities & Cashflow Reports
Sydney, July 31, 2013 AEST (ABN Newswire) - The June 2013 quarter marked another busy period for Cuesta Coal Limited (
ASX:CQC), with significant progress being made both corporately and operationally.
Cuesta successfully held an EGM, along with Beijing Guoli receiving Chinese Regulatory Approval, during the last quarter for the $12m Placement.
Subsequent to the quarter Cuesta announced that it had settled the $12m Share Placement at 18 cents per share with major shareholder Beijing Guoli. The purpose of the placement is to provide adequate funding to progress initial development plans for Moorlands, pay down $5m of debt and assist with the Company's working capital requirements.
Development activities for the quarter were focused at Moorlands, with a revised resource estimate and coal quality results released to the market along with the commencement of background environmental studies and planning for the 2013 drill season. Cuesta is making good progress on its mine scoping study which is expected to completed shortly.
Key development advantages of the Moorlands Deposit include:
- Shallow and thick coal seams allowing the Scoping Study to target a <5:1 strip ratio
- Primary coal seams consist of B4 averaging 6m, B8 averaging 10m and B9 averaging 4m in thickness
- Secondary coal seams consist of B5 and B7, both averaging 1.5m-2m in thickness
- Several coal seams and individual coal plies will not require washing, enhancing project economics
- Recently announced coal quality analysis at the South Pit produced encouraging results, notably the excellent washability recovery rates of 90%
- Located 14km from the existing infrastructure at the recently closed Blair Athol Mine.
Within the individual coal seams in the south pit, washability recovery rates vary from 87.1 -96.8%, and it is estimated that 25% of the ROM feed will not require washing.
Importantly, the 10m thick B8 seam averages 88.3% recovery, producing a product coal containing 9.9% ash, energy content of 6139 k/cal adb and 0.53% sulphur.
In addition to this, the 4m thick B9 seam averages 90.4% recovery, producing a product coal containing 10.9% ash, energy content of 6,041 k/cal adb and 0.65% sulphur.
Cuesta continues to investigate infrastructure options principally for the Moorlands Project and is targeting to execute formal agreements in 2013.
Minor exploration programmes were completed at Yellow Jacket and West Emerald. Cuesta is collating and interpreting these results and will update shareholders in the near future.
During the quarter, Cuesta commenced an internal review of its projects and will seek divestment opportunities where appropriate for non-core assets.
At the end of June 2013, Cuesta had cash and cash equivalents of $3.073m excluding net proceeds from $12m placement.
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CQC-747226.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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