Moorlands Project - Concept Mining Study Update
Sydney, Aug 19, 2013 AEST (ABN Newswire) - Cuesta Coal Limited (
ASX:CQC) ("Cuesta") is pleased to announce an update on the Concept Mining Study currently underway at the Company's flagship open cut Moorlands Project in the Western Bowen Basin of Queensland. The Moorlands Project, located 14km from the Blair Athol Coal Mine (where mining activities have ceased), has a current JORC Resource of 146.1Mt, including a JORC Resource of 53.5Mt in the Measured and Indicated category.
Work Completed
Cuesta has been working closely with Xenith Consulting Pty Ltd ("Xenith"), a specialist mining consultancy based in Brisbane, to complete the Concept Mining Study.
A margin ranking exercise has been carried out by Xenith on the Moorlands deposit to identify the most economic coal zones by dividing the deposit into 100 x 100m vertical blocks and applying cost, revenue and operating assumptions to ascertain the economic cut off strip ratio for the initial pit shell.
The lowest strip ratio is found in the proposed South Pit, typically between 2 and 4 bcm/tonne, and averaging 3.2bcm/tonne over the life of mine. Finalisation of the Concept Mining Study will focus on a potential 2Mtpa run of mine (ROM) project in the South Pit with a mine life of 30 years (Figure 1 and 2 in link below).
The northern area of the deposit has a larger resource potential and will provide a longer term target for Cuesta with strip ratios typically between 3 and 6 bcm/tonne.
Laboratory results of the 2012 drilling campaign confirm similar coal quality in the proposed South Pit to neighbouring Blair Athol and Clermont mines. A single product stream coal specification on the Measured, Indicated and Inferred South Pit resource includes:
- Ash of 10.4%
- Inherent moisture of 9.5%
- Calorific Value of 6,077 k/cal adb
- HGI of 59
- Ash fusion initial deformation of >1,500 oC
Work to Complete
In the coming weeks Cuesta and Xenith will finalise the Concept Mining Study at the Moorlands Project, focusing on the proposed South Pit, including capital and operating cost estimates. Cuesta has commenced drilling activities at Moorlands and is pleased to report good progress is being achieved.
The 2013 drilling campaign has been designed to enable Cuesta to commence a Detailed Feasibility Study for the Moorlands Project during 2014.
Cuesta Coal's Managing Director, Mr Matthew Crawford commented: "We are pleased to be able to report that the Concept Mining Study at our Moorlands Project is progressing well and has exceeded expectations particularly in terms of stripping ratios.
"The Board believes that Moorlands, which boasts a JORC Resource of 146.1Mt and is located only 14km from existing rail infrastructure at the Blair Athol Mine, possesses very attractive value upside to be unlocked through low Capex and Opex development.
"We look forward to updating shareholders in the near future with the finalised Concept Mining Study and also the results of the 50 hole drilling program at Moorlands.
For diagrams and tables please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CQC-750172.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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