Mackenzie locality map

Project Details

Potential open pit coking coal

An interim review of the Mackenzie deposit has been completed which has resulted in the definition of 25.7 million tonnes (Mt) of JORC Indicated Resource with a Total JORC Resource to 143.2 Mt (25.7Mt Indicated + 117.5Mt Inferred).

 

November 2011

August 2010

Indicated Resource

25.7 Mt

-

Inferred Resource

117.5 Mt

99.0 Mt

Total

143.2 Mt

99.0 Mt

Drill hole spacing varies across the deposit but is less than 1000 metres on average. The coal sequence comprises two main coal seams being the Leo and Aquarius seams within the Burngrove Formation.

The Leo seam achieves a maximum cumulative thickness across three plies of five metres and averages 1-2 metres. The Aquarius seam has a maximum cumulative coal thickness across five plies (A-E) of 3.6 metres and averages 2.2 metres of coal over a maximum total interval of approximately 4.5 metres. The seams strike in a general North South direction over an approximate 27km strike length, and dip towards the west at approximately 2 degrees. The main coal seams occur at depths of between 10 and 110 metres.

 

Mackenzie South Zone

Total JORC Resource 62.3Mt (20.4Mt Indicated + 41.9Mt Inferred)

The Mackenzie South area contains some of the highest yield results obtained across the entire project area. Yields varied across individual seams from 15% to 71% to produce a coking coal with average reported CSN of 4.0. Weathering to fresh coal ranges from 13 – 49 metres with an average of 32 metres.

Mackenzie North East Zone

JORC Inferred Resource 35.8Mt

The Mackenzie North East Zone has an area of relatively shallow coal. This zone contains the lowest depth of weathering to fresh coal in the deposit with an average of 14 metres and a range of 5 – 25 metres within the subcrop of the targeted Burngrove Formation.

As in the southern zone, yields vary across individual seams with results ranging from 17% to 31% to produce the targeted coking coal. The North East Zone also shows an apparent increase in rank with an average CSN of 6.5 for the washed product across all seams included in the North East Zone Resource.

Yield Optimisation Investigations

Alternative processing methods that may improve product ash and recovery and need to be investigated. Optimising pre-treatment methods and extended analysis of the fines fraction with the aim of increasing fines recovery and maximising potential coal yields is required. Further investigation of fine material via supplementary processing techniques may be undertaken with the aim of improving product yield.

 

Close to Infrastructure

The project is situated between the existing Ensham and Curragh mines. The Blackwater rail line to Gladstone port runs west to east across the project area.