Bandanna Energy Limited (ASX:BND)
Brisbane, June 1, 2009 AEST (ABN Newswire) - Bandanna Energy Limited (ASX:BND) is pleased to provide the attached Resource Statement for the Alpha Project Joint Venture's EPC 1049 located in the eastern Galilee Basin. The results relate to 150 drill holes (including 58 partially cored holes and 11 re-drills) totalling more than 17,500 m of drilling. This work has been fully funded by AMCI (Alpha) Pty Ltd (AMCI) as part of a farmin agreement by which AMCI can earn up to 50% interest in the Alpha Project area by spending up to A$25 million.
A total JORC compliant Inferred Resource of 982 Mt, of which 60.3 Mt in the Indicated category has been delineated.
Summary of Results for Alpha Project JVInferred Resource 922 MtIndicated Resource 60 MtTotal Resource 982 Mt
Significance to Bandanna Energy
Assuming that AMCI proceeds to earn its entire 50% interest in the Alpha Project, Bandanna through its wholly owned subsidiary Alpha Coal Pty Ltd, will retain the remaining 50%. That is,
Net Resource to BandannaInferred Resource 461 MtIndicated Resource 30 MtTotal Resource 491 Mt
This represents a very significant (67%) increase in the total inferred resource inventory of Bandanna (Table 1)
Table 1: Total Resource Inventory of Bandanna*----------------------------------------------------JORC Code Previous Alpha Current % Increase Total Project JV TotalCategory Inventory net to BND InventoryInferred 684 Mt 461 Mt 1145 Mt 67%Indicated 73 Mt 30 Mt 103 Mt 42%Measured 0 0 0 0%----------------------------------------------------
(* Assumes AMCI will earn their maximum farmin interest of 50%)
The Resource Statement relates only to the "D" seams which occur in subcrop in the north-eastern portion of EPC 1049. Although the overlying "A" and "B" seams were penetrated to the west, lack of drilling in that area has precluded their inclusion in the current resource inventory because of the paucity of data to meet the stringent JORC Code compliant categories. The D seams occur at depths compatible with both open-cut and underground mining. Coal quality analyses are currently underway.
Development of the Galilee Basin
As reported in the national and international press last week Waratah Coal has entered into an MOU with the Chinese Government owned China Metallurgical Group Corporation (MCC) for a joint venture to develop a US$5.15 billion, 40 million tonnes per annum mine based on coal resources in EPCs 1040 and 1079 located in the eastern Galilee Basin. As disclosed by Clive Palmer plans include a 490 km standard gauge heavy-haul railway line to an export terminal at Abbot Point. MCC is seeking to purchase 30 Mtpa. These EPC's lie directly to the north of, and abut the Alpha Project's EPC 1049.
Coupled with significant resources previously announced by Hancock Prospecting Pty Ltd in their tenements to the north of Waratah's, the introduction of major international end-user should provide a major impetus to both Galilee Basin explorers and Government to commence the necessary rail and port infra-structure development. This could be the next major globally significant thermal coal province.
Importantly, Bandanna is the only ASX listed company with a significant interest in this region. AMCI and Bandanna are progressing how best to develop this resource given its potentially very large scale.
About the Alpha Project Joint Venture
The Alpha Project is a joint venture between Bandanna Energy Limited and AMCI formed to explore for thermal coal at depths suitable for both open cut and underground mining in the eastern Galilee Basin, with four tenements EPC's 1048, 1049, 1179 and 1180. These cover a total area of 2,840km2, immediately to the south and east of Waratah Coal Limited's Galilee Basin tenements. AMCI is farming into the Alpha Project by spending up to A$25 million over three years to earn up to a 50% interest. Bandanna will hold at least 50% of this project once the farmin is complete. To-date AMCI has expended approximately A$5 million. Further exploration drilling and conceptual development studies will be undertaken during the coming 12 months.
The attached Resource Statement relates to drilling which covers only the north-eastern portion of EPC 1049. This lies immediately adjacent to Waratah's EPCs 1040, 1079 and 1155 which were the subject of the press releases last week.
Like the coal seams in the adjacent Waratah EPCs, the intersected seams in EPC 1049 dip gently to the west, at 0.5 - 2.2o, and show no indications of structural disturbance. They occur at depths compatible with both open cut and underground mine development. Average seam thicknesses in excess of 4 metres have been encountered. The D seam coals are high volatile, low rank bituminous coal for use as thermal coal and potentially as feed-stock for liquefaction, gasification and other petrochemical applications.
Related Companies
Social Media
Share this Article
