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Moorlands South Pit Coal Quality Results
Moorlands South Pit Coal Quality Results

Sydney, June 26, 2013 AEST (ABN Newswire) - Cuesta Coal Limited (googlechartASX:CQC) is pleased to announce the detailed coal quality results for the flagship Moorlands Project in the Western Bowen Basin of Queensland. The Moorlands Project has a current JORC Resource of 146.1Mt, including 53.5Mt of JORC Measured and Indicated Resources.

Work completed includes washability analysis of individual coal seams and detailed analysis of the washed coal comprising proximate and ultimate analysis, ash analysis, ash fusion and HGI.

These results are from samples collected during the 2012 drilling campaign, where 6 cored holes in the Moorlands south pit were completed. Cored holes recovered samples from the B5, B7, B8 and B9 seams.

Product Recovery, Ash and Energy Contents

Particularly encouraging, is the product recovery rates on the washed coal samples which average 90% while producing a 10.4% ash product with an acceptable energy content of 6,077 k/cal adb, as shown in the table below.
--------------------------------------YIELD (%)                     89.9 INHERENT MOISTURE % (ad)       9.5ASH % (ad)                    10.4  VOLATILE MATTER % (ad)        30.7FIXED CARBON % (ad)           49.4CALORIFIC VALUE MJ/kg (ad)   25.44CALORIFIC VALUE Kcal/kg (ad)  6077TOTAL SULPHUR % (ad)          0.72HGI                           59--------------------------------------
The combination of the washability recovery rates and thick coal seams enhance the economics of future mining operations due to the high product coal ratio versus ROM Coal. Within the individual coal seams in the south pit, washability recovery rates vary from 87.1 - 96.8% and within the south pit area, 25% of the ROM feed will not require washing and will be run as bypass coal.

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.

Detailed breakdown of the ash analysis, ultimate analysis and ash fusion are shown in tables at the end of this announcement.

Hargroves Grindability Index

The HGI of the Moorlands coal averages 59 across the deposit. Within the individual seams, the hardest coal is rated with a HGI of 56 and the softest at 61, making it a relatively narrow band.

The HGI of this coal will be attractive to end users due to the mid-range nature of the coal. This coal has a superior HGI to that of the much harder Surat Basin coals and is typical of Permian aged coals in the region.

Summary of Laboratory Results

The detailed laboratory results are pleasing and will be a key input into the mine scoping study which is due to be finalised shortly. Encouragingly a single low ash, moderate energy coal specification can be generated from the south pit deposit.

To View Tables and Charts, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-CQC-741858.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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