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VICTORIAN BROWN COAL RESOURCES UPDATE
ASX ANNOUNCEMENT 1 DECEMBER 2015
Mantle Mining Corporation Limited (ASX: MNM) is pleased to provide an update of the Inferred Brown Coal Resources contained in Exploration Licences (EL) 5294 Bacchus Marsh and 5210 Yalungah.
On 9th August 2015, Mantle Mining Corporation Limited (Mantle) and Exergen Proprietary Limited (Exergen), Bacchus Marsh Coal Project (BMCP) Joint Venture partners, relinquished EL 5323, a small portion of the overall tenement area comprising the BMCP. The Inferred Coal Resource Estimate, reported on 15 August 2012, has been updated by AMC Consultants Pty Ltd (AMC) to reflect the change in tenement area. In addition, the Inferred Coal Resource is now reported in accordance with the JORC Code, 2012 edition.
As part of the renewal process for EL 5210 located near Moe. Mantle was required to relinquish 21 of the then 46 graticules as a condition of the renewal. The Inferred Coal Resource estimated on 9 June 2010 by Resolve Geo Pty Ltd (Resolve) and reported by Mantle on 23 August 2013, following acquisition by Mantle, has been updated by Resolve to reflect the change in tenement area. In addition the Inferred Coal Resource is now reported in accordance with the JORC Code, 2012 edition.
BACCHUS MARSH COAL PROJECT:
The Bacchus Marsh Coal Project is located within the Bacchus Marsh Coalfield within the Port Phillip Basin, approximately 60 km north-west of Melbourne. The township of Bacchus Marsh and the Maddingley Coal Mine (MIN 4701) are surrounded by EL 5294 which is held by the BMCP Joint Venture (Figure 1).
There is an estimated 1.6 billion tonnes of Inferred Coal Resource, reported in accordance with the JORC Code 2012 edition for the Bacchus Marsh Project (Table 1). The Inferred Coal Resource is defined using a maximum raw ash value of 30% ash (db) and an in situ density of 1.14gm/cc. The depth of the roof of the Inferred Coal Resource varies from approximately 20 m to 140 m below surface.
Coal Seam
|
Tonnes (Bt)
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Total Moisture (%)
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Ash (% db)
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Volatile Matter (% db)
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Fixed Carbon (% db)
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Gross Dry Specific Energy (MJ/kg)
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TotalSulphur (% db)
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Maddingley
|
1.6
|
56.3
|
10.4
|
47.2
|
42.4
|
24.5
|
3.4
|
Table 1: JORC 2012 Inferred Coal Resource - maximum ash content (dry basis) 30% cut-off
Figure 1 - Bacchus Marsh Coal Project Location
The Inferred Coal Resource of 1.6 billion tonnes reported in 2012 has not changed due to the relinquishment of EL 5323. The Inferred Coal Resource is rounded to the nearest 100 Mt. The relinquished EL 5323 contains an estimated total of 7 Mt of coal.
The following spatial constraints have been applied to the Inferred Coal Resource (Figure 2):
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Coal is defined as having less than 30% ash (dry basis).
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The Maddingley Rider Coal seam has been excluded from the estimate.
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The boundary of EL 5294, excludes MIN 4701 and EL 5323.
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Coal is interpreted to be present east of the boundary of the Rowsley Fault.
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Coal is interpreted to be present south and east of the seam pinch out lines.
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The Inferred Coal Resource is constrained by drill holes with ash analysis.
Figure 2 - Inferred Coal Resource area boundary
Competent Persons Statement (JORC Inferred Resource):
Information in this report that relates to Coal Resource estimates prepared by AMC Consultants Pty Ltd is based on information compiled by Ms K Zunica, who is a Member of The Australasian Institute of Mining and Metallurgy and is a full-time employee of AMC Consultants Pty Ltd. The estimates are based on exploration data provided by Mantle Mining Corporation Ltd. Ms Zunica has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms Zunica has provided written consent to the inclusion in the report of the matters based on her information in the form and context in which it appears.
AMC considers the following items potential risks to the resource estimate:
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Heavy reliance on historical data north of MIN 4701
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Lack of understanding of the impact of the volcanic crater in the south east of EL5294
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Wide spacing points of observation, where a point of observation is defined as a cored drill hole (coal seam cored) with ash analysis.
See Appendix 1 for JORC Code Table 1.
A total of 123 drill holes were used in the geological model, of which 72 are located within the Inferred Coal Resource area. The Inferred Coal Resource area covers an area of approximately 4,300 hectares. Figure 3 shows the locations of the drill holes used in the geological model.
AMC also prepared an updated proposed drilling programme, the aim of which is to progress the Inferred Coal Resource to Indicated (Figure 4). To achieve an Indicated Coal Resource, AMC recommends points of observation spaced approximately 800 to 1000 m apart. This is to confirm and support the current structural and coal quality interpretation of the Maddingley Coal Seam. Mantle supplied AMC with the following spatial constraints limiting the area over which Indicated Resource status is required:
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South of the Serviceton railway line
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North of the Bacchus Marsh Aerodrome
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West of the Parwan South Recycled Water Treatment Plant.
Figure 3 - Location of the drill holes used for the model
Figure 4 - Indicated drilling programme hole locations