Quarterly Report 2011 Q4

Transcription

1 COALWORKS Limited 31 January 2012 Quarterly Report 2011 Q4 Activities Report for the Quarter ended 31 December 2011 Summary of Coalworks Limited s Achievements in this Quarter Ferndale Coal Project Stage 3 drilling to progress on schedule Stage 3 drilling has continued from the previous quarter with 20 holes drilled Vickery South Bankable Feasibility Study (BFS) progressing Final slim and large diameter labworks completed Coal characterisation work completed, final development footprint determined for the commencement of the Concept Mine Development Plan Oaklands North - Environmental Baseline work and Coal to Liquid (CTL) PFS continuing Regional ground water monitoring continues at Oaklands North as part of ongoing Baseline work. Coal to Liquid pre feasibility study work is ongoing as a component of studies recently completed by Minarco-MineConsult COALWORKS Limited ACN Level 5, 44 Miller Street, North Sydney NSW 2060 AUSTRALIA Ph: Fax: info@coalworks.com.au 1

2 The locations of Coalworks projects in Australia are shown in Figure 1 below. Figure 1: Coalworks Limited location of projects. 2

3 Ferndale EL 7430 (Coalworks 92.5%, coal exploration) Coalworks subsidiary Loyal Coal, with its joint venture partner, Boardwalk Ferndale Pty Ltd is continuing its drilling program at Ferndale (EL 7430) - see Figure 2. Stage 3 drilling is on track with its aim of delineating open cut coal resources in the Newcastle Coal Measures. A substantial amount of activity has occurred during the Quarter, with a total of 20 holes completed. Although drilling of hole FD040 was completed to 121m on , the corrected results are not yet available; these will be presented in the next Quarterly Report. Up to three rigs are currently conducting exploration drilling, with monitoring bore installation to commence soon. A fourth rig is due to commence exploration drilling in February. Plans for up to 60 additional drillholes in 2012 will extend the Stage 3 drilling program considerably. Ferndale drilling results have continued to confirm the presence and continuity of potentially open cuttable and underground coal consistent with its Exploration Target of 350 to 530 Mt* (ASX: ) in the and Wittingham Coal Measures. Seam summaries for holes completed in the Quarter are given in Tables 1 to 21. Many seams, in particular those in the, contain stone bands that may be removed with selective mining. The seams in the tables are geological units, not potential working sections; potential working sections will be identified once all analytical results have been received. Coal seams less than 30cm thick and seams situated above the base of oxidation, have been included in the tables. For seam summaries of previous holes FD001 to FD020, please see previous ASX announcements ( , , , , , ). Table 1: Total depths for all completed holes in EL 7430 Ferndale during the Quarter Hole ID Total Depth (m) FD FD FD FD FD FD FD FD FD FD FD FD FD FD FD FD035R FD FD FD038R FD TOTAL: 4,

4 Figure 2: EL 7430 Ferndale - Completed Stage WVH3A holes at 31 December

5 Table 2: Seam summary for hole FD019 (NB: all depths have been geophysically corrected) From (m) FD019 (Fully cored from 34.44m) To (m) Great Northern Seam Fassifern Seam Upper Pilot 1 Seam Upper Pilot 2 Seam Upper Pilot 3 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam Borehole Seam Wittingham Coal Measures Whybrow 1 Seam Whybrow 2 Seam Redbank Creek 1 Seam Redbank Creek 2 Seam Wambo 1 Seam Wambo 2 Seam Whynot Seam Blakefield 1 Seam Blakefield 2 Upper Seam Blakefield 2 Lower Seam Glen Munro Rider Seam Glen Munro 2 Seam Arrowfield Seam Piercefield 3 Seam Vaux Seam Broonie 1 Seam Broonie 2 Seam Broonie 3 Seam Bayswater 1 Seam Bayswater 2 Seam Bayswater 3 Seam Bayswater 4 Seam End of Hole m 5

6 Table 3: Seam Summary for hole FD021 (NB: all depths have been geophysically corrected) FD021 (Fully cored from 16.74m) From (m) To (m) Upper Pilot 1 Seam Upper Pilot 2 Seam Upper Pilot 3 Seam Middle Pilot 1 Seam Middle Pilot 2 Upper Seam Middle Pilot 2 Lower Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill Rider Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Yard Seam Borehole Seam End of Hole m Table 4: Seam Summary for hole FD022 (NB: all depths have been geophysically corrected) FD022 (Fully cored from 24.88m) From (m) To (m) Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam End of Hole m 6

7 Table 5: Seam Summary for hole FD023 (NB: all depths have been geophysically corrected) FD023 (Fully cored from 23.86m) From (m) To (m) Lower Pilot 1 Seam Lower Pilot 1 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam End of Hole m Table 6: Seam Summary for hole FD024 (NB: all depths have been geophysically corrected) FD024 (Fully cored from 12.75m) From (m) To (m) Upper Pilot 3 Seam Middle Pilot 1 Seam Middle Pilot 2 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill Rider Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam End of Hole m 7

8 Table 7: Seam Summary for hole FD025 (NB: all depths have been geophysically corrected) FD025 (Fully cored from 24.20m) From (m) To (m) Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam End of Hole m 8

9 Table 8: Seam Summary for hole FD026 (NB: all depths have been geophysically corrected) From (m) FD026 (Fully cored from 11.24m) To (m) Middle Pilot 1 Seam Middle Pilot 2 Upper Seam Middle Pilot 2 Lower Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill Rider Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Yard Seam Borehole Seam Wittingham Coal Measures Whybrow 1 Seam Whybrow 2 Seam Redbank Creek 1 Seam Redbank Creek 2 Seam Wambo 1 Seam Wambo 2 Seam Whynot Seam Blakefield 1 Seam Blakefield 2 Seam End of Hole m 9

10 Table 9: Seam Summary for hole FD027 (NB: all depths have been geophysically corrected) FD027 (Fully cored from 20.17m) From (m) To (m) Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam End of Hole 84.36m Table 10: Seam Summary for hole FD028 (NB: all depths have been geophysically corrected) FD028 (Fully cored from 20.70m) From (m) To (m) Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Borehole Seam End of Hole m 10

11 Table 11: Seam Summary for hole FD029 (NB: all depths have been geophysically corrected) From (m) FD029 (Fully cored from 11.99m) To (m) Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys 1 Seam Nobbys 2 Seam Dudley Seam Yard Seam Borehole Seam End of Hole m 11

12 Table 12: Seam Summary for hole FD030 (NB: all depths have been geophysically corrected) From (m) FD030 (Fully cored from 10.62m) To (m) Hartley Hill Rider Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Yard Seam Borehole Seam Wittingham Coal Measures Whybrow 1 Seam Whybrow 2 Seam Redbank Creek 1 Seam Redbank Creek 2 Seam Wambo 1 Seam Wambo 2 Seam Whynot Seam Blakefield Seam End of Hole m 12

13 Table 13: Seam Summary for hole FD031 (NB: all depths have been geophysically corrected) FD031 (Fully cored from 11.00m) From (m) To (m) Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Borehole Seam Wittingham Coal Measures Whybrow 1 Seam Whybrow 2 Seam Redbank Creek 1 Seam Redbank Creek 2 Seam Wambo 1 Seam Wambo 2 Seam Whynot Seam Unknown A Unknown B Blakefield Seam End of Hole m Table 14: Seam Summary for hole FD032 (NB: all depths have been geophysically corrected) FD032 (Fully cored from 17.85m) From (m) To (m) Lower Pilot 1 Seam Newcastle Coal Measures Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam Borehole Seam End of Hole m 13

14 Table 15: Seam Summary for hole FD033 (NB: all depths have been geophysically corrected) From (m) FD033 (Fully cored from 12.00m) To (m) Middle Pilot 1Seam Middle Pilot 2 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Yard Seam Borehole Seam Wittingham Coal Measures Whybrow 1 Seam Whybrow 2 Seam Redbank Creek 1 Seam Redbank Creek 2 Seam Wambo 1 Seam Wambo 2 Seam Whynot Seam Unknown A Seam Unknown B Seam Blakefield 1 Seam Blakefield 2 Upper Seam Blakefield 2 Lower Seam End of Hole m 14

15 Table 16: Seam Summary for hole FD034 (NB: all depths have been geophysically corrected) Newcastle Coal Measures From (m) FD034 (Fully cored from 29.40m) To (m) Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam Borehole Seam End of Hole m Table 17: Seam Summary for hole FD035R (NB: all depths have been geophysically corrected) From (m) FD035R (Fully cored from 22.98m) To (m) Fassifern Seam Upper Pilot 1 Seam Upper Pilot 2 Seam Upper Pilot 3 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam End of Hole m 15

16 Table 18: Seam Summary for hole FD036 (NB: all depths have been geophysically corrected) From (m) FD036 (Fully cored from 17.80m) To (m) Fassifern Seam Upper Pilot 1 Seam Upper Pilot 2 Seam Upper Pilot 3 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam Yard Seam Borehole Seam End of Hole 194.9m Table 19: Seam Summary for hole FD037 (NB: all depths have been geophysically corrected) FD037 (Fully cored from 17.82m) From (m) To (m) Upper Pilot 2 Seam Upper Pilot 3 Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Dudley Seam Yard Seam Borehole Seam End of Hole m 16

17 Table 20: Seam Summary for hole FD038R (NB: all depths have been geophysically corrected) From (m) FD038R (Fully cored from 8.00m) To (m) Great Northern Seam Fassifern Seam Upper Pilot 1 Seam Upper Pilot 2 Seam Upper Pilot 3 Seam Middle Pilot 1 Seam Middle Pilot 2 Seam Lower Pilot 1 Seam Lower Pilot Seam Lower Pilot 2 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Hartley Hill 3 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys 1 Seam Dudley Seam Yard Seam End of Hole m 17

18 Table 21: Seam Summary for hole FD039 (NB: all depths have been geophysically corrected) From (m) FD039 (Fully cored from 13.22m) To (m) Middle Pilot 1 Seam Middle Pilot 2 Seam Middle Pilot 2 Lower Seam Lower Pilot 1 Seam Lower Pilot 2 Seam Lower Pilot 3 Seam Hartley Hill 1 Seam Hartley Hill 2 Seam Australasian 1 Seam Australasian 2 Seam Montrose 1 Seam Montrose 2 Seam Wave Hill 1 Seam Wave Hill 2 Seam Wave Hill 3 Seam Wave Hill 4 Seam Fern Valley 1 Seam Fern Valley 2 Seam Victoria Tunnel 1 Seam Victoria Tunnel 2 Seam Nobbys Seam Dudley Seam Yard Seam Borehole Seam End of Hole m 18

19 Vickery South EL 7407 (Coalworks (Vickery South) Pty Ltd 71%, ICRA Vickery Pty Ltd 29%) Resources (calculated in accordance with the JORC Code) in EL 7407 total 58.5 Mt. These Resources include 48 Million Tonnes of Measured Resources and 0.1 Million Tonnes of Indicated Resources within the Eastern Zone and 10.4 Million Tonnes of Inferred Resources within North West & South West Zones (ASX Release: ), based on the Stage 1, 2 and 3 drilling program results (see Figure 3). During the Quarter, Coalworks (Vickery South) Pty Ltd progressed work on the Bankable Feasibility Study (BFS) (due later in 2012), which involved the following activities: completion of slim- and large-diameter core coal quality testwork (with results to be presented when available); commencement of coal characterisation study; mine planning optimisation studies; environmental base line monitoring (dust, water noise, meteorological, surface water and groundwater quality); completion of preliminary rail spur and loop design and capital estimate; completion of stage 1 flood study; stakeholder liaison. In the next quarter the company will proceed with BFS related activities with special focus on preparation of the Concept Project Development Plan and Preliminary Environmental Assessment. Figure 3: EL 7407 Vickery South drillhole locations for Stage 1, 2 and 3 drilling programs. 19

20 Oaklands North EL 6861 (Coalworks Limited 100%) During the reporting period, an Alternative Products study was conducted as part of the CTL pre-feasibility work. This study investigated additional or alternative value-added options that could potentially be incorporated into a CTL plant designed and constructed to process the Lanes Shaft Seam at Oaklands by open cut mining methods Other activities undertaken included environmental baseline monitoring and a community update to Urana Shire Council. Optimisation of the project through considering alternative CTL products will be undertaken in the next quarter in tandem with commercial discussions. In this regard Coalworks intends to continue engaging with potential partners interested in forming a consortium to develop a CTL Plant at Oaklands. ORPHEUS ENERGY GROUP PTY LTD As stated in the last quarterly report, Orpheus Energy Group Pty Ltd, Hodgson Vale Coal and Ashford Limestone were divested from Coalworks Limited via a separate relisting of Orpheus Energy Limited (Orpheus) (OEG) on the ASX in mid-august Coalworks Ltd received 35 million shares and 17,500,000 options in Orpheus as a result of this divestment out of which a one-for-eight bonus dividend was paid in the form of Orpheus shares to Coalworks shareholders. Coalworks now holds a 33.35% shareholding in Orpheus. Orpheus is exploring for coal in Indonesia and industrial minerals and coal in eastern Australia. Please see Orpheus Energy Group quarterly report for details of their holdings. Cautionary Note: This release may contain forward-looking statements that are based upon management s expectations and beliefs in regards to future events. These statements are subjected to risk and uncertainties that might be out of control of Coalworks Limited and may cause actual results to differ from the release. Coalworks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release. *Exploration Target It is common practice for a company to comment and discuss its exploration in terms of target and size type. The information in this report relating to an exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and grade is conceptual nature, there has been insufficient work completed to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The following statements apply in respect of the information in this report that relates to Exploration Results in EL 7430 Ferndale and EL 6861 Oaklands North: The information is based on, and accurately reflects information compiled by Mr Tom Bradbury, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradbury is a geologist employed by Geos Mining. He has the relevant experience in relation to the coal deposits being reported on to qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Identified Mineral Resources and Ore Reserves. Mr Bradbury has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears. 20

21 The following statements apply in respect of the information in this report that relates to Mineral Resources in EL7407 Vickery South: The information is based on, and accurately reflects information compiled by Mr Matt Morgan, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Morgan is a geologist employed by Coalworks Limited. He has the relevant experience in relation to the coal deposits being reported on to qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves. For further information, please contact: Mr. Nathan Bartrop, Company Secretary Tel: Fax: info@coalworks.com.au Coalworks has a portfolio of projects in Australia including: 1. Vickery South, Gunnedah Basin (exploration target coking/thermal coal) # JORC Resources Increase by 15% to 58.5Mt - see ASX Announcement # ITOCHU to proceed with BFS for Vickery South - see ASX Announcement # ITOCHU signs Farm In Agreement in $11m deal - see ASX announcement # Preliminary Feasibility Study positive with semi soft coking coal forming 83% of product - see ASX announcement # ITOCHU Farm-in Stage 1 payment of $5m and signing of JV agreement sees Itochu acquired a 29% interest in Vickery South - see ASX announcements and Ferndale Coal Project # Coalworks includes its 92.5% owned subsidiary Loyal Coal Pty Ltd # New Exploration Target 350Mt 530Mt of coking/thermal coal - see ASX announcement ) # Boardwalk Resources signed Farm-In and Joint Venture Agreements in $25m deal - see ASX announcement Oaklands Coal Project (JORC measured, indicated and inferred 822Mt thermal coal) #see ASX announcement ; #Strategic Alliance with Synthesis Energy Systems Inc to develop Oaklands coal-to-petrol plant announced see ASX announcement