Bandanna Energy Limited (ASX:BND) Announces 44.3Mt Maiden Marketable Reserve At Arcturus Project
Brisbane, Oct 15, 2010 AEST (ABN Newswire) - Bandanna Energy Limited (
ASX:BND) through its wholly owned subsidiary Springsure Creek Coal Pty Ltd, is pleased to announce its maiden Marketable Reserve at its Arcturus Project in the southern Bowen Basin south of Emerald, Qld.
The JORC compliant Marketable Reserve, located in EPC 1221 (Arcturus) and adjacent portion EPC 891 (Springsure Creek), is 44.3 Mt derived from a combination of opencut and underground mining concepts provided by independent Brisbane based mining consultants Xenith Pty Ltd and Minecraft Pty Ltd. The Reserve comprises of JORC compliant Probable Reserves of 17.4 Mt from the opencut component and 26.9 Mt from the underground component, respectively. This Reserve have been deemed "marketable" by those respective consultants following extensive reviews of mining, economic and marketing data.
Xenith has defined a viable conceptual opencut mine development plan which accesses up to six coal seams. This opencut plan has sufficient strike length to allow a progression of "punch" longwall panels to be accessed. Minecraft has designed the longwall panels to specifically target the higher quality Pollux seam and some highwall auger panels on the equally favourable Orion 2 seam.
Additionally, Salva Resources Pty Ltd has provided significant input into marketing and product pricing for the Arcturus coals.
These Reserves are underpinned by a recently updated total JORC compliant Resource of 206.3Mt comprising Indicated Resources of 102.6Mt and Inferred resources of 103.7Mt.
Arcturus is 100% owned by Bandanna's wholly owned subsidiary Springsure Creek Coal Pty Ltd.
Bandanna Energy has a total of JORC compliant resources of 1.366 billion tonnes in its project portfolio and this Marketable Reserve results from part of a resources review which is currently underway following drilling in the Arcturus, Springsure Creek and Dingo West tenement areas. The conceptual mine designs for the Pollux Seam opencut and underground are shown in Figure 1. (see link at the bottom of the release)
Arcturus is located within Bandanna's so called "Golden Triangle" of projects where the previously declared Springsure Creek and Arcadia projects are currently undergoing prefeasibility and concept mining studies, respectively. The close proximity of these projects relative to each other, and to that of major infrastructure, is a critical factor as Bandanna Energy progresses the potential development of the province.
Studies to date indicate that Arcturus would be capable of producing an initial ROM coal product, suitable for the East Asia markets where it could compete favourably on a price basis with exports from Indonesia and Africa. The option to upgrade the product specification (and revenue component) remains the subject of further study.
The EPC 1221 Arcturus Reserve Statements by Xenith and Minecraft can be viewed at the Company website http://www.bandannaenergy.com.au
For the complete Bandanna announcement including figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/63953-ASX-BND-179965.pdf
Contact
Dr Ray Shaw
Managing Director
Tel: +61-7-3041-4400
http://www.bandannaenergy.com.au
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