Maiden Open-Cut Reserve Statement for South Galilee Project
Brisbane, Jan 31, 2012 AEST (ABN Newswire) - Bandanna Energy Limited (
ASX:BND) is pleased to announce that AMCI, the manager for the South Galilee Coal Project (SGCP) Joint Venture and 50% participant, has provided a JORC compliant Coal Reserves Estimate for open cut mineable reserves prepared by Echelon Mining Services. The Reserve Estimate is based on the Coal Resource Statement prepared in February 2011 and data provided in the Pre-Feasibility Study completed in April 2011. The Table below gives a breakdown on the open cut Coal Reserve estimate. Full details of the Reserve Statement and assumptions used for the economically open-cut mineable portion of the coal resource can be found on the Company's website at http://www.bandannaenergy.com.au.
Table - Summary of Open-cut Reserve Estimate for the South Galilee Coal Project JV*
------------------------------------------------ D1 (Mt) D2 (Mt) Total (Mt)------------------------------------------------Proved 50.4 81.9 132.3Probable 99.9 41.8 141.7Total Reserve 150.3 123.7 274.0Marketable 117.4 100.3 217.7------------------------------------------------
Note: Bandanna has a 50% interest in the South Galilee Coal Project JV
The Report also notes that economically saleable areas (by open cut methods) extend beyond the applicable JORC Resource areas (of Measured and Indicated) and potential therefore exists to increase the Reserve Estimate by increasing the areas of these Resource categories. Potential also exists for an underground Reserve beyond the current economic limit of the open cut.
Managing Director Dr Ray Shaw said that "this maiden reserve statement is a significant milestone for the JV and the development of the South Galilee Coal Project overall. Whilst a work in progress result, it underlines the very real potential of this project and of the area's ability to support both future significant open-cut and underground mine development."
About the South Galilee Coal Project (SGCP)
The SGCP Joint Venture involves EPC 1048, EPC 1049, EPC 1179, and EPC 1180. In July 2011 an ML application (70453) was applied for over the northern portion of EPC 1049 which was the area over which a Resource Statement was completed in February 2011 **. In that Resource Statement the presence of some 1.179 billion tonnes of JORC Code compliant resource was delineated including 206.2 Mt of Indicated and 166.6 Mt of Measured. Subsequent Pre Feasibility studies have identified that the resources have the potential to support an open-cut and underground mine of some 33 years life with an average LOM production of over 15 Mtpa. AMCI is manager and has earned a 50% stake in the SGCP JV following completion of its farmin obligations. Bandanna retains the remaining 50% through its wholly owned subsidiary Alpha Coal Pty Ltd. The SGCP lies to the west of the township of Alpha and south of the China First and GVK's projects.
Further drilling has been on-going since September 2011 as part of continuing studies. In due course the results of this drilling will enable further review of projects reserves and resources.
To view the complete Bandanna Energy announcement, including *Competent Persons Statement/Statement of Compliance, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-BND-186789.pdf
Contact
Bandanna Energy Limited
Dr Ray Shaw
Tel: +61-7-3041-4400
Andrew Crook
Mob: +61-419-788-431
Email: info@bandannaenergy.com.au
http://www.bandannaenergy.com.au
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