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MAIDEN JORC RESOURCE OF 252.6MT FOR SPRINGSURE PROJECT
Key milestone achieved for Springsure Project EPC 1674 in the Central – Western Bowen Basin with maiden independently prepared Inferred Resource of 252.6Mt of Thermal/PCI coal.
The 252.6MT maiden Resource exceeds the 60‐235MT Exploration Target previously calculated by MDM.
Project area occurs on strike 3km North of Minerva Coal Pty Ltd Minerva South and Minerva No.1 with Six (6) seams intersected RD1 to RD6 of the Reids Dome Beds, similar to Minerva who mine six (6) multi seams.
Guildford Coal Limited is the major shareholder of Springsure Mining Pty Ltd the holder of EPC1674, and has been appointed the Operator.
Coal quality results show a high volatile, low ash high quality Thermal/PCI quality coal within of similar quality to Minerva.
Proximity to existing infrastructure including the Minerva spur line and Gladstone port, fast path to production and potential for coal quality in the export thermal/PCI range.
Guildford hold 100% marketing rights for all coal sold from the project and will receive a fee of 5.25% of the coal sales price.
Springsure Mining has been included in the recent planning processes commenced by Aurizon in relation to future upgrades of the coal chain rail system.
This key Inferred Resource milestone does not trigger any payments to Bluestone under the purchase agreement.
Total Indicated and Inferred Resources for Guildford’s projects now increased to 2.52BT.
SPRINGSURE PROJECT OVERVIEW Springsure Project EPC1674 is situated in the Central‐Western Bowen Basin Coal Mining District of Queensland. The tenement is owned by Springsure Mining Pty Ltd, and operated and managed by Guildford Coal Limited under appointment with a 50.69% stake. Guildford also manages a number of their own and other tenements across Queensland under various commercial arrangements. The tenement is situated 10km north of the town of Springsure, 60km south of the town of Emerald and 420km from the port of Gladstone. It comprises eleven (11) sub‐blocks and a surface area of approximately 34km². Both the Springsure‐Emerald rail link (Minerva spur line) and the Gregory Highway traverse the tenement, linking it directly to the port of Gladstone.
Figure 1 – Springsure Project in Relation to Infrastructure and Minerva Mine
SPRINGSURE PROJECT MAIDEN JORC RESOURCE Independent Geologists – Moultrie Database and Modelling (MDM) have prepared the maiden mineral resource on the Springsure Project in accordance with the Australian Guidelines for the Estimation and Reporting of Inventory Coal, Coal Resource and Coal Reserves (JORC Code) 2004.
In June 2012, a Geological Review (Biggs et al, 2012) prepared by MDM outlined the geological knowledge of the Springsure Project area and proposed an exploration plan in order to further investigate the potential for coal within the tenement EPC1647. The main exploration target for coal identified were the coal‐bearing Reids Dome Beds within the Bowen Basin, with an exploration target tonnage of 60 – 235Mt.
During 2012 Guildford Coal Limited conducted a drilling program (Figure 2) to gain further confidence and to extend knowledge from previous drilling programs. The new results from drilling along with the existing information was compiled and used to build the Springsure Geological Model.
The data from the drilling program for the project area comprised of fifteen (15) boreholes of which eight (8) were used to build the Springsure Geological Model in the Minescape Stratmodel geological modelling software. Borehole Dension 238 located in the North within Minerva coal Pty Ltd’s mines was used to correlate and validate the seam nomenclature of the Reid’s Dome Beds coal seams within the Springsure project seams RD1 to RD6.
Constraining factors for defining Points of Observation (POI) for the Inferred Springsure resource were defined by the following criteria:
Borehole Survey positions were known;
Chip and Core Boreholes had detailed downhole lithological and geophysical logs;
Coal seam thicknesses >0.25m;
Depths of coal seams <750m;
Downhole geophysical logs include density in g/cc;
Coal samples with raw coal ply analysis results; and,
Boreholes included in the model have a point to point spacing ranging from 1628m to 3106m.
The maiden Inferred resource estimated by MDM for EPC 1674 is 252.6Mt (Table 1). The indicative coal
quality is for a high volatile, low ash Thermal/PCI coal. A discount factor of 20% has been applied to the
total for unexpected geological losses.
Table 1: Resource Summary
Seam
Plan Area
(Km²)
Average
Thickness (m)
Total Volume
(Mmᵌ)
Wet Insitu
Density
Gross insitu
mass (Mt) UGL (%)#
REMAINING MASS
(Mt)
RD1 18.3 1.21 22201.2 1.45 32.19 20 25.75
RD2 1.7 2.08 3536.91 1.45 5.13 20 4.1
RD2L 20.19 1.42 28588.99 1.45 41.45 20 33.16
RD2U 17.47 0.83 14553.17 1.45 21.1 20 16.88
RD3 12.89 1.94 25077.22 1.45 36.36 20 29.09
RD3L 5.75 0.72 4170.66 1.45 6.05 20 4.84
RD3U 2.65 1.52 4034.45 1.45 5.85 20 4.68
RD3UL 4.43 1.81 8057.9 1.45 11.68 20 9.35
RD3UU 4.38 0.73 3186.09 1.45 4.62 20 3.7
RD4 4.06 2.4 9728.13 1.45 14.11 20 11.28
RD4L 9.03 0.52 4728.75 1.45 6.86 20 5.49
RD4U 6.41 1.39 8941.08 1.45 12.96 20 10.37
RD4UL 3.24 0.52 1697.32 1.45 2.46 20 1.97
RD4UU 1.78 0.48 854.98 1.45 1.24 20 0.99
RD5 5.89 3.03 17877.78 1.45 25.92 20 20.74
RD5L 11.7 1.69 19757.24 1.45 28.65 20 22.92
RD5U 7.12 2.85 20262.41 1.45 29.38 20 23.5
RD5UL 6.58 0.82 5409.55 1.45 7.84 20 6.28
RD5UU 5.99 2.52 15096.66 1.45 21.89 20 17.51
252.6Total Tonnage:
Figure 2: Borehole Location Map
MASK AREA The resource model was developed by validating the similarity of geophysical signatures and the geometry of the seam distribution, which also included seam interburden. The main target for correlation within the model was the intrusion between seams RD2 and RD3. Modelling mask limits were created by the changes in the geological behaviour in the east‐southeast area of the project area and the National Park Limit (Figure 3).
Figure 3 – Mask Resource Area and Borehole Locations
COAL QUALITY DATA ASSESSMENT Within the Springsure Project, fifty‐eight (58) coal quality samples were analysed from three (3) boreholes SU001B, SU002 and SU006A. The coal quality analysis results suggests that the coal is of a similar quality to that found in Minerva, which is currently mining six (6) seams (RD1‐RD6). MDM suggests further investigation into the coal quality and more detailed testing is undertaken within the project area to improve confidence in the potential coal resource. The coal quality results available from the Springsure Project show a highly volatile, low ash thermal/PCI quality coal (Table 2).
Table 2: Coal Quality Summary
ABOUT GUILDFORD COAL Guildford Coal is an emerging coking coal producer and has established a portfolio of coal exploration
tenement areas in Queensland, Australia and more recently in Mongolia with a combined JORC Indicated
and Inferred Resource of approximately 2.3 billion tonnes across the Hughenden (Qld) and Clyde Park
Projects (Qld), South Gobi Project (Mongolia) and Middle Gobi Project (Mongolia). In addition to these
resources, Exploration Targets# have been prepared for Projects managed by Guildford in Queensland and
Mongolia of 0.975Bt to 8.893Bt of thermal, PCI and coking coal. Please see the Resource Table provided
over the page for more detail.
Guildford Coal’s Queensland tenements cover an estimated area of 20,000 square kilometres and are
Guildford Coal also has an equity share in 7 tenements contained in two projects in Mongolia through its
100% shareholding in Terra Energy and 70% shareholding in Guildford Coal (Mongolia) Pty Ltd. The coal
projects are located in the South Gobi and Middle Gobi coal bearing basins which contain coking and
thermal coals respectively.
For and on behalf of Guildford Coal Limited.
Craig Ransley
Executive Deputy Chairman
T: +61(2) 4914 5910
8
* The Hughenden Project consists of numerous tenements, and the Exploration Target# relates to the group of tenements. The Inferred Resource relates to EPC1477
and EPC1478.
% The Pentland Project was previously reported as part of the Hughenden Project
@ The Clyde Park Project consists of 50.7Mt JORC Indicated Resource and 677Mt JORC Inferred Resource developed by MDM on EPC1260, an Exploration Target of
40Mt to 70Mt on EPC1250 estimated by Xstract and an Exploration Target of 0 to 745Mt estimated by Palaris on EPC1260
^ The Kolan Project consists of two tenements, EPC1872 and EPC2003.
MONGOLIAN TOTAL 0.00 72.00 260.30 332.30 235.00 1,723.00
TOTAL 0.00 255.60 2,265.90 2,521.50 975.00 8,893.00
Independent GeologistGuildford Coal
JORC Resources
(Mt)
Exploration
Target# (Mt) Potential Coal Type
9
# Exploration Target
References to Exploration Targets in this document are in accordance with the guidelines of the JORC Code (2004). As such it is important to note that in relation to reported Exploration Targets any references to quality and quantity are conceptual in nature. Exploration carried out to date is insufficient to be able to estimate and report coal resources in accordance with the JORC Code (2004). It is uncertain if further exploration will result in the determination of a Coal Resource.
Competent Persons Statement
Technical Information in this Report on the Springsure Project has been prepared by Kim Maloney who has over 10 years of experience in coal mining and extractive industry throughout Australia. Kim has experience within the Central Queensland coal mines and has held various roles in these mine’s Technical Services, including Exploration Geologist, Mine Geologist and Geology Superintendent. Kim is a Competent Person for coal as defined by the JORC Code (2004). Kim is a Senior Resource Geologist within Moultrie Database & Modelling, a part of the Moultrie Group and holds the position of General Manager. Her principal qualifications are a Bachelor of Science from James Cook University and a Masters of Business Administration (Human Resource Management) from the Central Queensland University. Kim is a Member of The Australasian Institute of Mining & Metallurgy (# 229120).
The estimates of the Coal Resources presented in this Report are considered to be a true reflection of the Coal Resources as at 4th February 2013 and have been carried out in accordance with the principles and guidelines of the Australian Code for Reporting of Coal Resources and Coal Reserves published in September 2004 (JORC Code).
Technical information in this Report on JORC compliant resources for all other projects has been compiled by Mr Mark Biggs, Principal Geologist of Moultrie Database and Modelling between April 2008 – December 2012. Mr. Biggs is a member of the Australasian Institute of Mining and Metallurgy (Member #107188) and has over 25 years of experience relevant to the style and type of coal deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined by the Australasian Code for Reporting of Minerals Resources and Reserves (JORC) 2004. The resource information in this report is being released to the Australian Securities Exchange. Mark Biggs consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Forward Looking Statements This Announcement contains certain "forward‐looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", "likely", "intend", "should", "could", "may", "target", "plan", "consider", "foresee", "aim", "will" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future production, resources, reserves, sales, capital expenditure, earnings and financial position and performance are also forward‐looking statements. Such forward‐looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Guildford.