NSL Consolidated Limited 1 20 December 2011 ESSENTIALS FOR WORLD-CLASS QLD THERMAL COAL ASSETS ___________________________________________________________________ HIGHLIGHTS Updated technical modelling and interpretation by NSL Consolidated throughout 2H calendar 2011 has reinforced the strong project development potential for the Company’s world-class thermal coal assets in Queensland. Queensland Exploration Permit for Coal Applications (EPCA) 2198, 2336, 2337 & 2338 have a total defined Exploration Target of 6.6 – 18.7 Billion Tonnes 1 of thermal coal. Additional Coal Quality Data, Coal Seam Thickness, Coal Seam Depth, Infrastructure analyses completed. Initial Exploration Drilling Programme set for 2012, including maiden 9 hole scoping drill campaign as a precursor to full exploration programme. Analysis further underpinned by recent drilling and discoveries on nearby or adjoining EPC’s – EER, RMA, ICX and CBQ. ______________________________________________________________________________________ Bulk commodities developer, NSL Consolidated Limited (ASX: NSL, Company) is pleased to today release detailed analysis resulting from the Company’s new technical modelling and interpretation work on its four thermal coal exploration tenements in Queensland. The results are in addition to the results of due diligence via an Independent Geologist’s Report (Mark Biggs, Moultrie Group, July 2011) on EPC Applications 2198, 2336, 2337 & 2338 (Projects) in Queensland and released to the market on 18 July this year. The projects are located in the Eromanga Basin in south western Queensland, adjacent to similar projects held by East Energy Resources (ASX: EER), Sentry Petroleum Limited (NASDAQ OTC – SPLM), International Coal Limited (ASX: ICX) and China National Rail’s (CREC) RMA Energy (ASX: RMT). 1 It should be noted that the tonnages quoted above are conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. For personal use only
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NSL Consolidated Limited - ASX · Indian port operator Adani Group earlier this year bought the existing 50- million-tonne capacity terminal. BHP Billiton and Hancock Prospecting
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NSL Consolidated Limited
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20 December 2011
ESSENTIALS FOR WORLD-CLASS QLD THERMAL COAL ASSETS
350kg Bulk Sample 70 12 31 5,000 6,755 VM Volatile Matter ad Air Dried basis 1Analysis on air dried basis F Float CV Calorific Value daf Air Dried Ash Free basis 2Analysis on dry ash free basis
Coal Seam Thickness
Based on historical drilling and data modelling by NSL’s independent geologist, Figure 2
below has been generated to show the contours of cumulative thickness of coal.
The borehole Ping_R17 drilled on the southeastern corner of EPCA 2337 shows contours of
cumulative thickness of coal coloured dark red which represents a cumulative thickness
of 16-16.5 metres gradually becoming yellow 12.5-13 metres, light green 10-11 metres
and then light blue representing 7-8 metres to the west along the southern border of
EPCA 2337. Further historical coal exploration holes Ping_C2, Ping_C5 and Ping_16
support these contours of cumulative thickness of coal. We can reasonably conclude the
coal seams in this area (southern EPCA 2337) are between 7-15 metres cumulative
thickness, which is reflected in the Exploration Target of 4 – 8.5 Bt, where a conservative
8.5m was used in the calculation.
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Coal Seam Depth
Based on historical drilling and data modelling by NSL’s independent geologist, Figure 3
below has been generated to show the depth to the top of the first coal seam.
Again, borehole Ping_R17 drilled on the southeastern corner of EPC 2337 shows contours
coloured dark blue at 50-52 metres depth gradually becoming lighter in colour to
grey/white representing a depth of 30-32 metres to the west along the border of EPC
2337. Further historic coal exploration holes Ping_C2, Ping_C5 and Ping_16 support these
contours to the top of the coal. We can reasonable conclude that the uppermost coal
seams in this area (EPC 2337 south) are at a shallow depths, generally <50m.
On 26 October
2011, Coal Bank
Limited (CBQ) in
relation to drilling
at its Blackall
Project announced
that “Eighteen
holes have now
been completed
with coal seams
being intersected
at relatively shallow
depths over a
distance of
approximately 28
kilometres. Total
coal thicknesses
have exceeded 10
metres in several
holes, based on
analysis of wireline
geophysical logs”.
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Infrastructure Development Continues
Port Capacity Building
The Queensland government announced it has given provisional approval to build six
new coal terminals as part of a $9 billion expansion of the Port of Abbot Point.
The expansion of the North Queensland port will boost its capacity to almost 400 million
tonnes a year, making it one of the largest coal export facilities in the world.
The government had planned to add four terminals at Abbot Point but stronger than
expected interest from coalminers boosted numbers to six.
Indian port operator Adani Group earlier this year bought the existing 50- million-tonne
capacity terminal. BHP Billiton and Hancock Prospecting are developing the second and
third terminals.
The first coal is expected to be exported from the six new terminals in 2017, with total
capacity of 385 million tonnes.
Rail Capacity Building
Hancock Prospecting (Hancock Coal) is one of a number of interested parties that have
approached the Queensland
Government proposing two 60
Mtpa mining ventures consisting of
Galiliee Basin coal. Two mines (the
Alpha Coal Project and Kevin’s
Corner Coal Project, each of 30
Mtpa capacity) are proposed by
Hancock Coal. Both projects have
been declared “significant
projects” under the State
Development Public Works
Organisation (SDPWO Act) 1971.
The coal from both projects would
be exported through the Port of
Abbot Point. The Hancock Coal
Rail project includes the
construction and operation of a
new privately owned rail line to
transport coal 495km from the
Galilee Basin to Abbot Point coal terminal, north of Bowen. The stand alone, standard
gauge line will be open for third party access due to its classification as a “significant
project” by the SDPWO.
Blackall Rail
Calibre Rail was commissioned by East Energy Resources to undertake a preliminary
review of rail infrastructure options, including a 285km extension of Hancock Alpha
Railway to Blackall. Queensland Transport Department permission was provided to
access existing rail corridor from Jericho to Blackall for the Preliminary Rail Study. East
Energy had made an initial Expression of Interest to secure 20 Mtpa export capacity at
the new T4-7 port expansion at Abbot Point (ASX release 17 May 2011).
Source: East Energy announcement 17 May 2011, Company Presentation
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NSL Coal Rail Link
NSL’s EPCA 2336 is approximately 62kms from the East Energy Blackall Project. NSL’s
EPCA’s 2337 and 2338 are adjoining 2336 to the south.