Highlights

Coal seams of the Rangal Formation and Fort Cooper Coal Measures have been intersected on the Wilson Creek asset during the 2016 drilling program;

  • 61 Mt of shallow JORC2012 Inferred Resource* including 39 Mt at less than 3:1;
  • Export quality thermal coal with 55% yield of a 23.9% ash product and specific energy of ~5500 kcal (NAR);
  • Low sulphur (~0.5%), high Ash Fusion Temperature and favourable ash characteristics;
  • Shallow base of weathering;
  • Rail within 10 km of project area;
  • Close to existing mine infrastructure;
  • Upper and Lower Newlands Seams have been intersected within the project and require further exploration.

 

Vitrinite - Wilson Creek JORC

 

Background

The Wilson Creek asset is held 100% by Vitrinite Pty Ltd and was acquired on the 30th of August 2016. An initial exploration program was planned based on assessment of open file historical drilling data within 5 km of the project.

Vitrinite’s initial exploration comprised 3,495 m drilled over 25 open holes and two partially cored holes. Exploration has proven very successful and has defined an open-cut resource within the Lower Newlands Seam/Girrah Seam on the eastern boundary of the project area. Thick coal seams within the Rangal Coal Measure’s Upper Newlands Seam (UNS) which is a Leichhardt equivalent were also intersected in the western project area and will be followed up in the next phase of exploration.

Modelling of the data from the first phase of exploration has highlighted further Rangal targets within the north of the project which will be the combined focus of the next phase of exploration along with Rangal seams already intersected along the western boundary.

Vitrinite is currently planning more core holes to increase confidence in the shallow coal resource reported to date. A Scoping Study is also underway, assessing infrastructure, mine planning and coal marketing for the project.

Geology

The Wilson Creek asset is located within the northernmost subdivision of the Bowen Basin – the Nebo Synclinorium which contains folded and faulted Permian and Triassic Sediments.

The Triassic Rewan Formation, Permian Fort Cooper Formation and Rangal Coal Measures are mapped to subcrop within the tenement beneath varying depths of basalt and alluvial cover. Exploration has shown little to no basalt cover over the main target area.

The LNS and Girrah seams of the Fort Cooper Coal Measures has been intersected at shallow depths in the project and presents open-cut targets with low stripping ratios.

Base of weathering has also been found to be shallow with minor Quaternary cover on the eastern side of the tenement.

Coal Quality

The quality of the Newlands Upper Seam and Newlands Lower seam is well known due to the proximity of Newalnds and Eastern Creek Mines. The product coal from these seams is a initial chip results from the Girrah seam shows an export quality thermal coal with 55% yield of a 23.9% ash product and specific energy of ~5500 kcal (NAR), low sulphur (~0.5%), high Ash Fusion Temperature and favorable ash characteristics. There is also a potential coking fraction available, showing a CSN of 8 at a 10% ash product.

*The information is extracted from the report entitled EPC1710 – Wilson Creek JORC Code Coal Resources and Geology Report created on February 2017 and is available to view on the Vitrinite Data Room. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.