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Moorlands coal project, Australia

20th June 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Moorlands coal project, Queensland, Australia.

Client
Cuesta Coal.

Project Description
The Moorlands project is an opencut export thermal coal mine development, located in a historically low-cost mining region.

The project has a current Joint Ore Reserves Committee- (Jorc-) compliant resource of 281.1-million tonnes, including 171.2-million tonnes in the measured and indicated category. A 50-hole resource definition and infill drilling programme, completed in January 2014, exceeded expectations, with widespread intersections of target seams.

These results will underpin Cuesta’s maiden reserve estimate and provide critical input for the definitive feasibility study (DFS).

The DFS will expand on the mine scoping study completed by Xenith in November 2013, which confirmed robust project economics for a 1.9-million-tonne-a-year opencut mine, with a mine life of 30 years, in the South pit.

Cuesta expects improvement in the proposed South pit mine design, based on westerly extensions of the coal resource discovered in March 2014, resulting in increased coal quantities and a widening of the proposed mining area. Further upside exists from the larger northern area of the deposit.

Value
The scoping study estimated the capital cost of the project at $148-million.

Duration
Cuesta is aiming for first coal production in 2016.

Latest Developments
In parallel with progressing the DFS, Cuesta is working closely with Balance Resources to identify secondary market port and rail allocations to execute formal agreements in the first half of 2014.

Key Contracts and Suppliers
Xenith Consulting (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Cuesta Coal, tel +61 2 9284 5900, fax +61 2 9284 5999 or email info@cuestacoal.com.au.
Zenith Consulting, tel +61 7 3835 3900 or fax +61 7 3835 3999.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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