Name and Location
Paragon metallurgical coal project, Queensland, Australia.

Client
Paragon Coal, a subsidiary of Tiaro Coal.

Project Description
The Paragon metallurgical coal project is centred on the T9 West Area, within the northern portion of EPC 956. The T9 West Area includes an 87-million-tonne Joint Ore Reserves Committee- (Jorc-) compliant resource. The initial mining plan proposes an opencut truck-and-excavator mine, with moderate to shallow dipping coal seams in 19 groups and multiple working sections.

Proposed production will build up to 5.5-million tonnes a year and optimised pit design will result in 81-million tonnes over a scheduled 17-year mine life, with a strip ratio of 5.5 bank cubic metres per tonne.

Run-of-mine coal will require processing to produce metallurgical and thermal coal products, and the initial mine plan refers only to the T9 West area covered by the 2013 Jorc coal resource statement.

Value
Not stated.

Duration
Not stated.

Latest Developments
Paragon Coal has started a prefeasibility study (PFS) on the T9 West Area and has engaged leading coal industry consultants to undertake various components of the study.

Xenith Consulting, which previously completed a review of the T9 West Area and prepared an initial mine plan, will undertake the mining prefeasibility assessment.
 

McElroy Bryan Geological Services are providing geological modelling, exploration and geological services.

Bob Leach will assess coal quality and coal products.

Sedgman will undertake the coal handling and preparation plant (CHPP) prefeasibility work.
Sedgman Yeats will provide multidisciplinary consulting and engineering services with regard to infrastructure, access and services, as well as the overarching study compilation.

It is expected that the study will result in a comprehensive and robust prefeasibility-level assessment of the T9 West Area.

Paragon Coal plans to undertake two phases of exploration as part of the PFS – large-diameter drilling to sample and test coal quality, and open and cored drilling to test the likely southern extension of the T9 West Area coal sequence.

The results of this exploration will provide data for key mining, coal quality, washability and coal product analysis for the PFS.

Key Contracts and Suppliers
Xenith Consulting (mining prefeasibility assessment), McElroy Bryan Geological Services (geological modelling, exploration and geological services), Bob Leach (coal quality and products assessment), Sedgman (CHPP and Sedgman Yeats (consulting and engineering services).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Tiaro Coal, tel +61 2 9251 7177, fax +61 2 9251 7500 or email corporate@tiarocoal.com.au.
Xenith Consulting, tel +61 7 3835 3900 or +61 7 3835 3999.
McElroy Bryan Geological Services, tel +61 2 9958 1455 or fax +61 2 9958 2181.
Bob Leach, tel +61 7 5494 3938.
Sedgman, tel +61 7 3514 1000 or email mail@sedgman.com.
Sedgman Yeats, tel +61 7 3514 1000 or email mail@sedgman.com.