Asset Name

West Collinsville

EPC

2451

Project Basin

Bowen Basin periphery (Permo-Triassic) and the Drummond Basin (Devonian-Carboniferous).

Project Area

336km2

Coal Type

PCI / Export Quality Thermal Coal / Lignite

Target Stratigraphy

Rugby Coal Measures equivalent or Blair Athol Coal Measures equivalent (Permo-Triassic) and the Suttor Formation (Tertiary).

Estimated Exploration Target

370 Million tonnes in the Tertiary Suttor Formation

Proximal Major Projects

Hancock Coal subsidiary Queensland Coal Investments Pty Ltd; (EPC2169) Macarthur Coal subsidiary Talbot Group Exploration; (EPC660) Carabella Resources; Mabbin Creek (EPC1069) Endocoal; Sullivan (EPC1518) Endocoal; Talwood (EPC1590) 50:50 JV Endocoal and Carabella Resources; Pretoria Hill (EPC2135)

Project Overview

The West Collinsville Project is located in north east Queensland, over the largely under explored north western Bowen Basin periphery (Permo-Triassic) and the Drummond Basin (Devonian-Carboniferous).

Previous Exploration

Seven (7) Geological Survey of Queensland (GSQ) stratigraphic boreholes and Geological Survey of Queensland (GSQ) geophysical surveys have been conducted in the Project area. The area is largely underexplored for coal and the westerly extent of potential extensions of the Permian sequence beyond the traditionally perceived western limit of the Bowen Basin in separate structural depressions or in-folded coal structure is not fully understood.

Exploration Target

There are potential Permo-Triassic sub-basin targets in multiple gravity lows recorded over the Project area. These include Rugby Coal Measures equivalent or Blair Athol Coal Measures equivalent Permo-Triassic Sub-Basins. The Tertiary Suttor Formation which is extends over the southern section of the Project is known to contain Lignite deposits and may possibly host sub-bituminous coal.

The primary target seams lie within possible Lower Permian Coal Measures and the Tertiary Suttor Formation at depths between 100.00m and 200.00m. An exploration target of 0 to 370 Million tonnes of Tertiary Lignite has been independently calculated by Moultrie Database and Modeling Pty Ltd (Moultrie).

Exploration Program

The locations of five (5) exploration boreholes have been devised by Moultrie to best ascertain the presence of a coal resource. Exploration boreholes will primarily target the sub-basin / gravity lows in order to determine the existence of Permian coal-bearing sediments. The extent of the Lignite deposit will also be determined by utilizing ground gravity and 2D seismic surveys to guide drill site locations.

Proximity to Infrastructure

The preferred transport option is to link to the proposed South Galilee Rail System, which (following construction) will pass through EPC 2451. The haul distance to Abbot Point is around 190km. Additional transport options include linking to the Newlands Rail Systems or the Northern Missing Link Rail System via a 40km to 50km spur line.