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Bowen Coking Coal Limited (ASX: BCB), based in Queensland, is engaged in the exploration of coking coal across its 100%-owned quality portfolio of advanced assets comprising the Cooroorah, Hillalong, Isaac River and Comet Ridge coking coal Projects, located within the world-class Bowen Basin of Queensland, Australia.
In addition, Bowen Coking Coal also has a joint venture (JV) with Stanmore Coal Limited (ASX: SMR) in two other projects including the Lilyvale (15% interest) and Mackenzie (5% interest) coking coal Projects, also situated in the Bowen Basin.
Location Map of Projects; Source: Investor Presentation
On 15 July 2019, the company announced the raw coal quality results of the final two holes, PPD003PC and PPD005PC, following the successful completion of the 2019 drilling program at the Isaac River Coking Coal Project. While Vermont Upper seam in Hole PPD003PC indicated exceptional raw coal characteristics (raw ash of 10.2% and raw CSN of 8), the lower section of the Leichhardt seam results also suggests low ash high CSN coking coal.
The announcement follows the raw coal quality result from holes PPD001PC and PPD004PC (released on 3 July 2019), and that from PPD002PC and PPD002PC released on 24 June 2019.
Isaac River Coking Coal Project (MDL 444 and EPC 830)
The project is located immediately east of BHP Mitsubishi Allianceâs Daunia Mine and abutting Peabodyâs Moorvale West and Gundyer Projects. Drilling is ongoing at Isaac with an update released today.
On 11 March 2019, the company had announced positive results of the Concept Study for Stage 1 of the Isaac River Project, demonstrating a compelling business case.
Leichhardt seam (Rangal Coal Measures), 15 -142 m deep, was identified with 2.5 -5.5 m (average 4.7 m) thickness and potential for SHCC and secondary thermal coal or single PCI product. The Maiden JORC Resource estimate of 5.3 Mt (4.2Mt Indicated, 1.1Mt Inferred) for the Leichhardt seam was released. Vermont Upper seam was also found by BCB in 2019 from 25 m deep and 2.2- 3.5 m thick.
On 15 April 2019, Bowen Coking Coal announced the commencement of the drilling program at Isaac, targeted to finalise the project scope and fast track it through the permitting and development stage onto a final decision to mine. The Program comprised drilling 6 chip holes, 5 partly cored holes and several water monitoring holes at seven sites and expected to give a revised Resource Statement on the successful intersection of the targeted Leichardt Lower, Vermont and Girrah seams.
Going forward, Xenith Consulting would be managing the washability test and coal quality analysis process for the remainder of the program with McMahon Coal Quality Resources (MCQS) through SGS Australiaâs laboratory in Mackay. Resource estimation is also underway.
Other Projects
A brief overview of the companyâs other projects is given below.
Cooroorah Coking Coal Project (MDL 453)
It is located between Coronado Global Resourcesâ (ASX: CRN) Curragh mine and the Anglo, Marubeni and Sojitz-owned Jellinbah Mine. Following the Phase II of the drilling program at Cooroorah in Decâ18, the total Mineral Resource estimate (JORC compliant) was updated to 158 Mt (96 Mt Indicated, 62 Mt Inferred), as disclosed in February 2019.
This included the Mammoth seam resource, estimated to be 50 Mt (38 Mt Indicated, 12 Mt Inferred), reflecting an overall increase of 35% and a 172% increase in its Indicated category. Subsequent to the quarter ending, Bowen released a further resource upgrade for Cooroorah to 177Mt, following validation of historic exploration data that triggered a revised Resource estimate.
Mt Hillalong Coking Coal Project (EPC 1824, EPC 2141 and EPC 1860)
The Hillalong project is situated close to Rio Tintoâs Hail Creek Mine and Elphinstone Project in the Northern Bowen basin. Historical drilling and analysis at Hillalong had revealed good quality coking coal with an exploration target defined between 61 Mt - 409 Mt for both Open pit and Underground in the Rangal and Moranbah Measures. A drilling program is expected to commence in Q3 2019, to define a maiden JORC resource.
Comet Ridge Coking Coal Project
The project, acquired from Acacia Coal Limited (ASX: AJC), is located 60 km East of Emerald and 25 km South of the township of Comet and has 60 Mt JORC Resource shallower than 50 m deep. So far, around $7.5 million has been spent by the previous owners on the project and the project is currently under a strategic review.
Leadership Changes
Recently on 20 June 2019, the company announced the appointment of Mr. Michael McKee as Chief Operating Officer for an initial part-time engagement (eventually full-time). Mr. McKee is a seasoned mining professional with over thirty-five years of experience in operations with a strong track record of permitting and developing mines.
Earlier on 1 April 2019, Brisbane-based Mr Duncan Cornish was appointed as the Chief Financial Officer and Company Secretary, effective 1 May 2019. As the founding CFO and Company Secretary for both Stanmore Coal Ltd and Cokal (ASX:CKA), Mr Cornish joined Bowen Coking Coal with an extensive prior experience of over 20 years in the accountancy profession, in Australia as well as England.
Capital Raising of $ 1.7 million
In March 2019, Bowen Coking Coal announced the completion of a $ 1.7 million capital raising to Sophisticated and Professional investors through the issue of 82,340,453 shares at $ 0.021 each. Chairman Neville Sneddon and Non-Executive Director Nick Jorss also participated in the placement for $ 50,000 and $ 152,850 respectively, subject to shareholder approval. The funds raised were indicated to be directed towards fast-tracking the drilling and environmental studies at the Isaac River Project and commence maiden drilling at the Hillalong Coking Coal Project.
The cash balance as of 31 March 2019 stood at $ 3 million.
The highly experienced Board and management are aiming to grow the value of the companyâs coking coal projects to benefit shareholders by leveraging innovation and maximising the assets and network of the team. An aggressive exploration and development program underpins the business strategy with the following investment drivers.
Source: Investor Presentation
Stock performance
Bowen Coking Coalâs market capitalisation stands at around AUD 31.8 million with approximately 706.73 million shares outstanding. Today, on 15 July 2019, the BCB stock closed at AUD 0.045 with around 622,484 shares traded.
In addition, the BCB stock has delivered impressive return yields of 114.29% in the last three months and 125% YTD basis.
Recently, M Resources Pty Ltd and Matthew Latimore became a substantial shareholder in the company upon purchase of around 35,268,942 ordinary shares, translating into a voting power of 5%.
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