AUS
NZ
UK
CA
USA
IND
Summary
- Bowen Coking Coal has recently completed a maiden exploration program at its Hillalong Coking Coal Project.
- Highly encouraging washability and coal quality results have been received from the drilling program that indicates the potential for high-quality coking coal at outstanding yields.
- The potential to produce various coking coal products has also been confirmed through early assessment, which offers significant flexibility while maximising profitability.
- In some areas of the resource, results have indicated the potential to wash 10.5% ash coking coal with CSN up to 8 at laboratory yields as high as 93%.
- BCB has finalised the design of Phase 2 of the exploration plan at Hillalong and is progressing discussions with Sumitomo.
Coking coal explorer with advanced exploration and development assets, Bowen Coking Coal Limited (ASX:BCB) had recently completed its maiden exploration program at the Hillalong Coking Coal Project. The project spans over 99 km2 and comprises EPC 1824 and EPC 2141 which is presently the subject of a farm-in agreement with Sumitomo Corporation (10% interest), which is anticipated to be converted to a formal Joint Venture.
Interesting Read: Bowen Coking Coal Limited’s Stance in Changing Scenario for Global Coal Market
BCB Reports Impressive Washability And Coal Quality Results
Off late, BCB has reported washability and coal quality results from the maiden exploration program at the Hillalong Coking Coal Project, which validates the potential for high-quality coking coal at excellent yields in the area.
Moreover, the early assessment also validated the potential to produce various coking coal products, depending on demand drivers at the time. This offers significant flexibility for the Company while maximising profitability.
Notably, the washability results from four holes unaffected by intrusions have demonstrated the potential to produce the following:
- Single primary coking coal with 10.5% ash at an average yield of 84% over the deposit for Elphinstone seam.
- High-quality, 8.5% ash primary coking coal product with a secondary high energy thermal coal at a combined yield of 87% at the Hynds Upper.
Source: ASX Announcement 28 August 2020
Interesting Read: Bowen Coking Coal Fresh Acquisition in Central Bowen Basin, Receives Commitments for $2.25 million Capital Raising
Interestingly, an average of the vital quality parameters of the drill holes that didn’t come across any heat-affected coal is presented in the above table. In some areas of the resource, results have indicated the potential to wash 10.5% ash coking coal with CSN up to 8 at laboratory yields as high as 93%. BCB is encouraged with the extremely positive washability and coal quality results from the exploration program.
Potential To Produce, Post Washing, Low Ash, High CV Energy Coal
Previously, BCB came across heat-affected coal in differing degrees through two drill holes in the Hynds Upper seam, which is one of the main target seams. However, intrusions were more commonly encountered in the lower, secondary target seams.
Notably, the ability to produce, post washing, low ash, high CV Energy coal was still demonstrated by the heat affected coal. This is summarised below:
Heat affected coal from the Hynds Upper seam and Hynds Middle seam (Source: ASX Announcement 28 August 2020)
The washability tests are designed to test coal qualities and coal yields at different densities. This would further help the Management in ascertaining the ideal beneficiation strategy, intended to create a maximum return from the raw coal mined. Further, the way the coal may possibly be washed in a typical wash plant, similar to those plants operating in the immediate area is simulated once the results are uploaded into a comprehensive model.
The recently reported washability tests were conducted on the coal samples taken during the recently completed 27-site drilling program at Hillalong North. Xenith Consulting has estimated a total maiden resource of 43 Mt in accordance with the JORC Code. Out of this, 19.5 Mt is shallower than 150 m deep, a typical depth cut?off for open-cut resources at the area.
Significantly, the resource area that is still open in both the East and South Westerly directions presents opportunities to expand on the existing maiden resource estimate.
To date, the exploration program at Hillalong North covered less than 10% of the surface area of the total project. Hillalong North is said to be the most prospective target area, stemming from historic Rio Tinto drilling data.
Did you read: Bowen Coking Coal Discloses Final Raw Coal Quality Results From Isaac River Project
Presently, BCB has completed designing of Phase 2 of the exploration plan at Hillalong and is currently progressing discussions with Sumitomo. These discussions pertain to the formalising the Joint Venture as well as Sumitomo’s right to fund a further $5 million to gain an additional 10% of the Hillalong Project, bring the total interest to 20% in the project.
On 1 September 2020, BCB share price was quoted at $0.054 (AEST: 01:38pm) with a market capitalisation of $45.83 million.
