Bowen Coking Coal Limited (ASX: BCB) operates as a mineral exploration company. The Company explores, acquires, and develops a portfolio of coking coal projects. Bowen Coking Coal serves offers its services in Australia.
The company, today on 11 March 2019, has come up with an update on the outcome of the Concept Study (the “Study”) for Stage 1 of its 100% owned Isaac River Coal Project (MDL 444) (the “Project”) located immediately to the East of the BHP Mitsubishi Alliance’s Daunia Mine in the Bowen Basin, Central Queensland.
Following the release of the first Resource estimate for the Project in November 20181, the Company engaged Xenith Consulting to conduct a Concept Study on the Leichhardt seam only, referred to as Stage 1. Historic exploration confirmed that the Project hosts various coal seams which are currently being mined by adjoining operations, however, coal quality data is only available for the Leichhardt seam.
The key focus areas of the Study covered mine planning, operating cost, capital expenditure, and product optionality. The positive outcome of the Study encourages the Company to advance the Project into the next phase of project development and supports additional drilling to obtain fresh coal samples to test the coking properties of all the seams. The site is drill ready, and the planned drilling and exploration activities are likely to be followed by a revised resource estimate, and subsequently the undertaking of Stage 2 of the Study. This will include modelling of the extraction of the lower seams, which are regionally known for their good coking properties, and the incremental impact on capital required.
The Company is delighted with the Study outcome for Stage 1 of the Isaac River Coal Project. The Study demonstrated a positive business case for the first stage, which supports the upcoming exploration program to test the Stage 2 targets and to obtain more data in order to increase the confidence level and potentially optimise the business case in moving towards project development.
Stage 2 of the Project is drilled ready, and the Company anticipates commencing drilling by the end of March 2019, pending the availability of the contracted drill rig.
The Company has also engaged a specialist Environmental consulting company to commence the necessary environmental studies aimed at fast-tracking the development and permitting of the Project.
On the price-performance front, the stock has posted return of 17.65% over the past six-month period. At the time of writing (11 March 2019, AEST 04:00 PM), the stock of the company is trading at a price of $0.020 with a market capitalization of ~$ 12.11 Mn. The stock opened the day at $ 0.021, which was also the day’s high and touched the day’s low of $ 0.020, with an average daily volume of ~ 4,938,641. It had a 52-week high price of $ 0.026 and a 52 weeks low price of $ 0.012, with an average volume of, 2,567,585 approximately.
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