Australian Mining Prospect Awards Winners: Explorer of the Year

Resolve Coal has won the honour of being named Explorer of the Year in the 2014 Prospect Awards.

Resolve Coal has been developing the Hyde Park Coal Project, which resulted from a target generation exercise that was driven by some simple questions.

The junior explorer recognised an area within the Galilee Basin that may have lower strip ratios, indicated by structural analysis of the eastern margin of the basin.

Total Magnetic Intensity data also pointed to deeply buried granite, a potential source of higher heat flow and possibly higher ranked coal endowment.

Government drilling data from the 1970s and company reportage through the QLD DNRM on line systems were pivotal in this.

Drilling that was initiated in July 2013 has since turned out some excellent results.

By using a diverse suite of exploration methods, ranging from kinematic analysis, geological mapping to seismic interpretation, Resolve Coal came to the opinion that the Galilee Basin extended further to the east than was traditionally thought, and in testing this conclusion identified a prime coal exploration target area.

Exploration drilling confirmed this reasoning and a JORC compliant thermal coal recourse of 1.69Bt in the Permian Betts Creek Beds is the result. This discovery is the Hyde Park Coal Project.

Resolve pushed the basin margin substantially to the east, and estimated a JORC (2012) compliant indicated resource of 364Mt, and an inferred resource of 1.30Bt, at raw strip ratios of between 3 and 10.

The coal rank has proven to be higher than other Galilee projects, resulting in attractive potential revenues from higher energy thermal coal.

Resolve also have a new suite of exploration targets identified along the Galilee Basin's eastern margin, with the project adding to the growing momentum toward development in one of the world's premier new energy basins.

Hyde Park Coal Project is distinct from other coal projects in the Galilee basin and elsewhere in Australia through its size, coal rank, coal quality and potential ease of mining.

The Hyde Park Coal Project is now recognised as a Tier 1 deposit with the scoping study detailing robust returns and low technical risk.

Projections suggest an initial 60+ year open cut mine life at 10 million product tonnes per year.

A memorandum of Understanding has since been signed for 10Mtpa rail and port access at attractive rates, with the project being the closest Galilee Basin coal project to the Abbot Point Coal Terminal.

The Product Strip Ratio is estimated at 1:5 / 1:10, with coal wash yields 80 per cent higher on the initial 30 years of production prior to optimisation.

The product coal quality from the HPCP is among the best in the Galilee Basin.

Coal wash yields of more than 80 per cent have been observed on target bypass seams over initial 30 years of production prior to optimisation: Target product specifications; 5600Kcal/kg (NAR) 11% ash.

Coal quality analysis confirms a high volatile Bituminous B thermal coal using the ASTM coal classification.

There is considerable upside to this resource as approximately 50 per cent of the tenement remains undrilled. This is especially relevant in the north within EPC2050, where Resolve suspects the coal subcrops around the pivot point to the change in strike, from N-S to NW-SE.

This is supported by evidence from the drilling program, historic department drilling (Mirtna boreholes), and historic seismic lines that cross the area.  

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