Blackham Resources and Wesfarmers Premier Coal Ltd have confirmed the presence of 700 million tonnes of brown coal at the Scaddan lignite deposit.
The deposit is located approximately 60 km north of the town and port of Esperance in Western Australia.
The Project is also less than 7 km from Esperance Kalgoorlie highway and railway line.
The resource estimate is on a 60% moisture basis and an approximate relative density of 1.2. No thickness or quality cut-offs were applied to the deposit due to the range of ash values being within the required definition of lignite and the deposit having reasonable prospects for eventual economic extraction as outlined in the Australian “Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves.”
An estimate of Inventory coal was also prepared totalling an additional 200 to 300 million tonnes.
This inventory has not had sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.
The current estimate compares favourably with the previously reported resource by Wesfarmers Premier Coal Limited of 668 million tonnes and 187 million tonnes of coal inventory.
Exploration drilling, to find and define the lignite deposit at Scaddan, required a total of 1,413 boreholes, 201 of which were diamond cored and 1,212 drilled as open holes.
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