COALWORKS LIMITED - ASX: CWK

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Description

Coalworks is a growing, ASX listed energy company focused on building an inventory of large coal assets in world class coal provinces and bringing them into production and profitability.

Oaklands Project

Coalworks' flagship project, the Oaklands asset in southern New South Wales, covers 54 square kilometres and has a measured, inferred and indicated thermal coal JORC resource of 822 million tonnes.The total JORC resource includes:

* 121 Million tonnes Measured resources (calculated in accordance with the JORC Code);
* 572 Million tonnes Indicated resources (calculated in accordance with the JORC Code); and
* 129 Million tonnes Inferred resources (calculated in accordance with the JORC Code).

Vickery South Project

Coalworks is set to add more thermal and coking coal to its asset base from the Vickery South area near Gunnedah. Coalworks submitted a successful Expression of Interest Tender to the NSW Dept of Primary Industries and, as a result, the Vickery South EL is to become an exploration licence owned by Coalworks (Vickery South ) Pty Ltd, a 100% owned subsidiary of Coalworks. Based on a review by the company’s geologists of existing drill hole and other data, a resource target of 50 to 70 million tonnes of semi soft coking coal and high quality export thermal coal is the current objective. The deposit is south of Whitehaven’s Canyon Mine and is in a sought after mining province. Rail is available in the area which already takes Whitehaven’s coal to the Port of Newcastle. Now that the exploration licence has been granted, a drilling program will be scheduled to commence.

Hodgson Vale Project

Coalworks has completed a 5 hole drilling program which tested the potential to the south of the northern area for significant underground coal resources at depths of over 150m. The first 2 holes drilled in the mid eastern portion of the EPC failed to intersect coal although the third hole did intersect two 0.5m thick bands of coal from 124m. Further drilling has resulted in two final holes intersecting approximately 6 to 8 metres of cumulative coal closer to the northern area but deeper suggesting that further drilling is required to understand seam geometry. Key hurdles for development will be resource establishment, coal processing tests to produce a marketable product, addressing the proximity to local dwellings and securing access to port loading capacity. Coal analysis performed by previous tenement holders predicted that the coal is a hard, black coal having an in situ ash content of 40%+ (inherent moisture up to 15%). Sulphur is typically 0.5% to 0.7%. Washing will possibly reduce ash and sulphur to improve the product. The calorific values of the coal range from 22 - 24 MJ/Kg which indicates potential for sale as a medium grade steaming coal should an economic resource be found.

Ashford Project

Coalworks owns the Ashford Limestone Deposit under EL 6511 (NSW). Past geological investigation indicates that the deposit contains exceptionally high quality limestone. If the quality of the limestone is confirmed by Coalworks then the construction of a process plant and mine is planned capable of producing GCC. Alternatively, a conventional lime plant can produce lime products for cement and other industries, subject to economic viability. Coalworks plans technical studies aimed at producing a flow sheet and progressing the studies to bankable feasibility stage on the basis of the existing limestone resource with special emphasis on the market for GCC and other value added limestone products. In the south of Coalworks's EL area previous work by a former tenement holder company Kallangur Lime Pty Ltd in 1989 suggests the limestone could also be used for decorative aggregate, glass manufacture and whiting manufacture. The decision to proceed with a process plant and mine will only be made following completion of a bankable feasibility study. This study would contain expected capital and operating costs as well as the expected revenue that might be derived from the quality of the lime. A key component of this study would be the quality assessment and expected market price based on that quality. The study would contain a sensitivity study showing expected investment returns and viability applicable to various grades of limestone. In 2009, a drilling program was completed and a review of the potential quality required to produce Ground Calcium Carbonate (GCC) was undertaken. Industrial mineral consultants advised that the grades obtained were sufficient to achieve brightness specifications for selected GCC products. Other products were also considered, whether as a primary product or a by-product to GCC production.

Mine For

coal, limestone

Location of operation(s)

New South Wales, Queensland

Address

Level 5, 44 Miller Street
NORTH SYDNEY, NSW, AUSTRALIA

Phone

(02) 9922 1344

Email

Website

http://www.coalworks.com.au/

Last Updated

28/04/2010