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Cuesta Coal Limited (ASX:CQC) is pleased to announce it has completed its exploration activities at the Moorlands Deposit (EPC 1738) located at the Company's 100% owned West Bowen Project in the Western Bowen Basin, Queensland.
Completed Work in 2012
Since the commencement of the 2012 exploration activities, a total of 18 open PCD holes and 6 partially cored 100mm holes have been completed and geophysically logged (Table 1 and 2).
Coring activities (Figure 1, 2, 3) have been focussed in the open cut target area to obtain detailed coal analysis for six (6) individual coal seams, namely B4, B6, B7, B8, B9 and B10. As per a recent announcement dated 18 October 2012, coring has confirmed geophysical logs, that the B8 and B9 seams are of primary importance, being 8m - 12m and 3m - 4m thick respectively (Figure 3).
Cuesta also completed down hole optical scanning of the coal seams on 10 holes to substantiate structural patterns and to photograph the seams and stratigraphy for input into the revised 3D geological model. Together with the coal quality analyses and other data once completed, Cuesta will immediately progress to undertake a scoping study for potential open pit mining.
Remaining Planned Work for 2012
The proposed open cut target area will consist of the B4, B6, B7, B8, B9, B10 and the Monteagle Seam and the revised resource estimate will be conducted upon the receipt of coal quality data.
Once the revised resource estimate has been finalised, mine scoping studies will commence to determine the project economics prior to further exploration activities including step out and infill drilling in 2013.
A longer term underground opportunity is present to the immediate south of the open cut target area; however the Company intends to focus on the open cut area to fast track production activities.
The Company is also finalising a study on additional credible target areas in close vicinity of the Moorlands Deposit that have previously been untested. Should additional coal measures be identified, they could enhance the overall project scale and future economics.
Cuesta Coal's Managing Director, Matt Crawford said:
"Cuesta is very encouraged by the progress made at the Moorlands Deposit for the 2012 drill season. This is the third exploration program that our technical team has successfully completed this year.
"The thick seams and close proximity to the surface of the Moorlands Deposit open cut target area reinforces the view of the Board and Management that the project should be the key focus for the Company. It is envisaged that the project can be fast tracked into production as a small scale, low cost thermal coal operation delivering early cash flows to the Company.
"The program was completed without incident to personnel or the environment and Cuesta remains committed to a high standard on health and safety and environment.
"We look forward to updating our shareholders on the revised resource estimate and additionally the Yellow Jacket Project drilling activities."
About the West Bowen Project
The West Bowen Coal Project stretches over an area of 1,000km2 and is located 25km West of Clermont, Queensland. It consist of EPC 1738 and 1891 and EPCA 2008, which sit in close proximity to the Rio Tinto Blair Athol Open Cut Coal Mine which has operated since 1984 and produced up to 12Mt of thermal coal per annum.
Cuesta's Inferred Mineral Resource of 39.5Mt in accordance with the JORC code (2004) guidelines is located within EPC 1738, known as the Moorlands Deposit. This resource is contained within a discrete Permian sub-basin situated approximately 14km northwest from the Blair Athol Mine.
Cuesta is conducting detailed geological desktop assessments to identify additional coal bearing targets to the Moorlands Deposit, primarily in EPC 1891 with an aim to conduct scout drilling in 2013.
To view the complete Cuesta Coal announcement including Tables and Figures, please click the link below: