Moreton Resources says there is another coal in its Kingaroy deposit to sustain a “30-plus year” coal mine.
The company released the results of its Mine Concept Study for its proposed coal mine near Coolabunia to the ASX today.
CEO Jason Elks said the average production would be 5 million tonnes per annum, which exceeded Moreton’s expectations.
The all-important strip ratio was approximately 7:1 (ie 7 tonnes of waste to one tonne of coal), which again exceeded the company’s expectations.
Mr Elks has previously stated that the mine would be targeting selling coal to the nearby Tarong power stations.
“Preliminary coal quality analysis and washability tests have indicated it is likely that the company can achieve an average ash content of below 28 per cent, which was the published cut-off in 1984 for feed stock to Tarong Power Station,” Mr Elks said.
An independent consultant would now be engaged to review these coal quality results.
“The Board and Management believe the Kingaroy project has potentially compelling commercial advantages that continue to become apparent at each stage of this process,” Mr Elks said.
“Therefore the company will now make approaches to potential partners that could benefit from this, including the appropriate levels of government, the existing owners and potential future owners of the Tarong Power Generation assets.
“The company will also now seek to engage with the broader community and stakeholders in seeking support for this project, while acknowledging this is still a contemplative prospect.”