Reserves and Resources

Following the award of the Block VI Exploration Licence additional drilling has been carried out to define the coal resource to JORC standards.

The original drilling was carried out by the China Northeast Geological Bureau (CNGB) and additional drilling was carried out by Dargo Associates to accurately define the coal resource in Block VI. Cored holes were drilled to recover coal and overburden samples for testing and all holes were geophysically logged.

The coal resource was defined in compliance with the JORC Code and economic mining areas defined by strip ratios and pit optimisation programmes. Additional coal samples were recovered for testing. The in-situ coal for Block VI was confirmed as 1.4 billion tonnes and the coal resource for the Phase One and Two mining areas was assessed at 529 million tonnes, as shown in the table below.

Mineral Resources Tonnage Moisture AR RD Gross AR CV Ash AR Sulphur AR
  (Mt ) (%)   (kcal/kg) (%) (%)
Measured 151 48.00 1.15 3,025 5.10 0.60
Indicated 308 45.30 1.15 3,257 5.60 0.91
Subtotal 459 46.19 1.15 3,181 5.44 0.81
Inferred 70 45.40 1.15 3,193 8.90 1.58
Total 529 46.08 1.15 3,182 5.89 0.91

Source: SRK Consulting