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APPENDIX III COMPETENT PERSON’S REPORT CLIENT PROJECT NAME COMPETENT PERSON REPORT DRAWING DONALDSON STRATIGRAPHIC COLUMN Figure No. PROJECT No. Date DO NOT SCALE THIS DRAWING - USE FIGURED DIMENSIONS ONLY. VERIFY ALL DIMENSIONS ON SITE 5-15 ADV-BR-11019 November 2018 – III-78 – APPENDIX III COMPETENT PERSON’S REPORT 6361000N 6363000N 367000E 362000E 363000E 6364000N 364000E 365000E 368000E 366000E 6362000N 150RL 150RL 100RL 100RL 50RL 50RL 0RL 0RL -50RL -50RL -100RL -100RL -150RL -150RL -200RL -200RL -250RL -250RL -300RL -300RL -350RL -350RL -400RL -400RL -450RL -450RL SECTION A - A’ 6362000N 364000E 365000E 6364000N 366000E 6365000N 6363000N – III-79 – – III-79 150RL 150RL PLY LEGEND 100RL 100RL UDA1 GT UDA2 50RL 50RL GU UDB11 GL UDB12 GB UDB21 0RL 0RL FA1A UDB22 FA1B UDC11 FA21 UDC12 -50RL -50RL FA22 UDC21 FB1 UDC22 FB2 LDA11 -100RL -100RL FC1 LDA12 FC2 LDA21 B’ FC3 LDA22 -150RL -150RL A FD1 LDB1 FD2 LDB21 NOA LDB22 -200RL -200RL NOB LDB3 DUA LDC1 DUB LDC2 -250RL -250RL YD LDR BH BBA1 BD BBA2 -300RL -300RL SGA11 BBB1 SGA12 BBB2 B SGA21 BBB3 -350RL -350RL A SGA22 BBC1 ’ SGA3 BBC2 SGA4 BBLA1 -400RL -400RL SGB1 BBLA2 SGB2 BBLB1 SGB3 BBLB2 -450RL -450RL SGC1 ASA1 SGC2 ASA2 Sections are Vertically exaggerated at 3:1 for illustrative purposes SGC3 ASB11 UBA1 ASB12 SECTION B - B’ UBA2 ASB21 UBB1 ASB22 UBB2 ASB3 UBC ASC1 LBA11 ASC2 LBA12 SDA LBA2 SDB LBB1 RAA1 LBB2 RAA2 LBC RAB1 BEA RAB2 BEB1 RAB3 BEB2 RAC SECTION LOCATIONS BEC RAD CLIENT PROJECT NAME COMPETENT PERSON REPORT DRAWING Topography DONALDSON TYPICAL CROSS SECTIONS Base of Weathering FIGURE No. PROJECT No. Date 5-16 ADV-BR-11019 November 2018 APPENDIX III COMPETENT PERSON’S REPORT 5.7 Middlemount Regional Geology The Middlemount deposit is located in the central region of the Bowen Basin which covers an area of approximately 200,000 sq.km, Figure 2.3. The Basin consists of a sedimentary sequence of Permo-Triassic clastic sediments with a maximum thickness of 9,000m which are divided into number of tectonic units comprising north north-west to south south-east trending platforms or shelves that are, separated by sedimentary troughs. Regionally, the stratigraphic sequence consists of the Permo-Triassic sediments, overlain by a thin covering of unconsolidated Quaternary alluvium and colluvium, poorly consolidated Tertiary. The Permian Blackwater Group coal measures and associated over- and interburden are located below the Triassic strata and overly the Back Creek Group, the basement. Local Geology The Middlemount resource contains the coal seams of the Rangal Coal Measures and Burngrove Formation of the Blackwater Group. The target seams within the resource consist of the Roper, Middlemount, Tralee and Pisces Upper seams (in descending order) which belong to the Rangal Coal Measures, while the Pisces Lower and Girrah seams belong to the Burngrove Formation and are not considered to have economic potential based on current studies. Overlying the Rangal Coal Measures are alluvial sediments, inferred to be Tertiary in age, with a thickness of up to 30m. The depth of weathering averages 45m, ranging from 20m in the southeast to over 60m in the central and northern areas of ML70379. The Middlemount and Pisces seams have been subjected to the majority of the exploration mining works. The Middlemount seam averages 4.0m thick in the area west of the Jellinbah Fault, ranging from less than 2 to over 7 m. The Middlemount Upper working section is a high ash section that is present over most of the Middlemount area – the exception is in the north, where it is less than 0.3m thick. The top section of the Middlemount Lower Section is predominantly dull with some bright banded coal with an average raw coal CSN average of 1 to 1.5. The base section of the Middlemount seam has more bright coal than the top section and the average raw coal CSN is 4 to 5. The Tralee seam underlies the Middlemount seam. At Middlemount, it ranges in thickness from 0.5 to 1.0m when it occurs just below the Middlemount seam (within 10m). The Tralee seam is divided into three working sections (TL1, TL2T and TL2B, top down) and similar to the Middlemount Lower seam the working section division is predominantly based on coal brightness. Where the seam splits further from the Middlemount seam, the Tralee seam thins to usually less than 0.3m. The Pisces Upper seam averages 4.8m thick in the area west of the Jellinbah fault, ranging from 2 to over 6 m. Thickening and thinning of the seams is interpreted to be the result due to the same structural effects as noted for the Middlemount seam, while intersections outside this range were similarly excluded from the coal thickness model. The Pisces Upper seam is divided into three working sections (PUT, PUM and PUB, top down) and similar to the Middlemount Lower seam the working section division is predominantly based on coal brightness. The Middlemount Seam is stratigraphically equivalent to the Leichhardt seam or Elphinstone seam of the Northern Bowen Basin, or the Pollux Seam of the Central and Southern Bowen Basin and the DU and D seam of the south-eastern Bowen Basin at Moura. The Pisces Seam is the stratigraphically equivalent to the Vermont or Hynds Seam of the Northern Bowen Basin and the E seam of the south-eastern Bowen Basin at Moura. The RPM Competent Person is familiar with the characteristics of the Middlemount and Pisces seams throughout the Bowen Basin. – III-80 – APPENDIX III COMPETENT PERSON’S REPORT Figure 5-17 Middlemount Section showing coal seam stratigraphy The potential open cut coal area strikes north-northwest and dips to the east at between 3- and 7-degrees; the deposit is approximately 7km long and 2km wide. The resource is limited to the east by the Jellinbah Fault; a major regional thrust fault which is oriented north-northwest and has displacement greater than 300m. This fault is located close to the boundary of ML70379 and ML 70417. The coal seams of the Rangal Coal Measures crop out to the west of the Jellinbah Fault, where the majority of the coal exploration has been completed. The strata present on the eastern or upthrown side of the Jellinbah Fault are from the Burngrove Formation, which are becoming visible in the highwall of the mining excavation. Figure 5.17 shows a typical long section through the Middlemount resource area. Exploration drilling and mining has identified that the deposit is complicated by localised thickening of seams in the vicinity of faults. Other than the Jellinbah fault, the deposit contains small-scale (<10m) normal and thrust faults, which is evidenced by the thickened and thinned Middlemount and Pisces seam intersections and by the changes in structural elevations between boreholes. – III-81 – APPENDIX III COMPETENT PERSON’S REPORT 6. Data Verification RPM completed a review of the geological and digital data supplied by the Client to ensure that no material data issues could be identified and that there was no cause to consider the data inaccurate or not representative of the underlying exploration results. RPM visited the Assets at HVO/MTW assets in March, 2017 and the reminder of the assets in April 2018 and reviewed the Assets operations. RPM concluded that the geological data was adequately acquired, validated and managed in databases according to a range of good to industry best practices as outlined below. 6.1 HVO / MTW Bore Hole Data Geological data acquisition has been ongoing in the MTW and HVO areas since 1949 when the Joint Coal Board commenced exploration in the MTW area. Exploration activity increased in the late 1960s and 1970s in response to increasing world energy consumption and demand for both thermal and metallurgical coal, with the Howick Mine commencing operations in 1968, closely followed by the Lemington Mine in 1971 and the Hunter Valley No. 1 operation in 1979. Mt Thorley and Warkworth Mines commenced operations in 1981. The long history of HVO has led to the utilisation of a number of different data and planning practices and in particular seam correlations between the Howick, Hunter Valley and Lemington mine sites. During 2007, Minescape software was introduced to HVO as the preferred tool for technical mine planning functions, including geological database and geological modelling. A GDB borehole database called HVO was created from Minex seam interval data, with “stone” used to designate non-coal units within boreholes. Geological data acquired since 2007 was loaded with all detail into the HVO GDB database. It became apparent to the Company’s antecedent (previous owner) that significant proportions of pre 2007 geological data had not been uploaded into GDB and / or was unsuitable for geological model development and could not be easily validated compared to the original primary data. As a result, the Company’s antecedent referred to all exploration data acquired prior to 2007 as legacy data. The Company’s antecedent undertook a project referred to as the ‘Hunter Valley Legacy Data Project’ between mid-2013 and October 2015 whereby all legacy data for HVO was converted from non-digital to digital format, validated and added to the HVO geological database. The MTW operation transitioned to Minescape software in 2006, with all legacy data being validated and uploaded to the GDB database by the end of 2006. RPM considers that the ‘Legacy Data Project’ has achieved a significantly complete geological data set which now can be used with a high level of confidence for geological modelling and Resource estimation. RPM is aware that the Company’s antecedent completed a significant tranche of work in 2015 whereby seam nomenclature and correlation was standardized for the Jerrys Plains and in particular the Vane Subgroup across the Howick, Hunter Valley and Lemington areas.