1st Sep 2008 07:00
Altona Resources Plc / Index: AIM / Epic: ANR / Sector: Exploration & Production
1 September 2008
Altona Resources Plc ('Altona' or 'the Company')
JORC Compliant Coal Resource Estimate of 1.287 billion Tonnes at Wintinna Coal Deposit
Relates to 25% of Area covered by Wintinna Deposit
Altona Resources Plc, the AIM listed Australian based energy company, announces a JORC compliant Coal Resource Estimate of 1.287 billion tonnes at its Wintinna Coal Deposit, located in the Arckaringa coalfield of South Australia.
Wintinna coal is proposed as the feed source for the Company's Arckaringa Coal to Liquids ('CTL') and Power Project (the 'Arckaringa Project'). The Coal Resource Estimate relates to only 25% of the area covered by the known Wintinna deposit and specifically evaluates the main area targeted for coal extraction by open cut methods.
The Coal Resource has been estimated in compliance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') by independent consultants, McElroy Bryan Geological Services (MBGS) of Sydney, New South Wales. The Coal Resource Estimate comprises 187 million tonnes in the Measured Category, 650 million tonnes in the Indicated Category and 450 million tonnes in the Inferred Category. Details of the Coal Resource Estimate on a depth basis are contained in the following table:
Wintinna Resources by Depth as at 31 July 2008
|
Depth Range (m)(1) |
Tonnes (mt) |
|||
|
Measured(2) |
Indicated(2) |
Measured and Indicated |
Inferred(2,3) |
|
|
0-150 |
0.42 |
2.17 |
2.59 |
- |
|
150-200 |
125.81 |
195.49 |
321.30 |
75.55 |
|
200-250 |
60.85 |
434.05 |
494.90 |
327.17 |
|
250-300 |
- |
19.24 |
19.24 |
78.06 |
|
Total |
187.08 |
650.95 |
838.03 |
480.78 |
|
Total (rounded) |
187 |
650 |
837 |
450 |
Notes
No resources below 300 meters or above the Algebuckina Sandstone (JUA)
Polygon areas (km 2)= Measured - 6.6, Indicated - 21.4 and Inferred - 18.7
All resources are within 5-10 Strip Ratio (BCM) except an area (3km2) in the Inferred polygon to the south east
Default density of 1.25 g/cc used where density grids do not exist
Minimum seam thickness of 0.5metres
Resource totals rounded in accordance with the JORC Code 2004
The Coal Resource Estimate of 837 million tonnes in the Measured and Indicated categories significantly exceeds the target objective of 700 million tonnes previously announced for the Company's recently completed field drilling programme. This programme was a cornerstone of Altona's Pre-Feasibility studies into the Arckaringa CTL and Power Project.
Altona Managing Director, Chris Schrape, said: "We knew from past exploration results that Wintinna is a substantial energy bank and we can now confidently report according to 'JORC' standards that there is enough economic coal of suitable quality to support a high value adding CTL and co-generation power plant for 50 to 100 years or more. The Coal Resource Estimate complements the Company's decision to proceed to the final stage of its Bankable Feasibility Study for the Arckaringa Project".
Details of the Coal Resource Estimate on a seam by seam basis are contained in the attachment, together with a description of the geology, coal quality and recent drilling programme.
The information contained in this announcement has been reviewed by Norman Kennedy, the Technical Director of the Company. Mr Kennedy holds a Bachelor of Science from the University of NSW, and is a Member of the Australian Institute of Mining and Metallurgy. Mr Kennedy has more than five years' experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a competent person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves. Mr Kennedy consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
***ENDS***
For further information visit www.altonaresources.com or please contact:
|
Christopher Lambert |
Chairman |
Tel: +44 (0) 207 024 8391 |
|
Christopher Schrape |
Managing Director |
Tel: +61 (0) 417 984 434 |
|
Hugh Oram |
Ambrian Partners Limited |
Tel: +44 (0) 207 634 4705 |
|
Victoria Thomas |
St Brides Media & Finance Ltd |
Tel: +44 (0) 207 236 1177 |
Notes to Editors:
About Altona
Altona Resources Plc is an Australian based energy company that listed on the AIM market of London Stock Exchange in March 2005. Altona's primary focus is the completion of a bankable feasibility study for its wholly owned Arckaringa Project for an integrated 10 million barrel per year Coal to Liquid ('CTL') plant manufacturing diesel and jet fuel with a 560 MW co-generation power facility.
The Company holds, through its wholly owned subsidiary Arckaringa Energy Pty Ltd, a 100% interest in three exploration licences covering 2,500 sq. kms in the northern portion of the Permian Arckaringa Basin in South Australia. These include three coal deposits, Westfield (EL3360), Wintinna (EL3361) and Murloocoppie (EL3362). All three lie close to the Adelaide to Darwin railway and the Stuart Highway. Containing more than 7.5 billion tonnes of coal (based on previous JORC equivalent standards) these coal deposits are effectively one of the world's largest undeveloped energy banks, capable of conversion into clean liquid fuels, low cost power and high value industrial feedstocks.
About Coal-to-Liquids (also see www.altonaresources.com)
CTL is a proven technology which converts coal into more environmentally clean and manageable energy sources including gas and synthetic fuels. The process involves two major stages, gasification to produce synthetic gas ("Syngas") rich in hydrogen and carbon, and a liquefication stage where the Syngas is reacted over a catalyst to produce high quality, ultraclean synthetic fuels and chemical feedstocks.
CTL is a prime example of clean coal technology - the associated combined cycle units produce negligible sulphur oxides, significantly less nitrogen oxides and 10 - 20% less CO2 per unit of power generated than a conventional coal fired plant, whilst carbon capture and storage offers the potential to reduce the overall greenhouse gas emissions from CTL to below the "well to wheel" level of fuels derived from crude oil.
The technology is best demonstrated in South Africa, where currently 30% of the country's gasoline and diesel fuel needs are met through CTL plants.
JORC Compliant Coal Resource Estimates Wintinna Coal Deposit South Australia
A resource of 1.287 billion tonnes of coal has been estimated in compliance with the 2004 JORC Code by independent consultants, McElroy Bryan Geological Services (MBGS) for the Wintinna Coal Deposit located in the Arckaringa Coalfield of South Australia. The resource comprises 187 million tonnes in the Measured Category, 650 million tonnes in the Indicated Category and 450 million tonnes in the Inferred Category. Details of the resource estimates on a seam by seam basis are contained within the following table:
Wintinna Resources by Seam (as at 31st July 2008)
|
Seam |
Av. Seam thickness (m)(5) |
Av. Density (g/cc)(4) |
Av. Raw Ash (%) |
Tonnes (Mt) |
|||
|
Measured(2) |
Indicated(2) |
Measured and Indicated |
Inferred(2,3) |
||||
|
Isolation |
3.39 |
1.23 |
5.1 |
11.48 |
94.93 |
106.41 |
46.16 |
|
Perentie Upper |
0.80 |
1.27 |
8.4 |
5.55 |
16.76 |
22.31 |
8.91 |
|
Perentie |
2.95 |
1.23 |
4.7 |
25.94 |
79.52 |
105.46 |
61.38 |
|
Goorikiana Upper |
0.69 |
1.37 |
16.0 |
1.51 |
11.30 |
12.81 |
7.77 |
|
Goorikiana |
2.30 |
1.25 |
5.9 |
22.06 |
52.52 |
74.57 |
49.27 |
|
Mirackina 2 |
1.40 |
1.30 |
10.2 |
11.72 |
35.80 |
47.52 |
28.16 |
|
Mirackina 1 Upper |
0.83 |
1.28 |
8.4 |
4.23 |
21.74 |
25.97 |
20.46 |
|
Mirackina 1 Lower |
0.68 |
1.27 |
8.1 |
2.08 |
16.23 |
18.32 |
15.46 |
|
Arckaringa Upper |
3.01 |
1.24 |
5.6 |
25.38 |
85.20 |
110.59 |
65.01 |
|
Arckaringa Lower |
3.04 |
1.25 |
5.7 |
26.49 |
84.81 |
111.30 |
63.84 |
|
Mt Barry |
1.97 |
1.23 |
4.3 |
16.12 |
50.16 |
66.28 |
48.79 |
|
Nilkinina Upper |
0.94 |
1.27 |
7.7 |
8.08 |
25.68 |
33.76 |
20.56 |
|
Nilkinina Lower |
0.94 |
1.27 |
7.9 |
8.04 |
25.70 |
33.74 |
20.55 |
|
Waddikee Upper |
0.97 |
1.28 |
9.0 |
8.95 |
25.82 |
34.78 |
17.21 |
|
Waddikee Lower |
1.00 |
1.29 |
10.1 |
9.45 |
24.77 |
34.22 |
7.26 |
|
Total (Mt) |
187.08 |
650.95 |
838.03 |
480.78 |
|||
|
Total (Mt) (rounded) |
187 |
650 |
837 |
450 |
|||
Notes
No resources below 300 meters or above the Algebuckina Sandstone (JUA)
Polygon areas (km 2) = Measured - 6.6, Indicated - 21.4 and Inferred - 18.7
All resources are within 5-10 Strip Ratio (BCM) except an area (3km2) in the Inferred polygon to the south east
Default density of 1.25 g/cc used where density grids do not exist
Minimum seam thickness of 0.5metres
Resource totals rounded in accordance with the JORC Code 2004
The estimated resources lie wholly within EL3361 which has been granted to Arckaringa Energy Pty Ltd, a wholly owned subsidiary of Altona Resources. During 2007-08 Altona Resources drilled 22 new drill holes for additional resource definition and coal quality (bulk sampling) comprising 6 large diameter (200m), 14 cored drill holes (HQ - 63mm) and 2 non-core (100mm).
A geological model was built over the whole area where drillholes existed (~200 km2) however resources were only estimated within a 50km2 area (model area). The geological database comprises 142 drill holes in total, with 27 of those drill holes falling outside the model area to the south and east. Outside the model area drill hole spacing extends up to 6km apart and seam correlation, continuity and subcrop becomes less reliable. Within the model area there are 115 drill holes, 14 of which did not intersect any coal.
Coal seams at Wintinna are Early Permian in age and occur within the Upper Mt Toondina Formation. Seams dip shallowly at 2° - 3° to the east south-east and are overlain unconformably by the Jurassic Algebuckina Sandstone. This surface has been modelled and used as the effective base of weathering.
The stratigraphy of the Wintinna deposit comprises 8 target seams which frequently combine and split through the deposit. Cumulative coal thicknesses range from 15 metres to 26 metres with individual seams ranging from 0.5 metres thick up 6.7 metres thick.
Wintinna raw coal quality is typical of a sub-bituminous, low rank (high in situ moisture) coal from the Arckaringa Basin South Australia, but is considered suited for power generation or for conversion into Syngas and thence to Liquid Fuels using available technologies.
Wintinna Typical Raw Coal Quality
|
Quality Parameter |
As Received |
|
Total Moisture |
36.6% |
|
Raw Ash |
8.2% |
|
Volatile Matter |
23.6% |
|
Total Sulphur |
1.19% |
|
Chlorine |
0.03% |
|
Specific Energy |
17.1 (MJ/kg) |
|
Relative Density |
1.25 (g/cc) |
Source: A&B Mytec - "Wintinna Resource Coal Quality Review"
Glossary:
Ash - the unburnt inorganic residue that remains when coal is burned. It represents the bulk of the mineral matter or "dirt", in the coal. Coals with a high ash content are generally less suitable for utilisation than low-ash coals.
Chlorine - chlorine content of a coal is an indicator of salts which can be deleterious when being burnt.
Fixed Carbon - the content of non-volatile organic carbon.
Indicated Resource - that part of the total resource for which quantity and quality can be estimated with reasonable levels of confidence.
Inferred Resource - that part of the total resource for which quantity and quality can be estimated with low levels of confidence.
In Situ Coal - all the coal estimated to be in the ground, some of which may not be recoverable.
JORC Code - a code prepared by the Joint Ore Reserves Committee which sets out minimum standards, recommendations and guidelines for public reporting in Australasia of exploration results, mineral resources and ore reserves.
Measured Resource - that part of the total resource for which quantity and quality can be estimated with a high level of confidence.
Open Pit Mining - a mine worked at and from the surface.
Raw Ash - the mass of residue remaining after a percentage of the original coal sample, after heating the coal in a ventilated furnace in a laboratory.
Relative Density - the ratio of the weight of a given volume of coal to the weight of an equal volume of water. The relative density or a coal depends on its rank and the degree of mineral impurity, and is an essential factor in conversion of coal resources from units of volume to units of mass.
Resources - the part of the coal deposit for which there is a reasonable prospect for eventual economic extraction, as defined in the JORC Code. Not all of a resource may be economically minable.
Seam - layer of coal.
Specific Energy - the energy liberated by a coal on combustion.
Sub-Bituminous - type of black coal intermediate in rank between lignite and bituminous coal, usually dull and dark brown to black. It has a high inherent moisture content and low to moderate heating value. Carbon content is higher than lignite (ie "brown coal") and lower than for bituminous coal. It can be used for power generation and can be converted to liquid and gaseous fuels.
Stripping Ratio - in open pit mining, the ratio of the total waste removed to the total coal mined, expressed as bank cubic metres per tonne (BCM/tonne).
Subcrop - the spatial extent of a rock unit which is in contact with an overlying rock unit.
Total Moisture - moisture content of a sealed coal sample as received in the laboratory.
Total Sulpur - sulphur content of a coal including pyritic, organic and sulphate forms of sulphur.
Unconformity - a gap in the sedimentary record in an area, generally indicated by a difference in the angle of dip of the sediments above and below the unconformity.
Volatile Matter - the light organic compounds in the coal.
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