Big bonus for Clermont
MINER extends mine life for at least another two years.
Wednesday 09 November 2016
TerraCom, the new owner of the Blair Athol coal mine near Clermont says revised estimates of the Blair Athol coal deposit, increase the theoretical life of the mine by at least two years.
Two months ago Terracom reached a binding agreement to buy the mothballed Blair Athol mine for unannounced value, although there was the usual headline $1 nominal price paid, and vendor Rio Tinto provided $80 million for mine environmental rehabilitation costs.
With a plan to be mining at Blair Athol by Christmas, Terracom was quick to recruit Xenith Consulting to review the known exploration data at the mine, including analysing 687 cored holes, 724 open holes and 19 large diameter cores with an average drill spacing of around 100m.
The headline result of the review was the twelve million tonne increase in the JORC “measured” resources at the mine. Enough is known about the size, quality and shape of a “measured” resource to support detailed mine planning and final evaluation of the economic viability of the deposit.
The review also increased the “indicated” and “inferred” resources at the mine by 32 million tonnes, but these estimates will need significantly more exploration data before investors could feel for about them.
Executive Chairman of TerraCom, Mr Cameron McRae says the results allow them to plan for a seven-year mine life on current known resources, and possibly more in the future.
“The resource upgrade to 44Mt provides the potential to increase the mine life further should some of this additional resource be able to be converted into reserve,” he said.
“Re-opening the Blair Athol mine will not only mean 300 jobs for the local Clermont community but also boost the Queensland Government Treasury.
“On current pricing over $133 million will flow to the Queensland Government in royalties alone over the seven years projected mine life.”