3 houses and a block of land put under offer since yesterday. That leaves only 4 houses and 3 blocks of land left. Property prices are set to spike in the next few weeks and even higher next year when construction starts.
Alpha - remember that name because it's black (Coal) gold to investors.
More coal mines set to start when the rail line is built.
Bandanna Energy inks JORC resource at Alpha Project, near Waratah Coal's colossus
Bandanna Energy Ltd (ASX: BND) has inked a maiden total JORC compliant Inferred Resource of 982 Mt at the Alpha Project Joint Venture’s EPC 1049 located in the eastern Galilee Basin in Queensland. 60.3 Mt is in the Indicated category.
The Alpha Project is a joint venture between Bandanna Energy Limited and (Alpha) Pty Ltd (AMCI) formed to explore for thermal coal at depths suitable for both open cut and underground mining in the eastern Galilee Basin, with four tenements EPC’s 1048, 1049, 1179 and 1180.
AMCI is farming into the Alpha Project by spending up to $25 million over three years to earn up to a 50% interest. Bandanna will hold at least 50% of this project once the farmin is complete. AMCI has expended approximately $5 million funding the project to date.
Of note, the inital resource relates only to the “D” seams which occur in subcrop in the north-eastern portion of EPC 1049. Although the overlying “A” and “B” seams were penetrated to the west, lack of drilling in that area has precluded their inclusion in the current resource inventory because of the paucity of data to meet the stringent JORC Code compliant categories.
The D seams occur at depths compatible with both open-cut and underground mining. The D seam coals are high volatile, low rank bituminous coal for use as thermal coal and potentially as feed-stock for liquefaction, gasification and other petrochemical applications. Coal analysis testing is underway.
Interestingly, Bandanna's tenements are located immediately to the south and east of Waratah Coal Limited’s Galilee Basin tenements.
What is even more noteworthy for Bandanna Energy shareholders is that Waratah Coal's and the Chinese Government owned China Metallurgical Group Corporation's (MCC) joint venture tenements are directly to the north of, and abut Bandanna Energy's Alpha Project’s EPC 1049. MCC is seeking to purchase 30 Mtpa.
Why is this so important? Infrastructure is key in moving coal from mine to port to end user. With Waratah Coal and MCC's announcement were plans for a 490 km standard gauge heavy-haul railway line to an export terminal at Abbot Point. MCC's involvement is likely to spur all stakeholders (including Galilee Basin explorers and Government) to commence necessary rail and port infra-structure development. (MCC will also supply about 60 per cent of the funding in return for a 10 per cent share in the Waratah Coal $7.5 billion project).
As the only ASX listed company with a significant interest in this region, Bandanna Energy is ideally placed for the development of this resource given its potential large scale. The region is evolving into the next major globally significant thermal coal province.
