Ann: Bundi - Juandah Projects Resource Announceme, page-11

re: Ann: Bundi - Juandah Projects Resource An... Wang Chung,
UCG has certainly become very controversial issue in QLD and therefore permitting for any new projects will be huge battle. Therefore it makes sense for the company to move Jundi resources into underground mining category as seam thicknesses of up to 12m and mining depths of 180 – 300m can be readily mined using top coal caving method. This mining method is ideal for thick seams between 5 – 12 metres and very cost competitive. It is also a very effective for mining areas which were traditionally considered geologically to difficult to mine. Chinese have refined/perfected this mining method and are using it at Austar mine near Cessnock (owned by Yanzhou coal mining). It’s worth noting that Yanzhou has stated only few weeks ago that they are seeking more acquisition targets in Australia