50 metre thick coal , page-2

ASX Release 17 October 2011
50 metre thick Coal at Bacchus Marsh.
Mantle Mining Corporation Limited (ASX: MNM) “Mantle”, is pleased to provide the following update on activities at the Company’s 100% owned Bacchus Marsh Brown Coal Project:
The Bacchus Marsh project, located 50km west of Melbourne and a similar distance north of the Port of Geelong (Figure 1), contains an Exploration Target of 1-2 Billion tonnes brown coal (details on last page).
Figure 1: Bacchus Marsh Project Location. Figure 2: Typical coal (from hole MBM3).
Highlights:
? The first 4 holes of a 15 hole drill program have been completed.
? In excess of 50m coal thickness was intersected in 2 of the holes.
? Total cumulative coal thickness intersected in the 4 holes was >25% increase on that predicted (146m Vs 116m).
? The program is designed to report an Inferred Resource in accordance with the principles and guidelines of the JORC Code.
Further information: Media enquiries:
Ian Kraemer Doug Macdonald
Mantle Mining Capital Group
0407 758 722 0424 255 959
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Table 1: Drilling program results to date (analytical results are weighted averages over 1.5m sample intervals).
Figure 3: Bacchus Marsh tenement location plan. Figure 4: Drill hole location plan.
Figure 5: Maddingley Mine (MIN 4701 owned by others). Figure 6: Drilling hole MBM4. Figure 7: Rehabilitated site.
Mantle has executed preliminary agreements with Exergen Pty Ltd to develop the Bacchus Marsh
Coal Project. Exergen has developed a clean coal technology that, when teamed with modern coalfired
power station technology, is expected to deliver up to 40% CO2 emissions reductions.
The technology is known as Continuous Hydrothermal Dewatering (CHTD) and is patented worldwide
including in Australia, Indonesia and China.
Drill Hole
Depth to
top of
seam (m)
Depth to
base of
seam (m)
Seam
Thickness
(m)
Total
Moisture
(%)
Ash
Volatile
Matter
Fixed
Carbon
Calorific
Value
(Gross Dry)
(MJ/Kg)
MBM 1 86.3 91.8 5.5 55.7 14.0 45.2 40.8 23.2
MBM 2 70.0 126.3 51.8
MBM 3 75.4 132.8 52.4
MBM 4 47.9 84.4 36.5 59.1 12.8 47.8 39.3 23.8
Proximate Analysis (% dry basis)
Analytical Results Pending
Analytical Results Pending
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Figure 8: The Exergen Consortia Partners.
Exergen’s major cornerstone investors include; TATA Power, India’s largest private power utility, as major coal off-taker, Leighton subsidiary Thiess, the world’s largest supplier of outsourced mining services, Itochu, Japan’s 3rd largest trading house with extensive coal trading experience, and Sedgman, a global specialist provider of mineral engineering solutions.
The agreements executed to date (MOU and Pre-JVA) contemplate the following:
? Executing Substantive Agreements for a 50/50% JV for exploration and mine development,
? Construction of a 50tph demonstration facility and then an export project by Exergen,
? Mantle being licenced to utilise CHTD on its 50% of the coal deposit.
Figure 9: CHTD Pilot Plant Processing of Bacchus Marsh coal (56.7% moist) and resulting briquettes (9.5% moist).
A two tonne bulk sample of Bacchus Marsh coal was processed at the CHTD pilot plant. Laboratory analysis of the bulk trial product confirmed that transformation of the coal had successfully occurred on a continuous basis. Secondary dewatering and pressing of a representative sample of low moisture briquettes was also achieved at the pilot plant. Run of Mine coal moisture content of 56.7% was reduced to a briquette moisture content of 9.5% (Figure 9).
COMPETENT PERSONS STATEMENT:
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Callum Lamont, an Executive of Mantle Mining Corporation Ltd. Mr Lamont is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Lamont consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
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