The Dingo West Project consists of EPC 881. It is currently held by Dingo West Coal Pty Ltd, which is a wholly owned subsidiary of Bandanna. Previously the subject of a farmin by Macarthur Coal, the Company has commenced a mining study involving an open pit development and conceptual production in the range of 0.7 - 2.4 Mtpa ROM coal which is expected to yield a thermal/PCI product.
Location and Infrastructure
The project area is located around and to the west of the township of Dingo, central Queensland. The area has excellent infrastructure, with a high capacity rail link, and the Capricorn Highway bisects the permit. It is closer to the RG Tanner and Barney Point coal terminals at Gladstone port than any currently operating mine serviced by the Blackwater rail line.
Map - Location of EPC 881, Dingo West
Previous Exploration
The area has been explored by several companies over the last thirty years, including Mt Morgan, J.A.B.A.S Pty Ltd and New Hope Collieries. During May 2007, Bandanna completed eight holes, totalling 1406.63 metres of drilling including 55.71 metres of conventional coring. The holes were designed to obtain coal quality information about the extent and quality of the coal seams within the Rangal Coal Measures.
Resource Estimate
In June 2008 the estimated Inferred Resource within EPC 881 totaled 91.1 Mt of low volatile thermal coal at a strip ratio of less than 20:1 of which 56.7 Mt is at a strip ratio of less than 12:1. Additional drilling funded by Macarthur has seen over 20,000 m of recent drilling completed. The resource estimate refers solely to intersections of seams greater than 0.5 metres in thickness.
Coal Quality
There is only limited raw coal quality data available from the drilling results, although the data shows some very favourable characteristics. Coal quality testing of samples completed by Macarthur are being analysed. The results of this will be announced when the program is complete.