Ownership
The Arcturus Project consists of EPC 1221. It is currently 100% held by Springsure Creek Coal Pty Ltd, which is a wholly owned subsidiary of Bandanna.
Location and Infrastructure
The project covers an area of approximately 430 km² within the southern Bowen Basin. It is located 35 km southeast of Emerald, and 22 km east of the town of Springsure. It is located immediately to the south of the Springsure Creek project, and about 15 km west of the Rolleston and Blackwater rail line.
Exploration History
Arturus has been one of the primary exploration projects for Bandanna and during the 2010 Financial Year a total of 2,973 m of drilling was completed - including 27 holes of which 11 were cored. Protracted wet weather during 2011 restricted drilling although a further 5 coal quality holes were completed for a total of 728 m. The figure below shows the distribution of holes and associated resource distribution. The current exploration program is designed to increase the confidence of a thermal resource on the flanks of the north pluging Arcturus Anticline where the Aries, Castor, Pollux and Orion seams are the targets.
Resource Estimate
As announced to the ASX on 7 October 2010 Bandanna increased its resources at Arcturus to 206.3 Mt comprising an Inferred Resource of 103.7 Mt and an Indicated Resource of 10.2 6 Mt. In October 2010 Bandanna also announced a maiden Marketable Reserve of 44.3 Mt (Refer to Table of Resources and Reserves and Compliance Statement).
Development
Originally Arcturus was designed as an entirely open cut project, however, following announcement of the proposed Strategic Cropping Land legislation by the Queensland Government the project has been substantially redefined as a predominantly underground operation with a small open cut foot-print. An entirely underground operation is also being modeled. An Initial Advice Statement to commence the Environmental approval process began in late 2010. In December 2010 Bandanna submitted an Environmental Referral for Arcturus to the Federal Government. As announced to the ASX in April 2011 a Feasibility Study was completed. Some key points emerging from this study were:
- The proposed mine could contain both limited open cut and longer term underground mines producing nominally 5 Mtpa product coal.
- The final open cut strip could provide access for the underground operation including highwall, and punch longwall mining of the seams.
- The export quality thermal coal has an ash content of 13% and is suitable to be sold raw. Therefore no coal preparation plant has been included in the mine design plan.
- Economic assessment for the first 17 years of mine life for the Arcturus Project envisages 70.1 Mt of product coal production and the project economic review concludes with a material positive NPV.
Ultimately Arcturus is ideally suited to be developed in conjunction with the neighbouring Springsure Creek given the significant synergies which would flow.
Coal Quality
Typical Arcturus coal, on an as received basis, has a moisture content of 15%, ash content of 13%, fixed carbon of 45%, total sulphur of 0.34% and a gross calorific value of 5540 cal/kg.