Enterprise Energy

Key points:

• Project immediately to the northwest of Springsure Creek

• Strategic parcel of land facilitates option for any future western rail corridor

• 17 holes drilled with only minor intersections of coal identified to date.

 

EPC 1103 was granted 100% to Fernlee Coal Pty Ltd, a wholly owned subsidiary of Bandanna, on 30 January 2007. It is considered that open cut development potential may exist within the areas proximal to the throw of the Merivale Fault, and on the eastern limb of the Springsure Anticline, which both traverse the tenement.

Key points:

• Located 6 km south of Emerald

• Lies on Emerald to Springsure rail corridor

• Seismic data has previously indicated formation continuity and resource potential, however, five holes have been drilled with no coal intersections to date.

 

Lying immediately to the north of the Fernlee tenement, EPC 1185 was granted 100% to Fernlee Coal Pty, a wholly owned subsidiary of Bandanna, on 23 January 2008. The Fernlee North tenement is considered to offer scope for potential open cut development within those areas proximal to the throw of the Merivale Fault, and potentially, on the eastern limb of the Springsure Anticline where it projects northward from the adjoining Springsure Project area.

Key Points:

• Located 12 km north of Rolleston between Arcturus and Arcadia

• Located on the Bauhinia rail line

 

EPC 1131 Gemini was granted 100% to Springsure Coal Pty Ltd, a wholly owned subsidiary of Bandanna, on 19 June 2007. The southern boundary of the tenement is located 12 km north of the township of Rolleston. It is considered that underground development potential may exist.

 

The Gemini EPC is tranversed by the Bauhinia spur-line which currently provides a rail connection for coal mined from Xstrata’s Rolleston Mine to the Blackwater Line and on to the Port of Gladstone. For this reason Gemini is strategically placed should mineable coal be intersected.

Key Points:

• Strategically positioned to development-stage mines and infrastructure being located directly to the southwest of the Yamala Project.

• Springsure Creek rail corridor only 4 km away

 

EPC 1140 Denison was granted 100% to Springsure Coal Pty Ltd, a wholly owned subsidiary of Bandanna, on 7 August 2007. The tenement is located approximately 17 km south-southeast of Emerald. This location, coupled with the presence of the Springsure rail line only 4 km to the west of the tenement, makes it ideally suited from an infrastructure viewpoint.

 

Key points:

• Grass roots exploration area however, good potential for coal based on petroleum drilling.

The Carnarvon Project area comprises two tenements. EPC 1189 (Carnarvon Project) was granted on 27 April 2009 and EPC 1195 (Carnarvon South Project) was granted on 19 January 2009. Both tenements are held 100% by Carnarvon Coal Pty Ltd, a wholly owned subsidiary of Bandanna. Whilst

located in a relatively remote, frontier, area both tenements are considered, on regional grounds, to have potential for the presence of coal seams of the Bandanna Formation at depths which may be compatible for shallow underground mine operations. Additionally, there may be potential within these areas for a coal liquefaction resource from overlying Jurassic coal or lignite.

Key Points:

• Single exploration hole completed during Reporting Period with total depth of 821 m

• No significant coal intersected

• Hole was not optimally located due to wet weather access.

• Shallower positions in tenement to be targeted in the future.

 

EPC 1197 Wanella was granted on 7 February 2008 to Waitara Coal Pty Ltd, a wholly owned subsidiary of Bandanna. The principal exploration target within the tenement is the late Permian aged Leichhardt Seam, within the Rangal Coal Measures (Blackwater Group). This seam is extensively mined in nearby areas and has been penetrated in boreholes adjacent to the tenement. Existing coal analysis from surrounding areas indicates a high potential for a strong coking coal and/or PCI coals to be found at depths between 360 and in excess of 820 m. During the 2011 Financial Year a single exploration hole was completed with a total depth of 821 m  the drilling capacity of the drill rig. The hole failed to clear the overlying Rewan Formation indicating that the syncline was much deeper than expected. Coal is known to occur at mineable depths on the eastern and western limbs of the syncline and outside the tenement boundaries so with the newly acquired information future drilling can now more accurately target intersections on the flanks and within the tenement.