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  • ASF Group Company Inks Coal Resource Of 118.6Mt In Bowen Basin 0 comments
    Aug 12, 2014 7:34 PM

    ASF Group (ASX:AFA) associate Civil & Mining Resources has defined a maiden Inferred Resource of 118.6 million tonnes of thermal coal at its Dawson West Project in the Bowen Basin, Queensland.

    The company had in December 2013 acquired a 68.205% interest in CMR, which is currently held by its 53.69% owned subsidiary ASF Resources.

    Notably, Dawson West is located close to operating coalmines, road and rail infrastructure as well as the townships of Moura and Theodore.

    Scope exits to significantly increase tonnages as the resource is open to the west and to the east with open cut potential.

    Additional potential exists in 3 to 4 additional seams that have been intersected as shallow as 34 metres in historical drilling.

    Phase 2 drilling is underway to convert part of the deposit to Indicated status, this will be followed by a pre-feasibly study depending upon results.

    Dawson West

    Dawson West is located 40 kilometres southwest of the Moura coal rail infrastructure that links to the coal terminals at Port of Gladstone.

    An excellent network of road exists within the tenement allowing easy access for further exploration and evaluation of the coal potential within EPC 2427.

    The Inferred Resource follows CMR drilling 1 diamond and 8 open holes totalling 2,816 metres.

    The coal resource occurs in the Triassic Moolayember Formation of the Bowen Basin, within M Seam, with an average seam thickness of 1.98 metres and maximum seam thickness of 2.8 metres.

    Coal quality indicates an export grade thermal product.

    Cumulative coal thickness to date is 17 metres across 17 seams intersected while exploration to date shows little seam displacement by faulting and a very shallow dip 0.4 to 1 degree.

    Future coal exploration will be aided by improved geological and geophysical understanding of the nature of the mineralisation.

    Besides the Phase 2 drilling to convert part of the Inferred Resource to the Indicated category as well as the Pre-Feasibility Study, CMR will also look at extending the current resource to the east where the coal mineralisation has the thickest development, improving coal quality and increasing proximity to existing rail infrastructure.

    Civil & Mining Resources

    Civil & Mining Resources has 25 Exploration Permits for Coal covering a total area of 13,647 square kilometres throughout Queensland's major coal bearing basins.

    These are situated in close proximity to operating mines, infrastructure and proven economic coal resources.

    Analysis

    The maiden Inferred Resource of 118.6Mt of thermal coal for Civil & Mining Resources' Dawson West Project highlights the value of ASF Group's diversified mineral portfolio.

    This is a new coal precinct close to operating coalmines, road and rail infrastructure and the townships of Moura and Theodore - which together are a significant positive for prospects of future development.

    That CMR has 25 exploration permits offers further potential for more coal discoveries.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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