ASF Group (ASX:AFA) has increased its exposure to the 645 million tonne Dawson West Thermal Coal Project in the Bowen Basin, Queensland, by converting an aggregate of $4.6 million loan to Civil & Mining Resources Pty Ltd (CMR).
The company now holds about 46% of CMR, which has 25 exploration permits that offer potential for more coal discoveries.
Together with the dilutive interest of approximately 34.1% held by ASF Resources (ASFR), a 53.69% owned subsidiary of ASF, ASF and ASFR have a collective interest of 80.1% in CMR.
In October, CMR upgraded Resources at Dawson West 645Mt from a maiden 119Mt after lodging a Mineral Development Licence in September.
This represents a new coal precinct about 40 kilometres southwest of Moura town and close to coal rail infrastructure that links to coal terminals at the Port of Gladstone, Queensland.
Dawson West has an excellent network of roads that provide easy access for further exploration and evaluation of the coal potential within EPC 2427.
Once the MDL is granted CMR will carry out further studies on the defined resource to advance the development of the Project.
This will involve exploration, including feasibility studies; metallurgical testing; bulk sampling (trial pit); environmental and engineering studies.
The current resource within the Triassic Moolayember Formation consists of 129Mt in the Indicated and 516Mt in the Inferred categories and is based on exploration conducted over just 8% of the 1,436 square kilometre project area.
This provides scope for significant increases in tonnage exists across substantial unexplored areas with an exploration target of 2 Billion tonnes.
Dawson West is potentially suitable for longwall, shortwall and linear style mining in multiple seams from 0.8 metres to 3.5 metres thick at depths from 5 metres to 487 metres.
Coal quality shows export grade thermal product in the J0 and M, M1, M0 coal seam intersections, with low sulphur content, washed ash of < 7% (air dried basis) and > 6700 kcal energy (air dried basis).
Civil & Mining Resources
In November 2013, ASF acquired a 68.205% equity interest in CMR and granted up to $5 million in convertible loans that can be converted into CMR shares at ASF's option.
CMR has 25 exploration permits for coal totalling 13,647 square kilometres of land throughout Queensland's major coal bearing basins.
These are situated in close proximity to operating mines, infrastructure and proven economic coal resources.
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