Bandanna Energy Limited announced that AMCI, the manager for the South Galilee Coal Project Joint Venture and 50% participant, has provided a JORC compliant Coal Reserves Estimate for open cut mineable reserves prepared by Echelon Mining Services.
The Reserve Estimate is based on the Coal Resource Statement prepared in February 2011 and data provided in the Pre-Feasibility Study completed in April 2011. The Table below gives a breakdown on the open cut Coal Reserve estimate.
Table - Summary of Open-cut Reserve Estimate for the South Galilee Coal Project JV*
| D1 (Mt) | D2 (Mt) | Total (Mt) | |
| Proved | 50.4 | 81.9 | 132.3 |
| Probable | 99.9 | 41.8 | 141.7 |
| Total Reserve | 150.3 | 123.7 | 274 |
| Marketable | 117.4 | 100.3 | 217.7 |
Note: Bandanna has a 50% interest in the South Galilee Coal Project JV
The Report also notes that economically saleable areas (by open cut methods) extend beyond the applicable JORC Resource areas (of Measured and Indicated) and potential therefore exists to increase the Reserve Estimate by increasing the areas of these Resource categories. Potential also exists for an underground Reserve beyond the current economic limit of the open cut.
Dr Ray Shaw MD said that "This maiden reserve statement is a significant milestone for the JV and the development of the South Galilee Coal Project overall. Whilst a work in progress result, it underlines the very real potential of this project and of the area's ability to support both future significant open-cut and underground mine development."
(Sourced from abnnewswire.net)
