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An exploration drilling program has firmed up the high-quality credentials of the Broadmeadow East coking coal project near Moranbah.

Bowen Coking Coal director and coal marketing specialist Matt Latimore said the coal quality results were very positive for the Broadmeadow East project and supported the ongoing work towards development of the mine.

Preliminary laboratory data for product quality and washability was very encouraging in terms of both yield results and potential coal quality, he said.

Bowen Coking Coal acquired the project from Peabody Energy last year for $1 million cash plus royalties of up to $1.5 million.

Mr Latimore said new drill holes in Broadmeadow East had confirmed previous quality expectations from historical drilling results, underpinning improved accuracy of LIMN (flowsheet processor) washing simulations and expected yield.

“Analysis was undertaken on both the full thickness of the Leichhardt seam, which averages almost 4m of coal, and also on a split of the upper and lower sections of the same seam,” he said.

“Broadmeadow East shows potential to produce a high-yielding, low-ash, low-mid volatile matter (24.2 per cent air dried basis -‘ad’) primary coking coal product of 7.5 per cent ash (ad basis) with a 7.5 CSN – which coincides
with the segment of growing international import demand for metallurgical coal, with a secondary energy coal product of approximately 16 per cent ash (ad basis) and 21 per cent volatile matter (ad basis).”

Bowen Coking Coal reported that technical studies related to the major Environmental Authority amendment for a mining operation were progressing well. Approval is anticipated in the later part of this year.

Discussions for access to third-party infrastructure is continuing to allow Bowen Coking Coal to fast-track development of the project and to minimise initial capital outlay.