APMDC Suliyari coal upcoming auction 1,00,000 MT for MP MSME on 1st Oct 2024 / 1st Nov 2024 & 2nd Dec 2024 @ SBP INR 2516/- per MT
Registered User
New UserMozambi Coal in alliance with Moultrie Group, cornerstone investor
08 Apr 2014
Mozambi Coal's (ASX: MOZ) shares should trade firmer after placing 10 million shares to Moultrie Group, a service provider to the exploration, mining and infrastructure sectors based in Queensland.
Moultrie will also oversee an initial 7-hole drilling program at the company’s Bowen River project in the Bowen Basin, acquired from Rio Tinto (ASX:RIO).
Moultrie is the leading mining services group in Queensland and provides services to major and small cap resources companies operating in Queensland, New South Wales and through-out Australia.
The placement, which is subject to shareholder approval, is on the same terms as the recently arranged placement to sophisticated investors at $0.01.
This raises an additional $100,000, and Moultrie Group will also receive 5 million free attaching $0.02 options expiring 31 December 2017.
Funds raised from the placement will be used for priority coal exploration activities in the Bowen Basin.
Bowen River project
The area covered by EPC 1768 was previously drilled by Xstrata prior to Rio Tinto acquiring the project looks especially prospective.
All drill holes are reported as having intersected coal, which is encouraging. Previous drilling was sparse and coal seams intersected still have not yet been correlated.
Mozambi has started to compile and database all historical drilling, local field mapping, photogeological studies, and interpretation of airborne geophysics available.
Exploration target
Mozambi is targeting up to three deposits ranging in size from 20 million and 50 million tonnes of coal that are shallow enough to open cut in multiple benches.
EPC 1768 in the Bowen Basin contains outcrops of the Rangal, Moranbah and Fort Cooper coal measures and is close to existing rail infrastructure. It borders Xstrata Coal's granted tenement.
The Rangal and Moranbah are mined extensively within the Basin for coking coal, PCI coal and to a lesser extent, thermal coal.
Adjacent EPC title holders include Aquila Coal, Bowen Central Coal, Dyart Coal Mine Management and Xstrata Coal.
It is also north of the Hail Creek mine owned and operated by Rio Tinto and east of Xstrata’s Newlands mine.
Analysis
Mozambi Coal has an Exploration Target of between 70 million and 140 million tonnes of metallurgical coal for EPC 1768, one of two coal licences it acquired from Rio Tinto.
That previous drilling by Xstrata prior to Rio Tinto acquiring the project - intersected coal in all holes is an obvious pointer to prospectivity and upside.
Based on the coal exploration target and drilling catalysts ahead we estimate value accretion to $0.021-$0.028 for Mozambi Coal within 6-9 months.
Gaining the backing of Jason Moutrie, one of the leading coal geologists in Australia that provides specialist mining services Australia-wide through the Moultrie Group, adds another leg to the upside for Mozambi.
This should lead to an initial resource being defined.
Source: http://www.proactiveinvestors.com.au/