ARRAWATA

Initial aerial photo-geological interpretation has begun to attempt to identify areas of possible coal thickening at Arrawatta.

Coal samples were taken for analysis from seams or seam plies generally more than 0.2m thick, which were not obviously coked, and analysed for raw quality characteristics. Selected samples were also tested for coking coal quality. The raw quality data was highly variable, with raw ash ranging from less than 10% to more than 40%. The samples that contained coal of potentially commercial quality had low sulphur and generally low to moderate phosphorus. Low raw ash samples (<20% ash) typically contained 28% to 32% volatile matter (adb). Single cut point float/sink testing at 1.40 Relative Density (RD) was performed on selected samples to obtain an idea of the likely coal quality and plastic properties of the coking coal component of beneficiated coal. The F1.40 material gave yields of 32% to 85% at 6.5% to 10.5% ash, and low to moderate sulphur and phosphorus.

An eight hole diamond core drilling program was undertaken to assist in defining an initial coking coal resource. Geophysical logging, cutting and sampling has now been completed on the eight diamond core holes which all intersected coal. Results should be available shortly following completion of coal quality testwork.