Walton PCI Coal Project

Proposed mine plan at Walton Project

The Walton PCI Coal Project (“Walton”) is located 180km west of Rockhampton in the Bowen Basin in Central Queensland. The Project is situated in Mineral Development Licence ("MDL") 505. Walton Coal also holds Exploration Permit for Coal ("EPC") 960 (adjacent Duaringa).

Walton is well explored with a combination of drilling and seismic programs over the resource. A JORC Resource (2012) has been defined of 21Mt measured and indicated resource.

A concept study was completed in 2015, proposing a small open cut mine utilising truck and shovel operations producing 1.6Mtpa of low volatile PCI coal over a relatively short 10-year mine life. The coal would be washed on site at a beneficiation plant prior to being transported to Gladstone via the Blackwater Rail system which crosses the lease. The distance between the Project and the port is approximately 280km.

In 2017, a Prefeasibility Study ("PFS") was completed based on a small-scale open cut mine producing ~1.6Mtpa of low volatile PCI coal over a 8-year mine life, with capital costs developed to a PFS level of accuracy for the surface, CHPP and rail infrastructure. The PFS targeted a 10% ash product with an overall yield of 78% and a 40% bypass of ROM coal direct to product.

The approval process has commenced with the Environmental Impact Statement underway. The baseline studies to support this are coplete. The Terms of Reference for the EIS have been finalised and are available on the Queensland Government website. The current focus is to complete the EIS submission by mid-2021.