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 Prefeasibility Study ("PFS") was completed for Walton in 2015. The PFS proposed a small open cut mine utilising truck and shovel operations producing 1.6Mtpa of high quality 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.

A decision was made in 2017 to proceed the Definitive Feasibility Study ("DFS") based on the positive outcome from the PFS. The DFS is presently underway, further defining the work completed in the PFS with detailed engineering studies and a full costing of the mining proposal through tendering the major work packages scheduled for 2019.

The approval process has also commenced with the Environmental Impact Statement underway. The baseline studies to support this are well advanced. The Terms of Reference for the EIS has been finalised and are available on the Queensland Government website.