modun announces an upgrade to its jorc reportable coal ... · asx announcement asx code: mou 08...

18
ASX Announcement ASX Code: MOU 08 November 2012 MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL RESOURCE AT NUURST PROJECT IN MONGOLIA Highlights: Updated JORC Reportable Coal Resource estimate for Nuurst Project of 478 million tonnes of sub-bituminous Coal (326Mt Measured, 104Mt Indicated, 48Mt Inferred) A large proportion of the previously quoted Indicated category resource has now been re-classified to produce 326Mt in the Measured category. Significant increase in Calorific Value to 4,768 kcal/kg on an air dried basis (up from 4,113 kcal/kg previously reported) Insitu Strip Ratio below 1:1 for a significant portion of the Resource area included in the mining study for the Mongolian Mining License Application Commencement of marketing Nuurst coal to local and export market by off-take partner, Tennant Metals Preparation of JORC Reportable Reserve Estimate commenced Application for mining licence continues to progress Coal explorer Modun Resources Ltd (ASX: MOU) (Modun) is pleased to announce a significant upgrade to the coal quality and Measured category tonnes of its Nuurst Coal Project in Mongolia. The updated JORC Reportable Coal Resource of 478 million tonnes of sub-bituminous coal (326m tonnes Measured, 104m tonnes Indicated, 48m tonnes Inferred) is compared to the JORC Reportable Coal Resource previously announced by Modun on 5 December 2011 as follows: Date Reported Measured (MTonnes) Indicated (MTonnes) Inferred (MTonnes) Total (MTonnes) 05-Nov-12 326 104 48 478 05-Dec-11 0 417 72 489 The resource estimation was compiled by consultancy CSA Global Pty Ltd (CSA) and the key quality parameters are as follows: Resource Inherent Moisture Ash Volatile Matter Fixed Carbon Total Sulphur RD (M Tonnes) %adb %adb %adb %adb %adb %adb %db %daf gr/cm³ Measured 326 9.99 18.89 40.77 30.37 1.05 4774 5303 6711 1.31 Indicated 104 10.00 18.88 39.91 31.22 1.13 4773 5304 6711 1.33 Inferred 48 10.00 18.93 40.02 31.05 1.21 4721 5245 6642 1.32 Total 478 9.99 18.89 40.51 30.62 1.08 4768 5297 6704 1.31 Previous Report * 489 24.85 13.78 36.38 24.91 0.92 4113 5972 6701 1.37 Calorific Value (Kcal/Kg) Category * Results from JORC Reportable Coal Resource previously announced on 5 December 2011 For personal use only

Upload: doankiet

Post on 21-Apr-2018

224 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

ASX Announcement ASX Code: MOU 08 November 2012

MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL

RESOURCE AT NUURST PROJECT IN MONGOLIA

Highlights:

Updated JORC Reportable Coal Resource estimate for Nuurst Project of 478

million tonnes of sub-bituminous Coal (326Mt Measured, 104Mt Indicated, 48Mt

Inferred)

A large proportion of the previously quoted Indicated category resource has now

been re-classified to produce 326Mt in the Measured category.

Significant increase in Calorific Value to 4,768 kcal/kg on an air dried basis (up

from 4,113 kcal/kg previously reported)

Insitu Strip Ratio below 1:1 for a significant portion of the Resource area

included in the mining study for the Mongolian Mining License Application

Commencement of marketing Nuurst coal to local and export market by off-take

partner, Tennant Metals

Preparation of JORC Reportable Reserve Estimate commenced

Application for mining licence continues to progress

Coal explorer Modun Resources Ltd (ASX: MOU) (Modun) is pleased to announce a

significant upgrade to the coal quality and Measured category tonnes of its Nuurst Coal Project

in Mongolia.

The updated JORC Reportable Coal Resource of 478 million tonnes of sub-bituminous coal

(326m tonnes Measured, 104m tonnes Indicated, 48m tonnes Inferred) is compared to the

JORC Reportable Coal Resource previously announced by Modun on 5 December 2011 as

follows:

Date Reported

Measured (MTonnes)

Indicated (MTonnes)

Inferred (MTonnes)

Total (MTonnes)

05-Nov-12 326 104 48 478

05-Dec-11 0 417 72 489

The resource estimation was compiled by consultancy CSA Global Pty Ltd (CSA) and the key

quality parameters are as follows:

Resource

Inherent

Moisture Ash

Volatile

Matter

Fixed

Carbon

Total

Sulphur RD

(MTonnes) %adb %adb %adb %adb %adb %adb %db %daf gr/cm³

Measured 326 9.99 18.89 40.77 30.37 1.05 4774 5303 6711 1.31

Indicated 104 10.00 18.88 39.91 31.22 1.13 4773 5304 6711 1.33

Inferred 48 10.00 18.93 40.02 31.05 1.21 4721 5245 6642 1.32

Total 478 9.99 18.89 40.51 30.62 1.08 4768 5297 6704 1.31

PreviousReport* 489 24.85 13.78 36.38 24.91 0.92 4113 5972 6701 1.37

CalorificValue(Kcal/Kg)Category

* Results from JORC Reportable Coal Resource previously announced on 5 December 2011

For

per

sona

l use

onl

y

Page 2: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

The updated Resource has seen the calorific value on an air dried basis increase to 4,768

kcal/kg from 4,113 kcal/kg. This is due primarily to a significantly lower inherent moisture level

of 9.99% (down from 24.85%) after samples were re-tested due to errors identified with the lab

results from 2011. (MOU ASX Release 30 August 2012).

Rick Dalton, the Managing Director of Modun said “the updated JORC Reportable Coal

Resource estimate re-affirms the potential for a large scale coal supply close to transport

infrastructure and a major world market in China. Having confirmed 326 million Tonnes of

Measured Resource gives us great confidence in progressing with the commencement of a

JORC Reportable Reserve Estimate as we move towards converting the Nuurst Project to

mine development”.

“These results confirm Modun as having one of the largest tonnage coal resources of the ASX-

listed companies currently operating in Mongolia and will enable our new commodity trading

off-take partner, Tennant Metals to immediately commence marketing the Nuurst coal to

potential customers in Mongolia and China”.

“CSA’s work also highlights thick coal seams close to the sub-crop that indicate very low strip

ratio coal below 1:1 in a significant portion of the Resource area”

Fig 1 Insitu Strip Ratios of the Nuurst Project Note: The Insitu Strip Ratio CSA Global used is based on vertical Thickness of Overburden to Vertical Thickness of

coal

For

per

sona

l use

onl

y

Page 3: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Nuurst Location

Nuurst is located 6 kilometres from existing railway infrastructure, 120 kilometres south of the Mongolian capital, Ulaanbaatar, and is 600 kilometres by rail from the Chinese border. Other major infrastructure in the vicinity includes a 35kV power supply within 6km of the project. A 220kV powerline runs approximately 35km from the licence boundary.

Fig 2 Location of Nuurst Project and Transport Infrastructure

JORC Reportable Reserve Estimate

Modun is also pleased to announce that it has appointed Bluefield Group Pty Ltd to commence

preparing a JORC Reportable Reserve Estimate for the Nuurst Project. It is expected that the

Reserve Estimate will be completed by the end of calendar year 2012.

Mining Licence Application

The relevant Government authorities continue to review Modun’s application for resource

registration, which is the first step in the process of converting the Nuurst licence from an

exploration licence to a mining licence. The review process is progressing and a decision from

the Mineral Resources Authority of Mongolia is expected in January 2013.

A Summary of CSA Global’s report is attached to this announcement. F

or p

erso

nal u

se o

nly

Page 4: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

For further information, please contact:

Rick Dalton

Managing Director

Modun Resources Ltd

Ph: +61 6143 9108

About Modun Resources

ASX-listed Modun Resources (ASX: MOU) is developing the 100%-owned Nuurst Coal Project in central Mongolia. Nuurst is a thermal coal project, which encompasses a 34.5 square kilometre licence area. In November 2012, Modun announced a 478 million tonne JORC reported Coal Resource at Nuurst (326 million tonnes Measured, 104 million tonnes Indicated, 48 million tonnes Inferred). The Nuurst Coal Project is located 120 kilometres south of Mongolia's capital Ulaanbaatar and six kilometres from existing rail infrastructure.

In the fourth quarter 2012, Modun will work towards progressing the Mining Lease Application

and perform the necessary work to deliver a JORC guideline Reserve Estimation Statement by

the end of calendar year 2012.

Competent Person Statement

The information in this announcement that relates to Mineral Resources is based on information compiled by Mr Dwiyoko Taruno who is a member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Dwiyoko Taruno has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Dwiyoko Taruno consents to the inclusion of such information in this report in the form and context in which it appears. This information has been reviewed by Dierdre Westblade of CSA Global Pty Ltd, Western Australia. Dierdre Westblade is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dierdre Westblade consents to the inclusion in the report of the matters based on his information in form and context in which it appears.

For

per

sona

l use

onl

y

Page 5: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

A summary of CSA Global’s Nuurst Project Coal Resource follows:

PT CSA Global Indonesia (CSA) was engaged by Modun Resources Ltd (Modun) to complete a Coal Resource Estimate for the Nuurst Project (NP), Mongolia.

NP is located in the Tuv district of Bayou Province, Mongolia, approximately 120km south of the capital city Ulaanbaatar (Figure 1).

Exploration Licence No.XV-008159 (NP) covers an area of 3,451 hectares. The Licence dimensions are approximately 3.4 km x 11.1 km. On the 11 August 2009 the licence was granted to East Resource LLC which became a subsidiary of Modun on the 6 October 2011. The license expires on the 11 August 2013, .

NP is situated in Choir-Nyalga Basin, where major coal seams are hosted in Lower Cretaceous age sediments of the Zuunbayan Group (Figure 1). This basin lies in the western portion of the Eastern Mongolia province. The Choir–Nyalga basin is divided into several fault bounded sub-basins filled with Mesozoic sequences. This basin covers an area of approximately 50,000 km².

Figure 1- Nuurst Project Location

Coal measures at NP have been gently folded into a syncline which strike N-S (Figure 2). Dips

to the W or E vary from -6° to -52°. CSA have interpreted normal faults perpendicular to the

syncline axis and average seam strike (Figure 2). The faults are typically vertical (-90°). The

maximum fault displacement is estimated to be 50m (Figure 2, Figure 3 and Figure 4).

Additional drilling will be required to better define faults in the areas of greatest economic

interest.

Coal Seam nomenclature and stratigraphy were completed by CSA from sectional interpretations, correlation of geological and geophysical logs. A total of 81 seams, sub-seams and seam splits have been identified (Figure 3, Figure 4, Appendix 1 and Appendix 2). The seams occur in 3 major groups with Seam Group A being the most economically significant. Apparent seam thicknesses vary from 0.1m to 56.5m. (Appendix 2)

For

per

sona

l use

onl

y

Page 6: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Figure 2 - Nuurst Project Structure, Drill Hole Locations and Section Lines.

For

per

sona

l use

onl

y

Page 7: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Figure 3 - Nuurst Project Section A-A’ and Section B-B’

Figure 4- Nuurst Project Section C-C’

In 2011 a total of 937 coal and non-coal samples were submitted to the SGS laboratory for

Total Moisture (TM), Inherent Moisture (IM), Ash Content (ASH), Volatile Matter (VM), Fixed

Carbon (FC), Calorific Value (CV), Total Sulphur (TS) and Relative Density (RD) analyses.

For

per

sona

l use

onl

y

Page 8: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Only 821 analytical samples from 14 holes were completed by the cut-off date for the original

2011 model.

The original SGS reports stated that the Total Moisture (TM % Ar), was measured by ASTM

3302 and the Inherent Moisture (IM % Adb) was measured by ISO-11722:1999. The entire

procedure for determining the total moisture in coal, after collecting the gross sample, begins

with preparing the sample for analysis (ASTM D-2013). Although ASTM 3302 is considered to

be one of the best methods of analysing Total Moisture, as the analysis is completed on the

entire sample “as received” in the laboratory, it measures only the “air dried loss” (ADL) (or

surface moisture loss) from the sample and in a second stage analysis the “Residual Moisture”

is generally determined by either the second part of ASTM 3302 or ASTM-3173. ISO 11722, a

technique for co-distillation of moisture with xylene, is also highly recommended for measuring

the Residual Moisture or the “as analysed” moisture in the coal sample after the initial air

drying.

The sum of the ADL and the Residual Moisture equals the Total Moisture.

In the case of high rank coals, where there is excellent cleat development, during air drying,

the moisture content of the coal can easily equilibrate with room temperature, so the ADL can

equal the Free Moisture content in the coal and the Residual Moisture can equal the Inherent

Moisture.

However, for lower rank coal is not true. The Modun coal, with measured CV (mmmf*) range of 4262-

5135 kcal/kg (7672-9243 Btu/lb), is a lower rank or brown coal, according to the UN-ECE 2002

classification (<5700 kcal/kg (mmmf) or <5731 kcal/kg /24 MJ/kg (m,af**)). Based on ASTM-ASA

Classification Modun coal rank are categorized as brown coal sub-bituminous C (<8300 Btu/lb (mmmf)

and <9500 Btu/lb or >8300 Btu/lb (mmmf)).

In 2012, after SGS was made aware of this error, it reissued all 2011 reports with the Inherent

Moisture column relabelled as Residual Moisture.

Furthermore, when Modun was also advised that the Inherent Moisture of the coal had not

been previously analysed, the company drilled three more holes, in the resource area, and

engaged ALS Mongolia to complete the correct moisture analyses, for this type of coal, on 156

samples (126 coal samples). ALS Mongolia used the UN-ECE recommended standard, ISO

5068 Pts 1 & 2, for analysing Total Moisture and “Inherent Moisture”.

The weighted average Inherent Moisture value obtained from the above 126 samples was

10.03%. So for modelling and coal classification purposes an inherent moisture value of 10%

was applied to all 2011 coal samples.

Footnotes * mmmf : Mois,t mineral- matter - free Basis of coal analysis assumes coal is free of mineral matter but still contains inherent moisture. ** m,af : Moist, ash- free

Indicates that the fuel heating value has been measured free of ash forming minerals but still contains inherent moisture

For

per

sona

l use

onl

y

Page 9: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

The Coal Resource estimate completed by CSA is summarised as follows: Resources are based on data acquired up to the 18 October, 2012. • Modun Resources Ltd. supplied tenement details, standard operating procedures

(SOPs), survey data, geological data, down hole geophysical data, sampling data and coal quality analysis laboratory certificates.

• The coal resource occurs within Exploration Licence XV-008159. (Figure 5). • CSA imported the supplied drill hole data into Minescape 4.118 software for geological

modelling. • Coal Seams nomenclature and stratigraphy were generated by CSA from sectional

interpretations and geophysical logging characteristic. • The geological model was derived from a 400m × 300m and 400m x 400m drill pattern

(Figure 2). • The total area modelled was 1,490 hectares. • The drilling data base comprised of 29 drill holes for a total of 8379.6m; a total

7411.60m from 2011 exploration programme and 986.0m from 2012 exploration programme, however two (2) drill holes (NDH-03 and NDH-28) were excluded from the geological model. NDH-28 was excluded because it is located 6km outside the modelled area. Drill hole NDH-03 was excluded from the model because the data was inconsistent with adjacent drilling and redrill hole NDH-04.

• A total of twenty three (23) holes were geophysically logged – NDH03, NDH17, NDH 22, NDH 25 were not logged.

• A total of twenty seven (27) drill holes were cored by diamond drilling. • The assigned minimum mining thickness was 0.5 metres. • A maximum depth of 500 metres was adapted for the purpose of establishing a global

Coal Resource.

The resource type category used to determine the confidence level for all points of observation are summarised in Table 1.

Drill holes were classified as valid points of observation for determining resource status if the following criteria were achieved:

The entire seam was cored;

Core recovery for the seam was ≥95%;

The drill hole was geophysically logged.

All criteria are Moderate (Table 1) therefore search radii for measured, Indicated and Inferred categories were deemed to be respectively 250m, 500m and 1000m. Cut off parameters used to estimate resources are summarised in Table 2. The method of Inverse Distance Squared (ID²) was used to estimate the volume and quality of the coal seams. Search ellipses were orientated parallel to the coal seams i.e. conformable to the sedimentary basin.

The in situ Relative Density (RD) factor was calculated from laboratory measured Relative Densities (RD_is) using the Preston Sander Formula.

For

per

sona

l use

onl

y

Page 10: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Table 1 - Resource Type Category

CRITERIA SIMPLE MODERATE COMPLEX

Sedimentary setting √

Structural setting √

Coal quality variation √

Table 2 - Cut Off Parameters

CUT OFF PARAMETER CSA

Minimum coal seam thickness 0.5m

Maximum coal seam internal dilution (parting) 0.1m

Minimum Calorific Value Kcal/kg (% adb) 3500

Coal seam cut by base of weathering (BOW) YES

The Nuurst coal resources have been classified and reported in accordance with the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

A range of criteria has been considered in determining the classification including:

Geological continuity;

Data quality;

Drill hole spacing;

Modelling technique;

Based upon these considerations coal resource categories Indicated and Inferred were defined. A minimum of 2 points of observation were required to classify coal resources. The classification process was based upon interpolation distance and minimum samples within the search ellipse as defined by Minescape as follows:

Inferred – if the average weighted sample distance was greater than 500m and less than 1000 m ( Radius 1000m);

Indicated - if the average weighted sample distance was greater than 250m and less than 500m (Radius 500m).

Measured – if the average weighted sample distance less than 250m (Radius 250m)

For

per

sona

l use

onl

y

Page 11: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Coal Resource Estimation Total resources for Nuurst to a depth of 500m are estimated to be 478.4 Mt of which 326.2 Mt is Measured, 103.8 Mt is Indicated, and 48.4 Mt is Inferred (Tables 3 & 4 ). All coal quality data has been modelled on an air dried basis (adb). Relative density and tonnage have been converted to an in situ basis using the Preston Sanders Formula. All quality have been modelled on a ply by ply basis and then combined into seam composites.

Table 3 - Nuurst Coal in situ Resources (Minescape Model)

CATEGORY/ VOLUME MASS MINIMUM MAXIMUM AVERAGE

DEPTH (X1000 BCM) (X1000 Tonnes) TRUE THICK (m) TRUE THICK (m) TRUE THICK (m)

M100 18,131 22,989 0.6 45.4 4.7

M200 77,425 99,658 0.6 25.3 11.0

M300 81,054 106,982 0.6 30.0 11.6

M400 50,606 66,909 0.5 25.6 11.4

M500 22,523 29,614 0.6 24.3 12.2

MEASURED 249,739 326,152 0.5 30.0 11.0

M100 964 1,251 0.6 6.7 2.3

M200 9,040 12,067 0.6 35.0 4.8

M300 17,316 23,158 0.6 16.9 5.1

M400 26,116 34,867 0.5 21.5 6.6

M500 24,627 32,498 0.6 23.2 9.0

INDICATED 78,064 103,841 0.5 35.0 6.8

M100 4,609 6,049 1.0 12.5 6.4

M200 5,772 7,608 1.1 11.3 5.7

M300 4,654 6,129 0.7 10.5 5.8

M400 5,901 7,776 0.7 10.0 5.5

M500 15,785 20,863 0.5 9.2 4.5

INFERRED 36,721 48,425 0.5 12.5 5.2

Grand Total 364,523 478,418 0.5 35.0 9.5

Note: Coal Thickness in the table is represents individual seam thicknesses

For

per

sona

l use

onl

y

Page 12: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Table 4 - Nuurst Coal Quality Resource Summary (Minescape Model)

CATEGORY/ MASS TM IM ASH VM FC TS CV RD_is

DEPTH (X1000 Tonnes) %ar %adb %adb %adb %adb %adb %adb %db %daf gr/cm³

M100 22,989 36.79 9.98 18.59 41.33 30.12 0.92 4788 5319 6703 1.27

M200 99,658 33.70 9.99 18.62 41.80 29.61 1.03 4782 5312 6698 1.29

M300 106,982 29.89 9.98 19.93 40.44 29.66 1.05 4684 5203 6682 1.32

M400 66,909 27.91 9.99 18.88 39.93 31.19 1.11 4789 5321 6733 1.32

M500 29,614 27.27 10.00 16.31 39.83 33.86 1.07 5023 5581 6816 1.31

MEASURED 326,152 30.93 9.99 18.89 40.77 30.37 1.05 4774 5303 6711 1.31

M100 1,251 32.60 10.02 18.50 42.43 29.04 1.08 4770 5301 6673 1.30

M200 12,067 29.08 10.00 19.02 40.44 30.54 1.20 4724 5248 6655 1.33

M300 23,158 28.97 9.99 19.59 40.03 30.38 1.14 4692 5213 6664 1.34

M400 34,867 28.29 10.00 19.68 39.41 30.92 1.11 4705 5228 6690 1.34

M500 32,498 27.81 10.00 17.49 40.05 32.46 1.11 4921 5468 6787 1.32

INDICATED 103,841 28.43 10.00 18.88 39.91 31.22 1.13 4773 5304 6711 1.33

M100 6,049 28.46 10.00 17.55 40.67 31.78 1.22 4808 5342 6636 1.31

M200 7,608 28.36 10.00 17.92 40.64 31.43 1.22 4782 5314 6635 1.32

M300 6,129 28.68 10.00 17.67 40.37 31.95 1.31 4798 5331 6634 1.32

M400 7,776 28.77 10.00 18.75 40.19 31.06 1.31 4723 5248 6629 1.32

M500 20,863 28.09 10.00 20.13 39.44 30.43 1.14 4649 5166 6654 1.32

INFERRED 48,425 28.36 10.00 18.93 40.02 31.05 1.21 4721 5245 6642 1.32

Grand Total 478,418 30.14 9.99 18.89 40.51 30.62 1.08 4768 5297 6704 1.31

Notes: TM – total moisture CV – calorific value

IM – inherent moisture ar – as received ASH – ash content adb – air dried basis, laboratory report VM – volatile matter db – dry basis, calculation, db = [100/(100-IM)] x CVadb FC – fixed carbon daf – dry ash free, calculation, daf = [100/(100-IM-ASH)] x CVadb TS – total sulphur M100 – Interval depth 0m-100m below topographic surface M200- interval depth 100m-200m below topographic surface M300- interval depth 200m-300m below topographic surface M400- interval depth 300m-400m below topographic surface M500- interval depth 400m-500m below topographic surface

For

per

sona

l use

onl

y

Page 13: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Figure 5 – 14000 Seam Resource Categories

For

per

sona

l use

onl

y

Page 14: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Competent Person Statement

The information in this announcement that relates to Mineral Resources is based on information compiled by Mr Dwiyoko Taruno who is a member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Mr Dwiyoko Taruno has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Dwiyoko Taruno consents to the inclusion of such information in this report in the form and context in which it appears. This information has been reviewed by Dierdre Westblade of CSA Global Pty Ltd, Western Australia. Dierdre Westblade is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dierdre Westblade consents to the inclusion in the report of the matters based on his information in form and context in which it appears.

For

per

sona

l use

onl

y

Page 15: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Appendix 1

Seam Stratigraphy

For

per

sona

l use

onl

y

Page 16: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

Appendix 2

Drill database: seam intersections and apparent seam thicknesses (unweighted averages)

SEAM SEAM NUMBER AVERAGE MINIMUM MAXIMUM

GROUP NAME OF HOLES THICK (m) HOLENAME THICK (m) HOLENAME THICK (m)

SEA

M G

RO

UP

C

38000 7 0.5 NDH-22* 0.2 NDH-15 1.0

37000 7 1.0 NDH-20 0.3 NDH-04 2.8

36000 3 9.2 NDH-19 8.0 NDH-20 10.7

35000 2 1.5 NDH-19 0.7 NDH-20 2.4

34000 2 2.4 NDH-19 1.8 NDH-20 3.1

33000 3 0.6 NDH-20 0.5 NDH-19 0.7

32000 5 0.8 NDH-22* 0.4 NDH-19 1.5

31000 13 1.1 NDH-13 0.3 NDH-19 3.1

30000 4 0.9 NDH-07 0.4 NDH-20 1.3

29000 3 1.0 NDH-02 0.3 NDH-07 1.7

28000 3 1.1 NDH-08 0.6 NDH-20 1.8

27000 3 1.4 NDH-20 1.1 NDH-02 1.8

26000 4 1.7 NDH-22* 0.3 NDH-02 4.5

25000 6 0.8 NDH-22* 0.2 NDH-08 1.4

24000 7 1.5 NDH-04 0.5 NDH-02 3.9

23000 8 0.9 NDH-14 0.3 NDH-02 2.8

Note: *Drill holes without Geophysical logging data.

For

per

sona

l use

onl

y

Page 17: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

SEAM SEAM NUMBER AVERAGE MINIMUM MAXIMUM

GROUP NAME OF HOLES THICK (m) HOLENAME THICK (m) HOLENAME THICK (m)

SEA

M G

RO

UP

B

22000 16 1.2 NDH-13 0.1 NDH-18 3.7

21260 2 1.0 NDH-13 0.9 NDH-08 1.1

21250 3 0.8 NDH-18 0.3 NDH-13 1.2

21240 3 1.1 NDH-08 0.8 NDH-13 1.2

21230 4 1.8 NDH-18 0.4 NDH-15 4.4

21220 4 1.7 NDH-08 1.1 NDH-13 2.5

21210 3 1.1 NDH-13 0.8 NDH-08 1.5

21200 10 2.7 NDH-01 0.2 NDH-11 7.5

21100 13 2.7 NDH-01 0.3 NDH-06 5.7

21000 5 5.9 NDH-04 0.5 NDH-26 11.3

20200 6 1.9 NDH-10 0.2 NDH-16 9.1

20120 3 0.7 NDH-10 0.3 NDH-13 1.0

20110 3 0.4 NDH-10 0.3 NDH-13 0.4

20100 3 0.6 NDH-18 0.3 NDH-06 0.7

20000 12 3.4 NDH-22* 0.5 NDH-12 10.9

19220 5 1.1 NDH-20 0.7 NDH-23 1.4

19210 5 1.5 NDH-23 0.6 NDH-20 2.8

19200 5 2.3 NDH-15 1.0 NDH-01 4.4

19130 5 0.8 NDH-19 0.4 NDH-02 1.3

19120 3 0.7 NDH-23 0.6 NDH-02 0.8

19110 3 0.7 NDH-12 0.6 NDH-02 0.9

19100 5 3.2 NDH-14 1.0 NDH-26 4.2

19000 6 1.7 NDH-09 1.1 NDH-13 2.1

18200 4 2.7 NDH-10 1.0 NDH-08 4.0

18100 3 1.7 NDH-01 1.3 NDH-10 2.3

18000 14 3.1 NDH-22* 0.2 NDH-26 5.7

17250 8 1.7 NDH-19 0.3 NDH-14 6.2

17240 10 1.5 NDH-10 0.4 NDH-15 6.2

17230 9 1.3 NDH-02 0.3 NDH-07 3.6

17220 11 1.0 NDH-22* 0.1 NDH-14 2.4

17210 12 1.9 NDH-02 0.2 NDH-18 6.7

17200 6 4.6 NDH-05 0.5 NDH-16 11.4

17120 9 2.6 NDH-02 0.3 NDH-15 6.0

17110 9 1.6 NDH-07 0.5 NDH-15 4.0

17100 8 1.9 NDH-05 0.3 NDH-06 3.4

17000 1 14.3 NDH-08 14.3 NDH-08 14.3

16000 11 0.8 NDH-12 0.2 NDH-08 2.7

Note: *Drill holes without Geophysical logging data.

For

per

sona

l use

onl

y

Page 18: MODUN ANNOUNCES AN UPGRADE TO ITS JORC REPORTABLE COAL ... · asx announcement asx code: mou 08 november 2012 modun announces an upgrade to its jorc reportable coal resource at nuurst

SEAM SEAM NUMBER AVERAGE MINIMUM MAXIMUM

GROUP NAME OF HOLES THICK (m) HOLENAME THICK (m) HOLENAME THICK (m)

SEA

M G

RO

UP

A

15000 19 2.2 NDH-16 1.2 NDH-23 5.5

14220 12 11.6 NDH-22* 0.4 NDH-23 18.6

14210 11 6.3 NDH-04 0.2 NDH-20 10.2

14200 12 13.9 NDH-27 7.9 NDH-01 20.3

14160 9 4.1 NDH-09 1.2 NDH-19 8.9

14150 9 5.5 NDH-05 1.5 NDH-20 12.9

14140 9 5.6 NDH-04 1.1 NDH-23 14.4

14130 9 6.3 NDH-19 0.7 NDH-20 14.6

14120 9 6.1 NDH-12 0.7 NDH-05 15.0

14110 10 6.9 NDH-10 0.5 NDH-04 17.7

14100 13 27.5 NDH-21 5.2 NDH-02 56.5

13000 14 1.0 NDH-10 0.3 NDH-04 1.9

12260 3 1.2 NDH-12 0.8 NDH-10 1.6

12250 3 3.5 NDH-05 0.5 NDH-10 5.3

12240 3 1.4 NDH-12 0.4 NDH-10 3.0

12230 3 2.1 NDH-05 0.9 NDH-10 4.0

12220 3 1.5 NDH-12 0.5 NDH-10 2.8

12210 3 2.1 NDH-05 0.7 NDH-10 4.3

12200 10 18.7 NDH-23 1.8 NDH-14 34.4

12120 5 4.5 NDH-05 0.5 NDH-23 10.7

12110 5 8.4 NDH-05 1.6 NDH-23 20.1

12100 9 19.4 NDH-04 8.6 NDH-29 41.4

12000 9 40.6 NDH-13 32.7 NDH-08 56.1

11200 1 3.1 NDH-04 3.1 NDH-04 3.1

11100 1 1.3 NDH-04 1.3 NDH-04 1.3

11000 16 2.4 NDH-18 0.2 NDH-09 5.6

10000 6 8.6 NDH-27 2.3 NDH-19 13.4

Note: *Drill holes without Geophysical logging data.

For

per

sona

l use

onl

y