Name and Location
Bluff coal project, Queensland, Australia.

Client
Carabella Resources.

Project Description
The Bluff project, which is located 20 km east of Blackwater, in Central Queensland, has a maiden resource of 18.2-million tonnes, comprising 6.6-million tonnes of indicated resources and 11.6-million tonnes of inferred resources.

A concept study completed on the project envisions an opencut mine plan, involving contractor mining using truck and excavator equipment, with the potential to produce one-million tonnes of pulverised coal injection coal a year over a ten-year mine life.

The mining method involves terrace mining. Auger mining from final endwalls and highwalls is planned to supplement the truck/excavator operation. The proposed mining fleet includes 350 t excavators, in conjunction with 190 t trucks, for overburden removal and a small excavator to recover coal. Ancillary mining equipment, such as water trucks, service trucks, graders and dozers, will be required. On-site coal processing is envisaged, with product coal to be trucked on the Capricorn highway to one of several potential off-site loading points. Coal is to be railed to the Port of Gladstone for sale into export markets.

Value
The project is estimated at $32.5-million.

Duration
Mining is expected to start in the first half of 2014.

Latest Developments
Carabella plans to advance the project, which is scheduled for completion in the second half of this year, to feasibility.

The study programme includes further drilling for resource and reserve delineation, detailed engineering for coal processing, securing off-site services that include rail and port capacity, and engagement with key contractors. Rail and port options at the Port of Gladstone are being pursued.

Project funding arrangements will also be progressed during the feasibility study stage. Carabella is evaluating alternative funding opportunities, including potential coal offtake funding.

The environmental study programme will continue with project approvals, including the granting of the mining lease, targeted for the first quarter of 2014.

The forward work programme envisages the start of mining activities, following project approvals, in the first half of 2014.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Carabella Resources, tel +61 7 3135 9900, fax +61 7 3216 1138 or email info@carabellaresources.com.au.