COALESED B/D SEAMS CREATES 10-12M SPRINGWATER SEAM OVER 53 SQKM CONTINUOUS LOW COMPLEXITY ZONES ACROSS SEVERAL MINING AREAS LARGEST COKING COAL RESOURCE ACCESSIBLE TERRAIN, ESTABLISHED ROADS AND SURFACE INFRASTRUCTURE Bright, Low Ash, Low Sulphur, High Quality Coal Hutton is one of the worlds largest metallurgical coal endowments TARGETING GLOBALLY SIGNIFICANT ASSETS INVESTING FOR AUSTRALIA'S FUTURE

Hutton Coking Coal Project Overview

Valiant Resources is a private coal exploration and development company that was established to develop its principal asset, the Hutton Coking Coal Project, across its tenements that cover 1,469 sq km in the southern area of the Bowen Basin in Queensland, Australia.

The Hutton Coking Coal Project is one of the largest undeveloped coking coal assets in the world.

Valiant’s principal asset has five defined mining areas with a total JORC compliant Resource of 5,287 million tonnes comprising:

  • JORC Inferred Resource of 4,655 million tonnes; and
  • JORC Indicated Resources of 632 million tonnes 

The coals are of the Late Permian Bandanna Formation. The Resource is at depths suitable for underground mining.

Hutton Coking Coal Project – Location

The Project is located in the southern area of the Bowen Basin in Queensland, Australia. Queensland is the largest exporter of seaborne coal in the world.

EPC 1110 and EPC 1275

Location of EPC 1110 and EPC 1275

Hutton Coking Coal Project – Identified Mining Areas

The table that follows the map below summarises each of the five identified mining areas of the Hutton Coking Coal Project. The five mining areas are predominantly of a semi-soft or semi-hard coking coal profile (SSCC/SHCC) and have the potential to produce a substantial percentage of the global seaborne coking coal market once developed individually as stand alone projects or as one super-complex.

The volumes of coal, if all mines reach full production, would represent a new major global supply that would materially increase the availability of SHCC/SSCC on the seaborne market. Potential production volumes indicative of:

  • Mining Area 2 – 12 mtpa;
  • Mining Area 1 – 12 mtpa;
  • Dual longwall operations across Mining Areas 2 & 1 – 24 mtpa;
  • Across all 5 Mining Areas (if all in production) – up to 49-55 mtpa.

miningareaswell-data

Notes: * Results from Scoping Studies ** Factored estimates based on results of Scoping Studies for areas 1 & 2 and the assessment Mining Area Identification Study 2015

Notes: * Results from Scoping Studies ** Factored estimates based on results of Scoping Studies for areas 1 & 2 and the assessment Mining Area Identification Study 2015

The identified mining areas mapped above were defined following a Mining Areas Identification and Structural Interpretation Study based on the following criteria and key assumptions:

  • Depth of Cover: >400m and <900m (JORC cut-offs)
  • Geological Constraints: No mining in areas designated High Geological Complexity
  • Environmental Constraints: No mining under the national park
  • Target Seam: Includes either the B or D seam, both seams or the coalesced B/D Springwater Seam
  • Seam Thickness: >1.8m
  • Interburden:
    • >20m
    • Where interburden was <20m, the thicker seam was targeted and the thinner seam was assumed to be sterilised
  • Lease Boundaries: Within the combined EPC 1110 and EPC 1275 lease area.

Hutton Coking Coal Project – Rail Options and Port

The Hutton Project is located adjacent to BMA (BHP Billiton Mitsubishi Alliance) Ridgelands Project that runs along the western boundaries of Hutton Coking Coal Project’s tenure. The Glencore Wandoan Project is also shown in the lower right corner of the image below, and is anchoring the proposed but deferred Surat Basin Rail Link (SBR). Valiant is investigating multiple options for rail solutions for the Hutton Coking Coal Project with options under review that include the development of its own Hutton rail link (Option 1) to join the Moura line via 180 km of new rail or alternatively to join the SBR via a spur line (Options 2 & 3) should the SBR project proceed in coming years.

Hutton Rail Opti

Coal form the Hutton Project is likely to be shipped from the Wiggins Island Coal Export Terminal at Gladstone (WICET) under a custom terminal given the quantity of coal production possible anticipated from Hutton.

Valiant recently completed a Rail study to investigate the preferred rail transport solution to port for the Hutton Coking Coal Project. The result of the study was delineation and development of the Hutton Rail Project.

Hutton Rail Project and Future Spur Lines

Hutton Rail Project and Proposed Future Spur Lines

Hutton Coking Coal Project – Available Data Inventory

There have been approximately 800 wells drilled in this area with over 550 points of well data currently in the Valiant Resources regional geological model of the Hutton Coking Coal Project. The Company is continually updating its geological model and will continue to upgrade its resource as more data becomes available with a number of wells anticipated to be added later this year.

Hutton Data

The image below shows the coverage of existing 2D seismic lines. The Company also has acquired a 3D seismic survey and is seeking further 3D seismic studies expected to be received and incorporated in the geological model during the 2nd half of 2017.

Hutton Seismic

The Company is continually updating its geological model and conducting further studies with the addition of recently acquired data to its substantial existing inventory of seismic, coal quality and drilling data across the resource area.

Valiant has conducted detailed studies and has numerous reports summarising available information and studies and activities that have been undertaken to define and continue to develop the Hutton Coking Coal Project.

Valiant completed two Scoping Studies in early 2017 on the two primary mining areas identified from the Mining Areas study (Mining Areas 2 & 1) undertaken with Palaris in 2015.

Click below for further information on the Hutton Coking Coal Project and Hutton Rail Project.