home-banner-sh

Map of Spur Hill Underground, showing its location in NSW.
The location of the Spur Hill Underground Coal Project within NSW. Click image to enlarge.

Location

The Spur Hill Underground Coking Coal Project is located in the Upper Hunter Valley of New South Wales. The relevant tenement is NSW Exploration Licence (EL) 7429. The boundary of the Tenement is approximately 3 kilometres (km) east of Denman and 15 km south-west of Muswellbrook.

Spur Hill Underground is within the Upper Hunter Valley coal corridor which contains a number of operating coal mines and development projects. 

Underground Project

The Project is exclusively an underground longwall mining operation. The Project does not include any open cut mining. An underground mine:

  • Minimises the effect on visual amenity and the landscape in comparison to an open cut mine;
  • Leaves no final hole or void at the end of the project;
  • Avoids the widespread noise emissions and impacts commonly associated with an open cut mine;
  • Similarly avoids the widespread air quality and dust concerns associated with an open cut mine (e.g. from open cut blasting);
  • Does not involve the large scale blasting and removal and dumping of overburden required at open cut mines; and 
  • Does not consume and alter the large areas of land that an open cut mine covers - existing agricultural and other commercial activities above and surrounding an underground mine can continue to operate when an underground mine is developed.

As owners of the Merton Vineyard, Spur Hill Management has undertaken significant improvements in the vineyard and structural upgrades of the winery aimed at returning the vines to full productivity, including grafting new grape varietis on existing root stock. The vineyard will come to operate as mining proceeds beneath it.  

Resources

Spur Hill Underground has total JORC Mineral Resources of 626Mt (100% basis), comprising two distinct resource blocks. The Western Zone contains 514Mt of Resources, including 394Mt of Indicated Mineral Resources, and covers the majority of the Tenement; this resource is between 60 to 590m deep and demonstrates characteristics favourable to longwall mining. The Eastern Zone contains 112Mt of Inferred Mineral Resource; it is located on the eastern flank of the Tenement and is between 20 to 320m below the surface. Spur Hill will only be applying for a Mining Lease for the Western Zone.

AreaIndicated Mineral Resource (Mt)Inferred Mineral Resource (Mt)Total Mineral Resource (Mt)
Western Zone 394.4 119.2 513.6
Eastern Zone   112.3 112.3
Total 394.4 231.5 625.9

The Resources Estimate has been prepared in accordance with the JORC Code 2012 by Geological and Mining Services Australia Pty Ltd.

Reserves

Malabar Coal released the maiden Reserve Statement for the Spur Hill Underground Coking Coal Project to the ASX on 11 November 2013. The Probable Reserves Estimate for the Project of 91Mt is based on the Whynot and Bowfield seams which are two of the initial seams targeted for mining. As further field-work and studies are undertaken, more Resources are expected to be converted into Reserves so underpinning the Project beyond 20 years.

 Western (Underground) Zone
SeamProbable 
Coal Reserve (Mt)
Probable Marketable 
Coal Reserve (Mt)
Whynot 78 59
Bowfield 13 10
Total 91 69
  • The Reserves Estimate has been prepared in accord with the JORC Code 2012 by MineCraft Consulting Pty Ltd.
  • The Resources Estimate is inclusive of Reserves
  • The Probable Marketable Coal Reserve is derived from the Probable Coal Reserve based on an average yield of 76% from the Whynot seam and 79% from the Bowfield seam. These average yields are derived from laboratory yields ranging from 80% to 85% adjusted for mining dilution and moisture adjustments.

Current Work Program and Timing

Local map of Spur Hill Underground.
The approximate location of the Spur Hill Underground Coal Project Area. Click image to enlarge.

Spur Hill is currently focused on continuing environmental and engineering studies.

 

 

 

 

 

 

 

  

Competent Person's Statement

The information on this website that relates to JORC Mineral Resources for the Spur Hill Underground Coking Coal Project is based on information compiled by Mr Darryl Stevenson. Mr Darryl Stevenson is the Principal Geologist and employee of Geological and Mining Services Australia Pty Ltd, an independent consultancy group specialising in mineral resource estimation, evaluation and exploration. Mr Darryl Stevenson is a Member of The Australasian Institute of Mining and Metallurgy. He 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 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. The relationship between the Estimator and the Project owner is that of independent consultant. Mr Darryl Stevenson consents to the inclusion on this website of the matters based on his information in the form and context in which it appears.

The information on this website that relates to JORC Mineral Reserves for the Spur Hill Underground Coking Coal Project is based on a Reserves Estimate that has been prepared by Mr Jeremy Busfield, Principal Mining Consultant of MineCraft Consulting Pty Ltd. Mr Busfield holds a Bachelor of Mining Engineering degree from the University of Queensland, is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and is a Registered Professional Engineer of Queensland (Mining) (RPEQ 10285). Mr Busfield has worked in various planning, operational and consulting roles for the underground coal industry for 27 years and as such qualifies as Competent Person under the JORC Code 2012. The relationship between the Estimator and the Project owner is that of independent consultant. Mr Busfield consents to the inclusion on this website of the matters based on his information and in the form and context in which it appears.