Indicated resources also jumped 244% to 206.3Mt.
Collective Experience prepared the updated resources statement, which focused on two seams within a 17 kilometre strike-length of the northern part of EPC 1049.
The resources were mainly in the area the concept study slated for open cut mining last year.
“This resource increase and the conversions to measured and indicated status are a significant milestone for the JV and the development of the South Galilee Project overall,” Bandanna managing director Ray Shaw said.
He added all of the coal had 20% or less ash apart from one ply in the upper D1 seam, while about 390Mt had less than 12%.
Shaw noted the resource boost was timely in respect to rival Galilee Basin plays, especially Hancock Coal’s efforts to market its giant Kevin’s Corner underground project.
“These results are also very pertinent as the industry tries to value Galilee Basin projects in the light of the recent Adani-Linc [Energy] transaction and a mooted sale of Kevin’s Corner,” Shaw said.
The South Galilee open cut and underground project is aiming for 15-20Mt per annum of output over 43 years from the unexploited thermal coal basin.
The project encompasses four permits and the prefeasibility study is on track for completion by the end of March.
Bandanna is one of the few listed companies exposed to the Galilee Basin, which needs a major railway link to service the various proposed mines.
Billionaire Gina Rinehart is advancing two 30Mtpa projects through Hancock.
Immediately south, fellow mining magnate Clive Palmer is targeting 40Mtpa through Waratah Coal’s China First project with joint venture partner Metallurgical Corporation of China.
Palmer and Rinehart each have plans to develop 500km rail links to Abbot Point.
But Palmer had previously poured cold water on the prospects that both companies could share the costs of a single rail development.
“They [Hancock] have got no money,” he told ILN after an address to the Sydney Mining Club in December.
“To build the railway costs $A2.5 billion and to date no one in the Galilee Basin has offered me $1.5 billion to share it. To be honest they don’t have the money. It’s just all talking.”
Bandanna plans to link on to any rail development to the basin as the Queensland government has made assurances it will implement third party user provisions.
Hancock has been marketing its Kevin’s Corner and Alpha projects in the basin.
India’s GVK Power & Infrastructure made a bid just short of $US2 billion for Kevin’s Corner, according to the Economic Times newspaper in the country.
Indian trading and infrastructure group Adani is targeting a 60Mtpa mine in the Galilee Basin after purchasing a Galilee tenement off Linc last year for $A500 million and a lucrative royalties agreement.
Bandanna shares closed up 6.4% to $1.67 yesterday.
