International has announced it signed a revised term sheet with Coal Face Resources that will deliver company 20% of the project tenements under a cash and scrip deal.
The Consuelo project consist of three advanced priority tenement applications and one competing application all within 10-20km of Xtrata Coal’s Rolleston open cut thermal coal and 26km from the rail haulage line that runs adjacent to it.
The existing rail line currently services the Barney Point Coal terminal, the RG Tanna Coal terminal and the proposed Wiggins Island Coal terminal.
Endocoal’s Meteor Downs South deposit is about 30km to the northwest.
“The Consuelo projects are in a premier location within the Bowen Basin,” the company said in a statement.
“The Consuelo projects are all within close proximity of one another in a well-defined area of the Bowen Basin.
“Modelling indicates the Consuelo project could host significant mineable open cut and underground tonnages. Coal quality is exceptionally high. Average raw ash content ranges from 8% to 30% with moisture 3% to 8%.”
An exploration target of between 800 million tonnes and 1.7Bt has been established.
Representatives of International Coal and Coal Face are in the process of concluding a formal agreement relating to the JV, the company said.