Bandanna increases reserves at Springsure

BANDANNA Energy, which is under administration, has reported a 70% increase in probable reserves for its Springsure Creek Coal project in Queensland as a result of additional drilling undertaken during 2014.

Lou Caruana

The latest reserve report shows an overall increase in probable reserves from 174 million tonnes to 296Mt, and an increase in probable marketable reserves from 165Mt to 281Mt.

The company has previously commissioned four JORC reserve reports completed in 2010, 2011, 2012 and 2014.

“The significant increase in reserves provides further confirmation of the potential for development of a world-scale thermal coal mine,” the company said.

“With increased confidence as to the size of the Springsure Creek project reserves, its high coal quality, relatively low capital intensity, competitive operating cost structure, proximity to existing rail lines and port infrastructure, and both State and Commonwealth EIS approvals, Springsure Creek is well-positioned to become Australia’s next major thermal coal development.”

Macquarie Capital has been engaged to start a process focused on the company, or its business, continuing as a going concern and maximising the outcome for all stakeholders, Bandanna said.

“This process may include the restructuring or realisation of all or part of the company and its subsidiaries,” it said.

“Macquarie is currently seeking expressions of interest from potential parties. Formal invitations into the transaction process will commence in June 2015.”

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