The company’s 100%-owned flagship development is estimated to contain a total resource of 146.1 million tonnes, comprising 14.6Mt measured, 36.4Mt indicated and 95.1Mt inferred resources.
The open cut thermal coal project consists of three coal exploration permits, two recently acquired from Hannigan & Associates’ Orion coal project.
The geological model was produced by combining geological data of the three permits following the acquisition last December.
The model confirmed the continuity of the 10 coal seams throughout the project, located in the western Bowen Basin.
According to a company statement, 86% of the resource is less than 150m from the surface.
The quality of the coal appears to be a sub-bituminous coal with moderate ash, moderate specific energy and low to moderate sulphur.
Washability work indicates good washability characteristics with good to excellent recoveries.
Notably, several coal seams can bypass the washing requirement, saving the company considerable capital.
Cuesta Coal managing director Matthew Crawford said the company was pleased to announce the progress at Moorlands.
“The project was identified as an opportunity to fast-track Cuesta from an explorer to a developer,” he told ILN.
“With the bolt-on acquisition of Orion [EPCs 775 and 776] and this subsequent combined resource estimate, the board remains confident that Moorlands has the potential to be a robust thermal coal project.
“We are pleased by the progress with our scoping study and look forward to informing shareholders of its outcomes shortly.”
The company has engaged Xenith Consulting to complete a mine scoping study which is expected to be completed within the next month.
In the statement Cuesta said it intends to drill the resource base to a JORC indicated category in the lead-up to commencing feasibility studies, with production at the project targeted in a three to five-year timeframe.