Coalworks owns a 92.5% interest in the Ferndale Coal project (EL 7430) , in the prime Hunter Valley coal area of New South Wales. The deposit is at Yarrawa which is about 8 kilometres southwest of Denman, near Muswellbrook, and is prospective for export coking and thermal coal. It is close to rail, road and port infrastructure and is about 125kms from the port of Newcastle.

Coalworks' 92.5% owned subsidiary has entered into a Farm In Agreement and Joint Venture Agreement with Boardwalk Ferndale Pty Ltd (BWK), for an up to $25 million joint venture to develop the Ferndale project. Up to $25 million will be spent by BWK to provide a bankable feasability study on an open-cut mine and complete a pre feasbility study for underground mine development at Ferndale. If the $25 million is fully expended, the commitment will deliver BWK a 50% stake in the Ferndale project.

 

Some prior drilling has provided sufficient knowledge of coal seams running through the licence area to enable the conceptual coal seam model appearing below.

Coalworks is currently in the midst of a 3 stage drilling program and plans to drill a number of well known coal measures known to occur in the EL including the quality Whittingham coal measures. The current exploration target at Ferndale is for 350 to 530 million tonnes of export quality thermal coal and coking coal in the Newcastle Coal Measures and Wittingham Coal Measures . Coalworks is also consulting landowners and the local community to provide information on its exploration program and procedures.

INFORMATION CIRCULARS

 

Ferndale Newsletter No 1 Ferndale Newsletter No 2 Ferndale Newsletter No 3 Ferndale Newsletter No 4

FURTHER INFORMATION

For further information, please click on the link to Coalworks' joint venture partner:

Boardwalk Resources Website - Ferndale Project