OAKLANDS RESOURCE
Coalworks's initial 6 hole drill program returned a JORC resource of 260Mt which was later increased to 640Mt, and then 760Mt by further drilling. Following the drilling of over 93 holes the current JORC resource stands at a measured, indicated and inferred 822Mt. The JORC resource has been independently estimated by GEOS Mining Consultants.
The coal quality is represented in the following table:
Table 1: Oaklands Measured, Indicated and Inferred Resource (as at 5th November 2009)
| Resource status | Seam | Mass (Tonnes) | Average Thickness (m) | Raw Ash 2 (%) | Fixed Carbon2 (%) | Total Sulphur2 (%) | Volatile Matter 2 (%) | Gross Calorific Value2 (Kcal/kg) | Total Moisture3 (% ar) | |
| Measured | Lanes Shaft | 121 Mt | 16.7 | 14.2 | 44.9 | 0.27 | 24.4 | 4900 | 26.2 | |
| Indicated | Lanes Shaft | 570 Mt | 14.5 | 17.8 | 41.7 | 0.28 | 24.1 | 4610 | 25.6 | |
| Coreen Creek | 2 Mt | 0.9 | 20.5 | 40.5 | 0.22 | 22.6 | 4370 | 24.6 | ||
| Total Indicated | 572 Mt | 15.4 | 17.8 | 41.7 | 0.28 | 24.1 | 4610 | 25.6 | ||
| Inferred | Lanes Shaft | 112 Mt | 13.9 | 19.7 | 40.3 | 0.28 | 23.5 | 4460 | 24.7 | |
| Coreen Creek | 18 Mt | 1.0 | 14.5 | 42.7 | 0.61 | 26.4 | 4850 | 26.6 | ||
| Total Inferred | Total | 129 Mt | 15.0 | 19.0 | 40.6 | 0.32 | 23.9 | 4510 | 25.0 | |
| Total 4 | 822 Mt | |||||||||
1Calculated in accordance with the Preston & Sanders Method
2Based on a constant (16.46%,) air dried moisture content, determined from the average for all plies. Values have been corrected for total sulphur using the formula CV (corrected) = CV (uncorrected)-0.95 x total sulphur.
3Moisture as received in the laboratory, core having been wrapped on recovery to prevent moisture loss before analysis; included for comparison purposes only.
4Calculated using minimum potential working section thickness 0.40m, maximum potential working section raw ash content 40% (adb), and maximum cumulative overburden:coal ratio 10:1 BCM/tonne.
Drillholes
The resource estimate is based on results from 93 exploration drillholes and several seismic traverses that have been completed by Coalworks within EL6861, and historical drillhole data. All historical data was validated against current drillhole seam intersections before inclusion in the data set, and historic results were only used for seam locations, not for quality estimates.
From the 93 exploration drillholes completed, all but one hole intersected the Lanes Shaft Seam (ODH048). This hole is located within a faulted resource exclusion zone.
All exploration drillhole collars were surveyed, with all but one hole geophysically logged. Of these, 76 holes were either fully or partially cored for coal quality sampling and analysis.
Geotechnical investigations of the fully cored holes have been conducted by Onsite Geology, with results incorporated into mine planning studies. Additionally, nine exploration drillholes have been converted to water bores for groundwater investigation purposes. Vibrating Wire piezometers have been installed in eight ofthese water bores.
