Ann: Cooroorah Update, page-6

The intercepts that BCB (and APC before them - proved up nearly 125 Mt of JORC Resource - see announcement 29 November 2013) have made are for an underground mine, not an open cut mine as per Jellinbah or Curragh. Neither of these neighbours would likely be particularly interested while they have more economic and lower risk open cut reserves available. With the BCB intercepts of the Mammoth (3.6m thick) and lower seams at >350m depth (APC stated depths in the tenement range 240 - 530m in 29 Nov 13 announcement), this will be a gassy, moderate to deep project likely best suited to bord and pillar mining in the usually very geologically disturbed Rangal coal measures - in this area the Jellinbah, Shotover and Como (and other parallel) thrust fault systems runs in n-nw trend. Capital for initial access at these depths will be moderate to high, and unless a deal can be stuck with either Jellinbah or Curragh to process and train load, capex for this infrastructure will also need to be carried by the project. As at Cook Colliery (and the adjacent Minyango project adjoining Blackwater), the main target seam/s is above the Pollux seam horizon - in the Aries/Castor (~2.5m thick each at Cook) - which have the better coking properties. Also as per Cook Colliery, the Pollux here appears to have low yields and is likely inferior quality. The range of raw coal quality parameters stated by APC Nov 13 indicates potential issues with phosphorus management.