There has been a 232% increase in the run-of-mine coal reserves at the Isaac Plains Coal Project in Queensland.

Aquila Resources and Companhia Vale do Rio Doce each have a 50% joint venture interest in the project. The Isaac Plains project is about 7km south-east of the town of Moranbah in the Bowen Basin region of central Queensland. It comprises the Isaac Plains North and south coal deposits, separated by about 15km.

Mining operations started at Isaac Plains North in late 2006 at an initial production rate of 1.2 million tonnes per annum and included construction of coal processing facilities and associated power, water, road and rail infrastructure.

It is proposed that the Isaac Plains South deposit will be developed later this year, subject to completion of regulatory approvals. It will be part of an integrated project that involves mining at both deposits using a combination of truck and shovel and also dragline methods, with processing and railing occurring at the existing Isaac Plains North facilities.

These estimates of coal reserves presented have been compiled by MB Mining Consultants in accordance with the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code) and are based on the company’s forecast long term coal prices.

The reserves have been calculated on the basis of the truck and excavator mining methods now used at the Isaac Plains North deposit, followed by the proposed introduction of the Bucyrus-Erie 1370 dragline, initially at Isaac Plains North and subsequently moving to Isaac Plains South in the latter half of the project life. Highwall mining volumes are only included for the north deposit.

The Isaac Plains Coal Project is ramping-up to produce 2.8 million tonnes per annum of metallurgical and thermal coal products, in line with the increase in throughput capacity at the Dalrymple Bay Coal Terminal and mining the Leichhardt coal seam at Isaac Plains North and both the Leichhardt and Vermont coal seams at Isaac Plains South.

A Feasibility Study is being prepared for the Integrated Isaac Plains Project and a final decision on this expansion, subject to regulatory approvals, will be made in the near future.

www.aquilaresources.com.au