Coalworks Limited (CWK) today announced that it has acquired a 90% interest in the Ferndale Coal Project EL 7430. The deposit is located at Yarrawa in the prime Hunter Valley coal area in New South Wales. It is about 8 kilometres southwest of Denman near Muswellbrook, is close to rail, and road infrastructure, and is only 125km from the coal port of Newcastle.
Coalworks Managing Director and CEO Mr Andrew Firek said: “We plan to optimise this valuable coal project which has high calorific value thermal and coking coal potential. Our immediate aim will be to drill a number of known coal measures occurring in the EL, including the quality Wittingham Coal Measures. An exploration target of 60 to 85 million tonnes of export quality thermal coal and semi soft coking coal is the current objective.
“Coalworks’ mining consultants advise us that if a project is developed at Ferndale with the planned production rate the Project would have the potential to generate up to 250 jobs during the construction phase, and 100 permanent jobs at the mine, with a further 250 jobs likely to be generated for contractors and suppliers. Flow on effects will generate up to 6 jobs for every miner employed. It is envisaged that the mine will generate considerable benefits to local businesses,” he said.
EL 7430 was granted to Loyal Coal Pty Limited as trustee for a consortium. Coalworks, through a subsidiary, has acquired a 90% interest in the consortium for a price of $2,400,000.00 which was invested into the consortium to meet EL acquisition and establishment expenses. Coalworks will manage the consortium and must now contribute to 90% of all expenditure on the project.
The acquisition of the Ferndale Coal Project follows Coalworks’ 29 October 2009 ASX announcement regarding the grant of the Vickery South EL in the Gunnedah Basin, NSW which is currently being drilled.