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Duchess-Paradise Resource Statement
An initial JORC estimate at the Duchess- Paradise project in the Canning Basin, Western Australia (refer Figure 1, below) was reported to the ASX on April 1, 2009. This estimate was based on 29 cored holes that were drilled in the 2008 field season. Geostatistical analysis has now been completed on data obtained from the cored holes and 180 open holes that were also drilled in 2008 and a revised JORC estimate has been prepared (refer Table 1 and Figures 1 and 2, below).
Table 1. Duchess- Paradise JORC Resources by category as at June, 2009
|
Seam |
Measured |
Indicated |
Inferred |
Total |
|
|
(Mt) |
(Mt) |
(Mt) |
(Mt) |
|
|
|
|
|
|
|
P1 |
18.3 |
101.9 |
160.5 |
280.8 |
|
P2 |
16.9 |
41.7 |
171.0 |
229.6 |
|
Total |
35.2 |
143.6 |
331.5 |
510.5 |
For the purpose of comparison, the interim JORC resource estimate as reported on April 1, 2009 is
provided below in Table 2.
Table 2. Duchess- Paradise JORC Resources by category as at March, 2009
|
Seam |
Measured |
Indicated |
Inferred |
Total |
|
|
(Mt) |
(Mt) |
(Mt) |
(Mt) |
|
|
|
|
|
|
|
P1 |
18.3 |
49.1 |
200.9 |
268.3 |
|
P2 |
16.9 |
41.7 |
171.0 |
229.6 |
|
Total |
35.2 |
90.8 |
371.9 |
497.9 |
Key findings:
- the two seams are separated by up to 15 metres of silty sandstone interburden but can be locally contiguous to form one thick coaly sequence
- the coal ranges in depth from five-10 metres below the surface at the weathered subcrop to over 300 metres down dip (see Figure below)
- the seams dip between seven and 10 degrees to the south in the Duchess region and between two and five degrees to the east in the Paradise region
- the resource is open to the west and down dip to south in the Duchess region and down dip to the east in the Paradise region
- nearly all of the Measured and Indicated Resources occur more shallow than 250 metres; the majority of the Inferred Resource occurs more shallow than 300 metres
- P1 seam thickness averages 2.2 metres (range 0.2-3.2 metres) over the Duchess-Paradise region
- P2 seam thickness averages 6.8 metres at Duchess but thins to the north and averages 2.3 metres in the Paradise area Raw and washed coal quality analysis for the two seams in the resource at Duchess-Paradise is provided below. Original copy from
Raw and washed coal quality analysis for the two seams in the resource at Duchess-Paradise is provided below.
Raw coal analysis for the Duchess-Paradise resource
| Seam |
Moisture |
Volatiles |
Ash |
Total Sulphur |
Specific Enegrgy2 |
Relative Density |
| |
% (adb)2 |
% (adb)2 |
% (adb)2 |
% (adb)2 |
kcal/kg |
g/cm3 |
| |
|
|
|
|
|
|
| P1 |
10.6 |
28.5 |
24.8 |
1.51 |
4,750 |
150 |
| (range) |
(7.1-17.5) |
(24-32) |
(15.4-39.6) |
(0.7-3.1) |
(3,784-5,446) |
(1.40-1.68) |
| |
|
|
|
|
|
|
| P1 |
11.1 |
17.9 |
52.5 |
1.44 |
2,206 |
1.86 |
| (range) |
(6.7-16.8) |
(12-24.8) |
(26.5-63.2) |
(0.62-3.69) |
(1,156-3,650) |
(1.62-2.00) |
1 Air Dried Basis
2 As measured
Washed coal analysis for the Duchess-Paradise resource
| |
Float Density |
Yield |
Moisture |
Volatiles |
Ash |
Total Sulphur |
Specific Energy2 |
| |
|
% (adb)2 |
% (adb)2 |
% (adb)2 |
% (adb)2 |
% (adb)2 |
kcal/kg |
| |
|
|
|
|
|
|
|
| P1 |
F=1.4 |
57 |
10 |
36.7 |
8 |
1.1 |
6,029 |
| |
F=1.5 |
62 |
11 |
34.0 |
18 |
1.0 |
5,221 |
| |
F=1.6 |
76 |
7.6 |
32.1 |
25 |
1.1 |
4,956 |
| |
|
|
|
|
|
|
|
| P2 |
F=1.5 |
19 |
11 |
33 |
15 |
1.6 |
4,970 |
| |
F=1.6 |
41 |
9.3 |
26 |
26 |
1.7 |
4,509 |
1 Air Dried Basis
2As calculated from averages
Coal Properties
The coal quality data supports the initial results reported, with the Upper seam being of higher quality than the Lower seam.
- P1 seam can be characterised as a moderate ash, moderate energy coal that can upgraded to a product that is typical of the thermal power station market in Asia
- P2 seam can be characterised as a banded dull coal that is most typical of domestic thermal power station markets
- sulphur content is higher than East Coast Australian coals however many overseas power stations are equipped to handle such material
Rey Resources will commence a pre-feasibility study to investigate if a commercial mining operation can be sustained on the resource. This will focus initially on selecting the higher quality near surface areas of coal within the approximately half billion tonnes of resource that has been reported today.
Overburden thickness to P1 seam, Duchess-Paradise
Geological Attribution
The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Bruce C Preston who is a member of The Australian Institute of Geoscientists ("AIG"). Dr Preston has sufficient experience to qualify as a Competent Person for the purposes of the 2005 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Preston is the Technical Director of Rey Resources Limited and he consents to the inclusion in the report of the matters based on their information in the form and context in which they appear. Dr Preston has a beneficial interest in 5,538,375 shares or 3.6% of the issued capital of Rey Resources Limited.
The estimation of the Duchess-Paradise Coal Resources has been provided by Mr Richard Campbell, who is a Member of The Australasian Institute of Mining and Metallurgy ('AusIMM') and is a full time employee of Blackrock Mining Solutions Pty Ltd who were contracted to provide the JORC estimate. Mr Campbell has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves" (The JORC Code). Mr Campbell has over 10 years of coal specific experience including coal exploration, resource modelling, estimation and assessment, and geotechnical assessment and modelling. Mr Campbell consents to the inclusion in the report of the matters based on their information in the form and context in which they appear.
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