Undertaken by an independent consulting group, the concept study will explore the technical and financial viability of mining at the project, which has 54 million tonnes of indicated coal resources and 99Mt of inferred resources.

 

“This is the first study of this type undertaken by the company and highlights both our focus on developing Arcturus as an open cut opportunity and of the overall maturing nature of the company’s key exploration assets,” Bandanna managing director Dr Ray Shaw said.

 

Bandanna expects the study to be completed within three to four months.

 

“The concept study will look at a range of development scenarios and potential product specifications as well as potential product markets, potential joint venture participants and synergies for dual development with the company’s adjoining Springsure Creek project,” Bandanna said.

 

The explorer says the project has a good location in respect to infrastructure, lying roughly halfway between the Minerva mine operated by Felix Resources and the Rolleston mine operated by Xstrata.

 

It is also 350km by rail west of Gladstone’s port and 20km south of Emerald.

 

Arcturus is in EPC 1221, wholly owned by Bandanna through a subsidiary company.

 

Shares in Bandanna closed down A1c to 44c on Friday.