Mantle Mining managing director Stephen de Belle told International Longwall News yeserday the company's vision for the Mt Mulligan coal deposit and former mine will see it developed into a combined highwall and longwall mining operation, as well as for coal seam methane extraction and sale.
The deal involves Mantle acquiring 100% of the share capital of Trafford Coal, by payment of $A100,000 cash and the issue of 2 million Mantle shares at 20 cents each.
De Belle said the company would now undertake a two-month conceptual study which will help form a framework for development planning and a feasible project timeline.
"The likely path to development will involve initial implementation of highwall mining, to provide cash flow and an operating base at site to assist with expanded coal production via longwall," de Belle said.
"We've already got working faces exposed at the site at the moment, so highwall mining will be the first to start … but the main production will come from longwall mining."
Historically, Mount Mulligan has an identified class 1 deposit of 144Mt and an identified class 2 deposit of 507Mt - but despite being mined for over 40 years the deposit is still under explored, with only two holes effectively testing the basin.
The deposit was mined during 1910 to 1957, when the local power station was shut down and rail locomotives converted to diesel.
The company will also begin negotiating a suitable access agreement with the Djungan Aboriginal Corporation, the relevant Native Title party.
