Montrose

OVERVIEW

The Montrose project is a significant land holding within the Bowen Basin covering 958km2. It has potential to produce both thermal and coking coal based on information sourced from historical exploration and mining data. The project area has significant infrastructure; The Bruce Highway, a major northern thoroughfare, passes through the area. Running sub-parallel to the highway is the main electrified northern railway line which can transport export coals to the Gladstone port facility some 230km away.

VIEW MONTROSE TENURE

PREVIOUS EXPLORATION

The deposition of Bowen Basin coal measures may exist as part of the Back Creek Group within the project area. Past exploration activity has been limited and focused on the testing of shallow coal potential beside the main North Coast Rail Line. New Hope (Coal) defined a historic resource of 4Mt of coal in the west of the Styx Basin and Waratah Coal has now been granted tenure to validate and further define the resource.

Relatively recent exploration has defined two new seam packages towards the base of the Styx Basin which occurs within the project area.  EPC 2128 lies in the Connors Arch which is a trough like formation thought to contain Bowen Basin sedimentation. Exploration will target coal seams in the Lower Permian Back Creek Group which are equivalent to the German Creek Coal measures which host high quality coking coal. The Permian depositional history is relatively unknown, but recent geological interpretation has outlined this region as an area where high rank metallurgical coals may be present. The Permian formation is predominantly masked by the younger cover.

EXPLORATION TARGET

The Montrose Project has an Exploration Target of 0–70 Mt.

DEVELOPMENT PROGRAM

Cuesta will conduct a review of open file available gravity and aeromagnetic information to identify targets for scout drilling.  Cuesta have identified target area in the EPC and have proposed a program to consist of 6-10 open holes to depth of 200m to verify the presence of coal.  1-2 strategically placed cored holes to obtain coal quality data will be drilling in areas of best intersections.

INFRASTRUCTURE

The Montrose Project is located west of the township of Marlborough. It is in close proximity to major infrastructure including the Northern Railway Line and the Bruce Highway. There are a number of major coal companies exploring within close proximity to the project including BHP, Rio Tinto and Waratah Coal. Of particular importance is the planned development of Waratah Coals Styx Project which immediately abuts the Montrose Project to the North.