The Asia Miner

OCT-DEC 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 35 of 55

34 | ASIA Miner | Volume 14 • Issue 4 | 2017 New Zealand BATHURST Resources has secured a 30-month supply contract for coal from its mines on the North Island. The contract for supply of up to 250,000 tonnes annually progresses the company's strat- egy to supply domestic coal in New Zealand to displace imported coal The coal will come from the operating Rotowaro and Maramarua mines in the Waikato area, and the contract also includes escalation options. The mines are operated by BT Mining, which is a joint venture between Bathurst and Talley's Energy Limited. BT completed a sale and purchase agreement with Solid Energy on August 31, 2017 to purchase the Rotowaro and Maramarua mines as well as the Stockton mine on the South Island. Rotowaro is the second largest open-cast coal mine in New Zea- land. It is in the Rotowaro coalfield, an area that has a long history of open-cast and underground mining. It was first mined in 1915 after a branch railway and a bridge were established over the Waikato River. The current opencast mine opened in 1958. The coal is low ash, low sulphur thermal coal. Maramarua is an open-cast mine producing a low-ash, low sul- phur thermal coal for the domestic market. It has a long history of coal mining with an opencast mine first being developed at the site in 1948. It has been mined in modest quantities since that time. The current operation commenced in June 2015 with significant project capital being injected into the site infrastructure to establish operations. As New Zealand's leading coal producer, Bathurst provides ener- gy for the agri-business sector, schools, hospitals and many oth- er key domestic players. With recent growth and acquisitions, the company is also positioned to become an exporter of high-quality coal for steel production in Japan, India and other parts of Asia. As well as the North Island mines, it has three operating mines on the South Island - Canterbury Coal, west of Christchurch; Stockton, north of Westport; and Takitimu, north of Invercargill. The Cascade and Escarpment mines near Westport are under care and mainte- nance. Bathurst also has permits over 15,000 hectares on the Buller coalfield, which is part of its strategic plan to become an exporter of high-quality metallurgical coal. BY acquiring Newcrest Mining subsidiary, Newcrest New Zealand Exploration, New Talisman Gold Mines has secured the remaining 80% of the Rahu Gold Project that it did not already own. New Talisman is now evaluating options to fast-track the North Island exploration project having acquired all geological and site targeting data and logging. The sale and purchase agreement supersedes all previous agree- ments with New Talisman's joint venture partner Newcrest. The Rahu permit is to the north of Karangahake Gorge, between Mackaytown and Waikino, and covers the Rahu Ridge-White Rocks area, which is primarily rolling farmland. It extends into Department of Conservation scrub and forest in the north of the permit. It also lies immediately north of New Talisman's Talisman project and is on the same strike lines as the gold bearing veins at this location. New Talisman's CEO Matthew Hill said "Following discussions with Newcrest it was agreed that New Talisman could acquire New- crest's 80% interest in Rahu. We are very excited by the opportunity of this drill-ready prospect and appreciate the efforts of the New- crest team in completing this transaction in a short space of time." Company chairman Charbel Nader said, "We are pleased to take effective ownership of the Rahu asset. Newcrest has been a great partner, however with our on-ground NZ presence and expertise, and our desire to move ahead in developing this asset expeditious- ly, this deal makes sense for all." Prior to entering JV discussions with Newcrest New Talisman had completed a comprehensive exploration and evaluation work pro- gram on the permit which delineated a 700 metre wide x 1.5km long NNE trending zone of mineralisation and hydrothermal alter- ation. This has been shown to be the NNE extension of the Karan- gahake system recognised within the Talisman permit. There have been 31 drill holes, totalling 4585 metres, completed into this structure and these have intersected highly anomalous gold and silver values with some high-grade gold and silver intercepts. Upon completion of a placement and conditional upon sufficient funds being raised, the sites targeted by Newcrest for drilling will be finalised by New Talisman and applications made to commence drilling as soon as possible. New Talisman now owns 100% of Rahu Bathurst Resources aims to provide more coal from its mines for domestic use in New Zealand. Bathurst boosts domestic coal supply

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