Bacchus Marsh

The Bacchus Marsh Coal Project is located within the Parwan coal basin, approximately 60km west of Melbourne and a similar distance north of the Port of Geelong (Figure 1).

Bacchus Marsh Location Map
Figure 1: Mantle’s Victorian coal project locations.

The project contains a 1.6 Bt brown coal Mineral Resource (Figures 2 and 3 and Table 1).

BM Coal Resource Area
Figure 2: Coal Resource area.

BM Cross Section
Figure 3: Cross section (vert. exaggeration x 10).

Table 1: Bacchus Marsh Mineral Resource, below 30% Ash cut-off.

Class

Tonnes

(Bt)

TM

(%)

Ash

(% db)

VM

(% db)

FC

(% db)

TS

(% db)

GDSE

(MJ/kg)

Inferred

1.6

52.9

10.4

47.2

42.4

3.4

24.5

Total

1.6

52.9

10.4

47.2

42.4

3.4

24.5

Statements relating to Bacchus Marsh Mineral Resource are extracted from the report entitled “Mantle Reports Maiden JORC Resource” created on 15 August 2012. “Information in this report that relates to Coal Resource estimates prepared by AMC Consultants Pty Ltd is based on information compiled by Ms K Zunica, who is a Member of the Australasian Institute of Mining and Metallurgy and is a full time employee of AMC Consultants Pty Ltd. The estimates are based on exploration data provided by Mantle Mining Corporation Ltd. Ms Zunica has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Ms Zunica has provided written consent to the inclusion in the report of the matters based on her information in the form and context in which it appears.”

The Mineral Resource area immediately surrounds a brown coal mine. The Maddingley Mine (MIN 4701) is owned and operated by a third party (Picture 1).

Maddingley Mine
Picture 1: Upper portion of the coal seam at the Maddingley Mine.

Due to its high moisture content and propensity for self-heating, brown coal is primarily used as a fuel for mine-mouth power stations. In order to capture a share in the emerging upgraded brown coal market place, Mantle formed a joint venture with clean coal technology company Exergen Pty Ltd.

Exergen has developed Continuous Hydro-Thermal Dewatering (CHTD), a technology that transforms low grade, high moisture brown coal into cleaner utilisation products with lower carbon dioxide emissions. The process is seen as an “enabling technology” for a number of coal conversion technologies such as coal to gas, coal to oil and coal to chemicals and fertilizers. CHTD is highly efficient because water is physically separated from the coal in the liquid state, rather than being removed through the highly energy-intensive process of evaporation.

A CHTD autoclave consists of concentric pipes placed in a mine shaft or bore-hole to a depth of 1 km. The weight of the column of coal-water slurry circulating through the autoclave provides sufficient pressure to prevent boiling at a temperature of 300oC at the bottom of the autoclave. A reaction takes place changing the composition and structure of the coal and allowing significant portions of coal moisture to be efficiently removed (Figures 4 and 5).

CHTD process schematic   CHTD autoclave
Figure 4: CHTD process schematic.                                             Figure 5: CHTD autoclave

Upgrading brown coal in this manner has significant environmental benefits as a result of the reduction in carbon emissions that result from the use of the upgraded coal when compared with using the raw coal. In addition, the coal changes chemistry from water attracting to water repelling and can be transported in slurry form making it a very safe product to handle.

Exergen expects CHTD coal would be used in next generation, state of the art power stations being constructed in India. This type of power station emits 30 – 40% less carbon dioxide than Victoria’s existing coal-fired power stations. CHTD also brings value to a number of downstream uses for upgraded brown coal, including char, fertilisers, pyrolysis oils and liquid fuels. Liquid fuels are currently being developed for use in Direct Injection Coal Engines (DICE).

CHTD slurry could be pumped through pipelines to processing facilities at ports, where it could be dewatered and processed into valuable commercial products. Preferred pipeline routes from the Latrobe Valley to the Port of Hastings and from Bacchus Marsh to the Port of Geelong have been defined (Figure 6).

export infrastructure map
Figure 6: Exergen’s proposed export infrastructure map.
* The Bacchus Marsh tenement has since reduced in size (ref. Figure 2)

3 Throughout the website, superscripts denote project specific JORC Compliant Exploration Targets, Exploration Results, Mineral Resources, Ore Reserves and Competent Persons Statements. These can be found on the Disclaimer and JORC page of the website.