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Market:	ASX
Sector:	Coal
EPIC:	BND
Latest Price:	0.77 (0.00%)
52-week High:	2.25
52-week Low:	0.50
Market Cap:	406.62M

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Bandanna Energy

Bandanna Energy (ASX: BND) holds significant coal interests in Australia.

Bandanna Energy JV kicks-off pre-Feasibility study for Galilee Basin coal project

Thursday, March 18, 2010

Bandanna Energy's (ASX:BND) JV partner, AMCI has commenced a Pre-Feasibility Study for the South Galilee Project Joint Venture.

A concept study identified a conceptual open cut and underground mine development of 43 years mine life, with an average annual production of between 15 and 20 Mt of thermal coal, centred on EPC 1049.

South Galilee Project is a Joint Venture between Bandanna Energy and AMCI (Alpha) Pty Ltd (AMCI) whereby AMCI is acquiring the right to earn up to 50% interest by expending up to $25 mil. To date AMCI has spent $6.2 million and the proposed PFS budget will be fully funded by AMCI as part of their farmin arrangements.

The South Galilee Project is adjacent to Waratah Coal’s/Resource House’s “China First” Project and south of Hancock Prospecting’s Kevins Corner and Alpha projects.

Bandanna provides the only access via an ASX listing to the South Galilee Project, in this newly emerging, world class, thermal coal province to have completed a concept study and moved through to PFS status.

Approximately 7,000 m of additional drilling is programmed during the PFS which will concentrate on upgrading the current 982 Mt of JORC compliant resource in the proposed open cut plan.

The company expects that drilling should deliver a substantial increase in the confidence level of the resource which currently stands at 922 Mt of JORC compliant Inferred and 60 Mt of JORC compliant Indicated.

MB Mining will undertake open cut and underground studies of a number of mining scenarios and to provide details on equipment, capital and operating costs as part of a detailed mining method analysis. Aurecon Hatch has been appointed as contractor to work through site infrastructure requirements and complete the overall PFS.

Bandanna recently snared Waratah’s former exploration manager, David Campbell, as its new manager of exploration and increasing sector attention towards the Galilee Basin development.

Resource House is expected to undertake an IPO and Hancock will commence a significant bulk sampling program, implying significant momentum for Galilee Basin coal.

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