ASX Announcement ASX : LBY 26th February, 2014 Maiden ...target the deeper Moranbah Coal Measures....

Unit B3, 431 Roberts Road

Subiaco WA 6008

Telephone:+61 89287 4488

Facsimile: +61 89388 8862

ABN: 98 103 348 947 | Email: [email protected] | Website: www.libertyresources.com.au

ASX Announcement ASX : LBY 26th February, 2014

Maiden Inferred Resource – Bowen Basin EPC 1949 Liberty Resources is pleased to provide further information regarding the exploration target, the

proposed exploration activities and the JORC Code Table 1. The company has received the following

updated report with further details from Al Maynard & Associates (AM&A).

This report estimates an Inferred Resource of approximately 104 million tonnes of coal within a

depth suitable for conventional open pit mining within the Bowen Basin. These resource estimates

are based on data compiled from 40 drill holes drilled by previous explorers over the last 50 years

and a further 8 holes drilled by Liberty in 2013. This data was modelled by AM&A by gridding the

seam depths, seam thicknesses and coal contents from the drill logs using an Inverse Distance

Squared (ID2) algorithm. The raw coal quality results of samples collected from the recent Liberty

drill holes from the upper Fort Cooper Coal Measures (FCCM) as tested by independent consultants

Tradd Pty Ltd (Licensee of the Barrow Process) are reported by Tradd as from DH07:

IM% Ash% VM% VM% FC % CSN % Vitrinite Rv, max

(ad) (ad) (ad) (daf) (ad) (ad) (mmf) 1.4 63.6 10.0 38.7 25.0 1 67.8 1.36

From this Tradd’s Barrow Process testing achieved the following results:

Yield Ash Combustible Recovery CSN

(ad) (ad) (ad) (ad)

35.5% 9.5% 84% 7.5 to >9

A further 11 drill holes are planned, to be drilled as an approximate 2km x 2km grid. The planned

drill holes will pass through the Fort Cooper Coal Measures to extend these resources and also

target the deeper Moranbah Coal Measures.

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Subiaco WA 6008

Telephone:+61 89287 4488

Facsimile: +61 89388 8862


The proposed drilling campaign planned for the 2014 field season is aimed at generating further

JORC Code (2012) compliant resource estimates in the Fort Coopers and Moranbah Coal Measures.

Liberty is compiling coal liberation and production cost data to determine economic cut-off

parameters in preparation for further evaluation studies.

Updated Exploration Target Estimate An additional Exploration Target to the Inferred Resource within the range of 350 to 465 million

tonnes of coal is also estimated by AM&A within EPC 1949 by extrapolating the Inferred Resource

modelling into areas within the EPC where the historic drill data showed continuation of the seams

but the coal content of these seams could not be properly determined from the logs. The range of

coal qualities observed within the Bowen Basin from similar FCCM to that found at EPC1949 are as

follows and are adopted for this Exploration Target:

IM % Ash % VM % VM % FC% TS % CSN % Vitrinite Rv. Max

(ad) (ad) (ad) (daf) (ad) (ad) (ad) (mmf)

1.3 -2.5 41-64 10-21 27-39 25-43 0.5-0.6 1.5 65-90 1.05-1.36

The potential quantity and quality of this Exploration Target estimate is conceptual in nature as

there has to date been insufficient exploration work completed to estimate a Mineral Resource and

it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Further drilling, geophysical logging and sampling meeting the standards required by the JORC Code

(2012) is required to convert these Exploration Targets to resources. AM&A however point out that

any further exploration cannot be guaranteed to produce any further resources but the Liberty

drilling has however confirmed the existence and quality of the seams intersected by drilling which

corresponds generally with the historic logging used to estimate the Exploration Target. The 2014

drilling program planned by Liberty will enable Liberty to determine the qualities of all the coal

seams and their suitability as thermal, coking or in-situ gasification and provide economic

parameters for further economic and mining studies.

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Subiaco WA 6008

Telephone:+61 89287 4488

Facsimile: +61 89388 8862


For enquires please contact: Andrew Haythorpe Managing Director Telephone +61 8 9287 4488 Nina Hughes Native Title/Project Coordinator Telephone +61 8 9287 4406 Further information on Liberty Resources Limited can be obtained from its web site at www.libertyresources.com.au

About Liberty Resources LIBERTY RESOURCES immediate priority is to evaluate its new discovery of coking coal in the Bowen Basin, Queensland. The company’s long term goal is to produce low cost, clean energy and fertiliser, from coal. The benefits of the coal to gas to fertiliser project are numerous and will include the treatment of saline water, lowering the cost of living in communities, the creation of skilled jobs, and the production of low cost electricity, fertiliser and gas.

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Liberty Resources Limited – AM&A - IGR

AL MAYNARD & ASSOCIATES Pty Ltd

Consulting Geologists

www.geological.com.au ABN 75 120 492 435

9/280 Hay Street, Tel: (+618) 9388 1000 Mob: 04 0304 9449

SUBIACO, WA, 6008 Fax: (+618) 9388 1768 [email protected]

Australia

Australian & International Exploration & Evaluation of Mineral Properties

INDEPENDENT COAL SEAM

INFERRED RESOURCE

AND

EXPLORATION TARGET ESTIMATES

REPORT

ON

EPC1949

FOR

LIBERTY RESOURCES LIMITED

PREPARED FOR:

Liberty Resources Limited

Authors Phil Jones BAppSc(App Geol), MAIG, MAusIMM;

Allen Maynard BAppSc(Geol), MAIG, MAusIMM

Company Al Maynard & Associates Pty Ltd

Date 14th

February, 2014

Revised 24th

February, 2014

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http://www.geological.com.au/


Liberty IGR Executive Summary Page 1

EXECUTIVE SUMMARY

This Independent Coal Seam Exploration Inferred Resource and Target Estimates

Report has been prepared by Al Maynard & Associates (“AM&A”) at the request of

Mr A. Haythorpe, Chairman and Managing Director of Liberty Resources Limited

(“Liberty” or “Company”) to provide an opinion of the exploration potential of the

Company‟s coal project located in the Bowen Basin in central Queensland (Figure 1).

Figure 1: Project Location.

The project area is located less than 200 kilometres, by nearby rail line, west from the

coal port facilities at Mackay on the central Queensland coast.

The Project has been drilled by various owners to explore for coal and Coal Seam Gas

and to determine the Project‟s economic potential.

The Company has 100% tenure over the Project through an Exploration Permit Coal

(EPC 1949) covering 9 sub-blocks for an approximate area of 28.5 km2 and of this

area Liberty holds 17 km2 of non-overlapping ground (Figure 2).

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Liberty IGR Executive Summary Page 2

Figure 2: Tenement location map showing boundary with pre-existing RTZ tenement (SW).

Approximately half of the Liberty EPC overlaps a pre-existing mineral tenement

owned by RTZ who have pre-emptive rights on any coal in this overlapping area so

for this report all coal estimates are split along the boundary shown in Fig. 2 with the

RTZ ground to the southwest of the diagonal line.

Based on available mainly historic drilling results and some limited Liberty drilling,

an Inferred Resource estimate for various coal in seams within the Vermont and Fort

Coopers Coal Measures is estimated to be 104 million tonnes with an additional

Exploration Target within the range of 350 to 465 million tonnes of coal within EPC

1949 after excluding the area covered by the pre-existing RTZ tenement. The coals

have ranks of 0.5-2.5% Rv. Note that this Exploration Target range is conceptual in

nature and future work may or may not define a resource.

AM&A have recommended further drilling and beneficiation testing to enable the

eventual conversion of at least part of this Exploration Target estimate to a resource

and better define the Inferred resource.

Liberty have advised AM&A that they have planned, during the forthcoming 2014

exploration season, a further 11 drill holes on an approximate 1km x 1km grid,

depending on accessibility, which will pass through the Fort Cooper Coal Measures

to extend these resources and also target the deeper Harrow Creek and Dysart seams

within the Moranbah Coal Measures.

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Liberty Resources IGR Contents Page i

TABLE OF CONTENTS

1.0 Preamble ............................................................... 1

2.0 Background Information......................................... 3

2.1 Introduction .................................................................................................... 3 2.2 Geology .............................................................................................................. 3

2.2.1 Regional Geology ....................................................................................... 3 2.2.1 Local Geology ............................................................................................. 5 Fort Cooper Coal Measures (FCCM) .................................................................... 5 Moranbah Coal Measures (MCM) ......................................................................... 5

2.3 Coal Quality ....................................................................................................... 5

2.3.1 Moranbah Coal Measures ........................................................................... 5 2.3.2 Fort Cooper Coal Measures ........................................................................ 5

2.4 Previous exploration .......................................................................................... 6

Utah Development Company (UDC)......................................................................... 7 BP ............................................................................................................................... 7 Bowen Central Coal Pty Ltd (Aquila Resources Ltd. ) ............................................. 7 Arrow Energy............................................................................................................. 7

Liberty Drilling ........................................................................................................ 8

3.0 Coal Seam Modelling – Exploration Target Estimates ........................................................................ 9

4.0 Conclusions .......................................................... 17

5.0 Recommendations ............................................... 18

6.0 Selected References ............................................. 19

ABBREVIATIONS ........................................................... 19

JORC Code, 2012 Edition – Table 1 Report. .................. 20

List of Figures

Figure 1: Project Location. ..................................................................................................................... 1

Figure 2: Tenement location map showing boundary with pre-existing RTZ tenement (blue). ............... 2

Figure 3: Typical Stratigraphic Column within Fort Cooper and Moranbah Coal Measures. .............. 4

Figure 4: Drill hole location plan showing RTZ overlapping tenement. ................................................. 6

Figure 5: Liberty drill hole locations. ..................................................................................................... 8

Figure 6: Interpreted seam areas – Anticline axis approximately along RTZ tenement boundary. ...... 11

Figure 7: Typical cross section showing modelled seams. Note seams interpreted above topographic

surface. ................................................................................................................................................... 12

Figure 8: Modelled seam depths - colour coded as shown. .................................................................. 13

Figure 9: Modelled seam thickness (1000m radius) - colour coded as shown. ..................................... 14

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Liberty Resources IGR Contents Page ii

List of Tables

Table 1: Summary of drilling results from North to South. ..................................................................... 7

Table 2: Summary of drilling used in AM&A coal seam modelling. ....................................................... 9

Table 3: Summary of coal seam logged thicknesses. ............................................................................. 10

Table 4: Seam model parameters. ......................................................................................................... 12

Table 5: AM&A Inferred Resource Estimates. ...................................................................................... 15

Table 6: AM&A Exploration Target Estimates (Additional to Inferred Resource Estimate). ............... 16

Table 7: AM&A Previous, now superseded, Exploration Target Estimates January, 2014. ................. 17

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Liberty Resources Limited– AM&A-IGR

Liberty Resources - Independent Geological Report Page 1

The Directors, 18th

February, 2014

Liberty Resources Limited,


Subiaco WA 6008

Dear Sirs,

1.0 Preamble Al Maynard and Associates (“AM&A”) was engaged by Liberty Resources Limited

(“Liberty”) to prepare an Independent Coal Seam Exploration Target and Mineral resource

Estimate of the Company‟s coal exploration permit EPC 1949 in the Bowen Basin west of

Mackay in central Queensland.

Opinions are presented in accordance with the JORC Code (2012) guidelines and other

regulations that govern the preparation of these reports.

In the course of the preparation of this report, access has been provided to all relevant data

held by Liberty and various other technical reports and information quoted in the

bibliography. All reasonable endeavours to verify the accuracy and relevance of the database

have been conducted. Liberty has warranted to AM&A that full disclosure has been made of

all material in its possession and that information provided, is to the best of its knowledge,

accurate and true. None of the information provided by Liberty has been specified as being

confidential and not to be disclosed in this report. The authors are familiar with the structural

setting and mineralisation styles and targets within EPC 1949 project area. As recommended

by the Valmin Code, Liberty has indemnified AM&A for any liability that may arise from

AM&A‟s reliance on information provided by Liberty or known of but not provided by

Liberty.

This report has been prepared by Philip A. Jones BApp.Sc(App Geol), MAIG and MAusIMM

and Allen J. Maynard BApp.Sc(Geol), MAIG and MAusIMM, both geologists with over 35

years in the mining and exploration industry. The writers hold the appropriate qualifications,

experience and independence to qualify as an “Independent Experts” under the definitions of

the Valmin Code to provide such reports for the purpose of inclusion in public company

documents.

This report has been prepared in accordance with the relevant requirements of the Listing

Rules of the Australian Securities Exchange Limited (“ASX”), Australian Securities and

Investments Commission (“ASIC”) Regulatory Guidelines (“RGs”) 111 & 112 and the

Guidelines for Assessment and Valuation of Mineral Assets and Mineral Securities for

Independent Expert reports (the Valmin Code) which is binding on members of the

Australasian Institute of Mining and Metallurgy (“AusIMM”).

AM&A is an independent geological consultancy established 30 years ago and has operated

continuously since then. Neither AM&A nor any of its directors, employees or associates

have any material interest either direct, indirect or contingent in Liberty Resources Limited,

nor in any of the coal properties included in this report, nor in any other asset of Liberty

Resources, nor has such interest existed in the past. This report has been prepared by AM&A

strictly in the role of an independent expert. Professional fees payable for the preparation of

this report constitutes AM&A‟s only commercial interest in Liberty Resources. Payment of

fees is in no way contingent upon the conclusions of this report.

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Yours faithfully,

(Signed)

Philip A. Jones BApp.Sc(App Geol), MAIG, MAusIMM.

Allen J Maynard BApp.Sc(Geol), MAIG, MAusIMM.

Competent Persons Statement

The information in this report which relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of

the Australian Institute of Geosciences (“AIG”), a Corporate Member of the Australasian Institute of

Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 35 years of exploration

and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which

he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian

Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves”.(JORC Code). Mr Maynard consents to inclusion in the report of the matters based on this

information in the form and context in which it appears.

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2.0 Background Information

2.1 Introduction

Liberty Resources commissioned AM&A to estimate the coal potential, as Exploration Target

estimates, of various coal seams in the Rangal and Fort Cooper Coal Measures and compile a

report on these estimates. This was carried out by the authors of this report, Mr Philip A Jones

and Mr Allen J. Maynard of AM&A in January, 2014. Their conclusions and

recommendations are stated in this document. This revised (Feb, 2014) report includes

Inferred resource estimates.

The project, the subject of this report, comprises an EPC covering 9 sub-blocks covering a

total area of approximately 28.5 km2. Liberty Resources through their 100% owned

subsidiary Walloon Energy Pty Ltd holds a 100% equity stake in coal tenement EPC1949.

The granted tenement exclusively allows the Company to proceed with exploring over the

Project area other than the following:

Land over which previous exclusive possession acts have been granted as defined

under s.23B of the Native Title Act 1993 (Cwth). (Land where previous exclusive

possession acts have been granted and is now held or currently set aside for the benefit

of Aboriginals or Torres Strait Islanders or unallocated State land, and is occupied by

Aboriginal People or Torres Strait Islanders), is not included and

The Isaac River runs through the middle of the licence and is surrounded by a

Category B Environmentally Sensitive area, which covers approximately 70% of the

licence.

2.2 Geology

2.2.1 Regional Geology

Regionally, EPC1949m is located in the Western-Central Bowen Basin, where Permian strata

strike north-north-west and dip gently to the east off the Comet Ridge. The permit is located

on the western margins of the Taroom Trough within a heavily faulted and folded area.

The geology is complicated and largely unknown at present as the effects of multiple faults

associated with the Jellinbah Fault system, a strike slip, reverse fault system extending some

hundreds of kilometres through the middle of the Bowen Basin.

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Figure 3: Typical Stratigraphic Column within Fort Cooper and Moranbah Coal Measures.

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2.2.2 Local Geology

Fort Cooper Coal Measures (FCCM) Elsewhere in the Bowen Basin the FCCM seams are numerous and quite thick but with a high

proportion of stone partings within the seams.

Several companies are currently investigating the potential to exploit coal from within the

FCCM and the stratigraphically equivalent Fairhill Formation/Burngrove Formation further

south in the basin. Discrete coal plies within these thick seams frequently display good coking

properties.

Moranbah Coal Measures (MCM) The Moranbah Coal Measures are interpreted to occur at depth beneath the FCCM but the

exact depth to these coal measures will not be known until drilling is undertaken. The closest

analogue to the area of EPC 1949 where data is available on the MCM is the Eagle Downs

Mine (ML 70389) to the north of EPC 795 and 10km to the west.

Liberty‟s project area lies on the western, down-thrown side of the first major thrust marking

the Jellinbah Thrust Zone. Regionally, total vertical displacement across the Jellinbah Thrust

Zone is up to 400m.

Up to four major coal seams occur within the MCM in this part of the basin. The regional

trend is fewer and thicker coal seams in the west while there are more numerous but thinner

and higher rank seams on the east side of the basin.

Within EPC 1949, the depth to the top of the Dysart Seam towards the base of the MCM

could be as much as 500-550m.

2.3 Coal Quality

Coal seams in the Bowen Basin exhibit wide variations in rank and quality, reflecting both the

depositional and tectonic history of the basin. A broad trend of increasing rank from west to

east has long been recognised, and was used as a guide for coal exploration targets during the

late 1950s and early 1960s.

2.3.1 Moranbah Coal Measures

The Moranbah Coal Measures produce premium coking coals, typical of a delta plain

depositional system. The coals have ranks of 0.6-3.5% Rv. Typical Vitrinite content is 55-

75% and ash content is 5-15%.

2.3.2 Fort Cooper Coal Measures

The Fort Cooper Coal Measures outcrop in parts of the basin and were deposited in fluvial

environments. Typically the Fort Cooper Coal Measures are 0.5-2.5% Rv with a high vitrinite

content.

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Figure 4: Drill hole location plan showing RTZ overlapping tenement.

2.4 Previous exploration

The Bowen Basin has been explored for coal for more than 50 years and some of this

exploration has included the Project area.

Most of the drilling within EPC 1949 has been shallow and restricted to the FCCM. The

following data was made available by Liberty:

8 Liberty holes Ft Coopers 8 geophysical logs

17 WSN holes Ft Coopers 8 Geophysical logs

30 „E‟ series holes Ft Coopers Geophysical & written logs

1 CSG well Ft Coopers + MCM 2 Geophysical Logs

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Utah Development Company (UDC)

‘U’ Series- EPC 6

The Winchester South Area was first explored in the 1960s by Utah Development Company

as part of Authority to Prospect (ATP) 6C and later, ATP67C. Only shallow holes to

approximately 120m were drilled leading to only small resources of non-coking coal being

established with the ATP being relinquished in 1973.

BP

‘WSN’ Series- ATP 352

In 1980, the Queensland government invited applications from companies for the exploration

and subsequent development of the thermal coals at Winchester South. A joint venture

comprising BP Australia Ltd. (50%), Drayton Mining Development Proprietary Ltd. (25%)

and Westfield Ltd. (25%) submitted a tender. This tender was successful and on April 2nd

1981, it resulted in the awarding of ATP 352C.

Bowen Central Coal Pty Ltd (Aquila Resources Ltd. )

„E‟ Series Holes- EPC 830

In 2005-2006 Bowen Central Coal completed a regional drilling campaign of which 2 holes

were drilled on and just North of EPC1949. Logging of the holes including geophysical log

data indicated that the holes intersected Fort Cooper Coal Measures. Both holes were

geophysically logged.

Arrow Energy Arrow drilled CSG Well- PD025CR immediately south of EPC 1949, within the Arrow

ATP364P. This hole is located approximately on the axis of the anticline where the MCM

would be closest to surface. The MCM were intersected between 92.4m in this hole.

Table 1 summarises the drilling results by hole from north to south.

PD025CR

Formation Depth From

(m)

Depth To

(m)

Elevation

ASL (m)

Net Coal

(m)

Tertiary 0.0 18.0 176.45 0.0

Weathering 0.0 49.0 145.45 0.0

Fort Cooper Coal

Measures

49.0 92.4 145.45 21.2

Moranbah Coal

Measures

92.4 381.65 102.45 11.3

Depth From

(m)

Depth To

(m)

Elevation

ASL (m)

Net Coal

(m)

Base of Tertiary 0.0 18.0 176.45 0.0

Base of Weathering 0.0 49.0 145.45 0.0

Fort Cooper Coal

Measures

49.0 92.4 145.45 21.2

Moranbah Coal

Measures

92.4 599.45 102.45 15.2

Table 1: Summary of drilling results from North to South.

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Liberty Drilling

Liberty drilled six effective holes on EPC 1949 in August, 2013 of which two cored holes,

DH05C and DH07C, were sampled for analysis

Figure 5: Liberty drill hole locations.

Independent coal assessors CMDA Pty Ltd in October, 2013 observed that the samples from

both holes have very similar raw coal properties suggesting consistent quality across the

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deposit in at least the Northern area where the holes are located. Initial results indicated that a

high quality coking coal product can be produced from the seams tested.

The key parameters are high CSN, high vitrinite content, low phosphorus and relatively low

sulphur. It is likely further testing will confirm it could be classed a hard coking coal.

Using accepted industry techniques the predicted theoretical yield is relatively low.

Investigations into alternative methods to optimise yield suggest there is potential to improve

liberation and yield. There is potential to produce a 13% ash product for blending with lower

ash coals. The 10.5% ash product after washing compares well in a majority of parameters

with most Queensland coking coals.

CMDA recommended further drilling and laboratory test work to better determine potential

treatment processes, possible PCI by-products and thermal properties of the coal along with

market studies.

3.0 Coal Seam Modelling – Exploration Target Estimates

AM&A created a digital model of the coal seams identified in the drilling data provided to

estimate potential tonnages.

Only holes with acceptable lithology logs were used in the modelling, Table 2.

Company Series Number Litho Logs Geophysical Logs

Liberty DH 8 Yes Yes

Arrow PD 1 Yes Yes

Utah Development Co. U 11 Yes No

BP WSN 28 Yes Some

Total 48

Table 2: Summary of drilling used in AM&A coal seam modelling.

Most of the holes were short and intersected only part of the coal measures with the Liberty

(DH) and Utah (U) holes generally in the Rangal (Leichhardt and Vermont) Coal Measures

and the BP (WSN) holes in the Fort Cooper Coal Measures.

Although the stratigraphic logging appeared to be consistent within each hole series there is a

big difference in the quality of the logging between the different hole series reflecting the

differences in exploration targets at the time the holes were logged.

Generally the seams/stratigraphies could be readily correlated between adjacent holes, despite

the series, but there are a number of holes where the logging was ambiguous or inconsistent

with the surrounding holes so a “best fit” correlation was applied when linking these holes.

The biggest shortcoming in the drill hole logging is that it was difficult to determine a

consistent “definable” coal content for the different seams. The seam logs for many of the

seams range from banded carbonaceous shales/shales/coal with variable thicknesses of

included stone partings to solid coal. Table 3 summarises the logged coal thicknesses.

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The thickest seam, Fort Cooper Seam 9 (FC9), contains highly variable quality coal bands

with numerous stone partings.

VMU VML FC4 FC5

SEAM COAL SEAM COAL SEAM COAL SEAM COAL

Count 5 5 9 9 10 10 9 9

Average

Thickness

(m) 4.31 3.66 4.75 2.79 4.34 2.01 3.36 1.13

Minimum

Thickness

(m) 0.91 0.91 1.52 0.31 2.00 1.23 1.22 0.20

Maximum

Thickness

(m) 7.10 6.10 9.20 5.20 9.00 3.90 6.70 2.52

FC6 FC7 FC8 FC9

SEAM COAL SEAM COAL SEAM COAL SEAM COAL

Count 5 5 5 5 10 10 12 12

Average

Thickness

(m) 2.62 1.44 4.77 2.57 7.21 2.33 31.02 11.65

Minimum

Thickness

(m) 0.50 0.45 1.83 1.75 0.50 0.05 15.20 4.95

Maximum

Thickness

(m) 7.50 4.03 7.00 3.50 12.50 5.47 46.50 28.19

Table 3: Summary of coal seam logged thicknesses.

The seam modelling method was as follows:

The available drill hole logs were compiled in a single spread sheet with a consistent

code for the seams. Where a stratigraphic name was logged for a seam it is was coded

with a standard stratigraphic code, where there was no stratigraphic code the seam was

simply coded as CO.

The holes were then loaded into MineMap© software and the seams correlated

between holes in 3D to create “wireframes” that extend to beyond the EPC and where

required above the ground where indicated by the drilling.

Interpreted seam outcrop maps were then created where the interpreted seam

wireframes intersect the surface. These outcrop maps were then split along the RTZ

tenement boundary and areas for each of the seams, in and out the Liberty side of the

EPC, were calculated.

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Figure 6: Interpreted seam areas – Anticline axis approximately along RTZ tenement

boundary.

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Figure 7: Typical cross section showing modelled seams. Note seams interpreted above

topographic surface.

The drill hole files were then modified to record for each drill hole the depth to the of

the top of each seam, including negative depths where the seam extends above the

current topographic surface, and logged seam thickness where available. Dummy

holes were created where inflexion points in the seam were interpreted and at the ends

of the drill section lines.

The new drill files including the dummy holes were loaded into MineMap© and

gridded. Table 4 summarises the model parameters used.

X Y

Maximum 640,000 7,552,500

Minimum 631,500 7,543,500

Range 8,500 9,000

Cell dimensions 50 50

Number 170 180

Search Radii 1,000m

Algorithm Inverse Distance Squared

Table 4: Seam model parameters.

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Figure 8: Modelled seam depths - colour coded as shown.

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Figure 9: Modelled seam thickness (1000m radius) - colour coded as shown.

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The gridded cells were then interrogated where the depth was greater than zero metres

to calculate the seam tonnes using the cell‟s calculated seam thickness and the coal in

the seam using the modelled coal thickness.

AM&A determined that although the much of the data used in these tonnage estimates are

historic, up to 50 years old, the quality of the stratigraphic and lithological logging and seam

measurements cannot be independently verified, AM&A have determined that JORC Code

(2012) compliant Inferred resource estimates can still be estimated from this data within a

500m radius of a hole with both seam and coal thicknesses that can either be confirmed with

geophysical logs or there is detailed geological logging that correlates well with other nearby

holes. AM&A point out that since the historic data used for the estimates cannot be

independently verified these Inferred resource estimates are the least reliable category of

resource estimates and are not suitable for financial and mining studies.

The Inferred Resource estimates for the coal within each of the seams modelled are

summarised in Table 5.

Liberty Coal Density 1.40 Parting Density 2.50

Coal Million

Tonnes

Partings

Million

Tonnes

Seam Million

tonnes Area km2

Depth to

Top Seam

Thickness

Seam

Thickness

Coal

% Coal

Seam

VMU 1.4 0.0 1.4 0.5 12.4 2.0 2.0 100%

VML 7.5 17.1 24.6 2.6 31.1 4.7 2.1 44%

FC4 8.3 14.0 22.2 3.5 39.5 3.3 1.7 51%

FC5 6.3 24.5 30.8 3.9 59.6 3.6 1.2 32%

FC6 5.1 8.2 13.4 2.7 64.7 2.5 1.3 53%

FC7 8.4 12.6 20.9 2.3 65.3 4.9 2.6 54%

FC8 15.0 58.8 73.8 3.9 67.5 8.8 2.7 31%

FC9 52.4 145.2 197.6 2.9 111.7 32.6 12.8 39%

TOTAL

AVERAGE

104.4 280.4 384.8 22.4

72.2 15.2 6.0 43%

Table 5: AM&A Inferred Resource Estimates.

An additional Exploration Target was estimated by extrapolating the Inferred Resource

modelling into areas within the EPC where the historic drill data showed continuation of the

seams but the coal content of these seams could not be properly determined from the logs.

The Exploration Target estimates for the coal within each of the seams modelled are

summarised in Table 6. The Exploration Target tonnage estimates in this report are

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conceptual in nature as they are based on extrapolations of wide spaced data points. Further

drilling, geophysical logging and sampling meeting the standards required by the JORC Code

(2012) is required to convert these Exploration Targets to resources. AM&A however point

out that any further exploration cannot be guaranteed to produce any further resources but the

Liberty drilling has confirmed the existence and quality of the seams intersected by their

drilling which corresponds generally with the historic logging.


exploration season, a further 11 drill holes on an approximate 1km x 1km grid, depending on

accessibility, which will pass through the Fort Cooper Coal Measures to extend these

resources and also target the deeper Harrow Creek and Dysart seams within the Moranbah

Coal Measures.

Liberty Coal Density 1.40 Parting Density 2.50

Coal Million Tonnes Seam Million tonnes

VMU 2 to 3 2 to 3

VML 12 to 16 43 to 57

FC4 18 to 24 48 to 64

FC5 13 to 17 66 to 88

FC6 18 to 24 49 to 65

FC7 39 to 52 93 to 124

FC8 49 to 66 244 to 326

FC9 198 to 263 839 to 1,118

TOTAL 350 to 465 1,384 to 1,845

Table 6: AM&A Exploration Target Estimates (Additional to Inferred Resource Estimate).

The range of coal qualities observed within the Bowen Basin from similar FCCM to that found at

EPC1949 are as follows and are adopted for this Exploration Target:-

IM % Ash % VM % VM % FC% TS % CSN % Vitrinite Rv. Max

(ad) (ad) (ad) (daf) (ad) (ad) (ad) (mmf)

1.3 -2.5 41-64 10-21 27-39 25-43 0.5-0.6 1.5 65-90 1.05-1.36

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Previous Exploration Target Estimate

AM&A previously estimated an Exploration Target for the project in January 2014 using the

same drilling data, Table 7.

It was possible to include an Inferred Resource estimate in the latest modelling since more

data on coal contents within the seams was used, rather than estimating as done previously.

After allowing for the differences in the estimated coal contents in the seams, the only

significant differences are for the two Vermont Seams where a re-interpretation of several

holes changed Vermont seams to upper Fort Cooper seams reducing their total areas.

Seam Seam

Thickness (m)

*Estimated Coal %

Coal s.g.

Million Tonnes Coal Liberty

Million Tonnes Coal RTZ

Total Million Coal Tonnes

VMU 3.6 60% 1.40 13 to 17 4 to 6

17 to 23

VML 4.0 50% 1.40 18 to 24 7 to 9 25 to 33

FC4 4.7 65% 1.40 33 to 44 14 to 19 47 to 63

FC5 2.5 60% 1.40 19 to 25 9 to 12 27 to 37

FC6 5.3 60% 1.40 52 to 69 25 to 33 77 to 102

FC7 4.5 75% 1.40 61 to 81 32 to 43 93 to 124

FC8 6.9 60% 1.40 77 to 102 47 to 62 123 to 165

FC9 28.8 40% 1.40 206 to 275 140 to 186 346 to 462

Total 60.2 478 to 638 277 to 370 756 to 1,008

Table 7: AM&A Previous, now superseded, Exploration Target Estimates January, 2014.

4.0 Conclusions Liberty has identified an Inferred Resource of approximately 104.4 million tonnes of coal in

two Vermont and six Fort Cooper seams as well as an additional Exploration Target of coal in

the Vermont and Fort Cooper Coal Measures totalling 350 to 465 million tonnes within EPC

1949 after excluding the area covered by the pre-existing RTZ tenement.

Note that this Exploration Target range is conceptual in nature and future work may or may

not define a resource.

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5.0 Recommendations AM&A recommend that Liberty continue its proposed drilling program within EPC

1949 eventually completing a 1000m x 1000m grid.

It is critical that these holes are properly drilled by experienced drillers and the

drilling, geophysical logging and sampling is supervised by a fully qualified and

experienced geologist to ensure that the data obtained from this drilling exceeds the

minimum requirements the JORC Code (2012).

Careful attention must be taken to ensure that the core and sample recovery in the coal

seams exceeds 95% and the analyses are carried out in an industry certified, ISO rated

laboratory.



depending on accessibility, which will pass through the Fort Cooper Coal Measures to

extend these resources and also target the deeper Harrow Creek and Dysart seams


As well as the usual proximate analyses, it is highly recommended that the additional

coal preparation tests and market studies recommended by CDMA are also carried out

on representative samples. These analyses and tests should determine the coal

recoveries and costs, saleability and economic viability of each of the coal seams and

the whole Project.

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6.0 Selected References

Anonymous; 25 November 2013, Confidential Liberty Resources Information

Memorandum, Liberty Resources

Anonymous; September 2011, PD025C & PD025CR Well Completion Report Bowen Basin

Moranbah Gas Project ATP364P, Arrow Energy

Anonymous; 1966, Various drill logs, Utah Development Company

Anonymous; 31 October 2013, Preliminary Appraisal of EPC 1949 Deposit Coal Quality,

CMDA Pty Ltd

Garling, R. 2014: Comments on Fort Cooper Coal Measures. Unpub. Rep By Tradd Pty Ltd

for Liberty Resources Ltd

Maynard, Jones, January 2014, Independent Coal Seam Exploration Target Estimate Report

on EPC1949, Al Maynard & Associates

Slater, R; Report on Partial Relinquishment 12 Sub-blocks Effective 8th

July 2009, Bowen

Central Coal

Wilton, J.R; Final Report Incorporating Final Relinquishment Report, Pacific Coal Pty

Limited

ABBREVIATIONS km kilometre

km2 square kilometre

m metre

M million

m2 square metre

m3 cubic metre

t tonne

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JORC Code, 2012 Edition – Table 1 Report.

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria Commentary

Sampling techniques

Most of the drilling used in the seam modelling historic, up to 50 years. Triangulation of seams based on geological and geophysical logs. The accuracy of the seam depths and thicknesses have been determined by AM&A as of sufficient accuracy for an Inferred Resource and Exploration Target estimate.

Only seam and coal ply thicknesses modelled, no coal quality data modelled.

Drilling techniques

All drilling described as diamond drilling.

Drill sample recovery

Core recovery not critical for many of the holes since geophysical logs were used to confirm depths and seam widths. Core recoveries in the remaining holes not recorded.

Since coal qualities have not been modelled only the core recoveries at the seam contacts are critical to determine accurate thicknesses.

There are no records of the core recoveries in the older holes.

Logging All the holes used in the modelling have lithological and/or stratigraphic logs to a level of detail sufficient to support the Resource estimation.

Sub-sampling techniques and sample preparation

Coal qualities were not modelled so sub-sampling not relevant. Where core qualities were tested in the most recent Liberty holes the entire drill core was sampled.

Quality of assay data and laboratory tests

Where proximate core qualities from the most recent Liberty holes are mentioned in the report, the laboratory that conducted the tests is industry certified and followed industry standard testing procedures.

Verification of sampling and assaying

No verification samples were collected. The coal quality was not modelled so verification samples not required.

No sample quality control measures were undertaken. The coal quality was not

modelled so quality control measures are not required.

The geophysical logs are continuous down the holes and clearly show density and electric responses that indicate coal seam contacts.

Location of data points

The accuracy of the surveying has not been determined by AM&A but is considered accurate enough for Inferred Resource and Exploration Target estimates.

All coordinates are in GDA94 grid.

The project area is generally flat with limited topographic variation.

Data spacing and distribution

The data points are on an approximate 500m x 2,500m grid in part in-filled to 400m apart.

The data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate where used for an Inferred Resource estimate.

No grade compositing was applied.

Orientation of data in relation to geological structure

The grid spacing and drill orientation is appropriate for the orientation of the seams after regional structural displacement.

No sampling bias has been introduced by the drill hole orientation.

Sample security Coal qualities were not modelled for this reported resource estimate so sample

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Criteria Commentary

security is not relevant or material for the resource estimate.

Audits or reviews

Since this resource estimate is only Inferred and will soon be superseded once the forthcoming exploration drilling program, there have been no independent audits or reviews of the sampling or data carried out. All of the historic data points used in this resource estimate will be progressively replaced by new drilling.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria Commentary

Mineral tenement and land tenure status

Liberty has 100% tenure over the project area except for the area covered by a pre-existing RTZ tenement that covers approximately 50% of the total area of EPC 1949.

Aboriginal and Environmental conditions are included in the text but generally do not exclude further exploration or eventual underground mining.

Exploration done by other parties

A full list of references are included as part of the report.

Geology Permian coal seams, within Rangal and Fort Cooper Coal Measures, in the Bowen Basin.

Drill hole Information

48 diamond drill holes drilled by Liberty, Arrow, Utah Development and BP over approximately 50 years were used in the modelling.

Only holes with suitable geological logs were used, a number of historic holes were rejected.

Data aggregation methods

All seam thicknesses calculated from logged top and bottom of the seam using geologist logs or geophysical logs where available.

Stone partings were included in seam thicknesses.

“Visual” estimates of coal contents of seams (i.e. excluding stone partings) based on inspection of logs.

Relationship between mineralisation widths and intercept lengths

Since all the holes are drilled vertical, with only small deviations down the hole, and the coal seams are generally flat (no more than +/- 20 degrees) the seam intercepts are only marginally greater than true seam widths.

Diagrams Appropriate plans and sections included in report.

Balanced reporting

Only representative data points were used in the resource estimate. No data was excluded or included to bias results.

Other substantive exploration data

No other meaningful or material data that could affect the results is known to AM&A.

Further work Further drilling, logging, laboratory and processing tests are recommended to extend the resource estimate into the area currently covered by the Exploration Target.



depending on accessibility, which will pass through the Fort Cooper Coal Measures to

extend these resources and also target the deeper Harrow Creek and Dysart seams

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Criteria Commentary


Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria Commentary

Database integrity

Most of the data used in the coal seam tonnage estimates is from historic drilling. Where possible copies of original sources used to source data.

Site visits No site visit undertaken by the authors of this report.

Due to Tertiary overburden and farming activities none of the coal seams can be mapped at the surface.

Geological interpretation

The overall geological model fairly represents the geology of the seams. Due to the wide drill hole spacing and some difficulties in interpreting historical logs minor errors may have resulted in the interpretation but these errors would not significantly affect the tonnage estimates or affect the JORC Code category assigned.

Dimensions Regional drilling beyond the limits of EPC 1949 show that the seams extend well beyond the boundaries of EPC 1949 except where they outcrop as indicated in the maps included in the report.

Estimation and modelling techniques

The modelling technique used to estimate the seam coal tonnages is appropriate for the quality and density of the available data.

Two methods were used to estimate areas of each of the seams as a check and the areas calculated by both methods corresponded well.

Only tonnages were estimated by AM&A. Proximate analyses and processing test results mentioned in the report are provided as a general guide only.

Moisture All coal tonnages are based on assumed bulk densities that represent coal “air dried”.

Cut-off parameters

The seam thicknesses are based on geological and geophysical logs of coal seams.

Mining factors or assumptions

No mining factors or assumptions are made. A preliminary scoping study is planned for 2014 to determine economic and mining parameters.

Most of the modelled coal, because of its depth below the current topographic surface, would need to be mined using underground mining methods.

Metallurgical factors or assumptions

No metallurgical or recovery factors have been assumed. Only tonnes of in-situ coal estimated. Recovery/beneficiation studies on representative coal samples are planned during the forthcoming 2014 exploration program.

Environmental factors or assumptions

No environmental factors were considered for the reported tonnage estimates.

Current environmental restrictions noted in the report require approvals for drilling sites.

Given that there are several coal mines in the district and since most of the coal would need to be mined using underground mining methods it can be reasonably assumed that a suitable, environmentally approved site for the mine openings can be found within the tenement.

Bulk density All coal tonnages are based on assumed bulk densities that represent coal “air dried”. The assumed bulk densities are based on similar coals in the region.

Classification Due to the wide drill hole spacing and some difficulties in interpreting historical logs the tonnage estimates have been assigned JORC Code categories of Inferred Resources and Exploration Target which is not a resource. These Exploration Target estimates are only conceptual in nature and future exploration may or may not eventually convert all or part of these estimates to resources.

The resource estimate appropriately reflects the Competent Person’s view of the

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Criteria Commentary

deposit.

Audits or reviews

Since this resource estimate is only Inferred and will soon be superseded once the forthcoming exploration drilling program has been completed, there have been no independent audits or reviews of the resource estimates carried out. The resource estimate was however reconciled against an earlier Exploration Target estimate.

Discussion of relative accuracy/ confidence

The tonnage estimates have been assigned a JORC Code category of Exploration Target which is not a resource. These estimates are conceptual in nature and reported as ranges to reflect the uncertainties and future exploration may or may not eventually convert all or part of these target estimates to resources.

The Inferred Resource estimates are based on generally unverified historic seam and coal thickness logs. These thicknesses are within the ranges of the same seams elsewhere in the Bowen Basin so AM&A considers that the Inferred JORC Category is appropriate for these estimates as an indication that the coal seams exist within the modelled areas but the reliability of the tonnage estimates is too low for use in financial and mining studies.

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ASX Announcement ASX : LBY 26th February, 2014 Maiden ...target the deeper Moranbah Coal Measures....

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Transcript of ASX Announcement ASX : LBY 26th February, 2014 Maiden ...target the deeper Moranbah Coal Measures....