Chile is an energy deficient country with the majority of its energy needs imported from abroad. In addition economic development is driving significant energy demand growth. This situation is reflected in Chile’s 12 coal fired power stations which import the majority of fuel requirements. Based on these circumstances Equus saw a strong opportunity to supply domestic coal by obtain a strategic position in Chile’s largest coal basin.
Panamax Ship Loader at Port Pecket
Equus Mining’s Mina Rica thermal coal project is located on the Brunswick Peninsula in Chile’s XII Region and is considered highly strategic given its close proximity to key idle infrastructure and the potential for rapid development in order to supply into Chile’s shortage of domestically produced thermal coal. Currently Chile consumes approximately 15mpta of mostly imported thermal coal.
Initial drilling has indicated that the Pecket Mine sequence extends further along strike to the southeast than previously interpreted(i). Based on this new interpretation and combined with the knowledge that an adjacent tenement area to the southeast were to become available, Equus further expanded its Mina Rica thermal coal project area through the submission of 8 Exploration Licence applications totalling 2,200 hectares in late 2015 (Exploration claims Mina Rica 32-39) and these are now granted. Field mapping and additional historic data has resulted in further new exploration licence applications being made.
Outcroping coal - Magallanes Basin
(i)All the material assumptions underpinning exploration results information in the initial public reports for Mina Rica Coal project (see ASX release dated 27 October 2015) continue to apply and have not materially changed. No new exploration results are reported for Mina Rica.