Bowen Coking Coal (ASX:BCB) has entered into a definitive agreement to purchase the Isaac River coking coal project in Australia for a total of just A$200,000 in cash. This project consists of 14 square kilometers in the Bowen Basin with several other coal mines in the immediate vicinity.
Looking at the quality of the raw coal from previous drill results, the true thickness of the coal seams appears to be 4-5 meters with a very low sulfur level (less than 0.5%) whilst the ash level remains relatively limited at 15-22% based on the raw coal. After a (very preliminary) washing test, the coal appeared to be upgraded to a premium product with an ash content of just 8.9% indicating semi-soft coking coal.
The acquisition appears to be quite cheap, although the total land package of just 14 square kilometers appears to be relatively small. 2018 will be interesting as Bowen Coking Coal will undoubtedly try to advance its assets. The Cooroorah coal project already appears to be delivering on its promises, and we’ll have a closer look at that specific project in a separate update.