The Scaddan Energy Project has 1.04 billion tonnes of coal resource and Blackham controls landholdings in the Scaddan region in excess of 1,700km2.

Runge Limited (“Runge”) completed the resource statement in accordance with the JORC reporting standards. Runge is an internationally respected global consulting company providing resource and mining consulting services and software for more than 30 years.

Summary of Resources and Coal Inventory

  Total % of
  Category Tonnes Tonnes
  (million)

  Measured resource 80 6%
  Indicated resource 490 38%
  Inferred resource 470 36%
  Inventory coal (non JORC) 200-320 20%
  Total tonnes range 1,240-1,360 100%

The resource estimate is on a 56% moisture basis and an approximate relative density of 1.2. No thickness or quality cut-offs were applied to the deposit due to the range of ash values all being within the required definition of lignite and the deposit having reasonable prospects for eventual economic extraction as outlined in the Australian “Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves”.

Exploration drilling, to find and define the Scaddan coalfield, required a total of 1,547 boreholes, 311 of which were cored and 1,236 drilled as open holes. Runge has outlined locations of additional drilling on the Indicated Resource to ensure drill hole spacing is within 500m as required under the “Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves” to potentially upgrade the area to a Measured status.

For more information of the Scaddan resource please see Blackham's (BLK) ASX announcement of 21st June 2011.