Yari Minerals has entered into a binding agreement to acquire Resource Chain, which holds full ownership of the Rolleston South Coal Project located in the Bowen Basin in Queensland, Australia.
The transaction provides Yari Minerals with access to a 78.9 million tonne (Mt) inferred coal resource under the JORC 2012 Code and is expected to be completed following the satisfaction of due diligence requirements.
It expands Yari Minerals’ footprint into coal exploration in a Tier 1 jurisdiction, aligning with its objective of building a diversified resource portfolio across Australia.
The Rolleston South Coal Project spans 272km2 and contains six identified coal seams within the Bandanna Formation. These seams were confirmed through historic drilling and laboratory analysis, which indicated suitability for both export-grade thermal coal and semi-soft metallurgical coal.
Upon completion of the acquisition, Yari Minerals intends to review the existing resource model, integrating additional data from coal seam gas wells, and will initiate a drilling campaign to increase the resource volume and classification.
The project area lies approximately 25km from established coal operations owned by Glencore and Peabody, offering logistical advantages through existing road and rail infrastructure.
Yari Minerals’ drilling strategy will target zones outside the currently modelled area to expand the resource base while undertaking infill drilling to potentially upgrade the classification from inferred to indicated.
The acquisition consideration includes the issue of 119,560,669 Yari Minerals shares to the vendors, representing a 19.9% shareholding.
An additional 86,045,322 performance rights are contingent on the project achieving an inferred resource exceeding 100 million tonnes under the JORC 2012 Code.
Completion of the deal is subject to shareholder approval for the deferred shares and performance rights. Should such approval not be obtained, the vendors will forfeit their right to these additional securities.
Historic data for the Rolleston South Coal Project includes over 130 boreholes and reinterpreted seismic lines. Boreholes have been modelled using Datamine’s Minescape system, with updates made to the topographical model and seam continuity based on digital seismic interpretations.
The revised model has removed outdated water bore data and adopted a reduced modelling buffer to meet the JORC 2012 standard.
The resource estimate covers the B and D seams with coal located predominantly between 75 to 450 metres below surface. Laboratory results indicate raw calorific values between 24.33 and 27.98 MJ/kg.
The coal has been characterised by low ash and high energy, with test results supporting potential metallurgical applications based on crucible swell numbers of up to 4.
No mining method has yet been finalised, though the company has indicated the possibility of open-cut operations, with longer-term underground development through bord-and-pillar or longwall mining under evaluation.
Geostatistical modelling suggests that further drilling at 500–750m spacing will be required to achieve an indicated or measured classification.
Yari Minerals’ broader portfolio includes exploration licences in the Pilbara region of Western Australia, considered prospective for lithium. The company had previously operated the Plomosas Mine in Mexico until its sale in April 2023 and retains a royalty interest in that asset.
