Queensland based coal and metals company Moreton Resources Limited is an emerging operator with a focus on advancing its MRV Metals asset to become a community based, low cost commodity producer within the Australian mining sector.
The ASX-listed junior miner (ASX: MRV) has a specific target of reopening the former Twin Hills open cut mine through its fullyowned subsidiary MRV Metals. Twins Hills is central to its Granite Belt polymetallic project for restarting mineral production in southern Queensland.
The Granite Belt Project is an area of approximately 1300 hectares, located around 300 kilometres from Brisbane and six kilometres from the township of Texas. The region is rich in silver, copper, lead zinc and gold resources.
Moreton Resources acquired a range of tenements in this region, which were previously held by Texas Silver Mines Pty. Ltd.
Moreton Resources Chief Executive Officer Jason Elks said the company is hopeful of imminent mining lease approval from the Queensland Minister for Natural Resources and Mines Dr Anthony Lynham.
“While we are essentially known for our coal exploration, we want to diversify and to be seen as a fully-fledged miner,” Mr Elks said.
“Our coal businesses in the Tarong Basin, Surat Basin and Bowen Basin remain a significant part of our development, but there
is opportunity for our growth in metals which will benefit the company and shareholders.
“Further to the minister’s approval and our acquisition, we believe we can be producing silver dore for refinery and purification within six to eight weeks of being on the site. It is anticipated that we will have constant silver production of approximately 90,000 ounces a month from January next year.”
He said the Texas community has been highly supportive of Moreton Resource’s venture, having employed around 22 people in the region and with the likelihood of employment for up to 60 people once the mining lease is operational.
“The community is at the heart of what we do in our business,” Mr Elks said.
“We believe in local employment, not drive-in, drive-out contractors, we support purchasing locally and we embrace our obligations in the payment of local, state and federal taxes with a fundamental understanding that resources are an asset for all Australians and not just those that have the privilege to mine them. We have long-term agreements of more than $10 million with suppliers, most of them being locals and have supported the fabric of the community with many donations.”
Moreton Resources Limited became an established name in 2013, but it has a history of more than 24 years, primarily focused on coal resources, oil and gas.
Its origin was as Pinnacle Mining after tenements were acquired in Western Australia and the Northern Territory. Through a reverse listing it became Cougar Energy Limited and then attained coal tenements throughout Queensland.
Mr Elks has been Chief Executive Officer since 2013 following his widespread experience in coal, iron ore, zinc, lead, gold, oil and gas exploration and heavy industry manufacturing. He has previously held executive roles with Rio Tinto, based in Montreal, Canada, LGL, Zinifex, OneSteel and Kodak Australasia.
He has seen the company’s introduction of Nexia since 2014 and appreciated its input as auditor and advisor on corporate governance issues.
As the company’s business has evolved, Moreton Resources restructured its operations and in August, 2015 established three subsidiaries – MRV Tarong Basin Coal, MRV Bowen Basin Coal, and MRV Surat Basin Coal – and then MRV Metals the following January.
Among its most significant, current projects is the South Burnett Coal Project, which entails the development of a coal mine south of Kingaroy – an undertaking dear to Mr Elks as a former Kingaroy lad.
“Coal mining is one of our most regulated industries in Queensland,” Mr Elks said.
“We are currently assessing a major coal asset in the South Burnett to ascertain if it can become a working mine and determine likely future customers from its output.
“Indications are that the area has high-quality coal seams up to10 metres thick which could be strip-mined very efficiently with a very small footprint on the surrounding area.
“The project has the potential to secure the future of the South Burnett. We would hope that we can fully commission this project by 2020.”
Mr Elks said the company was not share-price focused, but was committed to a belief of longer term dividends and a sustainable business that was factual in delivery of what it is doing. Its most recent ASX price was 11cents per share.
