SUMMARY OF HOP2IT OIL-SHALE MINING NORTH QUEENSLAND

OUR INVOLVEMENT – In 2021 Hop2it uptook an opportunity to merge with a long-term mining company and acquire significant equity and management rights of a Kaolin mining operation in northwestern Queensland, Australia. The mining tenements are located close to three major shipping Ports of Townsville, Mackay, and Gladstone and OIL-SHALE is another resource product that sits under the Kaolin in the mine.

WHAT IS IT? – Oil Shale should not be confused with Shale Oil. In Shale Oil, the strata were buried deeply enough that the temperature was sufficiently high to naturally convert the kerogen into the oil. Oil Shale is a sedimentary rock containing solid and combustible organic matter (kerogen). Oil shale can be burned as any other fossil fuel or it can be heated without oxygen to extract shale oil. Oil shale is generally described as a fine-grained sedimentary rock containing organic matter (kerogen) that, upon destructive distillation, yields significant amounts of oil and combustible gas. Shale oil is a replacement for traditional crude oil, but the extraction of shale oil from oil shale is more expensive, both financially and in terms of its environmental effects, than the production of conventional crude oil. Oil shale deposits exist around the world, including large deposits in the United States.

JORC – The JORC Code mentioned above is a code for Public Reporting, not a code that regulates the manner in which a Competent Person estimates Mineral Resources or Ore Reserves. The term ‘JORC compliant’ therefore refers to the manner of reporting not to the estimates.

AUSTRALIAN DEPOSITS – 

During the second half of the 19th-century shale oil extraction, industries were initiated also in Sweden, Australia, Brazil, New Zealand, Canada, and the United States. In Australia, the first mine started in New South Wales at American Creek, and the first shale oil was produced there by the Pioneer Kerosene Works. Oil shale production began to grow again globally in the mid-1990s, with China and the United States producing millions of barrels annually.

In Australia, a demonstration plant was built near Gladstone (one of the 3 Ports close to our Kaolin/Oil Shale Mine) in Queensland in 2000, but was closed due to environmental concerns, and was rebuilt and began using a new process in 2011 and has received no complaints to date. The Queensland moratorium on Oil Shale mining has now been lifted and this plant and many other new projects such as this Hop2it venture, will no doubt expand operations, ensuring future jobs for Queenslanders in this state which hold 90% of Australia`s Oil Shale reserves.

Australia has a large unconventional and currently, non-producing identified shale oil resource of 131 600PJ (22 390mmbbl) which can contribute to future oil supply and independence. The majority of Australian shale oil resources of commercial interest are located in Queensland, in the vicinity of Gladstone and Mackay, which is exactly where our Kaolin and Oil Shale mine resides.

 VOLUMES – The Jorc report has been prepared to outline an Inferred Resource Estimate of the present resource for the Oil Shale resources on the tenements are some 190 million tonnes (dry basis) grading some 125 to 130 litres per tonne of oil on a dry Fischer assay basis (this would equate to 24,700,000,000 litres of oil (6,525,052,768 gallons). This will blow out to 900 million tonnes when all EMs are included. The best grades are +250 litres per tonne on a dry Fischer Assay basis.

USES – Australia does not extract crude oil, although it has massive reserves, however, oil (shale oil) can be extracted from Oil Shale by heating it without oxygen. This process is known as retorting. The residue of retorting is this black substance known as semi-coke.

OUR MINING PLAN – We will follow a similar mining plan in parallel to the mining of the Kaolin which is the primary objective. International and Australian funding has been arranged to expand the mining operations from Kaolin to Oil Shale and their bi-products. Hop2it Members are welcome to acquire more shares in the company and which is a major equity partner and manager of the Oil Shale venture.