Mineral & Coal Investments "M&CI" aims to explore for open pit and underground coal resources within six Permian or Triassic coal basins in Queensland and to date eight Exploration Permits for Coal (EPC’s) have been granted to the company, refer Figures 1& 2. A further four applications are awaiting grant, making a total of 12 properties in this diversified coal package.
On the basis of an initial review of existing technical data by consultant geologist Ian Blayden, the most important of these tenements with respect to resource potential is EPC 1297 (Back Creek) located in the northeast of the Surat Basin and EPC1296 (Connemarra), EPC1298 (Kilmain) and EPC 1917 (Kilmain South) all within the central Bowen Basin.
To date no significant fieldwork has been conducted by M&CI on any of these projects, therefore there were no incidents to report in regard safety or environmental issues associated with the company’s activities on its tenements.
The following activities were achieved in the March, 2010 quarter:
- Consultant Geologist Ian Blayden was engaged to review all available data and to prepare detailed exploration programs and budget for all areas that have been granted and/or under grant processing.
- Runge Limited in Brisbane has been engaged to prepare an Independent Geological Report on all of the company’s areas. It is expected this detailed report will identify the coal and resource potential of each tenement and should be available early in the next quarter.
- The Back Creek (EPC1297) area is considered to have promising shallow open pittable thermal coal potential because it has inferred continuity of geology along strike from known resources defined by other companies. Therefore geological exchange agreements between M&CI and adjacent tenement holder Cockatoo Coal (EPC1813) have been concluded. Additional agreements with other adjacent holders are being progressed.
- At the beginning of the quarter EPC1296 (Connemarra), EPC1298 (Kilmain), EPC 1617 (Townsville Extended), EPC 1631 (Calen South) and EPC 1672 (Lochaber) were granted to the company.
- During the quarter additional exploration areas granted were: EPC1820 (Boldon), EPC 1297 (Back Creek) and EPC 1917 (Kilmain South).
- Exploration areas still awaiting grant include: EPC 1492 (Townsville), EPC 1324 (Linallie), EPC 1874 (Normanby) and EPC 1875 (Pine Creek).
M&CI tenements in Central and Southern Queensland
NB : Linallie EPC 1324 is being purchased by M&CI from Baju Exploration Pty Ltd
M&CI tenements in Central and Northern Queensland
- In advance of a decision to proceed to field exploration on granted areas based on agreed work programs prepared by Ian Blayden, Landsat photographs and base maps have now been obtained for all tenements and relevant previous geological data plus aerial survey information is continuing to be collected.
- A mutual Confidentiality Agreement was signed between M&CI and Hydromining Coal Australia Pty Ltd “HCA” (80% held by Gullewa) in relation to the Calen South project (EPC 1631).
- The Queensland Government’s Collaborative Drilling Initiative (CDI) Program has approved a $60,000 grant to support drilling at Townsville within EPC 1617 and EPC1492. As part of the drilling program within these areas a stratigraphic hole to 350m depth will be drilled and would be made available to Geoscience Australia for temperature measurements as part of the Queensland Government’s East Coast Geothermal Initiative program.
- Tenement Managers ELP have been requested to prepare landholder details for all areas prior to commencement of exploration and/or on site activities. The information will be provided on a needs and ongoing basis. Landholder details for EPC1631 have now been provided.
The following work is planned for the June, 2010 quarter:
- Prior to any on site activities in the next quarter a comprehensive Health & Safety Management System will be put be in place. Currently suitable consultants to assist in the preparation of such a system are being considered, and a Senior Site Executive is to be appointed to manage the scheme.
- In line with proposed work programs and budgets field work will commence in selected priority tenements with the aim to identify potential target areas for drilling.
- Given the promising shallow coal potential at Back Creek, when the Runge report has been reviewed it is expected the company will plan to advance an initial drilling program to identify any open pittable thermal coal resources.
Hydromining Coal Australia Pty Ltd “HCA”
During the quarter the company continued to pursue investment possibilities in Queensland and NSW where suitable areas have been identified and discussions are ongoing with potential partners.
Seams in the Calen Basin near Mackay region are known to be steeply dipping. The nearby and now closed Fleetwood Colliery had dips of 79° that would be suitable for application of the hydromining technique being developed by HCA.
As a result a Mutual Confidentiality Agreement was signed between M&CI and HCA on their Calen South project EPC 1631 and an exchange of data has commenced.