The renewal of the permit by the Queensland Department of Natural Resources and Mines recognises Endocoal’s effort and expenditure invested in its exploration programs.

These have yielded the Meteor Downs South project, which now has JORC marketable reserves of 13 million tonnes of coal, and the Inderi project, which has a 34.5Mt JORC-compliant resource, says chief executive Tim Hedley.

Endocoal aims to start mine site operations at Meteor Downs South by 2013, he said.

“We are delighted to have received renewal of EPC1517 at Orion Downs for a further five years to allow further coal exploration activities,” he said.

The renewal of Orion Downs, combined with the granting of Overlander and recently Mt Inglis, supports development of a broad-based exploration program to assess prospectivity for the Bandanna Formation and other coal-bearing measures across adjoining areas, according to Hedley.

The logical next step would be to start on-the-ground fieldwork at Overlander, he said.

“Orion Downs, coupled with the Overlander and Mt Inglis tenements, allows Endocoal to extend its exploration focus onto other prospective areas within close proximity to the proven Meteor Downs South project area.”

“We are targeting outcrops of the Bandanna formation, looking for coal similar to that at Meter Downs South.”

It reaffirmed Endocoal’s intention to actively explore the tenements granted, Hedley said.

“Completing the documentation for the EMP [Environmental Management Plan] at Meteor Downs South remains a priority. Lodging this for review by the Queensland government departments involved kicks off the next stage in the Meteor Downs South Mining Lease approval process,” he said.

“We look forward to dealing quickly with any matters arising.”

Once the mining lease has been granted, Endocal can start actual mine development on Meteor Downs South.