Thick intersections of coal up to 10.5m were encountered at 60m depth in a number of holes during its initial drilling program and preliminary quality testing of the coal had also returned attractive PCI coal properties, managing director Anthony Quin said.
Based on the success of this initial program, Carabella intended to extend exploration to the north and south of the current drilling area, he said.
“The discovery of high quality PCI coal at Bluff is an exciting development for Carabella,” he said.
“The thick coal intersected at shallow depths, in an area located immediately adjacent to the Gladstone rail line is particularly encouraging.
“Based on the excellent results to date, Carabella intends to extend the drilling program and will seek to delineate a JORC resource as soon as possible.”
The coal discovery at Bluff was significant as it offered the potential for open cut mining producing high quality PCI coal, Quin said.
Such a mining operation could potentially be developed within a short timeframe providing early cash flow and an additional source of funding for its Grosvenor West project.
“We have holes planned to the north and south of the current drilling activities,” he said. “We will also be reviewing seismic data to determine broader exploration potential across the whole of Bluff in coming weeks.”
