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Guildford said the project targeted an open-cut resource and had close access to rail, with the Blackwater rail system cutting across the northern edge of the tenement.
The tenement is close to Stanmore’s Mackenzie project and Aquila’s Washpool open cut project.
The Sierra project, which is 100% owned by Guildford, has hard coking coal targets in the Fair Hill, Burngrove and Crocker formations.
Drilling at Sierra brings the company’s drill rig tally in Queensland to six.
Guildford said the Sierra tenement was a top priority for the company.
In addition to its Queensland tenements Guildford is also on track to become a Mongolian coal producer by 2012 after its subsidiary Terra Energy LLC recently acquired a 100% stake in Mongolia-based Alag Tevsh LLC for $US3.5 million.
Guildford has five drill rigs in Mongolia, including four in South Gobi and one in Middle Gobi, targeting thermal and coking coal
Middle Gobi has an exploration target of 29-149Mt and is located approximately 200 kilometres north of the Tavan Tolgoi project.
Guildford is progressing to establish JORC-compliant resources on three of its projects in South and Middle Gobi.
