Her farm-in owned International Coal has encountered the black fuel, with intersections varying in thickness from 0.66m to 2.63m.
Two new pilot holes and two partially cored holes drilled recently within EPC 2196 confirm the presence of coal seams within the Cretaceous Burrum Coal Measures at depths of 30m to 428m.
Ply-by-ply sampling has been undertaken as the first stage of a comprehensive analysis methodology.
Stage 2 entails selection of composites followed by sizing and float-sink testing, analysing floats for coking properties. Stage 3 will include generating clean coal composites and testing for a wide range of thermal and coking coal properties.
Eleven boreholes have been drilled at EPC 2194 and EPC 2196 as part of the company’s farm-in and joint venture with Queensland Coal Investments, a wholly owned subsidiary of Rinehart’s Hancock Prospecting.
Chairman John Lester said: “The board of International Coal believes our JV with QCI provides us with an ideal opportunity to realise the full potential for our projects in this region.
“The QCI group bring substantial professionalism and experience to our projects in this region and we look forward to further developing this relationship.”
Under the terms of the agreement, QCI is able to earn up to a 51% interest in International’s Bundaberg Project tenements EPC 2194, 2195, 2196 and the EPC application 2631 through sole funding exploration expenditure of up to $3 million.
QCI can earn 25% interest through the staged development and expenditure of $1.5 million and a further 26% through the expenditure of a further $1.5 million.
In addition to the earn-in payments, the terms of the agreement also require QCI to pay to International $2 million upon attaining the 51% interest in the project.
International Coal, whose tenements are located in the flood-stricken areas of Bundaberg, did not report any adverse impacts.
“The board of International Coal expresses its deepest sympathy for the damage suffered by the Bundaberg community from the recent storm-related events,” the company said.
“The Bundaberg community has been welcoming and understanding of our project activities. Our thoughts are with those now who have lost property, sustained damage and face the challenge of the rebuild ahead.”
