Cougar UK secured the exploration licence, covering 47.3 square kilometres, for Thar Coal Block III in the east Sindh Province.
A geological survey of Pakistan has previously drilled 41 holes at about 1km spacing, all of which intersected coal seams varying in thickness from 8m to 23m at depths of 115-205m. Of the holes, 27 lie in Cougar’s area.
The drilling does not meet JORC standards.
Cougar is planning a drill program to bring the resource to JORC standard and is aiming to establish an initial resource of 100-200 million tonnes.
Cougar UK has formed partnerships with Karachi and Munich financial institutions to arrange project funding and help minimise financial exposure in Pakistan.
The project is currently being funded by a £100,000 rights issue.
The company said the political situation in Pakistan would influence the timing and rate of the project’s development.
Cougar Energy’s flagship Kingaroy UCG power plant in Queensland is still under construction, with ignition of the gasification process planned for February next year.
Cougar’s Australian shares were trading up 2.17% mid-morning today at A9.4c.
