Fox 3 has intersected five coal seams that are thicker than 50cm.
Importantly, two of those seams – GL1 and GL2 – correlate with the laterally continuous coal seams modelled as part of the inferred resource estimate.
The upper coal seams intersected by Fox 3 have not been included in the resource estimates.
Fox 3 is located about halfway between the previously released Fox 1 and Fox 6 holes.
The main coal seams intersected are interpreted as being the same coal measures intersected on the adjacent tenement. But the seams above and below the main modelled seams are thicker than intersected elsewhere in EPC 1523.
The width of these seams is based on downhole geophysical logging.
Fox Resources MD Paul Dunbar said with infill drilling to increase the geological confidence in the 101Mt inferred resource, the thicker upper seams in Fox 3 may provide additional tonnage, improving the project’s viability.
“A conceptual mining study into possible development options, currently underway, is expected to provide a focus for the next phase of exploration,” he said.
All holes have been geologically and geophysical logged for natural gamma, density and resistivity to help with modelling of the stratigraphic horizons.
The clean coal composite analysis has been completed with discussions ongoing regarding the results of this work being made available to Fox.
Provision of these results is being hampered by an external company that was engaged to manage exploration at the Bundaberg project being placed in administration.
Fox said discussions were continuing with the laboratory that undertook the analysis to release those results.
If, as expected, they are similar to those released by International Coal on the adjacent EPC 1296 tenement, they would prove the high quality of the coal within the 101Mt inferred resource.
Fox is undertaking a conceptual mining study into various development options for the Bundaberg project and to direct future exploration toward the areas of the resource with the greatest development potential.
Once the results of this study are known, the next phase of exploration will be planned.
It is expected further exploration will include infill drilling with large diameter diamond core and further coal quality tests.
