Queensland’s Department of Mines and Energy granted EPC1151, covering 537 square kilometres, for three years from March 16.

Tiaro said the only exploration program available to the JV for the permit was a high-resolution airborne geophysical survey conducted during March and April last year, but a stratigraphic drilling program co-funded by the Queensland government would start in the project area next month.

“The objective of the two stratigraphic holes is to obtain intersections of full thickness of Tiaro Coal Measures and Burrum Coal Measures respectively, to determine which parts of the stratigraphic column have the best potential for coal,” Tiaro said.

Tiaro was granted the permit after reaching a native title and cultural heritage agreement with the Butchulla Land and Sea People of the area.

The permit is adjacent to other tenements in the project and Tiaro has applied for another five permits in the Maryborough Basin encompassing 2688sq.km.

The Tiaro Coal JV includes Core Coal and Jandale, with Tiaro owning 65-80% of each of the five permits in the project.

Next month’s drilling has received government funding under the Collaborative Drilling Initiative within the state’s Smart Mining – Future Prosperity program.

Shares in Tiaro were unchanged this morning at 21c.