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Initial JORC resource announced for Leigh Creek Energy project

Published by
World Coal,

Leigh Creek Energy Ltd (LCK) is moving forward with its Leigh Creek Energy project (LCEP), located 240 km north-northeast of the township of Port Augusta in South Australia.

Five small discrete Late Triassic basins spread over 20 km make up the Leigh Creek coalfield. The project area is within the Telford Basin, which has dimensions of 7.5 km x 4.5 km, and contains up to 1500 m of sequence. The coal is found in three series: Upper, Main and Lower.

LCK has carried out inferred resource and exploration target estimations over the project area. The company has reported, in accordance with the JORC Code (2012), initial JORC inferred coal resource of 377 million t.

This result is within the company’s previously announced 220 to 530 million t exploration target. LCK intends to commence additional drilling, coal quality testwork and seismic surveys during 2016 in order to extend confidence in coal quality and to upgrade deposit certainty and commerciality.

The estimate is based on:

  • A minimum seam thickness of 2 m.
  • A maximum stone parting thickness of 1 m.
  • ISG resources were limited to a minimum overburden thickness of 200 m.
  • Opencast exploration targets were limited to a maximum overburden thickness of 200 m.
  • Opencast exploration targets were limited to a base of weathering grid model.
  • A fixed relative density of 1.4 was applied for the resource estimation.
  • Points of observation spacing of 4 km (1 km past the last point) were used in the estimation where geological correlation supported lateral continuity.
  • Areas associated with major faulting located on the south-western basin edge (defined by seismic) have been excluded from Q and V Seam working section resources. No faulting exclusions were applied from faults observed in pit mapping as full seam offsets were not observed.

Commenting on the inferred coal resource, Executive Chairman, Justyn Peters, stated: “This is a great initial JORC inferred resources that is exactly within the range expected as stated in our June 1st ASX release. This is simply the first step towards us obtaining a PRMS Gas reserve, and I look forward to updating the market when we have our gas certification.”

The recently discovered geological and drillhole data has been used in the geological model that underpins this resource estimate.

The company reported that a high level of confidence can be had in the additional data found, which resulted in the project transitioning from an exploration target to a coal resources estimate. LCK indicated that it is highly probable that further drilling will extend confidence in the coal quality and lead to upgrades in the deposit certainty and commerciality.

The geological modelling has also been used to confirm the most appropriate sites for the drilling program. This is expected to be conducted during 1Q16. The drilling will also provide environmental information.

Gasification modelling using data collected from Leigh Creek coals has been completed, and gasification testwork on the coal samples obtained is approaching completion. Combined with this resource estimate, these gasification reports will form the basis of a Petroleum Resources Management System (PRMS) compliant Gas Reserve estimate.

Edited from press release by Harleigh Hobbs

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