International Coal Limited (ICX) has announced its intention to focus the company’s exploration expenditure on the promising Consuelo Project in the Bowen Basin, Queensland.
The decision comes as part of a deal to remove ICX’s commitment to expend US$ 700,000 on exploration for the Don Juan joint venture. The company will continue to share in the proceeds from the development and future construction of the project.
ICX has also agreed to vary the binding terms of agreement to reduce the number of options required to be issued under the Consuelo Agreement from 10 million to 5 million, enabling finalisation of joint venture arrangements.
Glenn Simpson, CEO of International Coal, commented: “We no longer have any commitment to spend on exploration on Don Juan, freeing up resources to fund an exploration program at Consuelo”.
“While Don Juan remains of long term interest, the current coal market demands that we refocus our resources on higher grade coal prospects in the Bowen Basin (the Consuelo Project)”, Simpson added.
The Consuelo Project is targeting a large high-grade coal deposit with potential for producing a washed semi-soft coking coal product. Consuelo is located near Glencore Xstrata’s Rolleston mine and has an exploration target of between 800 and 1700 million t of coal.
“We are committed to the exploration of the Consuelo Project and believe that the project will deliver strong results for the company. It is a project of significant interest to a number of international strategic investors and we continue to negotiate and liaise with those investors as we move forward with initial exploration of the area”, concluded Simpson.
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/10102013/international_coal_to_focus_on_queensland_coking_project_113/