International Coal receives Consuelo drilling approval

International Coal has received EPC 2327 grant to begin drilling at the Consuelo coking coal project in Queensland’s Bowen basin, Australia.

After the final land clearances are obtained, the company will commence exploration drilling at the project.

The EPC 2327 grant, which is the last of three tenures to be granted in the Consuelo project, is a key milestone, as the area is likely to hold some of the shallowest coal seams in the project.

Coking and thermal coal play

The project will focus on a semi-soft coking and thermal coal play in the Bowen Basin near Glencore Xstrata PLC's mine and the Blackwater Rail System.

International Coal and Coal Face Resources will develop the EPC 2327, 2318 and 2332 tenements, while International Coal acquires a 20% interest in the areas upon grant and assignment and the ability to earn up to a 71% interest in the project, as part of an earlier agreement.

Comments

International Coal CEO, Glenn Simpson, explained that the company was working to finalise conduct and compensation agreements and cultural heritage clearances for the area and start drilling preparations.

"We expect to intersect coal seams at mineable depths in the Bandanna Formation - the same formation that hosts coal produced from the Glencore Xstrata Rolleston Mine," Simpson added.

"We are looking to establish a JORC Inferred Resource and to test the coal quality.”

Edited from various sources by Katie Woodward

Read the article online at: https://www.worldcoal.com/mining/12022014/international_coal_to_commence_drilling_at_consuelo_project_503/