Northern Bowen Basin
Sullivan Creek, Talwood and Pretoria Hill
The Directors of Endocoal Limited are pleased to advise that the Company has entered into transactions to acquire interests in an exploration tenement area titled Pretoria Hill. Under the terms of a 50:50 joint venture agreement, Endocoal and Carabella have entered into an agreement with a third party to acquire a 100% interest in an exploration area nearby its 100% owned Sullivan Creek (EPC 1518) and Talwood (EPC 1590) tenements, prospective for the Rugby Coking coal measures. Pretoria Hill tenement is immediately adjacent to the Carabella Resources Limited (Carabella) (ASX:CLR) flagship Mabbin Creek tenement (EPC 1069).
The Talwood/Sullivans Creek Project is made up of EPCs 1590 and 1518 which are 100% owned and operated by Endocoal Ltd, covering a combined area of 1,197 km2 and located approximately 140 km west of Mackay and 50 km north west of Moranbah, Queensland.
The Project area has potential for Lower Permian coal measures in small sub-basins on or near the western edge of the Bowen Basin. Comparable Early Permian resource deposits in the region include the Rugby, Blair Athol and Collinsville Coal Measures.
Review of open file geological and geophysical data (including high quality geophysical surveys) has increased confidence for the presence of a large freshwater derived sub basin within the EPC 1590 (Talwood) area. Multiple thin coal seams have been observed in two historical Queensland Mines Department stratigraphic drill holes located within and adjacent to EPC 1590 and confirm the presence of coal seams within the tenement area.
Endocoal entered into a 50:50 joint venture arrangement with Carabella Resources to acquire a 100% interest in the EPC 2135 from a third party. Pretoria Hill comprises an area approximately 410 km2 located immediately adjacent to Carabella’s Mabin Creek (EPC1069) tenement and south of Endocoal’s Talwood/ Sullivans Creek project areas.
The Pretoria Hill tenement is prospective for similar freshwater derived sub basins as the Talwood/Sullivans Creek Project and the Company believes that the Pretoria Hill project also has potential to host coal seams with coking coal style quality.
While the Company awaits the granting of Pretoria Hill tenement, desk top studies have begun in conjunction with Endocoal’s joint venture partner with the intention of completing a initial scout drilling program shortly after granting.
Endocoal is pleased to announce the commencement of drilling at its100% owned Talwood Project (EPC1590).
The possibility of intersecting coal seams with coking properties was identified in 2010 as an opportunity for the Talwood Project by Endocoal’s Exploration team and geological consultant. Talwood is a greenfield site with very little previous exploration in the surrounding area. EPC1590 was granted to Endocoal in May 2010 to allow exploration for coal deposits located in ‘Rugby’ type geological settings. These are characterised by the presence of smaller ‘sub basins’, lying within the early Permian sediments, along the north-western edge of the main Bowen Basin.
The drilling program now underway follows Endocoal and its consultants’ review of two historical nearby Government drill holes (Mt Coolon GSQ holes) drilled in 1987. These holes comprise the only other coal drilling to be completed within the area surrounding the tenement. Both holes intersected numerous coal seams, with coal being recorded from a depth of 53.9m. The aim of the EOC exploration program is to confirm the existence and extent of these and other expected coal seams.
Nebo comprises EPC 1513, and is located to the east of Endocoal's Sullivan Creek and Talwood tenements, near the township of Nebo in the north eastern Bowen Basin. Nebo covers an area of approximately 78km2, and straddles the Peak Downs Highway and the Goonyella rail line, which provides transport to the Dalrymple Bay Coal Terminal, located approximately 140km east of the tenement area.Due to limited historical sub-surface exploration, there is little known of the Bowen Basin structure and stratigraphy of the area in which Nebo is located. Regional projections have indicated that the area may be underlain by sediments of the Back Creek Group which may be subject to folding and faulting.
Updated: May 2012
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Rod Austin, Endocoal's Finance Director said:
This is an exciting opportunity for Endocoal as it positions our Northern Bowen basin tenement areas into a known coking coal opportunity.