NEC raises coal resources 70%

30 April 2007 | 07:59 Code : 13564 Geoscience events
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Northern Energy Corporation has announced a 70 percent increase in the resource....

  Northern Energy Corporation has announced a 70 percent increase in the resource at its Surat Basin Elimatta Coal Project in southern Queensland.Analysis of the drilling program completed in December 2006, indicates the resource has increased from the previously reported 130Mt Inferred Resource to a total of 222Mt. The Resource comprises 22Mt Indicated Resource and 200Mt Inferred Resource. NEC Managing Director, Keith Barker said this increase in the size of the resource at Elimatta confirmed the company’s belief that the area has the potential to support a substantial mine development once transport and other support infrastructure is available to the northern Surat region. The company’s drilling and geological assessment has also identified further upside for the Elimatta Project, with an additional 80 to 105Mt Exploration Target identified. The recent program included detailed raw and washed coal analysis, providing assessment of the potential Elimatta washed product. These results indicate a high washing yield, producing a relatively low ash, low sulphur and nitrogen, high volatile thermal coal, with specific energy of 26.6MJ/kg. All of the seams comprising the resource produce an attractive export quality thermal coal. “The quality of the Elimatta coal, with high volatiles and low impurities, should be attractive to the global power utility market. It would be a very suitable coal for use in the latest combustion technologies, offering higher efficiencies and fewer emissions per unit of electricity,” Mr Barker said. “With greater than 100Mt of the Resource at a strip ratio <5:1 and high washing yields, the deposit has the potential of supporting a large open cut mining operation supplying the global thermal coal market,” he said. “There is scope for additional tonnage, particularly in an overlying seam, to further improve the strip ratio. Additional drilling and evaluation is likely to further enhance the project’s credentials.”

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