MetroCoal re-affirms Columboola coal Resource yet to be completed
Emerging coal-focused energy company MetroCoal (ASX: MTE) has clarified
that it has not completed any resource estimate or report on its
Columboola Project area in Queensland's Surat Basin.
This
statement is in response to media reports relating to an announcement
attributed to China National Coal Group Corp (China Coal) on the Joint
Venture between China Coal and MetroCoal on EPC 1165, Columboola.
Mike
O'Brien, MetroCoal's chief executive officer, said “the statements
attributed to China Coal on resources and projected production tonnages
from the Columboola project originated from media in Asia."
“MetroCoal re-affirms that it has not yet estimated a resource compliant with the JORC Code for Columboola," O'Brien said.
“China
Coal did review historic and publicly available drill hole information
in relation to the Columboola tenement and they have used this data to
make their own coal tonnage estimation."
“While it is well known
that there are a number of coal seams within EPC 1165, extensive
exploration is required before a JORC compliant resource or reserve can
be quoted," O'Brien said.
MetroCoal stated in its 2009 Prospectus
that it was pursuing an exploration target for the Columboola Project
area of between 830Mt to 1,165 Mt thermal coal suited predominantly for
underground mining.
MetroCoal said it is very encouraged with
China Coal's positive outlook and is looking forward to progressing the
exploration towards feasibility and ultimate development under the joint
venture agreement.
Under the terms of the agreement, China Coal
will acquire a 51% interest in MetroCoal's EPC 1165 Columboola in the
Surat Basin for an agreed expenditure commitment of AUD$30 million.
The
funds will be used for exploring and evaluating the potential for
future commercialisation options within the Columboola tenement and also
opens up the opportunity for participation in MetroCoal‟s other
tenements.
The Columboola JVA requires a minimum expenditure of $4 million within the first two years of the agreement.
Related news
- Peninsula Energy chairman talks to Proactive Investors in Stocktube Video
- Empire Energy Group hits oil production milestone in Appalachia
- Aminex and Solo Oil to carry out further analysis on Ntorya-1 well
- Angel Biotechnology shares surge as it reveals new contracts worth total of £4.5mln
- Pan Pacific Aggregates secures £2m facility from Yorkville Advisors
- Sunrise Resources reveals high grade results from Derryginagh barite project – UPDATE
- Red Rock Resources acquires option in Kansai Mining
