Clean Global Energy moves closer to drilling Queensland thermal coal asset

Clean Global Energy (ASX: CGV) has been granted permit EPC 1748, enabling the company to commence drilling at its thermal coal asset in Queensland’s Surat Basin in first half of 2012.

With a new chief executive officer, Alison Coutts has re-positioned Clean Global as well as cutting costs, delivering a reduction in administration overhead of $1.5 million savings per annum, the company is moving to restore value with latest initiatives.

With the outlook uncertain in Australia for UCG, Coutts has focused on exploration of Clean Global's existing tenements in Australia for conventional coal.

Clean Global believes EPC 1748 and EPC 1745 are ideal for conventional coal mining; today's grant of permit is a significant step in that direction.

It has a program planned based on three to four holes over the next six month, aiming to prove up conventional an underground coal mine asset to JORC standard.

Drilling is planned to start in first quarter 2012 with the grant of permit.

The permit was given the green light by the Queensland Mines and Energy, Department of Employment, Economic Development and Innovation.

It covers an area of 280 square kilometres and offers potential for conventional thermal coal mining. Interestingly for investors major road and rail infrastructure runs through the permit.

Clean Global Energy's primary target is the Macalister coal seam, which is part of the Juandah Coal Measures of the upper Walloon sub-group.

The company aims to define an exploration target of up to 300 million tonnes in the first half of 2012.

Clean Global is a stock to watch in transition with changes being made and dialling into a hot conventional coal sector in Queensland.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21230/clean-global-energy-moves-closer-to-drilling-queensland-thermal-coal-asset-21230.html