International Coal: multiple coal seams intersected at South Blackall in Queensland

International Coal (ASX: ICX) has intersected multiple coal seams in every hole of a 900 metre drilling program at the South Blackall Project, which is strategically located in a highly prospective region of south western Queensland.

Provided in a market update, International Coal outlined that down hole Geophysical data confirms 11.59 metres of cumulative coal with significant intersections from 33 metres in depth in one hole - which is the currently the only available data.

The outcome is that this positions the company to produce a maiden JORC Resource from the project in 2012, which covers an area of almost 770 square kilometres and consists of 250 sub-blocks.

The site is well positioned 80 kilometres north-east of Quilpie in south-west Queensland, and is part of the Eromanga and Galilee Sedimentary Basins - and has a substantial exploration target of 8.8 billion tonnes of thermal coal.


Preparation for Bundaberg program

International Coal has a dual project focus with the Bundaberg Project having an exploration target of 280 to 350 million tonnes of coking coal, identified by Moultrie Group.

International Coal has also confirmed that draft Compensation Agreements with most landowners situated within its Bundaberg sites of EPC 2194 and 2196 have now been concluded.

The company now intends to register these agreements with the Office of State Revenue and notify landowners of its intention to commence drilling as soon as possible in 2012.

The initial drilling plan is up to 18 holes.


Additional tenement acquisition update

International Coal has recently been very active in increasing the company's tenement footprint in the Eromanga Basin Region, with a review currently underway to develop a strategy to prioritise exploration and drilling at a number of these new project areas during 2012.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23495/international-coal-multiple-coal-seams-intersected-at-south-blackall-in-queensland-23495.html