Golden Cross Resources to drill Queensland coal targets

Golden Cross Resources (ASX: GCR) has applied for nine permits in the Bowen, Surat, Clarence- Moreton and Galilee Basins in Queensland since November 2008 and is planning to drill four of its coal permits that have been recently granted or offered.

The focus of exploration will be evaluating the potential of deeper “stranded coal seams” for UCG extraction where the opportunity for shallow, open cut resources is limited. A 2,000 metre, 5-10 hole drill program planned.

Of the nine applications, one has been granted in the Boonah area south of Ipswich (EPC1643) and two have been granted and one offered in the area between Chinchilla and Dalby (EPCs 1655, 1658 and 1659).

These coal permits are located in the vicinity of the Underground Coal Gasification-Gas to Liquids (UCG-GTL) of Linc Energy’s (ASX: LNC) and Carbon Energy’s (ASX: CNX) UCG projects, and the Kogan Creek and Wilkie Creek open cut mines.

Two other permit applications have been lodged in the Boonah area (EPCs 2068 and 2082) with the remaining EPC’s lodged in the Pentland area (EPC1642), Nebo area (EPC1639) and Warwick area (EPC1656) are classified as competing applications.

GCR is waiting for the Department’s assessment of all 3 overlapping applications.

Over the course of the next three months GCR will refine its drill targets, and subject to drill rig and specialist consultant availability, evaluate the coal and UCG potential of its granted coal permits and applications under offer when granted.

Golden Cross is investigating opportunities to place its coal assets in a dedicated coal company.

GCR is currently evaluating other coal areas in Queensland’s major coal producing basins for permit applications, joint venture opportunities, or outright acquisition.

http://www.proactiveinvestors.com.au/companies/news/6503/golden-cross-resources-to-drill-queensland-coal-targets-6503.html