International Coal readies to test Queensland coal targets

Newly listed International Coal (ASX: ICX) has wasted no time with $7.7 million in hand to set its sights on an aggressive exploration program on its Queensland coal tenements.

At the Bundaberg Coking Coal Project, the Company has a year one exploration program objective to drill 23 holes.  While in year two, it has a planned program of 89 holes and testing coal quality program and a total budget of $3 million.

The Bundaberg Project looks to be part of a solidly developing hard coking coal region.  International has pegged an exploration target (ranked highly prospective) of 280-370 million tonnes of coal. 

Near neighbours at Bundaberg Project include Northern Energy (ASX: NEC), Guildford Coal (ASX: GUF), Cliff Resources and Hancock Coal.

At the South Blackall Project, there is a massive large tonnage thermal coal Exploration Target of 8.0–9.0 billion tonnes. The project is in the Eromanga basin – a developing region for coal explorers. International's tenement is adjacent to East Energy’s (ASX:EER) 1.2 billion tonne JORC Inferred Resource.

The program planned for South Blackall includes in year one, drilling 7 holes as well as seismic surveys with a budget of $325,000.  In year two, there are 13 drill holes planned and the program will include coal quality testing with a budget of $475,000.

The Eromanga Basin has the hallmarks of a significant new thermal coal basin, with targets of large open cut deposits with likely low stripping ratio. Regional drilling has unveiled large resources and targets. Increased regional drilling activity will likely support a developing infrastructure.

With drilling targeted to start shortly, International is focused on proving up a JORC resource in the short term.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18520/international-coal-readies-to-test-queensland-coal-targets-18520.html