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The licence covers the former Catamaran coal field where steaming coal has previously been successfully mined.
Zelos, formerly Zinico Resources, said it would commence drilling soon to prove up an economic resource and will draw on the capabilities of its cornerstone investor Gujarat NRE Coke. Gujarat is already developing coal resources in New South Wales and recently successfully recommissioned the Bellambi mine.
Zelos has employed Brisbane-based SMG Consultants to conduct the resource estimate.
According to exploration work carried out by Marathon Petroleum in 1984, an in situ inferred resource of 5.5 million tonnes of coal suitable for opencut mining was identified. A further inferred resource of 11.5Mt of shallow underground coal was also identified.
Zelos was trading up 7.7% on Monday at 14c.
