Mecsek holds 81Mt coal

WILDHORSE Energy is sitting on an inferred resource of 81 million tonnes at its Komlo target area in the Mecsek Hills underground coal gasification prospect in Hungary, according to the latest analysis.
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James McGrath

The estimate was informed by historical 29-hole drilling results and the initial confirmation from a twin hole recently drilled.

Samples from the twin hole were sent to SGS Laboratories in the Netherlands for analysis and the data from the twin hole and a drill hole drilled 54 metres from the twin hole in 1973 showed good correlation.

Wildhorse said the results from the recent sampling indicated the more current sample was of a higher quality than historical estimates showed, giving the company firmer confidence in the historical numbers as an estimate.

The company also said while the historical figures were good for an inferred coal resource estimate, more investigation would be required to formulate a higher coal resource category.

To that end, Wildhorse intends to collect drilling data from both its coal and coal bed methane licences in order to fully understand the distribution of coal within the broader Mecsek project area.

The project has a tentative exploration target of 1-1.25 billion tonnes of coal. Final site selection will be determined after completion of the drilling program.

The company will also undertake an assessment of factors including geological structure, coal suitability, environmental permitting, hydrogeology, as well as regulatory confirmation as to which mining licences the company will need to permit the conversion of coal into Syngas using underground coal gasification (UCG) technology.

Wildhorse managing director Matt Swinney said the drilling was giving the company greater confidence in the project’s viability.

“This ongoing drilling campaign is providing us with invaluable information regarding the UCG potential of the Mecsek Hills UCG project as we move forward with development of the project in conjunction with the upcoming publication of a [preliminary feasibility study],” he said.

“The results from this first confirmatory hole are pleasing as they have confirmed what we expected from our modelling of the historic drill hole database.”