Coalworks expects more resources

COALWORKS is expecting more resources to come from its Ferndale project in the Hunter Valley of New South Wales, while looking at a healthy sideline in petroleum production at its flagship Oaklands project.
Coalworks expects more resources Coalworks expects more resources Coalworks expects more resources Coalworks expects more resources Coalworks expects more resources

Image courtesy of Coalworks.

Blair Price

The junior acquired a 90% interest in the Ferndale project in late January and recently upgraded the exploration target from 60-85 million tonnes to 250-300Mt.

Of this amount, 10-50Mt of thermal coal is expected in the Newcastle coal measures at depths of 20-70m.

The Whittingham coal measures, which includes the Wambo and Blakefield seams, is expected to bring in another 200-250Mt at depths exceeding 150m.

At the Oaklands project in southern NSW, an independent market study on the coal-to-liquids plant proposal flagged output of 7000 barrels of petroleum per day – about 2% of Australian consumption.

The automotive-grade petrol produced from the Lanes Shaft seam is expected to be railed for distribution in NSW and Victoria.

A separate study on the groundwater has reduced the previously estimated dewatering requirements, which Coalworks noted was “a very positive outcome”

A bankable feasibility study has begun for Oaklands, which has 822Mt of resources including 121Mt measured.

In mid-April the company lifted the inferred resource at its Vickery South project near Gunnedah to 42Mt.

A second phase of drilling is planned, while Coalworks is testing more samples to identify coking coal potential in the low-to-medium ash and sulfur resources.

Coalworks ended March with $9.6 million cash.

Shares in the company are in a trading halt this morning and were last at 47c.