NuCoal widens project scope

NUCOAL Resources plans to start drilling the Savoy Hill project in the Hunter Valley today, after finally completing its acquisition of privately held company Dellworth. The explorer is hunting for other strategic acquisitions to boost its foothold in the region.
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The Doyles Creek, Savoy Hill and Dellworth projects, map courtesy of NuCoal.

Blair Price

In April NuCoal acquired a 49% stake of Dellworth, which holds two exploration licences close to NuCoal’s flagship Doyles Creek longwall project near Jerry Plains.

After receiving approval from New South Wales Resources and Energy Minister Chris Hartcher, NuCoal has mopped up the remaining 51% stake in a scrip-based deal valued at $A1.15 million.

“NuCoal will continue to assess other strategic acquisitions that can add value to its project portfolio,” managing director Glen Lewis said.

The company previously said the main target seam of Dellworth’s namesake project averaged about 5.4 metres thick but Dellworth’s Savoy Hill project was of more immediate interest.

Covering an area of about 20.24 square kilometres, Savoy Hill is next to Anglo American’s Drayton open cut mine and only 6 kilometres north of the Doyles Creek project.

Savoy Hill is also surrounded by Xstrata’s Glendell mine and Ravensworth open cut and underground operations.

A nine-hole drilling program will start today and NuCoal plans a more extensive program next year.

The explorer said the initial drilling program for the Dellworth project would start in early 2012.

NuCoal shares are unchanged at 30c this morning.

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