Contract signed on Watermark

THE anticipated contract between coal giant China Shenhua Energy and Every Day Mine Services has been signed today, signalling drilling at the Watermark exploration project near Gunnedah, New South Wales, will soon start.
Contract signed on Watermark Contract signed on Watermark Contract signed on Watermark Contract signed on Watermark Contract signed on Watermark

Courtesy Every Day Mine Services.

Claire Svircas

Every Day Mining Services subsidiary GOS Drilling was named the preferred drilling contractor last month.

The contract calls for six surface rigs to be mobilised on a staged basis with the first three rigs starting work on June 15.

The balance of the rigs will start work 10 days later on June 25.

GOS estimates the first stage of the drilling program will run for up to nine months and the contract will realise up to $A5.5 million in revenue depending on drilling productivity and ground conditions.

The drilling is to underpin a full mine feasibility study.

Last year, CSE paid $A299.9 million to the NSW government for the five-year Watermark exploration licence, which covers 190 square kilometres.

An initial exploration program by the NSW Department of Primary Industries is the only previous work done in the area.

CSE hopes Watermark will host more than 1 billion tonnes of shallow thermal coal resources of domestic and export quality.

Every Day Mining Services shares surged 25.5% or 1.4c on the news to 6.9c.

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