Greenpower Energy (ASX: GPP) has nearly completed its drilling campaign on its Victorian brown coal areas in the Latrobe Valley of Victoria, which will assist with definition of maiden JORC resources.
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A total of 10 air core and rotary mud drill holes have been completed and an additional five rotary mud holes and two coreholes remain to be drilled. Core sampling is being submitted for testing.
This resource definition work is part of Greenpower’s strategy for sustainable development of the Latrobe Valley lignite, otherwise known as brown coal. The company aims to use brown coal for production of liquid hydrocarbons.
Greenpower is currently in the process of completing plans for the introduction and adoption of technology which converts brown coal to API 37 synthetic crude oil, which is greenhouse gas neutral.
Greenpower has interests in four Exploration Licences which are at various stages of drilling and cover some lignite areas with strip ratios of less than 2:1.
Additionally other areas of lignite at greater depths and with subsequent higher stripping ratios are covered by the company’s licences. They have been chosen with a view to utilising newer energy recovery technologies which are able to operate with greater overburden thicknesses.
In most holes substantial thicknesses of brown coal have been intersected. This information together with data from existing work will be used to generate the JORC resource for the brown coal deposits west of Moe.
Greenpower’s interests in the permits are held via two wholly owned subsidiaries: Sawells Pty Ltd (EL4877 and EL4860) and Greenpower Natural Gas Pty Ltd (EL4500 and EL5227).
This extension of the 2003 Latrobe Valley Coal Resource Model below
Description This extension of the 2003 Latrobe Valley Coal Resource Model shows the distribution and quality of the brown coal. 8445 bores have been modelled over a total area of 2030 square kilometres. This is a 930 square kilometre extension to the original model and incorporates 17 new bores in the Stradbroke area. It captures 90 years of knowledge that was previously only accessible as paper records. It has applications in assessments of coal utilisation, land use, ground water and subsidence.
Both the 2003 (pink area) and 2008 (red area) modelling was done by GHD.
In 2003 the project was funded by the Victorian Department of Innovation, Industry and Regional Development as an outcome of the Latrobe Valley Ministerial Taskforce. Yallourn Energy, International Power—Hazelwood and Loy Yang Power gave permission to use their mine models.
The 2008 extension of the current coal model was funded through the Developing the Latrobe Valley Resources Future Initiative (3 year project - funded out of the Provincial Victoria Statement). We have used data provided by Victoria Coal Resources Pty Ltd (VCR). The extension was undertaken as part of a broader project to raise the profile of coal deposits in the Gippsland region and encourage investment in coal based development (beyond electricity). VCR is a company that is exploring coal to diesel, coal bed methane and underground coal gasification opportunities.
The following rules were used for 2008 seaming:
- Seams are at least 6m thick. Thinner seams were permitted where truncated by Haunted Hills Formation (HHF) or where the bore has started or ended in coal.
- No 6m (or more) interval within a seam contains more than 30% ash.
- Seams started and finished in coal.
- Coal at seam boundaries was excluded if thinner than neighbouring intraseam.