Sunday, 24 June 2012

Why keep an eye on Budaberg, large Growth expected.


"if you are getting blog via email click above heading for missing pictures and video"  


Why keep an eye on Bundaberg, there is coal in those hills....


I have been getting reports for a while on future prospects for Queensland. For a long the now people have been worried about investments especially in this region.
But Bundaberg is on the move. 


I blogged about Masters store and now this latest news backed by Hancock is looking good. http://www.iloveproperty.net/2012/01/bundaberg-fight-over-new-masters-store.html


First off "the resources", people always ask me where do I get all my information, so 
this time I will elaborate a little bit. 




Below information comes from Proactive Investors which is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.







Also NewsMail reports 

"A COAL exploration company will begin the drilling of coal seams around Avondale to examine the future viability of establishing mining operations in the region."
Where is Avondale.
Managing director David Round said the company's Bundaberg Project had been made a priority with an exploration target of 350 million tonnes of coking coal.
"It's quite a large tenement and obviously there are many factors we need to work through, including environmental concerns and the wishes of landowners," he said.
The initial drilling project, expected to cost up to $2 million, will take up to six months and include about 20 holes.
International Coal has also made a mining application with the Queensland Department of Mines and Energy for an additional parcel of land around Avondale and Yandaran, about 900sq km in size.



Bundaberg Regional Council Division 3 councillor Wayne Honor said International Coal was one of several companies to have coal exploration interests in his division.
He said the potential economic benefits of mining projects needed to be balanced with the need to protect underground aquifers and care for the environment

Cr Honor said he would be opposed to any underground coal gasification projects because of the region's proximity to a large water aquifer.

"The Bundaberg Water Aquifer sits very close to Avondale and supplies about half of the water to Bundaberg City," he said.
"We certainly would not want to do anything that could affect health of our residents or the health of our agricultural industry which underpins our local economy."
He said well-managed, environmentally conscious open-cut mining projects had the potential to employ new generations of Bundaberg residents and bolster the region's business landscape.
"It would be an absolute boom for the local economy and for the job prospects of our region," he said.


International Coal's website reports:


International Coals’ Bundaberg Project are located in a well known and highly prospective region, adjacent to a number of well established Coking Coal explorers and producers.
The recently produced Moultrie Group report stated that EPC’s 2194 and 2196 are -
Potential for Coking Coal discovery and contain two target exploration coal-bearing units:
  • Burrum Coal Measures
  • Maryborough Formation
The principal target is Cretaceous hard Coking Coals and several exploration targets have been determined with an Exploration Target (ranked highly prospective) of 280 Mt – 370 Mt
Near neighbours include Northern Energy, Guildford Coal, Cliff Resources and Hancock Coal.

The Bundaberg Project already has a small JORC Resource of around 1.5 million tonnes, 
however the exploration target is 280-370 million tonnes of coking coal.


International Coal’s Bundaberg tenementsThe Bundaberg Project is part of a solidly developing hard coking coal region, which hosts Northern Energy’s (ASX: NEC)proposed 105 million tonne Colton Mine 45 kilometres to the south of the project.  Bundaberg also lies adjacent to Guildford Coal’s (ASX: GUF) exploration permit EPC 1872 where current exploration is being undertaken. Other near neighbours to the project include Cliff Resources and Hancock Coal.


Bundaberg has shown the potential for large tonnages of thermal and coking coal over two exploration coal-bearing targets – the Burrum Coal Measures and the Maryborough Formation. 


International Coal snares Hancock Prospecting as JV partner

Thursday, June 21, 2012 by Proactive Investors
This is a significant milestone for International Coal, securing a farm-in and JV partner of the ilk of Hancock Prospecting to intensify exploration efforts at the Bundaberg coking coal project. This is a significant milestone for International Coal, securing a farm-in and JV partner of the ilk of Hancock Prospecting to intensify exploration efforts at the Bundaberg coking coal project.
International Coal (ASX: ICX) has entered into a farm-in and joint venture agreement with Queensland Coal Investments, a wholly owned subsidiary of mining heavyweight Hancock Prospecting, which can earn up to a 51% interest in the Bundaberg coking coal project.

Queensland Coal Investments can earn an initial 25% interest through the staged development and expenditure of A$1.5 million and a further 26% through the expenditure of an additional $1.5 million.

In addition to the earn-in payments, Queensland Coal Investments must also pay International Coal $2 million upon attaining the 51% interest in the project.

Importantly, this provides International Coal with required exploration funding to advance the project. 
Hugh Dai, executive director, told Proactive Investors today the deal represented a recognition of the value of International Coal’s Bundaberg tenements by Queensland Coal Investments.

“For this deal you can see they can earn 51% for $5 million, and the tenements you are probably talking about $9 or $10 million in value.

“Secondly it adds credibility to our company and our project.”

The Bundaberg Project is part of a solidly developing hard coking coal region, which hosts Northern Energy’s (ASX: NEC)proposed 105 million tonne Colton Mine 45 kilometres to the south of the project.

Bundaberg also lies adjacent to Guildford Coal’s (ASX: GUF) exploration permit EPC 1872 where current exploration is being undertaken. Other near neighbours to the project include Cliff Resources and Hancock Coal.

The Bundaberg Project already has a small JORC Resource of around 1.5 million tonnes, however the exploration target is 280-370 million tonnes of coking coal.

During 2011, International Coal worked closely with the Moultrie group in assessing the prospectivity of the project.

Bundaberg has shown the potential for large tonnages of thermal and coking coal over two exploration coal-bearing targets – the Burrum Coal Measures and the Maryborough Formation.

The primary target is Cretaceous coking coals within the Burrum Coal Measures.

International Coal has completed negotiations with the majority of landowners within the project area and lodged compensation agreements with the Queensland Government.


Analysis

For a company the size of International Coal, with a market cap. of $33 million, this deal is the equivalent of having truly arrived, as well this would appear to underwrite the Company's exploration effort. 
We believe the market, given the risk adverse environment, may have missed the import of the deal in providing a further leg up in the market valuation of International Coal.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.