Wednesday, 18 December 2013

QLD Bundaberg Activity again with Mining in Australia.

Activity again with Mining in Australia.
I am sorry but things are happening, even if the media want to say it over.
Activity of present shows upward movement even in new ventures.

Bundaberg

Fox Resources Ltd  http://www.proactiveinvestors.com.au/sponsors/593/fox-resources-0593.html
Fox Resources Ltd (ASX: FXR) is an exploration company with substantial exploration interests in Central Queensland and the Pilbara region of Western Australia.

Fox’s exploration programme covers a number of prospective coal, base metal and gold targets, a magnetite project at Mt Oscar, located 25km south of the port at Cape Lambert which is a Joint Venture with Magnetic South Pty Ltd, and the Radio Hill, Sholl and Ayshia deposits.

Fox Resources intersects coal with first hole at Bundaberg Project

Monday, December 09, 2013 by Bevis Yeo

Fox Resources' first hole at its Bundaberg Coking Coal Project in Queensland has intersected three separate coal seams totalling 2.4 metres.
Fox Resources' first hole at its Bundaberg Coking Coal Project in Queensland has intersected three separate coal seams totalling 2.4 metres.
Fox Resources (ASX: FXR) has received an encouraging start to drilling at its Bundaberg Coking Coal Project in Queensland with the first hole intersecting three separate coal seams totalling 2.4 metres.
   
Importantly, these coal seams appear similar to the coal seams intersected by the International Coal (ASX:ICX)/Hancock Prospecting joint venture in the adjacent EPC 2196.

This represents a total strike length of the coal seams in the area of 8,500 metres.

Drilling continues on the drill site at Fox 6 with a twin of the Fox 6 hole underway. The twin hole will be primarily a chip hole with a diamond core drilled through the prospective sequence.

“Intersecting 2.4m of coal over a 4.4m interval is extremely encouraging and we look forward to testing the intersected coal seams with core,” chairman Terry Streeter said.

“The continuity of the seams is promising for our continued drill program.”
Drilling Details

The Fox 6 hole has been geologically and geophysically logged for gamma, density with the intersection interpreted based on the geophysical logging.

This is expected to be the most valid and accurate indication of the coal seams as samples from the chip hole will be at least moderately to highly contaminated.

Fox 6 is located about 4.5 kilometres southeast of International Coal’s BUN013P hole which intersected 4.16 metres of coal over a 6.87 metre interval from a depth of 343.44 metres.

The twin hole will be drilled with rotary chip drilling with diamond core drilled through the prospective horizon.

Obtaining the core will allow coal quality tests to be undertaken along with density measurements improving the confidence in the current interpretation.
The initial drilling program consists of up to 7 drill holes, which is expected to be completed within three weeks.

Drilling sequence for the remaining holes will be influenced by the observed geology from the completed holes along with any weather related limitations.

All holes will be geologically and geophysically logged with chip samples tested for moisture and crucible swell number.

This will identify if the coal seams:

-    Intersected in EPC 2196 at depths of 250 metres to 588 metres are continuous and extend into Fox’s EPC1523;
-    correlate with and are continuous to shallow seams intersected in historical drilling;
   
Once drilling is completed, a structural model will be generated so as to allow resource estimation.

Fox intends to undertake further historical data compilation, target identification and possible drilling on the highest priority targets within its existing Queensland coal tenements.

Bundaberg Coking Coal Project
Based on several geological consultants’ reports and previous investigations, the most promising area within EPC1523 is a 15 kilometre north-south corridor along the western margin of the tenement.

This corridor has the potential to host a small to medium sized coking coal deposit in the order of 5 million tonnes to 20Mt.

Multiple coal seams ranging from 0.2 metres to 2 metres thick may be present over a stratigraphic interval of 5 to 20 metres. The available coal quality test work indicates that prime coking coal is potentially present.

The project also benefits from good access to key infrastructure.

Funding for the exploration program is covered by the $3.8 million package secured in early October from the Lind Partners’ Australian Special Opportunity Fund.
Analysis

Shares in Fox Resources should trade higher today on the encouraging start to its drilling program at the Bundaberg Coking Coal Project.

That the coal seams intersected in the first hole appear to correlate with those in the adjacent EPC 2196 is notable, given that International Coal and Hancock Prospecting have already established a 28.5 million tonne Inferred Resource with hard coking coal characteristics.

This is undoubtedly value-accretive for a company with a undemanding market capitalisation of $9.46 million that remains leveraged to any further exploration successes.

Share price catalysts ahead include:

-    Results from the twin hole to Fox 6;
-    Results from the remaining holes; and
-    Assays from recovered samples.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

International Coal drilling proves continuity of coal seams at Bundaberg

International Coal www.intercoal.com.au/
Full International Coal profile here
International Coal (ASX: ICX) is an Australian based resource company with a number of prospective coking coal and thermal coal projects in well known coal regions of Queensland.

International Coal drilling proves continuity of coal seams at Bundaberg

Thursday, October 31, 2013 by Proactive Investors

International Coal has drilled two chip holes that demonstrate the continuity of coal seams at its Bundaberg Coking Coal Project in the Bowen Basin, Queensland.
International Coal has drilled two chip holes that demonstrate the continuity of coal seams at its Bundaberg Coking Coal Project in the Bowen Basin, Queensland.
International Coal (ASX: ICX) has drilled two chip holes that intersected additional coal and demonstrated the continuity of coal seams at its Bundaberg Coking Coal Project in the Bowen Basin, Queensland.

Notably, Gina Rhinehart's Hancock Prospecting has now spent over $1.5 million and has met the earn-in requirements to enable the exercise of its option to acquire a 25% interest in the project.

One of the two chip holes was drilled outside the Exploration Target area.

The Bundaberg project currently hosts a 28.5 million tonne Inferred Resource with hard coking coal characteristics – including a CSN of 9 – that compare favourably to those found elsewhere in the prolific coal producing Bowen Basin.

“The two holes have intersected coal and provided us with a better understanding of the structure of the resource,” chief executive officer Glenn Simpson said.

“What may be seen is that the seams can be correlated beyond the extent of the current reported inferred resource area and that there is some variability in the seam continuity and the development of individual seams.”

Further work is required to correlate these results with previous drilling in order to better understand the extent and quality characteristics of the resource and the timing of any further drilling will be communicated to the market as soon as possible.

The company is now preparing a detailed review of this data and the Inferred Resource and Exploration Target.

Bundaberg project background

A total of six boreholes on three sites, including three core holes (BUN006C, BUN010C and BUN011C) were drilled on EPC 2196 near Bundaberg in late 2012.

A JORC Inferred Resource of 28.5 million tonnes was identified, with the Exploration Target for the area upgraded to the range of 20 to 40 million tonnes (in addition to the JORC Inferred Resource).
The coal has prized hard coking coal properties with a a Crucible Swelling Number “CSN” of 9 (10 is higest), well above the CSN range of 6.5 to 8 that is considered to be good prime quality coking coal.

Hancock is spending $3 million to earn in to a 51% interest in the project.

There is known to be significant interest shown from Asian groups in International Coal's suite of coal assets, we understand the interest has heated up of late.

Analysis

Shares in International Coal could rise today on the positive results of the chip holes that prove the continuity of the coal seams at its Bundaberg Coking Coal Project.

That one hole is located beyond the extent of the current Inferred Resource raises the likelihood that International Coal’s current resource is just the tip of large and high demand coal resource.
Proactive Investors would expect these results should add to the current JORC resource, which is already worth several billion dollars, at Bundaberg, in the near future.
Important for investors to note, the coal at Bundaberg project has prized hard coking coal properties with a Coal Swelling Index of 9 (10 is higest) as reported previously.

The Bundaberg Project also benefits from its close proximity to rail and port infrastructure and together with the Consuelo Project, holds the key to a major re-rating of the company.

Proactive Investors estimates a valuation for International Coal of $0.27 - $0.33 with a 12-18 month time line.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.